Final
STAFF SUMMARY OF MEETING

COMMITTEE ON JOINT FINANCE

Date:01/22/2015
ATTENDANCE
Time:09:47 AM to 12:05 PM
Becker K.
X
Conti
E
Place:LSB A
Foote
X
Garnett
X
This Meeting was called to order by
Hill
*
Representative Court
Holbert
X
Johnston
X
This Report was prepared by
Kagan
X
Katie Ruedebusch
Kerr
X
Pabon
X
Priola
E
Roupe
X
Van Winkle
X
Wilson
X
Neville T.
X
Court
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
Briefing from Joint Budget Committee
Briefing from OSA Regarding Unimplemented Audit Recommendations
Briefing from DOR: Tax Expenditures Analysis Report		Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only
Witness Testimony and/or Committee Discussion Only


09:47 AM -- Briefing from Joint Budget Committee

Representative Court, Chair, called the meeting to order. The joint committee appointed liaisons to the Department of Revenue, the Department of Treasury, and the Public Employee's Retirement Association.


09:51 AM

The Joint Budget Committee (JBC) came to the table to present pursuant to Joint Rule 25. Senator Grantham introduced fellow JBC members and the various staff members that work with the JBC. Committee members received the Joint Budget Committee Staff Budget Briefing Summary (Attachment A) on issues related to agencies overseen by the Committees on Finance. Senator Grantham noted that the summary helps the JBC, committees, and the General Assembly for budgeting purposes.

Attachment A can be viewed at Legislative Council.







09:52 AM

Senator Grantham began his presentation with a review of the Department of Revenue (DOR) FY 2015-16 proposed operating budget. He reminded the committee of the three functional groups of DOR: Taxation Business Group, Department of Motor Vehicles (DMV), and the Enforcement Business Group. He mentioned DOR's request for the Colorado Automated Testing System's (CATS) maintenance and support.


09:57 AM

 Senator Steadman responded questions regarding CATS and license fees. He noted that while DOR uses cash funds, the fees are not totally sufficient. He discussed how the Department of Revenue is a good example of a department that relies mostly on cash funds, but also needs General Fund support to round out its services. Senator Lambert further discussed the balance of cash funds and General Fund support for running departments. Discussion ensued regarding the department, funding, and the budget process.


10:01 AM

Senator Grantham discussed the DMV funding deficit. Representative Pabon asked a question regarding the next fiscal year and the DMV's spending authority. Senator Grantham noted that in the coming fiscal year DOR can increase fees by 20 percent to help alleviate revenue shortfalls. Senator Steadman followed up by summarizing DOR's ability to change and raise fees.


10:07 AM

Senator Lambert discussed service wait times in the DMV and funding requests associated with recent changes to DMV services. Committee discussion ensued.


10:17 AM

Committee discussion continued regarding the role of the JBC in reviewing funding requests and the committee's general policies. The committee debated the merits of various DOR funding requests and the process used by the JBC. Also, discussion ensued regarding JBC rules, committee makeup, and the reconsideration process.

10:47 AM

Senator Steadman discussed the Statewide Marijuana Cash Fund, Proposition AA, and TABOR refunds. He discussed opportunities for legislation and some revenue-related shortfalls.













10:55 AM

Senator Grantham discussed the JBC's consideration of the Department of Treasury's budget. He highlighted the department's duties and noted the Unclaimed Property Program, the Senior Citizens & Disabled Veteran Property Tax Exemption adjustment, and the distribution of the Highway Users Tax Fund. He pointed out, that like DOR, the Treasury is a mostly cash funded department, but that it also uses general funds. The committee discussed the state of the Senior Citizens & Disabled Veteran Property Tax Exemption adjustment and issues regarding the growth of the adjustment.


11:04 AM -- Briefing from OSA Regarding Unimplemented Audit Recommendations

Mr. Matt Devlin, Deputy State Auditor, Office of the State Auditor, presented a FY 2013-14 report of unimplemented or partially implemented audit recommendations. Committee members received a copy of the report (Attachment B). He said the office issued 48 publications, including audit reports, during the last fiscal year. Ms. Pooja Tulsian continued the presentation with a description of unimplemented or partially implemented recommendation for various financial audits. She explained what constitutes a high priority financial audit recommendation. She explained that the Department of Revenue has three high-priority recommendations. She said the other departments and offices overseen by the Joint Finance Committee do not have any high-priority recommendations for FY 2013-14.

Attachment B can be viewed at Legislative Council.

11:16 AM

Mr. Reed Larsen continued the presentation with additional detail about outstanding audit recommendations within the Department of Revenue. He discussed the high-priority recommendations associated with various information technology systems employed by the department. Mr. Larsen responded to a question from the committee about the department's response to the audit recommendations. Discussion ensued on the amount of cash fund reserve that can be retained by departments. Mr. Larsen said there are some outstanding unimplemented audit recommendations for the Office of State Planning and Budgeting. Mr. Devlin addressed a question from the committee about recommendations that a department opts not to implement. Discussion ensued on this topic.


11:31 AM -- Briefing from DOR: Tax Expenditures Analysis Report

Ms. Saskia Young, Legislative Liaison, Department of Revenue (DOR), addressed questions raised during the earlier presentation of unimplemented audit recommendations. Ms. Amber Egbert, representing DOR, presented a Tax Expenditures Analysis Report (Attachment C). Committee members received a summary of Ms. Egbert's presentation (Attachment D). She explained that the information included in the report may not match calculations in Legislative Council Staff fiscal notes. Ms. Egbert continued her presentation and spoke to information included in Attachment D.

Attachment C can be viewed at Legislative Council. 15JtFinance0122AttachD.pdf15JtFinance0122AttachD.pdf








11:48 AM

Ms. Egbert responded to questions from the committee about information included in the report. Discussion ensued on Colorado's relative ranking in terms of total state and local taxes collected as compared to other states. Discussion continued on the topic of the amount of taxes collected in Colorado, specifically property taxes and the amount collected at different income levels. Ms. Egbert responded to a question about the amount of spending, per capita, for park and recreation services. Discussion ensued on the information reported about spending on utilities.


12:05 PM

The meeting adjourned.