A legislative recap

Colorado’s General Assembly passed over 500 out of the 700 bills proposed this session. The race to the finish line was intense and filled with debate, with more than 230 bills still in progress with just three days to go.

The legislative leadership began the session by calling for civility and productive discourse. While this was evident in the cooperation between majority and minority leadership and bipartisan collaboration on important policy issues, it was also overshadowed by the resignation of two lawmakers who cited a toxic work environment as a factor, as well as intra-party lawsuits alleging open meeting violations.

While Democrats continue to hold historic majorities in both chambers, party members are not necessarily aligned in either approach or philosophy. The Senate benefitted from a highly experienced membership – seven of the chamber’s members were serving their final session, five members had begun their final term, and eight additional members were serving the last year of their first term. Yet more than 30% of legislators were learning the ropes, having been newly elected in 2022 or appointed to vacancies. As in previous sessions, the Governor also played a major role in the legislative process.

This year, Colorado made significant strategic decisions regarding the management of the state's budget. The state's reserve is currently at a historic high, thanks in part to the governor's focus on saving for times of economic uncertainty. For the first time since the Great Recession, the so-called "negative factor," a budgetary maneuver affecting K-12 education funding that originated from a voter directive in 2000, has been eliminated.

Despite the state not being in a recession, tactics typically employed during recessions, such as utilizing cash funds and reclassifying funds to exempt them from TABOR to increase the amount that can be retained and spent in the general fund, were employed to balance the budget. The state funded $457 million in ongoing programs with one-time dollars. The Joint Budget Committee (JBC) will face a complex revenue picture and tough spending decisions for next year’s budget.

After the budget was approved, the Joint Budget Committee learned that the Attorney General's opinion stated that $33.9 million in insurance premium taxes were incorrectly exempted from TABOR. As a result, the committee needed to address these under-refunded TABOR obligations and prevent future errors. The JBC scheduled discussions over the interim period to find a solution for this ongoing issue with state and health insurance. According to updated economic and revenue forecasts, the additional TABOR refund may be feasible. If not, then an automatic reduction to the General Fund reserve will be activated to ensure compliance with the budget.

What’s next? The legislature will be studying various policy topics in a new and existing interim committee, which will set the stage for bills to be introduced next session. In the November election, voters will have their say on policy proposals, including election reforms and tax policy, as well as on numerous open legislative seats. In the Senate, seven seats are open due to term-limited members, and two additional seats are open because members have chosen to run for other offices. There is a possibility that Democrats could gain a super-majority in the Senate, as they are currently only one seat away.

The 2024 Colorado legislative session addressed key issues such as property tax policy, environmental sustainability, housing affordability, and healthcare accessibility. We’ll explore some of these specific issues in this space next week.

Chris Romer is president & CEO of Vail Valley Partnership, the regional chamber of commerce. Learn more at VailValleyPartnership.com