Concerning the prevention of the transfer of unexpended information technology annual depreciation-lease equivalent payments to the general fund.
Summary
HB26-1403 changes how money in Colorado’s information technology capital account is handled at the end of a fiscal year. Under current law, unappropriated or unspent balances in that account are generally transferred to the general fund beginning with fiscal years starting on or after July 1, 2025. The bill creates an exception for amounts that were transferred, credited, or paid into the account as information technology annual depreciation-lease equivalent payments under existing law.
Beginning with fiscal years starting on or after July 1, 2026, the state treasurer is prohibited from transferring those depreciation-lease equivalent payment amounts to the general fund. Instead, those funds must remain in the information technology capital account and be used in accordance with the statute governing those payments. The bill also preserves the existing rule that IT capital account money appropriated to agencies or higher education institutions cannot be repurposed for projects outside the original scope without additional approval from the Joint Technology Committee.
Impact
The bill amends Colorado Revised Statutes section 24-75-302 governing the capital construction fund and the information technology capital account. Its practical effect is to protect a specific stream of IT-related funds from year-end sweep to the general fund, thereby keeping those dollars available for information technology capital purposes rather than general state spending. It affects the state treasurer’s transfer authority, the general fund, the capital construction fund, state agencies, and institutions of higher education that receive IT capital appropriations.
Sentiment
The available record suggests the bill was noncontroversial or at least not heavily contested: it moved through Appropriations in both chambers and was ultimately signed by the governor. No committee transcripts or recorded votes are provided, so there is no evidence of significant opposition in the materials supplied. The bill’s framing as a technical fiscal measure and its safety clause also suggest it was treated as a budget-management item rather than a policy dispute.
Contention
The main policy issue is whether unspent information technology depreciation-lease equivalent payments should be allowed to revert to the general fund or be reserved for IT purposes. Supporters of the bill appear to favor preserving these funds for their intended technology-related use, while any potential opposition would likely come from those preferring greater flexibility to use unspent balances for general fund needs. Another point of administrative control is the continued requirement for Joint Technology Committee approval before agencies can expand IT projects beyond their original scope.