House Appropriations [Apr 07, 2026]

House Appropriations Committee will come to order. Ms. Polk, please call the roll.

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Madam Vice Chair, would you like to describe that bill? I would, in just a moment.

Okay, thank you, Mr. Chair. House Bill 1357 is the phase out of the teacher recruitment education program. This program was created in a bill from 2021 to create an educator career pathway through essentially concurrent enrollment in post-secondary courses while a student is still enrolled in high school at no tuition cost to the student or their families for two years after a student's 12th grade year. The program has grown from approximately 43 students in its first year to 193 students in the current year. This bill is proposing to end the program while still allowing those who are in their fifth year now to complete their sixth year next year, but we would not propose enrolling any new students in the 26-27 school year. The bill also changes the funding per student from current law, which is $10,721 to $7,104. This is similar to what the General Assembly did in terms of the payment rate for the Ascent Program, which is another extended high school program that we are also in the process of winding down that also had a per pupil rate that exceeded $10,000, and we have reduced that payment to match more closely to the community college rate instead of the full per pupil amount that is paid to our school districts. This is a program that we can appreciate, has been enjoyed by a small but appreciative number of students. At this point, what we know from the Department of Education is that 4.5% of the students in TREP have earned a credential through this program. A number of them are still enrolled, but it would be many years before we would know whether any of the students actually became teachers and stayed in Colorado for their career. It is a program that I think, other years is maybe nice to have. However, I would also say that it is a program that it only serves a very small number of students. It's not what I would say is particularly equitable when we think about the dollars that we have for our per-pupil funding in Colorado, particularly from the state ed fund, from which this program is funded, we are challenged in this budget year to fully implement our new school funding formula. We are not dedicating, we're not able to dedicate any new general fund dollars to funding that formula. So the rest of those increases that we would see this year in K-12 funding will have to come out of the state ed fund. And that fund, we have seen projections that, you know, it is going to be challenged over the next couple of years to meet our funding needs for those core services for public education in our K-12 system. And so while I can appreciate that this has been an important benefit to, again, a small number of students from whom we have heard, it is a program that I don't think in the context of our budget we are actually able to afford. And students are not prevented from enrolling in higher education in a teaching program. We have mentorship programs. There are other programs to serve students. And for those students who meet financial aid eligibility, they are able to receive that. This current program is not means tested, so anyone can access it. And so there are other opportunities for students beyond TREP to continue with higher education and getting a teaching degree. And I would encourage students to follow those paths. There are still Pell Grants available. We still have a Colorado Promise-like program in all of our institutions. And we have a higher ed tax credit. and those are still opportunities for students and their families to access.

You have two minutes to testify and please introduce yourself Oh make sure that your mic is on There a little There you go That it Got it Thank you Thank you But I was a teacher, so I can project.

My name is Lee Heaster, and I'm here today to ask you to amend this bill to allow the seniors of 2026 to have access to this incredible program. I have served as an educator in the state of Colorado for more than 30 years. This program was designed to address a teacher shortage, which we still have. Teaching is the foundation for all other professions. Our society would not have doctors or lawyers or legislatures without teachers. Teaching is also a profession that requires a four-year degree, but is low earning. So the cost of that higher education is greater than the earning potential. The program helps make earning the degree affordable so new teachers are not strapped with crippling debt. I am also the mother of a 2026 senior who has the dream of becoming a teacher and was to be a recipient of the TREP program in this coming school year. It is fundamentally unfair to the students that have upheld their end of the bargain to be stripped of this program without the ability to prepare. At the very least, they should be given a year to prepare. The core issue is not just the funding decision itself, it's the timing. These seniors are just weeks away from graduation. They have already made college decisions, accepted admissions, and in many cases, turned down other financial offers because they believed they would receive TREP funding. At this point in the year, there is limited opportunity for them to change course. The window for applications, scholarships, and alternative plans has largely closed. So this decision doesn't just shift funding. It creates real hardship. It places unexpected financial strain on families and, for some students, puts their post-secondary plans at risk entirely. These are students who did exactly what we ask of them. They planned ahead. Am I over? They plan, I'm okay. Thank you.

Thank you.

Yes, sir. Hi, my name is Milo Houston Islodic. Sorry, I know that name's a doozy. I am here to ask you to amend this bill to extend this program through the existing year. I've been dreaming of becoming an art teacher since middle school, and I was beyond excited to get to be a part of the teacher cadet program last year. and one of the most inspiring things I was able to do was teach alongside my elementary art teacher. I learned so much, and it absolutely solidified my desire to move forward with becoming an art teacher. Although I received several scholarships offering me over $31,000 a year to go to another school, I committed myself to the TREP program and staying in Colorado with my moms. I felt both betrayed and devastated when I found out that the legislature would be cutting funding for this program, especially at this time in the school year. I'm about to graduate and it's like a scholarship was taken away from me without warning. I know of other people in my cadet program who will not be able to attend college without this funding, the people that fall through the cracks. My classmates and I were born during the Great Recession and throughout our educational careers over 10 billion dollars was withheld from K-12 education which means that my entire time in school my classmates and I have experienced reduced resources, funding uncertainty, and program instability This decision continues that pattern at the exact moment we need stability most I want to go to college I want to be a teacher And you hold the power to make mine and many other students dreams come true by amending this bill to extend the program for the class of 2026. Thank you for your time.

Good afternoon, members of the committee. My name is Stephanie Christian, and I'm the parent of a graduating senior of the TREP program. I want to provide some context. Last year, the state eliminated the ASCENT program, accelerating students through concurrent enrollment. ASCENT allowed eligible students to remain in high school for an additional year while completing college coursework. When that program was cut, there was an important safeguard put in place. Students who were already seniors were allowed to keep their spot and receive their scholarship. The state recognized that those students had made academic and financial decisions based upon a promise, and it chose not to disrupt the path at the last moment. This is not what is happening today. TREP students who are weeks away from graduation are not being given the same consideration as last year. They followed the rules, they met the expectations, they made binding college decisions based upon a state-created pathway. Now, with almost no notice, that pathway is being removed. Additionally, these students were not eligible for many of the traditional scholarships because under TREP they were expected to remain classified as high school students during the first two years of the program. This cremates an immediate and very real consequence to families. Students are left without a financial pathway they planned on and without time to make alternative arrangements. This is not simply about funding a program. It's about consistency, fairness, the credibility of commitments made by this very legislature. When the state asks students to step up into the critical workforce shortages like education, those students and their families should be able to trust that the pathway will still exist when they reach the deadline. I urge you to apply the same principle that was used in Ascent. Finally, I ask you to consider the message this decision sends. The Joint Budget Committee chose not to cut doctor training programs, which receive $50 million, while eliminating funding for future teachers to zero. We are prioritizing professions that will earn hundreds of thousands of dollars over those that will begin at $40,000. And yet every one of those doctors first sat in a classroom led by a teacher. If we do not invest in our teachers, we undermine every profession that depends on them. Please consider your decision and fund the TREP program as the promise she made to the two individuals in front of you.

Good morning, members of the committee. My name is Abby Christian. I'm a high school senior graduating this May. More than two dozen educators, school counselors, and family members have already submitted written testimony to support TREP. and more than 100 Colorado citizens have emailed your offices asking for reconsideration of this program. The Colorado legislature created TREP in 2021 to help address our state's severe teacher shortage. I signed on to be part of that solution. I want to be a teacher because I love working with kids. I also have a brother with autism and that experience has shaped who I am. It has given me the passion for supporting diverse learners and making every student feel seen, understood, and valued in the classroom. TREP gave me a pathway to turn that passion into a career, and it provided both the financial support and the educational structure I needed to realistically pursue my dream of becoming an elementary school teacher. But now, just six weeks before I graduate, this dream is being taken away, not because I failed to meet the commitments and not because I didn't do the work, because this legislature is choosing to eliminate funding for this program. For more than two years, I have worked intentionally and digitally to meet every requirement to be part of the TREP program. Students like me worked very closely with counselors. We shaped our classes and applied and have been accepted to colleges and even deferred other pathways all based on the promise that this program made to us The deadlines to make changes to that path have already passed I'm graduating next month and the end of this program means I have no path forward. So where do I go now? Canceling TREP doesn't just cut a program. It cancels plans, it breaks promises, and it sends a message to students like me who stepped up to solve a statewide crisis that we don't matter. Colorado needs teachers. I am ready to be one. please keep your promise and fund the TREP program. Thank you.

Hi, this is Joanna Baldwin. Can you hear me? We can. Okay. My daughter, Caitlin Baldwin, will be graduating next month and she is part of the TREP program. I'm speaking today as a parent who has watched my daughter over the last two years pour her heart and soul into becoming the kind of teacher Colorado desperately needs. In second grade, Kaylin knew she wanted to be a teacher, and since her freshman year of high school, she's made all of her college plans based on the TREP program. TREP represents more than just funding, but it offers support to these students financially and by mentorship. Since Kaylin's junior year, she has dedicated herself to the future educator pathway in Cherry Creek Schools and her work as an apprentice. She has fulfilled her promise by completing two full years of apprenticeship and earning 24 credit hours in education coursework. But those accomplishments came with sacrifice. Kaylin also dreamed of playing college volleyball, but since the TREP program did not allow for students to compete collegiately, she set that dream aside. On top of that, TREP does not allow students to receive any additional scholarship money, which she forgo many different opportunities. And now most of those deadlines have passed and these funds have been allocated. Kalen has quite literally run out of time and options. The timing of the decision by the Joint Budget Committee is devastating. Students like Kalen have no ability to pivot. It feels as if the state is turning their back on their promise to these students at the very moment they need them the most. Today, she is left with no clear path forward. She trusted this program. She followed the guidance of her school district, and now she feels the state of Colorado is letting her down. Kaylin is asking that the promise of this program be honored, that she has done everything that's asked of her, and now she expects the state to do its part. Please continue to program fund this program for this last class of seniors so that students like Kalen can stay in Colorado classrooms where they're needed most.

Good morning. I'm Russell Baldwin. I'm the grandfather of Kalen Baldwin that you just heard about. I'll keep this very short because I think a lot of the topics have already been covered. I would like to point out that these students, in Kalen's case, had a good chance for scholarships, both in-state and out-of-state, that are now passed because the teams have already been chosen for the years. So they lose that opportunity. There's many other programs that they could have taken part in and applied for that they didn't because they would have been considered ineligible if they were awarded under the TREP program. While I understand the legislature may need to terminate significant programs like these, please at least fund TREP for this year's high school seniors rather than take the chance that our state may lose some fantastic, dedicated future teachers because these seniors can't financial resources to follow through with their dreams, or they may decide to go out of state. And once they do, they may never return to be teachers in our state and make our state move forward. Thank you for your time.

Thank you, Mr. Chair. I move J001. This is adding the rather complicated appropriations clause for the bill. Second.

Are there any objections to J001? Seeing none, J001 is passed. Are there any additional amendments to 1357? Seeing none, 1357, sorry, the amendment phase is closed. Wrap up. Any additional questions? Okay, Madam Vice Chair.

Additional comments? Yeah, Representative Taggart.

Thank you, Representative Taggart. Further discussion?

I believe we have a motion and a second on the table. Seeing no further discussion. Oh, we need a second, I'm sorry. Oh, Representative Taggart seconds the motion. Ms. Pope, please call the roll.

Ottoms. No.

McCormick. Yes.

Zokai. Yes.

Thank you, Mr. Chair. This bill diverts million from the revenue earned on public school lands to the state public school fund in fiscal year 2526 and then diverts another $45 million from these revenues earned on public lands for $26.27. These diversions take place prior to going into the permanent fund, which is absolutely critical from a timing standpoint. these dollars will be used to supplement and go into the best fund to assist our schools across the state in terms of capital construction.

Thank you, Mr. Chair. I move House Bill 1359 to the Committee of the Whole with a favorable recommendation. Second.

Ms. Pope, please call the roll.

Bottoms. No.

Oh, thank you. Here we go. Testimonial. All right. Mr. Chair, would you like to tell the committee about the bill? Sure. 1360 relates the Affordable Housing Financing Fund. The bill directs the state treasurer to transfer $130 million from the state affordable housing fund to the general fund later this year, and it makes three corresponding adjustments to the affordable housing financing fund. The bill clarifies that interest and investments, income earned on the financing fund may be expended for projects. And under current law, if LCS staff's economic and revenue forecasts project that the state revenue will not exceed the state fiscal limit. The General Assembly reduces that, the funding allocated to the financing fund. This bill allows the General Assembly to reduce the funding allocated as a result of the revenue forecast projecting that state revenue will not exceed state fiscal year spending limits. All right, any questions from the committee? Seeing none, we'll move on to witness testimony. I think we have a couple folks in person, Kevin Bomber and Kinsey Hasted.

And then online let hear from Andrea Burns and Kathy Alderman Why don't, yes? Okay. All right, Mr. Balmer, let's start with you.

Thank you, Madam Chair.

Thank you, Mr. Bomber. Appreciate your testimony today. Sorry, I forgot.

lead proponents. I appreciate your consideration. Thank you so much. Online, Ms. Burns.

Thank you so much. And Ms. Alderman.

any questions for these witnesses? All right. Thank you very much for your time and testimony today. I think we've got a few more folks online. Amy Case Miranda, Jonathan Capelli, Katie McKenna and Mark Marshall let me know if you need me to read those again are we missing one no Marshall okay all right let's start with Ms. Case Miranda you've got two minutes

So on a $20 million project, that's about a half a million dollars These funds are also even more necessary in light of the federal budget proposal introduced last week This proposal by the current administration seeks to entirely eliminate our most reliable historic gap funding programs, HOM and CDBG, and will not provide full renewal funding for the Section 8 Housing Choice Voucher Program. The commitment of these vouchers pre-development has become increasingly needed to fund these deals in an environment with steadily increasing costs. Without these additional resources to serve our lowest income families state funding is even more important than ever to fully deploy and leverage both the state and federal low income and affordable housing tax credits to attract private investments so desperately needed in housing our Coloradans Thank you very much for your time and your service.

Thank you. Hello. My name is Jonathan Capelli. I am the executive director of the Neighborhood Development Collaborative. We're a coalition of 25 nonprofit and public affordable housing providers. And I'm speaking with you today to request that you remove the $20 million in additional cuts to Prop 123 that the JBC included in this bill, and that you work with us on an amendment to prioritize its limited remaining funds for lowest income households in order to draw down the maximum number of federal and tax credit dollars so that each dollar in the program goes further. And as you've heard from a number of folks, because we understand the really difficult financial situation the state faces, we didn't protest the original $110 million cut to Prop 123, but we feel that these additional cuts move us into unsustainable territory. We are perhaps the least affordable non-coastal state in the country right now. 90% of Coloradans rank housing among the top issues. And this was a voter approved measure that is an opt in program that, as you heard from CML, basically every county in Colorado has opted into. So this is the scale of the need that we're facing right now. This cut would reduce Prop 123 by about 40 percent and eliminate 75 percent of its funds for affordable rental housing. It's a modest impact on the state budget, but a massive relative impact on the program. Prop 123 really isn't a drain on the budget. It's a boon. As you heard, these funds get paid back and investments generate an average of 33 for this program alone, $33 million in state tax credit through our state tax revenue per year and economic activity. So, you know, as we face this difficult economic situation moving forward, we believe that we should prioritize programs that maximize benefits to Coloradans are directly in line with the voters have asked for and generate financial returns to help with the budget. But this program checks all those boxes. So please help us remove these additional cuts. And we look forward to working with you to make that amendment, as well as ensure that remaining funds are focused on low-income households. Thank you for all your work this year.

Thank you, Mr. Chair and members of the committee. My name is Katie McKenna, and I'm here on behalf of Archway Communities in an amend position on House Bill 1360. I appreciate the opportunity to share our perspective. Thank you. Archway Communities is a nonprofit affordable housing developer, owner, operator, and service provider, and my role at Archway is a housing developer. I want to begin by expressing our concern regarding the recent decision to expand cuts to affordable housing funding through Proposition 123. With these actions, the total reduction now reach at least $130 million, which is 75% of the total Proposition 123 funding available for affordable rental development. We recognize the seriousness of the state's budget shortfall and the very difficult decisions you're making right now. Archway remains committed to being a constructive partner in identifying solutions and balancing the urgent need for housing for Coloradans. I understand the need for this one cut and would urge you to take any opportunity possible to limit it to the original million Knowing that this would be challenging however I also like to recommend that the remaining funds, with the remaining funds, we have the opportunity to address the greatest need for very low-income Coloradans. These are the folks who the market is least likely to address their housing needs. So in that spirit, I'd like to request you consider direct, you amend this bill to direct remaining limited Proposition 123 resources towards projects that leverage the federal low-income housing tax credit resource and those that support very low and extremely low income households where the need is the greatest and the private market is least able to respond. For Coloradans most impacted, these decisions will have immediate and personal consequences. And I urge you to protect the resources as much as possible to upload Colorado. Thank you.

Good morning and thank you, Mr. Chairman. Mr. Chair and members of the committee. My name is Mark Marshall. I'm the president and CEO of Rocky Mountain Communities. We are a 501c3 affordable housing owner manager and developer operating across the state of Colorado. We understand and appreciate that you and your colleagues have a number of difficult decisions to make this year. However, affordable housing programs and Prop 123 in particular is one of those programs we simply can't afford to cut further. RMC is an amend on this position. A third of the households and one-fourth of households and one-half of all renters are Carlisburton, and we're short over 100,000 units across the state. Each Prop 123 is invested, has drawn roughly seven additional dollars of private federal capital and award funds, and have supported over 13,000 construction and supply chain jobs, the majority of which pay over $93,000 on average wage and benefits. Currently under construction, we have 120 unit rehab and new construction in Fort Morgan, 160 new units under construction in Globaville. Additionally, we've got 500 units of developments planned in the pre-development phase in Denver, Pueblo, and Colorado. Without Prop 123 dollars, these developments would not be able to move forward. Prop 123 allows us to leverage these resources and make our housing as affordable as we can and offer affordability to our residents. I'm testifying today with two requests. You reduce or move additional $20 million cut to Prop 123 in this bill and that you include language in the bill that prioritizes the funding that remains in Prop 123 for low-income households with the highest need. We look forward to working with members of the committee and others to mitigate these cuts. We thank you for your time and support and your support for lower income families in Colorado.

We do not.

Sure. Yeah, I'll move the bill. I move House Bill 1360 to the Committee of the Whole with a favorable recommendation. Second. Seconded by Representative Taggart.

Thank you, Madam Chair. Thank you, bill sponsors. I will just say that I appreciate the testimony from folks who had talked about a different way to prioritize remaining funds. I think there's options to do that outside of the orbital process. I think that probably makes much more sense in as much as it seems like a bigger policy discussion and so very much willing to engage. And as somebody who has a Proposition 123 bill in the system that might work to accommodate some of those things, very much look forward to future conversations on how we can continue to go through that work together. Thank you.

Thank you, Madam Chair, and I want to thank all of the folks who came to testify on this bill. I, too, am committed to making sure that we adhere to the voter intent of this particular proposition and that we are supporting affordable housing. I will say that the unfortunate thing about Prop 123 is that it included no new revenue to the state, And because of that, it built in a specific mechanism for us to make transfers of this nature when the situation of the budget is as dire as it is today. So it is an unfortunate aspect of the voter approved measure that we are considering. So I certainly appreciate this and look forward to being able to work with the Speaker Pro Tem as he moves forward with his legislation.

Representative Spasenecker.

No. Joseph.

Yes. Soper.

Madam Chair Sirota. Yes.

Thank you, Madam Chair. This particular bill is about repealing the Pay for Success program. This program came about in 2015 and was intended to be, in a sense, a public-private approach to investment in social impact bonds. Over the period of approximately 10 years, there were three programs developed, the last of which expired in 23-24, and there have been no further programs. So this bill repeals the program, and the dollars that are left in the fund come over into the general fund.

Representative Taggart. Yes, I move House Bill 1361 to the committee of the whole with a favorable recommendation.

seeing none miss pope please pull the committee representative space and ecker yes bottoms no

Zokai

yes

Madam Vice Chair thank you Mr. Chair House Bill 1362 repeals the decarbonization tax credit administration fund. This was set up through House Bill 23-1272, which created several tax credits, as well as this fund to pay for administration of the bill's tax credits through the Colorado Energy Office and the Department of Revenue. The fund consists of various increased severance tax revenue that was attributable to a decrease in the allowable ad valorem credit that is taken against oil and gas severance tax liability for tax years 2024 through 2026. And so this impacts revenue in fiscal years 24 through fiscal year 27. And under current law, the state treasurer is required on June 30th each year for those three years to transfer all unexpended money less a minimum fund balance to the general fund and the so what we are doing in in this bill is we are repealing this administration fund it will no longer it will no longer be administered in this way it will simply be a general fund appropriation in years going forward. And in the meantime, we are recapturing the funds in the cash fund, which is represented by, I believe it's $15 million in the cash funds transfer bill.

No amendments.

Madam Vice Chair. Thank you, Mr. Chair. I move House Bill 1362 to the Committee of the Whole.

Seconded by Representative Taggart Ms Pope please call the roll Representative Spacenecker Yes Bottoms Yes Joseph

Yes. Soper.

Yes. Totone. Yes. Velasco. Yes. Zocay.

Yes. Mr. Chair. Yes. that passes unanimously. Moving on to 1363. Madam Vice Chair, would you like to describe the bill?

Thank you, Madam Vice Chair. Are there questions from the committee? Seeing none, is there anyone in the room or online who wishes to testify on 1363? Seeing none, the witness phase is closed. Sponsors, do we have any amendments? Committee? Seeing none, the amendment phase is closed.

Second. Seconded by Representative Taggart.

Representative Spacenecker. Yes.

Joseph. Yes.

Rep Taggart, would you like to describe the bill?

Thank you, Representative Taggart. Are there questions Seeing none is there anyone in the room or online who wishes to testify about House Bill 1364 Seeing none, the witness phase is closed. Bill sponsors, I believe we have two amendments.

Is there a second?

Seconded by Madam Vice Chair.

chair I move amendment L zero zero one to hospital 1364 I already touched on this particular subject that any place in the bill that had additional price price indexes has been removed for the purpose of utilizing one that being the Denver Boulder Lakewood consumer price index. Is there a second? Second.

Is there objections to L001? Seeing none, L001 is passed. Additional amendments?

Seconded by Madam Vice Chair.

Representative Spasenecker. Yes.

Joseph. Yes.

Soper. Yes. Taggart. Yes. Tatone. Yes. Velasco. Yes. Zocay. Yes.

Mr. Chair. Yes, that bill passes 10 to one. Moving on to House Bill 1365. I will say to start with this that we on the JBC and our staff do, I think, our staff in particular does an amazing job of analyzing each and every bill. and bringing forward to us recommendations that I think do in this budget year have tried to do the least amount of harm while still providing us with budget savings that we need in order to make our constitutional duty. The JBC agreed to run 1365 about a month ago. And based on the evidence that we had at the time, we believed that that would net about $300,000 in total savings and about $180,000 in savings for the general fund. I think since we have made that decision, we have had many conversations with providers, and additional evidence has been presented to us as J.B. SEMA. and to our staff that calls into question some of the assumptions that we as a committee made in agreeing to run that bill. So because of that uncertainty, I'm going to ask that the committee postpone 1365 indefinitely. And I'd be happy to take any questions about that. Representative McCormick.

Thank you, Representative McCormick. with that can I move it? Do we have to vote it down? No, I don't in committees of reference we can just be on well what? Yeah, I don't know I'm going to at this point I'll move that the committee postpone indefinitely House Bill 1360

Representative Spasenecker. Yes. Bottoms. Yes. Joseph. Yes. McCormick. Yes. Soper. Yes. Taggart. Yes.

Moving on to House Bill 1373. Madam Vice Chair, would you like to describe the bill? Yes, thank you, Mr. Chair.

Questions from the committee? Seeing none, is there anyone online or in the room who wishes to testify on House Bill 1373? Seeing none, the witness phase is closed. Sponsors, do we have any amendments? Committee, any amendments? Seeing none, the amendment phase is closed. Madam Vice Chair.

Seconded by Representative Zocchi. Ms. Pope, please call the roll. Representative Spasenecker.

Bottoms. No.

McCormick. Yes.

Mr. Chair. Yes. That bill passes 9 to 2. All right. Moving on to 1382. Madam Vice-Chair.

Thank you, Madam Vice Chair. Questions from the committee? Seeing none, I believe we have one person signed up to testify. Would Ms. Hilary Jorgensen join us at the table? Thank you very much, Ms. Jorgensen. The floor is yours. You have two minutes. Please introduce yourself.

Thank you very much, Ms. Jorgensen. I appreciate it. Is there any questions for our witness? All right, seeing none, thank you very much for being here. Is there anyone else in the room or online who wishes to testify on 1382? Seeing none, the witness phase is closed. Sponsors do we have any amendments A committee Seeing none the amendment phase is closed Madam Vice Chair

Second. Seconded by Representative Taggart. Ms. Pope, please call the roll.

Bottoms. No.

McCormick. Yes.

Madam Vice Chair yes

Thank you, Madam Chair.

I said good luck.

If you haven't noticed already, they give me the difficult one, so I stumble.

As the committee knows, severance taxes are split between two departments, the Department of Natural Resources and DOLA. This has to do with the Department of Natural Resources. And bear with me as I take you through the transfers, because within natural resources, there's two large buckets, the Perpetual Fund and the Operations Fund. So the first transfer is a transfer for the purposes of species. The Species Conservation Fund will now be funded out of the Perpetual Fund to the degree of $3 million. Out of the Operations Fund, first and foremost, you have a listing of programs that need to be funded. And you'll see those on page 144, Energy and Carbon Management Commission, Colorado Geological Survey, Avalanche Information Center, Water Conservation Board, Colorado Parks and Wildlife, Species Conservation, Aquatic Nuisance, which is important to the Colorado River in my area, Conservation District Grant Fund, and Wildfire Mitigation Capacity Development Fund. So those by this legislation need to be funded out of the operations fund. And last but not least, there is a transfer from the operations fund, not the perpetual fund, of $14.2 million for this year to the general fund.

Thank you, Madam Chair. There is an amendment, J-1, that's in your package, and it contains an appropriation clause reducing the appropriations from the severance tax operational fund or the species conservation trust fund by $3 million dollars because it now it now moves over to the perpetual fund however the bill title does not have the appropriate trailer this now has the verbiage in the amendment to correct that situation did you move it sorry i missed that oh yes i i move amendment j001 to house bill 1387

Representative Taggart. Thank you. I move House Bill 1387 as amended to the committee of the whole with a favorable recommendation.

Representative Spasenecker. Yes.

Joseph. Joseph. Yes.

Soper. Excused. Taggart. Yes. Tatone. Yes. Velasco. Yes. Zocay.

Mr. Chair Brown. Yes. That bill passes on a vote of 10 to 0 with one excuse. All right. Moving on to 1389.

Thank you, Madam Vice Chair. Questions from the committee? Seeing none, is there anyone in the room or online who wishes to testify on House Bill 1389? Seeing none, the witness phase is closed. Madam Vice Chair, there is an amendment.

Seconded by Representative Zokai. Is there any objections to J001? Seeing none, J001 is passed. Are there any additional amendments, Committee? Seeing none, the amendment phase is closed.

Second. Seconded by Representative Taggart. Ms. Pope, please call the roll.

Bottoms. Yes.

Yes. Soper.

Madam Vice Chair. Yes.

Representative Taggart. Thank you, Mr. Chair. The budget process would not be complete without discussing digital trunk radios every year. And this is not an unusual year. It is here again. This bill is very straightforward. The bill makes an annual transfer of unspent money in the public safety communications revolving fund to the public safety communications trust fund for the purposes of digital trunk radio system support.

Thank you, Mr. Chair. I move again on digital trunk radio system support House Bill 1392 with a favorable recommendation.

Representative Spasenecker. Yes.

Joseph. Yes.

Soper. Yes. Taggart. Yes. Tatone. Velasco. Yes. Zocay. Yes.

Mr. Chair. Yes. That bill passes unanimously All right on to 1396

Any questions for our bill sponsor? All right. We will move on to witness testimony. Is there anyone in the room or online who wishes to testify on House Bill 1396? Seeing no one, the witness testimony phase is closed. Any amendments from the bill sponsors? Any amendments from the committee? Seeing none, the amendment phase is closed.

Second. Seconded by Representative Titone. Very quiet. All right. Is there any final discussion on House Bill 1396? Seeing none, Ms. Pope, please pull the committee.

Bottoms. Yes.

McCormick. Yes.

Madam Chair Sirota. Yes.

Sure. Madam Vice Chair. Thank you, Mr. Chair. This bill represents the transfers to fund capital construction and information technology projects. transferred funds are in the amount of $137.2 million. This will fund much but not all of the requested projects from the CDC and from the JTC. We were not able to fund all of them, but we were able to prioritize controlled maintenance and a couple of other critical projects to move forward this year, as well as some crucial IT funding.

Madam Vice Chair. Thank you, Mr. Chair. I move House Bill 1396 to the Committee of the Whole with a favorable recommendation.

I move House Bill 1402 to the Committee of the Whole.

Joseph. Yes.

Soper. Yes. Taggart. Yes. Tatone. Yes. Velasco. Yes. Zocay. Yes.

Mr. Chair. Yes. That bill passes unanimously. All right, moving on to 1405.

Thank you, Madam Vice Chair. Questions? Seeing none, we have two people signed up to testify. If Mr. Balmer, Mr. Kevin Balmer, and Mr. Richard Orff could join us at the dais. Thank you both for being here. Mr. Balmer, why don't you, you know the drill, Why don't you go ahead and introduce yourself? You have two minutes.

Again, thank you for your hard work, your tough job you have, but these are committees that were made in this building, and it's tough. It's really tough. Thank you, Mr. Brommer. We appreciate your testimony. Mr. Orff, you have two minutes. Please introduce yourself.

Thank you, Mr. Orff. Committee, do we have questions for these witnesses? All right, seeing none. Thank you very much for both of you for being here. We appreciate your testimony. Is there anyone else in the room or online who wishes to testify on 1405? Seeing none, the witness phase is closed. Committee or sponsors, do we have any amendments? Seeing none, the amendment phase is closed. With that, Madam Vice Chair.

Second.

Yes.

Joseph. Yes.

Soper. No. Taggart. Yes. Tatone. Yes. Velasco. Yes. Zocay. Yes.

Mr. Chair. Yes. That bill passes 9 to 2. All right, moving on to 1409.

Thank you, Madam Chair. Do we have questions? Seeing none, we have one person signed up to testify on 1409.

No one wants that, Mr. Chair. No, I'm just kidding. Come on. You know the drill.

Thank you, Mr. Chair. Thank you, Mr. Romer. We appreciate it. Are there questions for our witness? Seeing none, thank you again for being here. We'll get you a punch card. Maybe you get a free latte out of it or something. No, I'm just kidding. I used to give out lattes in HHS. That's a joke. I didn't really actually do that. Is there anyone in the room online who wishes to testify on 1409? Seeing none, the witness phase is closed. I'll take a latte. You'll take a latte? Okay. I'm handing out lattes apparently today. Is there anyone Are there any amendments from the committee Seeing none the amendment phase is closed Let see Madam Vice Chair

Second.

Yes.

Joseph.

Soper. No. Taggart. Yes. Detone. Yes. Velasco. Yes. Zocay. Yes.

Mr. Chair. Yes. That passes 10 to 1. All right. The whole enchilada, Madam Vice Chair.

Thank you, Madam Vice Chair. Additional comments or questions? Madam Vice Chair, I will just say that I appreciate your leadership as the Chair of the JBC and shuttling us through this incredibly difficult budget and process. This has been a trying time for all of us. Tears have been shed by myself and others on the dais. And it is a testament to your leadership that this budget has protected as many of our core programs as it does. and I am eternally grateful for you helping to shuttle the state through this very trying time. We have one person who is signed up to testify,

Ms. Jorgensen, you know the drill. Two minutes. Please introduce yourself.

Thank you, Ms. Jorgensen. We appreciate your testimony. Questions from the committee?

Is there anyone else in the room or online who wishes to testify on the long bill 1410. Seeing none, the witness phase is closed. Committee or sponsor, do we have any amendments? Oh, no. No amendments to the long bill. That's right. That is the correct answer. Seeing no amendments, the amendment phase is closed. Madam Vice Chair.

Second.

Soper. No. Taggart. Yes. Detone. Yes. Velasco. Yes. Zocay. Yes. Madam Vice Chair. Yes.

Representative Taggart.

This bill, by far, for me, was the most difficult bill that we had. as an orbital during this session. There were very difficult conversations, very painful conversations. I know for me personally, I lost several nights sleep over this, and there were a lot of tears, and I hope I can hold them back today. I think we all know when we introduced Cover All Colorado legislation a few years ago, the fiscal note was relatively small as it matured, as I believe it was under $30 million. Today, Cover Colorado has a cost to the state of $100 million. But we also need to consider these are very real people. And so this particular bill addresses two key areas of Cover All Colorado. The first area is to limit some of the services that are available under the program. And if you look on page 226, you will see those listed. The first one is eliminating long-term services and supports for people that are not already using them. But we are giving a grace period until January 2027. Today, if I have my numbers correctly, there are 49 children and adults in this particular program. We're capping the annual dental services at $750 annually, effective the 1st of July. We are eliminating behavioral health capitated services, and if I have this correct, I believe those move to fee-for-service, so they're not eliminated in total, but it goes to fee-for-service. I'm looking for a nod from a key person, so I have that accurate. And then we are eliminating the care-coordinated services offered under the Affordable Care Collaborative. So those are the benefits that are being trimmed. The second component of this bill has to do with putting a cap on the program Today there are 21 children in this program This cap then takes place at a growth to 25,000 children. And at that point, it caps the total number of individuals. As well, there is a second trigger in this mechanism that in the forecast of utilization for this program, we have broken that into quarters. And if for any reason in the first quarter or the second quarter, when that utilization reaches its seasonality number, adjusting it for seasonality for the 26-27 projection, we add 5% to it. So we compare the first quarter to last year's first quarter to the year before, but we use the forecasted numbers, the projected numbers for that quarter, for the quarter of this year coming, and we add 5%. If for any reason we go over that 5%, that also triggers the count. So there's two mechanisms, one the number of people and one associated with utilization. That is the program. And I would remind everybody on this particular program that, A, these are individuals, and, B, if we don't support these individuals, it ends up being in uncompensated care in our hospitals and clinics. and I don't know about other members per se, I know of a few, I have hospitals that are on the brink, and they can't afford any more uncompensated care. So it's important to realize that a program like this helps our hospitals and clinics from a standpoint of uncompensated care. And last but not least, I just want to say to my colleagues how difficult this was. And I appreciate them working with me. Thank you.

Thank you, Madam Chair. And I just want to say how much respect and appreciation I have for my colleague, Rep Taggart, his partnership in this process. he and I don't always agree on things but I think that we fundamentally agree that this bill is perhaps the hardest bill that I have ever had to run fundamentally I believe that healthcare is a right and not a privilege I believe that every person has inherent worth and dignity and that whether a person draws federal match from the federal government for their health care does not diminish that person worth And I think that is what makes this very difficult because we are in a situation where this program is growing at an unsustainable rate. and ultimately we are talking about kids and pregnant folks. The spending reductions that my co-prime sponsor mentioned on an annualized basis will reduce the spending for this program by 25%, which is a very large cut for any program and any program that we are contemplating this year. In some ways, this program is a victim of its own success because it is a program that has grown to meet the needs. And as we have dealt with the migrant crisis here in Colorado, I believe that many folks who have ended up here, many children who have ended up here through no fault of their own, through no choice of their own, have been able to access health care because of this program. And yet we are faced with a terrible budgetary situation, and folks across the spectrum are seeing cuts, and we have heard from families today who are being directly impacted. it. So I appreciate the work that I have appreciated the partnership of my colleague in trying to address this problem. And I will continue to do what I can to try to stand up for kids and their families in Colorado.

Thank you, Madam Chair. Good morning, members. My name is Christopher Nurse, and I am the political director of the Colorado Immigrant Rights Coalition, a statewide alliance of organizations dedicated to ensuring that Colorado remains the safest state in the nation to be an immigrant. Members, I wish I didn't have to be here this morning to oppose this bill. House Bill 1411 would quite literally dismantle the health coverage infrastructure that tens of thousands of Coloradans depend on through Cover All Coloradans. Members, Cover All Coloradans was built on a very straightforward premise that eligible individuals should not be able to tell that they are enrolled in a different program from standard Medicaid. Hospital 1411 breaks that promise deliberately and in painstaking detail.

Members, the dental cap that this bill imposes is set at a level that would not cover a single comprehensive procedure for a pregnant person. Untreated periodontal disease during pregnancy is a well-documented risk factor for preterm birth, a complication that costs the state health care system far more than just a simple dental visit. Members, one of the bill's most consequential provisions would cap enrollment of eligible children at 25,000, triggered either by current enrollment levels or by routine quarterly expenditure fluctuations. Members in practice, this means that once that cap is reached, eligible children will be turned away. Colorado has not operated a Medicaid-adjacent program with an enrollment waitlist since the expansion era. Reinstating that model for this population signals that their eligibility is not contingent upon need, but rather the convenience of the state budget. Members, the Colorado Immigrant Rights Coalition strongly urges you to vote no this morning on House Bill 1411. Thank you.

Thank you. My name is Vanessa Martinez, and I'm here on behalf of COLOARD, the Colorado Organization for Latin Opportunity and Reproductive Rights, to ask for a no vote on House Bill 1411. Colorado made a clear policy commitment in 2022 through House Bill 1289 to ensure that children and pregnant people could access health care regardless of their immigration situation. HB 1411 goes against that commitment and against Colorado values of health equity. As you've heard, Cover All Coloradans currently provides health coverage for over 20,000 children and 7,000 pregnant people across nearly every county. These are communities that are overwhelmingly Latine, who are immigrants, who are already navigating systemic barriers to care, and who have the least options for health coverage. We know from community that this program gets kids vaccinated at a time when we're seeing reemergence of measles, and it keeps young people from having to choose between pursuing an education and covering medical costs. yes usage is higher than estimated and that is because even in the only one year that this program has been implemented it's working as it should it's providing coverage for child wellness

Thank you. Councilwoman Cruz.

Thank you. We also have Ms. Flores Brennan here if folks have questions. So committee members, do you have questions for the witnesses, including Ms. Flores Brennan? all right seeing none thank you very much for your time and testimony today is there anyone else in the room or online who wishes to testify on house bill 1411 seeing no one the witness testimony phase is closed bill sponsors do you have any amendments today we do not all right committee members any amendments Seeing none, the amendment phase is closed. Chair Brown.

Second.

Thank you, Madam Chair. And I do want to start by thanking JBC and recognizing that given H.R. 1, Tabor, the economy generally, there are just simply no easy decisions that were put before you. And I appreciate all the work you've done to get us to a balanced budget. what we're talking about with this bill is targeted reductions to health care access for children and pregnant people specifically those that are excluded from other health care coverage but i don't want to speak to any of my ethical objections to that because i i recognize that for members of this committee who will be voting yes and for the sponsors on this bill it's not a reflection of their values but rather a reflection of our requirement to put forward a balanced budget. I do want to speak to the fact that should this bill pass, it will lead to higher long-term costs and a greater strain on our systems. I think that all of us here believe in creating an equitable health care system I also believe that given the state of the budget that that simply just not on the table But with this bill I do think that there are other avenues that we can explore For example, I don't think we should be expanding spending on incarceration at the expense of investing in the health of our communities. And I do expect that this bill makes it out of committee today. And I just hope that we can continue to have this conversation as it moves forward to see if there are other spaces that we can cut from in order to keep this crucial access.

I did.

I will just say that, thank you, Madam Chair. I will just say that I, again, appreciate the views of my colleagues, and I really appreciate the testimony that was presented here today. There is no, this is not easy, and it is not something that I relish doing, but we have a constitutional obligation. to balance our budget and and so we are faced with making the hardest and most difficult choices so i appreciate the discussion today and appreciate your support

Yes.

Yes.

Mill.

Yes.

Yes.

Yes.

No.

Thank you, Mr. Chair. This bill is a bill to give the Department of Health Care Policy and Financing the authorization to use a method of statistical sampling and what is called extrapolation when conducting audits on claims submitted by pediatric behavioral therapy and or non-emergency. medical transportation providers for services provided within the window, essentially, that the Office of the Inspector General audited when auditing the state of Colorado. OIG audited multiple states with regard to pediatric behavioral therapy after seeing incredible growth not just high utilization but over utilization of services and billing for these services And so this bill will allow the state to use a statistical sampling methodology to examine a statistically significant portion of those claims submitted from providers during a particular time period of the audit and then use this extrapolation methodology to then apply those statistically significant findings to the range of claims submitted from those providers during that time period. Currently, the state is, I think, the federal government has called for over $40 million in repayments due to overbilling. And so this bill is to help address the overpayments made and improper billing created, significant insufficient documentation submitted, or any waste, fraud, and abuse that has been characterized by this rapid outside spending growth that we have seen in these two particular areas. And so this will help the state reclaim those overpayments made. Questions for our bill sponsors?

Thank you, Mr. Chair. I move House Bill 1412 to the Committee of the Whole.

Seconded by Representative Taggart. Ms. Pope, please call the roll.

Bottoms.

Joseph.

McCormick.

Soper.

Taggart.

Tatone.

Velasco.

Zokai.

Madam Vice Chair. Yes, Mr. Chair. Yes. That passes unanimously. All right. Last bill, 1413. Thank you. Madam Vice Chair. Oh, go ahead. Thank you, Mr. Chair.

Okay.

Questions? Seeing none, is there anyone in the room or online who wishes to testify on 1413? Seeing none, the witness phase is closed. Committee or sponsors, do we have any amendments? Seeing none, amendment phase is closed. Madam Vice Chair.

Second.

Representative Spasenecker. Yes.

Yes.

Yes.

Yes.

Madam Vice Chair. Yes.

Thanks. Thank you. Thank you.