House Committee on Finance (03/29/2010)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	03/29/2010	ATTENDANCE

Time:	11:19 AM to 11:49 AM	DelGrosso	X
		Frangas	X
Place:	SupCt	Gerou	X
		Kagan	X
This Meeting was called to order by		Kefalas	X
	Representative Judd	Labuda	X
		Roberts	X
This Report was prepared by		Summers	X
	Ron Kirk	Swalm	X
		Benefield	X
		Judd	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Presentation on the Long Bill --- Department of Revenue Presentation on the Long Bill --- Department of Treasury		None None

11:19 AM -- Presentation on the Long Bill - Department of Revenue

Representative Ferrandino and members of the Joint Budget Committee (JBC) began by going over the changes in the budget for the Colorado Department of Revenue. Representative Ferrandino began by discussing budget changes to the department. He noted that in the Long Bill Narrative, the Department of Revenue's FY 2010-11 appropriation was increased to $90.2 million from $73.7 million in the prior year. Representative Ferrandino continued by saying that the department increase of $16.4 million is resulting from staffing changes tied to the Division of Motor Vehicles for the operation of driver's license offices as a result of the sunset of Senate Bill 09-274.

Representative Ferrandino noted that another change in appropriations was related to the monitoring the Conservation Easement Program. He noted that the program's auditing function will see a $1.2 million and 3.7 FTE increase to address the backlog of conservation easement appraisals.

The committee discussed the marketing costs for the state lottery in the narrative. Representative Ferrandino responded by discussing the Colorado Lottery's role in marketing games of chance and the recent increase in lottery ticket sales.

The discussion moved to funding of the department's new income tax computer system called the Colorado Integrated Tax Architecture (CITA) project. Representative Ferrandino briefly discussed the department's funding for the project as the subject changed to state savings from state employee furlough days. Representative Ferrandino responded to the discussion by noting that for this year, there are eight furlough days. He closed by noting that for next year's budget, state employees will see a 2.5 percent reduction in pay.

11:41 AM -- Presentation on the Long Bill - Department of Treasury

Representative Ferrandino, continued by going over the Department of Treasury budget and discussed upcoming legislation that would suspend the senior property tax exemption for another year in 2010. He noted that the narrative reflects a $92.4 million increase in payments to local governments to offset local property tax revenue that will be foregone for tax year 2010 due to the resumption of the senior citizen property tax exemption.

The committee discussed the narrative and whether the budget is balanced for FY 2010-11. Rep. Ferrandino responded by saying that with a four percent reserve, there is a small surplus of revenue. Representative Ferrandino continued by discussing the LCS revenue forecast. The committee discussed the preservation of the senior homestead exemption.

The committee closed by briefly discussing the Unclaimed Property Fund and the money that is used to fund Cover Colorado.

11:49 AM

Adjourn.