Concerning the repeal of certain provisions regarding the funding of capital construction, and, in connection therewith, reducing an appropriation.
HB26-1406 is a budget and fund-restructuring bill that repeals several statutory provisions tied to how Colorado funds capital construction and long-term maintenance for state facilities. The bill eliminates the annual depreciation-lease equivalent payment requirement, which currently requires many state agencies and institutions of higher education to set aside money for future maintenance costs associated with capital assets. It also repeals related reporting requirements and the capitol complex master plan implementation fund, while directing certain balances to be transferred into the general fund.
The bill specifically requires the state treasurer to transfer $15,263,000 from the capitol complex renovation fund to the general fund on June 30, 2026, and then transfer the remaining balance of that fund to the general fund on June 30, 2027, after which the fund is repealed. It also amends the capital construction fund and controlled maintenance trust fund statutes to reflect the removal of the old funding mechanism and to update how unappropriated balances and reversions are handled. In addition, the bill adjusts the 2026-27 appropriations for several departments to reduce or eliminate depreciation-lease equivalent payment line items, including agriculture, corrections, higher education, human services, military and veterans affairs, natural resources, personnel, public health and environment, and public safety.
The bill changes Colorado fiscal law by dismantling a set of statutory accounts and transfer requirements that previously supported capital construction and maintenance funding. It shifts money out of the capitol complex renovation fund and into the general fund, repeals the capitol complex master plan implementation fund, and removes the statutory requirement that agencies make annual depreciation-lease equivalent payments for capital assets. It also updates related statutes governing the capital construction fund, controlled maintenance trust fund, and legislative department cash fund to conform to the new structure, while reducing appropriations in the 2026-27 budget to match the repeal of those payments.
The available context shows the bill ultimately passed and was signed by the governor, which suggests it had sufficient support to advance as a budget and fund-management measure. Because there are no committee transcripts or recorded votes provided, there is no direct evidence of public debate in the supplied materials. The bill’s structure and appropriations adjustments indicate it was treated as a fiscal cleanup and fund-transfer measure rather than a policy expansion, and the final enactment suggests the overall sentiment was favorable or at least pragmatic among the legislature and executive branch.
The main point of potential contention is the repeal of the annual depreciation-lease equivalent payment requirement, because that mechanism had been used to reserve money for long-term maintenance of capital assets. Agencies and institutions that relied on those set-asides, especially higher education and departments with significant facilities portfolios, would be most affected by the change. Another possible concern is the diversion of balances from dedicated capital-related funds into the general fund, which may be viewed as reducing future maintenance capacity in favor of near-term budget relief. No specific opposing arguments or named dissenters are included in the provided record, so the contention can only be inferred from the bill’s fiscal effects.