Concerning transferring money from the tobacco education programs fund to the preschool programs cash fund, and, in connection therewith, making and reducing an appropriation.
Summary
HB261404 transfers $10 million from Colorado’s Tobacco Education Programs Fund to the Preschool Programs Cash Fund on June 30, 2027. The money transferred must come from funds that originated in the 2020 Tax Holding Fund. The bill is tied to the state’s universal preschool program and is structured as a budget adjustment measure rather than a broad policy change.
To implement the transfer, the bill reduces the general fund appropriation to the Department of Early Childhood for the universal preschool program by $10 million and then makes a corresponding $10 million appropriation from the Preschool Programs Cash Fund for the same purpose. The bill also includes a repeal date for the transfer provision, effective June 30, 2028, and takes effect upon passage, with the appropriation adjustments contingent on the 2026-27 long appropriations bill becoming law.
Impact
The bill amends Colorado Revised Statutes section 24-22-117 to require a one-time transfer from the Tobacco Education Programs Fund to the Preschool Programs Cash Fund and creates a temporary statutory directive that sunsets in 2028. It also adjusts state appropriations for fiscal year 2026-27 by reducing general fund support for universal preschool and replacing it with cash fund support, affecting the Department of Early Childhood and the universal preschool program. The practical effect is to shift the funding source for $10 million of preschool spending without changing the program’s overall authorized use.
Sentiment
The available record suggests the bill moved through the process without recorded floor debate or committee transcript opposition, and it ultimately passed and was signed by the governor. Its placement in the Appropriations committees and the absence of recorded votes or testimony indicate it was treated primarily as a fiscal and budget-balancing measure. Overall, the sentiment appears neutral to favorable, with the bill framed as a funding reallocation for an existing early childhood program rather than a controversial policy overhaul.
Contention
The main point of potential contention is the source of the money: the bill diverts funds from the Tobacco Education Programs Fund, which is associated with tobacco-related public health spending, to preschool programs. That creates a tradeoff between two public purposes—tobacco education and universal preschool—and could draw concern from advocates for either program depending on funding priorities. Another possible issue is the reduction in general fund support for universal preschool, although the bill offsets that reduction with cash fund money so the program’s total funding is intended to remain unchanged.