Date: 01/30/2014
Final
Presentation from the Joint Budget Committee Pursuant to Joint Rule 25
COMMITTEE ON JOINT FINANCE
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10:10 AM -- Presentation from the Joint Budget Committee Pursuant to Joint Rule 25
Representative Court, Chair, called the meeting to order. The Joint Budget Committee (JBC) came to the table to present pursuant to Joint Rule 25. Senator Kent Lambert introduced the various staff members that the JBC has been working with, and began the presentation with a focus on the Department of Revenue (DOR), where he said most changes that he wished to report to the Joint Finance Committee were in relation to the Division of Motor Vehicles. He stated that the most significant changes that the DOR had experienced were within the Division of Motor Vehicles (DMV).
Representative Labuda asked Senator Lambert if the JBC had discussed attempting to have the DMV funded more from cash sources rather than the General Fund. He responded that the DMV was more funded by the General Fund in past years, but that it is now primarily funded from cash fund resources. He noted that the JBC has considered what the right balance is, but that in his opinion it is ultimately up to the legislature to make this decision. Representative Gerou added that the JBC is attempting to impose a fee for individuals that need to retake the driving test multiple times as a way of funding the DMV more effectively.
10:24 AM
Representative Labuda made a proposition for future finance committees to look at the ways in which the DMV could be more supported by cash funds. Senator Pat Steadman summarized the various activities of the JBC that attempted to further support the DMV above current levels of funding, such as a surcharge on failed driving tests. Representative Gerou stated that Colorado driving license test fees are currently significantly lower than surrounding states. Committee discussion of driving test fees and DMV funding ensued.
10:36 AM
Senator Lambert proceeded in discussing the Marijuana Enforcement Division (MED) of the DOR. He stated that the JBC wanted to do some more analysis of the fees collected by the MED before reporting back and determining whether to transfer some funds to other state functions. The committee discussed the current and anticipated size of the Marijuana Cash Fund. Senator Lambert stated that it is currently too early to identify the exact balance of the fund, but that there is funding available and better forecasts will be available in March when there is more data to analyze. Committee questioning and discussion of the Marijuana Cash Fund and marijuana retailers being all-cash businesses ensued.
10:49 AM
Senator Lambert summarized the different considerations that the JBC is making surrounding the use of the Marijuana Cash Fund such as in medical research and industrial hemp development. He stated that Colorado was in a strong position to look at such research opportunities.
10:52 AM
Senator Johnston asked the JBC to outline the revenue collected from medical marijuana regulation and retail marijuana sales and excise taxes, as well as the cost of regulation of marijuana in the state. The JBC outlined the balance sheet of regulated marijuana, promised a detailed spreadsheet on this, and suggested that the DOR routinely distribute updates on the fund to the Joint Finance Committee.
10:58 AM
Senator Lambert spoke to a number of recommendations that the Office of the State Auditor (OSA) made to the DOR following regulatory audits it performed. Senator Lambert urged the committee to follow up with the OSA on its performance audits, which focused on delayed marijuana retail license applications, questionable marijuana license decisions, and some under-reported funds for a number of medical marijuana dispensaries. Senator Lambert summarized a number of other OSA performance audit findings related to the DOR.
11:03 AM
Senator Lambert discussed the JBC's considerations of the Department of Treasury's budget requests. The committee discussed the conclusion of the CoverColorado program, and the state of coverage under this program since the introduction of the federal Affordable Health Care Act.
11:11 AM
Senator Lambert proceeded in addressing the budget requests of the Governor's Office of State Planning and Budgeting (OSPB). He brought the "R1 Continuous Improvement and Planning Program" request item to the committee's attention, summarized it, and spoke about whether or not the OSPB had performed a lean process analysis in conjunction with this request. Representative Delgrosso asked for clarification on the "R12 Eliminate Redundant Applications" budget request item, which requests roughly $3 million for the elimination of redundant applications throughout state systems. Senator Lambert summarized this budget request and committee discussion ensued.
11:16 AM
Representative Swalm asked for detail on OSPB's budget request "R8 Colorado Office of Film, Television, and Media." Committee discussion ensued.
11:20 AM
Senator Lambert discussed the Department of Personnel and Administration and the Public Employees' Retirement Association (PERA), and stated that PERA had not made any new requests. Senator Lambert highlighted the "R2 Transparency Online Project Modernization" request, and suggested that the committee consider having the joint rules adjusted so that it might gain oversight for the Office of the State Controller, which he stated does all of the spending for the state. Senator Lambert also discussed the recently-developed Colorado Financial Reporting System (COFRS), and stated that the committees need to keep a close watch on COFRS when it is rolled out later in the year.
11:27 AM
The committee adjourned.