Colorado Legislative Council Staff
NO FISCAL IMPACT
April 18, 1998
Harry Zeid (866-4753)
TITLE: CONCERNING THE PREPARATION OF FINANCIAL STATEMENTS OF STATE GOVERNMENT AS THEY RELATE TO THE CONSTITUTIONAL LIMITATION ON STATE FISCAL YEAR SPENDING.
Summary of Assessment
This bill would clarify that the annual financial report prepared by the State Controller to ensure compliance with Section 20 of Article X of the State Constitution (the TABOR Amendment) shall be prepared in accordance with generally accepted accounting principles unless otherwise provided by law or unless there exists an irreconcilable conflict with the constitutional provision. Notwithstanding any generally accepted accounting principles, the report shall not include any unrealized gains or losses on investments held by the state.
The bill requires that the state General Fund surplus must be determined based on the accrual system of accounting; except that any excess General Fund revenues shall be included in the unrestricted General Fund surplus for the year in which the excess accrued. Excess revenues would be restricted to preserve their availability for refund in the following fiscal year. The restriction would be removed if the voters were to authorize the state to retain the revenues.
The bill would not affect the revenues or expenditures of the state, but would rather clarify the intent of the General Assembly regarding the implementation of Section 20 of Article X of the State Constitution. Therefore, the bill is assessed as having no fiscal impact. The bill would become effective upon signature of the Governor.
Legislative Council Staff