Date: 02/09/2012
Final
BILL SUMMARY for HB12-1075
HOUSE COMMITTEE ON FINANCE
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01:45 PM -- House Bill 12-1075 - Six Percent Appropriations Limit
Representative Beezley and Representative DelGrosso, prime sponsors, explained the provisions of the bill. Representative DelGrosso noted that under current law, General Fund appropriations are limited to an amount equal to 5 percent of Colorado personal income. Beginning in FY 2012-13, this bill limits General Fund appropriations growth to 6 percent over the prior year's appropriations. He closed by saying that the bill also requires that year-end surplus revenue above the new 6 percent appropriations limit, net of statutory or constitutionally required reserves, TABOR refunds, and other required transfers, such as Senate Bill 09-228, be distributed as follows:
• 50% to the newly created State Reserve Fund;
• 25% to the Highway Users Tax Fund (HUTF); and
• 25% to the Capital Construction Fund (CCF).
Representative DelGrosso asked that the committee begin testimony on the bill due to time constraints.
The following persons testified:
01:46 PM -- Mr. Michael Gifford, representing the Associated General Contractors of Colorado, testified in support of the bill and distributed a handout on the Controlled Maintenance Fund (Attachment D). Mr. Gifford closed by saying that this bill would be good for the economy because it would generate new jobs.
01:55 PM -- Ms. Carol Hedges, representing the Colorado Fiscal Policy Institute, testified in opposition of the bill. She noted that the bill will not enable the state to respond to economic downturns in terms of funding vital state services. She closed by discussing some historical examples of budget reductions and said that this bill would limit funding for many state services when the economy slows.
02:03 PM
The committee adjourned.