Date: 01/26/2012
Final
Presentation to the JBC on budget recommendations
COMMITTEE ON JOINT FINANCE
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10:25 AM -- Presentation to the Joint Budget Committee (JBC) On Budget Recommendations
Senator Johnston, Chair of the Senate Finance Committee, gave brief introductory remarks stating that the Senate Finance Committee had no formal recommendations to provide to the Joint Budget Committee (JBC) on the budget requests from the Departments of Revenue and Treasury (Attachments A and B). The committee felt that this was a good baseline year and are anxious to see the progress the departments make in certain areas when they return to make their SMART Act presentations next year. Representative DelGrosso, Chair of the House Finance Committee, made his opening remarks and stated that the House Finance Committee also had no formal recommendations to the JBC and echoed Senator Johnston's sentiments about this year being a benchmark year for departments' goals (Attachments C and D). Representative Gerou, Chair of the Joint Budget Committee, talked about the liaisons from the JBC to the committees and stated that these liaisons will be available to answer questions from committee members during the session. She then introduced the other JBC staff members who were present: Kevin Neimond, David Meng, and John Ziegler. Representative Gerou gave brief remarks about the work the JBC has done this year. Senator Lambert introduced the other members of the JBC who were present. He notified committee members that he is the JBC liaison to the Finance committees and mentioned the SMART Act requirements and Joint Rule 25 and their impact on the department and the JBC budget process. Senator Lambert talked about improvements in transparency with the JBC and the effect that social media and technology has had on transparency.
10:35 AM
Senator Lambert stated that members of the General Assembly are always welcome to attend the JBC hearings with the departments that occur every year in November and December and said that members now have to ability to listen to these hearings remotely via the new Granicus system if they are not able to attend in person. He focused on Limited Gaming revenue and changes that have resulted from the passage of Amendment 50. Half of this revenue is constitutionally mandated for specific programs and the other half is distributed by the General Assembly. Senator Lambert said that Governor Hickenlooper has asked specifically that some of discretionary money be directed to the Governor's Energy Office as well as be used to fund some film incentives.
10:44 AM
Senator Scheffel asked for clarification about how the film incentives will be funded if approved and said that he hopes the Local Government Limited Gaming Impact funds will be maintained. Senator Lambert then spoke about the Department of Revenue budget breakdown and supplementals and specifically mentioned the Tax Amnesty Program. Senator Steadman spoke about the Tax Amnesty Program and how the money collected from the program is directed.
10:55 AM
Senator Steadman continued to explain how the tax amnesty program is structured. Representative DelGrosso asked the JBC members for clarification about the Department of Revenue budget line item for the funding of driver's license operations and discussed funding levels. Senator Lambert answered that the JBC will introduce legislation to permanently create a cash fund to finance driver's license operations through driver's license fees. Discussion ensued about driver's license fees funding the cash fund as well as customer service at the Department of Motor Vehicles. Discussion ensued in response to Senator King's question about General Fund money tied to the conservation easement tax credit.
11:10 AM -- Mr. Mark Couch, Legislative Liaison for the Department of Revenue, responded to questions about disallowed conservation easement state income tax credits.
11:10 AM
Senator Lambert concluded by speaking about the Department of Treasury budget and explained that a very small amount of General Fund dollars are used to fund the department. It is mainly funded by cash funds. Representative Labuda asked for clarification on the suspension of "Old Hire" Fire and Police Pension Plan (FPPA) payments. Representative Gerou answered that there is a delayed payment schedule for FPPA Old Hire plans that resulted from the recent budget shortfall.