Concerning the classification of certain state revenue for the purposes of calculating state fiscal year spending pursuant to section 20 of article X of the state constitution, and, in connection therewith, clarifying the statutory definitio...
Summary
SB26-042 revises Colorado’s statutory definitions used to calculate “fiscal year spending” under TABOR, the state constitutional limit on annual spending. The bill clarifies that certain revenues are excluded from state fiscal year spending as either “collections for another government” or “damage awards,” beginning with fiscal years on or after July 1, 2025. In particular, it adds specific treatment for aviation-related fuel tax revenue that is collected by the state and distributed to airport or governmental entities, and for criminal history record check fees that are passed through to the FBI for the federal portion of those checks.
The bill also expands the definition of “damage award” to include additional fines, penalties, and forfeitures that are credited to the Highway Users Tax Fund, as well as certain money deposited in crime victim compensation funds. It further changes how some of those revenues are handled for spending-limit purposes and includes a new appropriation for victims’ compensation administration in the judicial department for fiscal years 2025-26 and 2026-27. The measure was signed by the governor, indicating final enactment.
Impact
The bill amends Colorado Revised Statutes sections 24-77-102, 24-4.1-117, and 43-4-205 to reclassify specified revenue streams for TABOR calculations and to adjust the allocation of certain highway-related fine and penalty revenues. It also creates or modifies appropriations to support victims’ compensation administration. In practical terms, the bill affects how the state counts revenue against its constitutional spending cap and how certain funds are treated in state budgeting, while also directing some revenues to road safety and victim compensation purposes.
Sentiment
The available context suggests the bill moved through the legislature without recorded committee transcript controversy in the provided materials and ultimately passed into law. Its sponsorship and enactment indicate support for clarifying TABOR accounting rules and aligning statutory definitions with existing constitutional exemptions. The absence of recorded votes or committee debate in the supplied context limits the ability to identify formal opposition, but the bill’s structure suggests it was treated as a technical and budgetary clarification measure rather than a broad policy dispute.
Contention
The main points of contention likely centered on whether the state should exclude additional revenue categories from TABOR spending calculations, especially revenues tied to aviation fuel taxes, FBI pass-through fees, and certain fines and penalties. Critics of such measures typically worry that expanding exclusions can reduce transparency or loosen spending-limit constraints, while supporters argue the bill simply aligns statute with the constitutional intent behind TABOR exemptions. Another possible issue is the reclassification of highway-fund-related penalties and crime victim compensation monies, which affects how those revenues are counted and allocated within state finance systems.