STATE OF COLORADO OFFICE OF THE GOVERNOR 136 State Capitol Building Denver, Colorado 80203 (303) 866 - 2471 (303) 866 - 2003 Fax
November 2, 2015
John W. Hickenlooper Governor
The Honorable Kent Lambert Chair, Joint Budget Committee Colorado General Assembly 200 E. 14th Avenue, Third Floor Legislative Services Building Denver, CO 80203
Dear Senator Lambert: We are pleased to present a summary of the FY 2016-17 Colorado State budget request. We are requesting a Total Funds appropriation of $27.0 billion, with $10.4 billion coming from the General Fund. Relative to the expected budget this fiscal year, the Total Funds budget request reflects a drop of 0.4 percent, and the General Fund budget reflects growth of 0.9 percent. The graphs on page 2 display major program areas in Total Funds and in the General Fund. Economic conditions in Colorado remain among the most favorable in the United States. Since the end of the Great Recession, economic activity has been consistent and broad-based, accompanied by the attraction of new residents and businesses to the state. The recovery is not without its demerits; growth has not been uniform throughout the state and there has been significant disruption in natural gas and oil industry employment. For many workers, pay has been flat. At the national level, there has been volatility in the stock market and uncertainty about monetary policy. Still, the overall view of our economy is positive.
General Fund Request: Balancing FY 2015-16 and FY 2016-17 Forecasts for Colorado’s General Fund revenue collections from income and sales taxes reflect the economic conditions described earlier. For FY 2016-17, the September forecast from the Office of State Planning and Budgeting (OSPB) projects General Fund revenue to be $3.1 billion above its pre-Great Recession peak. When adjusted for inflation, however, collections of $1,601 per person in Colorado will still be 0.6 percent below the FY 2007-08 level.
Governor Hickenlooper’s Budget Request for FY 2016-17 November 2, 2015 Page 2
FY 2016-17 Total Funds Request (In Millions) and Percent of Total All Other Spending, $3,410.7 13%
TABOR Refund, HUTF, $107.4 0% $189.1 1%
Capital Construction, $58.5 0%
Transportation $1,404.6 5%
Health and Human Services , $10,799.9 40%
Public Safety/Courts $1,958.4 7%
Higher Education $3,694.8 14%
K-12 Education $5,548.2 20%
FY 2016-17 General Fund Request (In Millions) and Percent of Total Capital Construction, $58.5 1% Public Safety/Courts, $1,385.6 13% All Other Spending, $546.1 5%
HUTF, $107.4 1%
K-12 Education, $3,793.0 36%
Treasury, $156.8 1%
Health & Human Services $3,479.0 33%
TABOR Refund, $189.1 2% Higher Education $838.5 8%
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Revenue expectations from both OSPB and the Colorado Legislative Council Staff (LCS) have weakened in the months since the current-year budget was adopted. In the current year, the LCS forecast shows a $215.4 million (35.2 percent) shortfall in the General Fund required reserve, while the OSPB forecast is $28.7 million (4.7 percent) below the required reserve. For FY 201617, the forecasts are closer in terms of growth rates, and the available money differs mostly by the gap in the current year. At this time, we have revenue data through September 2015. The FY 2015-16 first quarter data show General Fund growth of 5.9 percent above the same period in 2014, and major subcomponents of various taxes are performing consistent with the September 2015 OSPB forecast, notably wage withholding and estimated payments. Both the LCS and OSPB forecasts assume historically low growth rates for a non-recession environment. The first quarter’s performance is largely in line with OSPB’s forecast, but we recognize that the lower LCS forecast is within a reasonable range of possible outcomes. We therefore believe the midpoint of the two forecasts is a prudent basis for balancing FY 2015-16 and the request for FY 2016-17. In this scenario, the current year’s budget is short $160.3 million. We propose that the reserve fall below the 6.5 percent requirement for FY 2015-16 only and that it be restored for FY 2016-17. Meanwhile, Colorado’s statutes and State Constitutional provisions that govern revenue and spending are influencing features of our request. At the present time, both available forecasts show that the State will not be able to retain all of the revenue available, and the excess revenue is a refund liability in the General Fund. However, the presence of refunds under the revenue limit established by the Taxpayer’s Bill of Rights (TABOR) is the result of cash fund revenue collected outside the General Fund, notably the hospital provider fee established in House Bill 09-1293. Without these collections, State government revenue has grown slower than population and inflation since the revenue base was set in FY 2007-08. With the midpoint forecast and accounting for expected current-year spending, the available new General Fund revenue for FY 2016-17 is $457.2 million. Separately from this revenue assumption, we have also taken into account a likely upgrade in local property taxes that will flow to the K-12 school finance formula. Based on a preliminary analysis of new assessed values, we believe it is reasonable to assume an additional $72.1 million in local property taxes (split between FY 2015-16 and FY 2016-17) above last year’s estimate. Against available revenue of $457.2 million and before balancing measures, we have four primary cost drivers in the existing menu of General Fund responsibilities: • •
$ 301 million to keep the negative factor where it is in FY 2015-16 $ 289 million for TABOR rebates
Governor Hickenlooper’s Budget Request for FY 2016-17 November 2, 2015 Page 4 • •
$ 160 million to restore the 6.5% reserve level $ 80 million for new Medicaid clients
These four items total $830 million and thus the budget request had to close a $373 million gap. Budget balancing items totaling $230 million of these are identified on page 11 below. General Fund Request: Funding Priorities for FY 2016-17 K-12 Education Our request for K-12 education funding through the School Finance Act reflects $4.2 billion of State funds and $2.2 billion from local share property taxes. At $4.2 billion, the total amount of State money requested reflects an increase of $182.4 million (4.5 percent). The total school finance increase from all sources is $162.6 million (2.6 percent). This compares with 1.8 percent inflation and 1.2 percent enrollment growth. In FY 2016-17, we expect the funded pupil count to reach 865,454. This request reflects average per pupil funding of $7,397.52, up 1.4 percent, from $7,294.40 in FY 2015-16. With respect to State funds, the General Fund appropriation to K-12 education will increase $225.0 million (6.3 percent) and appropriations from the State Education Fund (SEF) will decline by $49.2 million (8.4 percent). Even with this drop in SEF funding, the fund balance at the end of FY 2016-17 will be just $102.8 million compared with $342.7 million at the end of FY 2015-16. The drop in the ending balance avoids a bigger increase in the negative factor but also leaves less room to respond to an unexpected drop in revenue. With this request, the FY 2016-17 negative factor is estimated at $905 million (12.4 percent of total program), an increase of $50 million from the current year. If there were no change in the negative factor, per pupil funding would be $57.77 higher. A recent court case affirmed the legality of the negative factor (explained in more detail on page 14). Because the negative factor cannot legally climb above $1.76 billion, we continue to note the size of it in the budget request. As a technical note, we have also used the midpoint forecast to determine the income tax transfers to the State Education Fund under Amendment 23. Health Care Policy and Financing The request includes a $2.7 million increase (0.03 percent) in Total Funds appropriations to the Department of Health Care Policy and Financing (HCPF), bringing the FY 2016-17 budget to $8.9 billion Total Funds, including $2.6 billion General Fund. Behind this increase is the expectation of a 4.7 percent rise in the Medicaid caseload to 1,352,005 Coloradans. Of this total, 42.8 percent are children and 9.7 percent are elderly or disabled. With respect to Medicaid costs, children comprise 19.0 percent of the total while the elderly and disabled comprise 42.0 percent. The following chart and table show the expected composition of the Medicaid caseload and associated respective costs.
Governor Hickenlooper’s Budget Request for FY 2016-17 November 2, 2015 Page 5
FY 2016-17 Expected Medicaid Caseload by Expenditure and Population FY 2016-17 Estimates
Caseload
Percent of Total Caseload
Expenditure
Percent of Total Expenditure
Children
578,747
42.8% $1,103,992,936
19.0%
Adults
641,553
47.5% $2,263,513,561
39.0%
Elderly & Individuals with Disabilities
131,705
9.7% $2,436,942,567
42.0%
1,352,005
100.0% $5,804,449,064
100.0%
Total
FY 2016-17 Expected Medicaid Caseload and Expenditure by Population 100% 9.7% 90% 80% 70%
42.0% 47.5%
60% 50% 40%
39.0%
30% 20%
42.8%
10%
19.0%
0% Caseload Percent Children
Expenditures Percent Adults
Elderly & Individuals w/ Disabilities
Tempering the growth in this budget are two balancing measures related to health care providers. First, we are proposing that hospital provider fee collections under H.B. 09-1293 be reduced from current expectations by $100 million. This reduces appropriations by nearly $200 million Total Funds in the HCPF budget, but also reduces the expected TABOR rebate liability in the General Fund by $100 million. Second, we include in our request a 1.0 percent reduction to
Governor Hickenlooper’s Budget Request for FY 2016-17 November 2, 2015 Page 6
most provider rates. This change reduces the expected appropriation in the HCPF budget by $35.8 million Total Funds, and $12.9 million General Fund. We are also taking steps to improve value and avoid costs in the Medicaid program. In the Department of Public Health and Environment (CDPHE), we have budgeted $2.5 million General Fund to continue State support for the Family Planning Program. This program has been successful in reducing the birth rate of young women beyond the average declines in the birth rates of this population in the United States as a whole. After the current year, donated funds to this program will no longer be available to the State. We project that the $2.5 million will allow CDPHE and its partners to serve approximately 6,200 out of 83,000 eligible women. Based on current estimates for the program, each client served costs an average of $404, and Medicaid costs for a birth are approximately $11,000. More detail on this request can be found in the CDPHE budget request, available on the OSPB website. Separately, HCPF has been pursuing numerous health care delivery changes. This budget request reflects the enrollment of 1,078,390 Medicaid clients in the Accountable Care Collaborative / Regional Care Collaborative Organization (ACC / RCCO) program by June 2017. In FY 2014-15, this program added 290,545 new clients and demonstrated an estimated $121.2 million in gross avoided costs. Costs are avoided through coordinated primary care, which is less expensive than episodic or emergency treatment of medical conditions. The majority of these avoided costs are gained through coordinated care for individuals with disabilities. These clients are often more medically vulnerable than clients without disabilities, and frequently have multiple chronic conditions and require greater intensive care, such as inpatient hospital stays.
Human Services This request maintains our commitment to essential safety net and protection programs within the Department of Human Services (DHS), with several notable inclusions:
$6.7 million Total Funds, $5.9 million General Fund, for counties to hire 100 additional Child Welfare caseworkers. A 2014 audit by the Office of the State Auditor recommended the hiring of 650 additional caseworkers statewide to address this issue. In 2015-16, counties received 100 additional caseworkers and this is the second year of the request.
$4.7 million General Fund for DHS to hire 125 additional staff in Division of Youth Corrections facilities. This request is intended to provide staffing to address safety and security issues, as well as bring the staffing ratios at facilities in accordance with the federal Prison Rape Elimination Act. The Department previously received funding for 75 staff for this purpose in FY 2015-16. This is the second year of this initiative.
$4.1 million General Fund and 7.5 FTE to address the staffing and bed capacity needs resulting from an increased demand for court-ordered competency evaluation and
Governor Hickenlooper’s Budget Request for FY 2016-17 November 2, 2015 Page 7
restoration services in the Office of Behavioral Health. In FY 2016-17, referrals for competency evaluations are projected to increase by 5.4 percent and referrals for competency restorations are projected to increase by 4.8 percent. •
$3.8 million Total Funds, including $2.2 million General Fund, to fund an increase in caseloads in the Early Intervention program. This request will allow the Department to provide services to an additional 467 children, equivalent to a 6.0 percent caseload increase.
Meanwhile, under S.B. 15-239, beginning in FY 2016-17, the Division of Vocational Rehabilitation is transferred from the Department of Human Services to the Department of Labor and Employment. The reduction to the Human Services budget includes $49.4 million total funds ($4.9 million General Fund and $38.8 million federal funds) and 233.1 FTE. Statewide, this was a net-zero transfer with a corresponding increase in the Department of Labor and Employment’s budget. The Department of Labor and Employment is requesting additional funds in the amount of $371,000 Total Funds ($79,000 General Fund and $292,000 federal funds) and 2.6 FTE for administrative support and leased space costs that are necessary for operation of the Division. In addition, the Department of Human Services is requesting $1.1 million General Fund in order to offset the Department’s reduction of indirect cost recoveries resulting from the transfer. It is expected that the Department of Labor and Employment will be able to charge additional indirect costs to federal funds associated with DVR, helping to offset this General Fund need. For the Colorado Benefits Management System, the request includes $22.4 million Total Funds, including $15.0 million General Fund, to maintain current functionality, develop new functionality, and improve sustainability of the system. The appropriations are directly made to DHS and HCPF. Additionally, the funds are also shown as a large reappropriated funds increase in the Office of Information Technology within the Governor’s Office.
Corrections and Public Safety The request reflects a moderation in the expected number of inmates under the supervision of the Department of Corrections (DOC). For FY 2016-17, we expect the number of offenders under supervision to total 21,051. Based on current projections, this represents a 1.7 percent increase from the current year; however, it reflects a 3.9 percent decrease from the December 2014 projection. After accounting for expected personnel-related costs, some operational issues, and medical costs, the appropriation to the DOC will be $862.5 million Total Funds (0.6 percent decrease) and $755.1 million General Fund (0.7 percent decrease). The Department of Public Safety’s (CDPS) budget includes a salary increase of $5.1 million Total Funds (comprised, in part, of $4.4 million Cash Funds and $0.3 million General Fund) for Colorado State Patrol troopers. This represents a 7.0 percent increase in pay levels over FY 2015-16, as recommended in the Total Compensation Report and required by statute. Due to growing traffic concerns on E-470 highways, the E-470 Authority has requested and agreed to pay for an additional 2.0 Troopers to patrol its highways. This necessitates an increase of
Governor Hickenlooper’s Budget Request for FY 2016-17 November 2, 2015 Page 8
$261,000 in Cash Funds spending authority and 2.0 FTE to allocate more state Troopers to patrol the E-470 corridor. As a state agency that has grown considerably over the past several years in both size and mission, CDPS proposes a reorganization to consolidate certain administrative functions from its five operational divisions into the Executive Director’s Office. CDPS will realize efficiencies in financial, planning, and risk management with minimal new FTE growth and no General Fund or fee revenue impact. This results in a net increase of $4.4 million Reappropriated Funds and 5.0 FTE to its budget. A reduction of 1.0 percent is proposed to the provider rate for Community Corrections facilities. This would result in a reduction totaling $658,873 General Fund for per diem rates paid to providers for both standard and specialized community corrections beds. Higher Education We have been proud to increase State support for resident undergraduate students in our colleges and universities in recent years. Given the available assumed General Fund revenue, however, it is not possible to sustain the current level of appropriations into FY 2016-17. Our request reflects a $20 million reduction from the current appropriation to colleges and universities. The reduction of $20 million General Fund in the Colorado public higher education system may result in higher tuition increases at many institutions in FY 2016-17. We estimate that the higher education system will experience operational cost increases of approximately $56 million (2.0 percent). In this context, a reduction of $20 million for higher education further compounds this fiscal pressure and translates into a total of $76 million that must be generated from students through tuition. This need would translate into potential average tuition increases of 8.7 percent (median of 9.2 percent). However, the impact and corresponding tuition increases would vary significantly by institution. Additionally, we propose to keep financial aid programs at continuation levels ($145 million).
Transportation Based on the midpoint forecast, under the provisions of Senate Bill 09-228, the size of the TABOR refund would allow a transfer of $201.9 million from the General Fund to the Highway Users Tax Fund in FY 2015-16 and a transfer of $107.4 million in FY 2016-17. These are the same transfers as the LCS forecast. With the OSPB projection, there would be $101.8 million transferred in FY 2015-16 only. The provisions of S.B. 09-228 are explained in more detail on page 14.
Governor Hickenlooper’s Budget Request for FY 2016-17 November 2, 2015 Page 9
Elected Officials, Legislature, and Judicial Branch We have allocated sufficient General Fund to accommodate anticipated growth in total compensation costs along with a 1.0 percent General Fund increase for statewide elected officials, the General Assembly, and the Judicial Branch.
Economic Development In our planning, we have included programs that keep a broad array of efforts around economic development at a continuation level of funding. Notably, funding for tourism promotion remains at $18.5 million and the film incentives program remains at $3.0 million. The Colorado Office of Film, Television and Media estimates that the $3.0 million will leverage $15 million in direct production spending and an additional $10 million in spillover economic activity.
Marijuana Enforcement and Related Programs We have included $44.8 million in spending items from the proceeds of marijuana taxes collected in FY 2014-15 and FY 2015-16, to be spent in FY 2016-17. This includes the continuation of $10.8 million for programs funded with passage of Proposition BB, including Tony Grampsas youth mentoring services, marijuana education prevention campaigns, substance abuse treatment, 4-H programming through the Colorado State Fair, and grants for local governments to mitigate the impacts of marijuana legalization, among others. If Proposition BB fails, we will revise the spending plan within available resources. Also included in the base request is $23.9 million for continuation of programs funded in FY 2015-16, including: $7.8 million in support for the state’s regulatory environment in the Department of Revenue (and another $5.2 million funded separately from fees); $315,000 in the Department of Agriculture, which now regulates the hemp industry; $1.3 million for certain regulatory functions in the CDPHE, including certifying marijuana testing labs and collecting public health data (medical marijuana patient registry and caregiver regulation are funded separately from fees). Funding of $200,000 for the Governor’s Office of Marijuana Coordination will continue into FY 2016-17, as well as $1.2 million in the Department of Law for police officer training and special legal counsel for the State, and $280,000 in the Department of Public Safety. The Department of Agriculture requests an additional $1.6 million (including $1.2 million in the capital construction budget) for pesticide laboratory augmentation and additional support for hemp regulation and seed certification. An additional $580,000 is requested in CDPHE for enhanced data collection on marijuana-related poison center calls and for establishing statewide baseline data related to marijuana use and risk factors for families and pregnant women. The request continues funding for marijuana-impaired driving campaigns at $450,000, with an additional $500,000 requested for education and prevention of all types of impaired driving through the Heat is On campaign in the Department of Transportation. We propose to continue
Governor Hickenlooper’s Budget Request for FY 2016-17 November 2, 2015 Page 10
current public health education initiatives in CDPHE at the fully funded level of $4.7 million, regardless of the outcome of Proposition BB. A continuation of $2.3 million is requested in the Department of Education for behavioral health treatment in schools, and $5.9 million for youth prevention, diversion, and adult mental health services in the Department of Human Services. The Department of Human Services requests an additional $5.5 million for intensive residential treatment for substance use disorders, supportive employment, and sober living homes. Finally, $1.8 million is requested for the continued operation of the Ft. Lyon Supportive Residential Community until the program is eligible for federal funding. In total, new funding requests from the Marijuana Tax Cash Fund total $10.1 million. We plan to submit a budget amendment package of additional funding for regulation, enforcement and prevention, with the total amount of additional funding contingent on the outcome of Proposition BB.
Capital Construction We have accounted for the continuation phases of 12 capital and Information Technology construction projects that received funding beginning in FY 2015-16. These include five projects in the Department of Higher Education, five projects in the Department of Human Services, one project for the Colorado School for the Deaf and Blind, and ongoing improvements for the State’s public safety radio communication network. In addition, we have allocated $10.3 million for the most critical controlled maintenance projects in State buildings. The General Fund transfer required for these requests is $58.5 million.
Workforce Total Compensation In looking at total compensation, our first goal is to protect take home pay for State employees. Though we are disappointed not to include a statewide salary increase, we address two important areas in total compensation. First, the continued required contributions to the Public Employee’s Retirement association under S.B. 10-001 increase by approximately 1 percent of payroll or $23.5 million Total Funds ($12.6 million General Fund). Second, as we received information about coming health care cost increases, we made room in our budget planning to add these to the employer share of health care coverage. In the current year, the State pays 80% of health insurance costs and employees cover the rest. In our budget request, an additional $4.2 million Total Funds ($3.7 million General Fund) is allocated to health care coverage for State employees and their dependents. The goal of this recommendation is to keep take home pay from dropping because of insurance cost increases. If the budget situation improves, employee compensation is among the areas we look forward to revisiting with the General Assembly.
Governor Hickenlooper’s Budget Request for FY 2016-17 November 2, 2015 Page 11
General Fund Request: Balancing Items In order to fund the requested priorities, the General Fund budget request required several large balancing items totaling $230 million. In order of magnitude, these include: Reduction of Hospital Provider Fees. As noted earlier, the TABOR rebates in the General Fund are the result of growth in hospital provider fees, which are not collected in the General Fund. However, the rebate liability they generate is a General Fund obligation. We propose a $100 million reduction in the expected Hospital Provider Fee collections in FY 2016-17. Reduce Appropriations to Higher Education. This request reflects a continuation of financial aid programs at the FY 2015-16 appropriation level, but $20 million, or 3.1 percent, is reduced in the General Fund request for public colleges and universities. Allow the “Negative Factor” to Increase. For K-12 education, FY 2016-17 enrollment is expected to increase by 1.2 percent and inflation will be 1.8 percent. In this request, though per pupil funding will increase by $103.12 (1.4 percent), the negative factor will grow by $50 million to $905.2 million. Allow the State Education Fund Balance to Drop. As part of minimizing the increase in the negative factor, this request allows the ending balance in the State Education Fund to drop to $102.8 million, from a projected ending balance of $342.7 in FY 2015-16. Reduce Most Provider Rates by One Percent. Based on current appropriations, a one-percent across the board provider rate reduction would equal $52.6 million total funds. However, we propose excluding primary care physicians under the federal "1202" designation from this reduction. With these exclusions, the reduction totals $19.6 million net General Fund and $45.6 million Total Funds. Fund only Essential Controlled Maintenance Costs. In a normal year, we would request $20 million for controlled maintenance of state buildings. We propose funding $10.3 million of critical and pressing needs to be prioritized by the State Architect. Law Changes Required with this Request In the Department of Revenue, additional resources from the Highway Users Tax Fund (HUTF) are necessary for sufficient operations and staffing in the Division of Motor Vehicles. This will require a law change to allow HUTF “Off-the-Top” revenues to be appropriated to the Department of Revenue beginning in FY 2016-17. We also propose eliminating the sweep from the Licensing Services Cash Fund to the HUTF, which will allow the DMV’s cash resources to remain more solvent in the long term. Based on current projections, approximately $1 million would be swept to the HUTF in FY 2015-16 without this change.
Governor Hickenlooper’s Budget Request for FY 2016-17 November 2, 2015 Page 12
We propose broadening the statute governing the use of the Marijuana Tax Cash Fund to include supportive housing services to support the request for $1.8 million in marijuana tax revenue for the Ft. Lyon Supportive Residential Community. Our balancing plan reflects a reduction in hospital provider fees and we believe the appropriate statute should reflect this change if it is included in the balancing package next year. We will provide statutory options to implement the lower fee collections at the request of the Joint Budget Committee. The budget request also requires an additional $3.8 million transfer from severance taxes to the General Fund in FY 2015-16. This is the amount needed to fulfill the intent of SB 15-255, which required $20 million in severance tax revenue to be credited to the General Fund at the end of FY 2014-15. Due to a technical issue in the language of the SB 15-255, however, only $16.2 million in severance taxes were credited to the General Fund. The $3.8 million is the difference between the $20 million intended by SB 15-255 and the actual amount received. Legislation is necessary for the General Fund to receive the $3.8 million from severance tax revenue. The budget assumes passage of the Colorado Commission on Higher Education’s (CCHE) proposed law change to continue current statute in showing tuition in the Long Bill for informational purposes only and to make student tuition not subject to annual legislative appropriation. The CCHE proposed law change on tuition also provides that CCHE will provide its recommendation on tuition as part of its annual budget request to the JBC and General Assembly. This policy necessarily highlights that the state’s General Fund investment in higher education directly affects Colorado resident student tuition. As noted earlier, the FY 2015-16 General Fund ending balance will be below the statutory 6.5 percent reserve requirement. We recommend a statutory adjustment to account for this situation only for the current year.
Budget Amendments and Items of Note The balancing plan in this request leaves room for some adjustments to our proposal that will be forthcoming as budget amendments. At this time, we have left $26 million available for these adjustments. First, we need to assess the impact of the increase in Medicare premiums for which the State would be responsible in the Medicaid program. Second, the OSPB and the Department of Corrections are analyzing and coordinating the opportunities presented by the update to the prison utilization study and the findings from the Results First project. We believe there are substantive recommendations to make regarding the better use of existing resources and the improvement of our performance with recidivism outcomes and successful reentry and parole policies.
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Third, we have set aside $1 million for a budget amendment to address the ongoing financial instability of the Colorado State Fair program. While the Fair itself is a profitable event, these profits alone cannot sustain the year-round operations of the fairgrounds and its attendant buildings.
Contingent General Fund Requests for FY 2016-17 Although this budget request reflects a weak General Fund revenue assumption, it is possible that the forecast ultimately used to set the budget will show revenue in both FY 2015-16 and FY 2016-17 that meets or exceeds the midpoint assumption. In the event that more revenue is available, we have submitted to the Joint Budget Committee under separate cover a series of requests for consideration if revenues allow for additional spending. If available revenue increases, we recommend that the triggers for transfers to the Highway Users Tax Fund and Capital Construction Fund under S.B. 09-228 remain as in current law. Then, we recommend a prioritization of additional spending as follows: • • • • • • •
• • •
•
Restore $50 million in funding to K-12 Education and reduce growth to the negative factor; Restore the 1.0 percent rate reduction to providers in HCPF, DHS, DOC, and CDPS; Provide a pay increase for State Employees of 1.0 percent, balanced between an acrossthe-board increase and a merit pay increase; Increase the allocation for Controlled Maintenance to at least $20.3 million (full funding of Level I Controlled Maintenance would require $26.1 million); Restore $20 million General Fund for allocation to institutions of higher education; Fund two decision items for the Office of Information Technology in the accompanying conditional budget request for SecureColorado and IT Management Tools; Fund the four decision items for the Department of Human Services in the accompanying conditional budget request for program relocations within the Colorado Mental Health Institution in Pueblo, Rehire Colorado, equipment replacement at DYC and the Mental Health Institutes, and property maintenance at the Mount View Youth Services Center; Restore the balance in the State Education Fund to approximately 2 percent of total program expenditures, or $130 million; Provide an additional pay increase for State Employees of up to 1.0 percent, balanced between an across-the-board increase and a merit pay increase; Fund the decision item for the Department of Local Affairs in the accompanying conditional budget request to increase the Colorado Choice Transitions Rental Voucher program; Fund the decision item in the accompanying conditional budget request to replace the PBX telephone system in the Department of Revenue;
Governor Hickenlooper’s Budget Request for FY 2016-17 November 2, 2015 Page 14 • •
Increase General Fund support for institutions of higher education by up to an additional $50 million; and, Provide funding for other capital construction projects within executive branch agencies and institutions of higher education as prioritized in OSPB’s November 2, 2015 submission to the Capital Development Committee.
Background on the Negative Factor and Senate Bill 09-228 Primer on the Negative Factor. The negative factor is a fourth factor that is used in the K-12 education school finance formula. The negative factor was added in FY 2009-10 as a budget balancing solution during the Great Recession. Its legality was recently confirmed by the Colorado Supreme Court. In the current fiscal year, the value of the negative factor is 12.1 percent of total program funding or $855.2 million. The maximum allowed amount of the negative factor is $1.76 billion. Primer on Senate Bill 09-228. Enacted in 2009, S.B. 09-228 eliminated the transportation funding mechanism previously known as “Senate Bill 1”, which diverted roughly 10 percent of the State’s sales and use taxes to transportation uses. S.B. 09-228 replaced this diversion with a five-year diversion of 2.0 percent of all General Fund revenue to transportation, plus additional transfers to capital construction and controlled maintenance. If there are TABOR rebate obligations greater than 1.0 percent but less than three percent of revenue, the transfers are reduced by half. If the TABOR rebates exceed 3.0 percent of revenue, the transfers are eliminated. Request Overview The following tables show our Total Funds and General Fund request for FY 2016-17.
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Table 1. Total Funds (by major category) FY 2015-16 $10,805,113,555 $5,434,487,782 3,732,557,075 1,945,792,389 1,436,913,372
FY 2016-17 $10,799,854,347 5,548,235,049 3,694,804,974 1,958,376,440 1,404,629,608
Change (5,259,208) 113,747,267 (37,752,101) 12,584,051 (32,283,764)
% Change 0.0% 2.1% -1.0% 0.6% -2.2%
3,067,701,890 26,422,566,063 271,801,088 108,998,907
3,204,398,580 26,610,298,998 58,517,936 114,514,284
136,696,690 187,732,935 (213,283,152) 5,515,377
4.5% 0.7% -78.5% 5.1%
(375,394)
1,200,000
1,575,394
N/A
201,886,636 86,645,359
107,403,202 89,562,281
(94,483,434) 2,916,922
-46.8% 3.4%
Other ("1331s" and Placeholder) Subtotal (Without TABOR Refund)
5,510,584 27,097,033,243
1,000,000 26,982,496,701
(4,510,584) (114,536,542)
N/A -0.4%
TABOR Refund Total Expenditures
36,467,850 27,133,501,093
189,134,925 27,171,631,626
152,667,075 38,130,533
418.6% 0.1%
Health and Human Services K-12 Education Higher Education Public Safety/Courts Transportation All Other Departments Total Departments Capital Construction Old Age Pension/Older Coloradans Other Rebates/Expenditures Transfer to HUTF Transfers to Funds
Table 2. General Fund (by major category) FY 2015-16 $3,567,985,216 3,318,985,818 1,384,566,092 857,415,995 135,066,583
FY 2016-17 $3,793,010,882 3,479,021,039 1,385,631,375 838,524,430 156,812,020
Change $225,025,666 160,035,221 1,065,283 (18,891,565) 21,745,437
% Change 6.3% 4.8% 0.1% -2.2% 16.1%
333,092,945 9,597,112,649 271,801,088 108,998,907 (375,394) 201,886,636 86,645,359
339,865,372 9,992,865,118 58,517,936 114,514,284 1,200,000 107,403,202 89,562,281
6,772,427 395,752,469 (213,283,152) 5,515,377 1,575,394 (94,483,434) 2,916,922
2.0% 4.1% -78.5% 5.1% N/A -46.8% 3.4%
Other ("1331s" and Placeholder) Subtotal (Without TABOR Refund)
3,952,898 10,270,022,143
1,000,000 10,365,062,821
(2,952,898) 95,040,678
-74.7% 0.9%
TABOR Refund Total Expenditures
36,467,850 10,306,489,993
189,134,925 10,554,197,746
152,667,075 247,707,753
418.6% 2.4%
K-12 Education Health and Human Services Public Safety/Courts Higher Education Treasury All Other Departments Total Departments Capital Construction Old Age Pension/Older Coloradans Fund Other Adjustments/Rebates/Expenditures Transfer to HUTF Transfers to Funds
Note, for Tables 1 and 2, the category of Health and Human Services is comprised of the Department of Human Services and the Department of Health Care Policy and Financing. The category of Public Safety/Courts is comprised of the Departments of Corrections, Public Safety, and Judicial.
Governor Hickenlooper’s Budget Request for FY 2016-17 November 2, 2015 Page 16
Table 3 below highlights the structure of the General Fund request: Table 3. General Fund Overview
General Fund Available
FY 2015-16 General Fund 10,757,736,934
FY 2016-17 General Fund 11,214,964,936
Change over FY 2015-16 457,228,002
FY 2016-17 % Change 4.3%
General Fund Expenditures Ending General Fund
10,306,489,993 451,246,941
10,554,197,746 660,767,190
247,707,753 209,520,249
2.4% 46.4%
General Fund Reserve Requirement
611,579,537
635,767,190
24,187,653
4.0%
GF Above (Below) Reserve Level
(160,332,596)
25,000,000
185,332,596
N/A
FY 2015-16 General Fund Overview FY 2015-16 General Fund Revenue Available ($10,757.7 million) Our FY 2015-16 budget begins with a $638.0 million beginning balance. Our budget averages the September 2015 revenue estimates from the Office of State Planning and Budgeting and the Legislative Council Staff economists ($10,094.3 million plus revenue adjustments of $15.6 million). The General Fund revenue available also reflects an additional $9.8 million of proposed adjustments, including $3.8 million of severance tax revenues and $6.0 million pursuant to H.B. 15-1367. The beginning balance, revenues, and adjustments total to $10,757.7 million General Fund available. FY 2015-16 General Fund Expenditures ($10,306.5 million) The General Fund expenditures total $10,306.5 million, including $897.6 million which is not subject to the statutory reserve requirements. The budget includes $3.95 million General Fund of JBC-approved “1331” interim supplemental adjustments. The FY 2015-16 General Fund subject to the appropriations limit is $9,446.0 million including the $37.1 million for Certificates of Participation (COPs). The COPs are subject to the statutory appropriations limit but are exempt from the associated reserve requirements, pursuant to Section 24-75-201.1 (2) (b), C.R.S. FY 2015-16 General Fund Ending Balance ($451.2 million) The ending FY 2015-16 balance of $451.2 million falls below the FY 2015-16 reserve requirement by $160.3 million. This partial reserve shortfall is temporary for FY 2015-16 and is fully replenished in FY 2016-17.
Governor Hickenlooper’s Budget Request for FY 2016-17 November 2, 2015 Page 17
FY 2016-17 General Fund Overview FY 2016-17 General Fund Revenue Available ($11,215.0 million) Our FY 2016-17 General Fund budget assumes a beginning fund balance of $451.2 million as indicated above. Added to this sum are General Fund revenue of $10,740.3 million and adjustments of $16.8 million based on the averaged forecasts. In addition, the budget reflects an additional $6.1 million General Fund revenue pursuant to H.B. 15-1367 plus a transfer of $500,000 associated with a Department of Health Care Policy and Financing marijuana-funded measure. Together, the FY 2016-17 budget request assumes General Fund available of $11,215.0 million. FY 2016-17 General Fund Expenditures ($10,554.2 million) Our FY 2016-17 General Fund expenditure request includes $9,781.0 million subject to the statutory General Fund reserve requirements and $773.2 million General Fund which is exempt from the reserve requirement. Note that the General Fund which is exempt from the reserve requirement includes $189.1 million for TABOR refunds; this figure incorporates a $100 million reduction to lower the hospital provider fee. The FY 2016-17 capital construction request of $58.5 million assumes carry-over of some of the excess fund balance from the FY 2015-16 capital construction request. Finally, the budget request also assumes a $1.0 million General Fund placeholder for the State Fair in FY 2016-17. The FY 2016-17 General Fund subject to the statutory appropriations limit is $9,830.1 million including the $49.1 million for COPs. As indicated earlier, the COPs are subject to the statutory appropriations limit but are exempt from the associated reserve requirements. FY 2016-17 General Fund Ending Balance ($660.8 million) Our budget contains an ending balance of $660.8 million. The 6.5 percent General Fund reserve is $635.8 million (calculated on a base of $9,781.0 million General Fund subject to the reserve requirement). Our budget leaves $25 million General Fund in excess of this reserve requirement to address anticipated spending needs, such as the impact of Medicare Part B changes on Medicaid in FY 2016-17. In addition to the budgeted new spending, the request grows the State’s General Fund ending reserve by $209.5 million, from the FY 2015-16 ending balance of $451.2 million to $660.8 million in FY 2016-17. Appendices We have included Appendix A to provide a department-level comparison of anticipated FY 2015-16 appropriations and this FY 2016-17 request.
Total Funds Comparison FY 2016-17 FY 2015-16 Initial Governor's Budget Appropriation Request OP 0 Department of Agriculture 0 Department of Corrections 0 Department of Education 0 Governor - Lt. Governor - State Planning and Budgeting -- Office of the Governor -- Office of the Lieutenant Governor -- Office of State Planning and Budgeting
$46,274,053
$47,604,672
$ Change
% Change
$1,330,619
2.9%
(5,455,485)
(0.6)%
867,977,195
862,521,710
5,434,487,782
5,548,235,049
113,747,267
2.1%
270,661,393
304,893,715
34,232,322
12.6%
22,881,781
22,858,313
(23,468)
(0.1)%
649,395
659,036
9,641
1.5%
2,133,786
2,166,262
32,476
1.5%
-- Economic Development Programs
59,210,189
59,196,169
-- Office of Information Technology
185,786,242
220,013,935
34,227,693
18.4%
8,890,454,397
8,893,159,127
2,704,730
0.0%
0 Department of Health Care Policy and Financing
(14,020)
(0.0)%
0 Department of Higher Education
3,732,557,075
3,694,804,974
(37,752,101)
(1.0)%
0 Department of Human Services
1,914,659,158
1,906,695,220
(7,963,938)
(0.4)%
0 Judicial Department
674,482,707
681,853,574
7,370,867
1.1%
0 Department of Labor and Employment
187,521,105
241,769,471
54,248,366
28.9%
77,512,023
77,405,216
1 Department of Law 1 Legislative Department 1 Department of Local Affairs
(106,807)
(0.1)%
44,641,162
45,582,528
941,366
2.1%
320,219,550
323,049,470
2,829,920
0.9%
1 Department of Military and Veterans Affairs
225,391,179
225,502,176
1 Department of National Resources
263,919,227
256,967,573
(6,951,654)
1 Department of Personnel
181,201,321
186,760,997
5,559,676
110,997
0.0% (2.6)% 3.1%
1 Department of Public Health and Environment
534,348,222
548,115,760
13,767,538
2.6%
1 Department of Public Safety
403,332,487
414,001,156
10,668,669
2.6%
88,577,567
85,154,499
(3,423,068)
324,177,457
328,138,649
3,961,192
1.2%
21,580,286
22,309,135
728,849
3.4%
1,436,913,372
1,404,629,608
481,677,345
511,144,719
1 Department of Regulatory Agencies 1 Department of Revenue 2 Department of State 2 Department of Transportation 2 Department of the Treasury SUBTOTAL Department Operating OS CTransfer to Capital Construction Fund OOld Age Pension Fund / Older Coloradans Fund OCigarette Rebate OMarijuana Rebate to Local Governments OAged Property Tax and Heating Credit OHomestead Exemption OInterest on School Loans OVolunteer FPPA
$26,422,566,063 $271,801,088 108,998,907
(2.2)%
29,467,374
6.1%
$26,610,298,998
$187,732,935
0.7%
$58,517,936
($213,283,152)
(78.5)%
114,514,284
5,515,377
5.1% (100.0)%
(1,034,157)
0
1,034,157
1,014,779
0
(1,014,779)
(100.0)%
(1,250,000)
0
1,250,000
(100.0)% (100.0)%
(258,135) 1,200,000 (51,065)
OAmendment 35 General Fund OTransfers to Highway Users Tax Fund
(32,283,764)
(3.9)%
0
258,135
1,200,000
0
0.0
0
51,065
(100.0)%
3,184
0
(3,184)
(100.0)%
201,886,636
107,403,202
(94,483,434)
(46.8)%
OTransfers to State Education Fund (SB 13-234)
25,321,079
25,321,079
0
0.0
OTransfers to Other Funds
61,324,280
64,241,202
2,916,922
4.8%
5,510,584
1,000,000
(4,510,584)
(81.9)%
OS OOther (JBC Approved 1331 Supplementals & Placeholders) SUBTOTAL Other
$674,467,180
$372,197,703
($302,269,477)
(44.8)%
Total Spending (Without TABOR Refund)
$27,097,033,243
$26,982,496,701
($114,536,542)
(0.4)%
OS OTABOR Refund TOTAL Spending (With TABOR Refund)
$36,467,850 $27,133,501,093
$189,134,925 $27,171,631,626
$152,667,075 $38,130,533
418.6% 0.1%
Appendix A - 1
Total General Fund Comparison FY 2016-17 FY 2015-16 Initial Governor's Budget Request Appropriation OP 01_B_Department of Agriculture
$9,706,234
02_C_Department of Corrections 03_D_Department of Education 04_E_Governor - Lt. Governor - State Planning and Budgeting -- Office of the Governor
$10,087,946
$ Change
% Change
$381,712
3.9%
(5,565,350)
(0.7)%
780,620,458
775,055,108
3,567,985,216
3,793,010,882
41,668,200
39,538,773
(2,129,427)
(5.1)%
6,124,354
6,068,811
(55,543)
(0.9)%
429,386
439,027
-- Office of the Lieutenant Governor -- Office of State Planning and Budgeting
225,025,666
9,641
2.2%
587,132
588,174
-- Economic Development Programs
27,833,265
27,791,304
(41,961)
(0.2)%
-- Office of Information Technology
6,694,063
4,651,457
(2,042,606)
(30.5)%
135,567,003
05_U_Department of Health Care Policy and Financing
1,042
6.3%
0.2%
2,507,080,610
2,642,647,613
06_G_Department of Higher Education
857,415,995
838,524,430
(18,891,565)
07_I_ Department of Human Services
811,905,208
836,373,426
24,468,218
08_J_Judicial Department
478,774,984
485,136,363
6,361,379
1.3%
8,008,584
13,947,929
5,939,345
74.2%
10_L_Department of Law
15,058,065
15,231,657
173,592
1.2%
11_M Legislative Department
43,297,162
44,238,528
941,366
12_N_Department of Local Affairs
23,626,224
23,371,149
(255,075)
09_K_Department of Labor and Employment
13_O_Department of Military and Veterans Affairs
5.4% (2.2)% 3.0%
2.2% (1.1)%
8,285,043
8,299,797
14,754
0.2%
14_P_Department of National Resources
27,671,518
28,861,640
1,190,122
4.3%
15_A_Department of Personnel
11,711,626
12,997,749
1,286,123
11.0%
16_F_Department of Public Health and Environment
44,515,287
47,347,311
2,832,024
6.4%
125,170,650
125,439,904
269,254
0.2%
17_R_Department of Public Safety 18_S_Department of Regulatory Agencies 19_T_Department of Revenue 22_WDepartment of the Treasury OSUBTOTAL Department Operating
CAP_T Transfer to Capital Construction Fund OSPBOld Age Pension Fund / Older Coloradans Fund
1,923,405
1,777,519
(145,886)
(7.6)%
97,621,597
94,165,374
(3,456,223)
(3.5)%
135,066,583
156,812,020
21,745,437
16.1%
$9,597,112,649
$9,992,865,118
$395,752,469
4.1%
$271,801,088
$58,517,936
($213,283,152)
(78.5)%
108,998,907
OS OSPBCigarette Rebate OSPBMarijuana Rebate to Local Governments OSPBAged Property Tax and Heating Credit OSPBHomestead Exemption OSPBInterest on School Loans
114,514,284
5,515,377
5.1%
(1,034,157)
0
1,034,157
(100.0)%
1,014,779
0
(1,014,779)
(100.0)%
(1,250,000)
0
1,250,000
(100.0)%
(258,135)
0
258,135
(100.0)%
1,200,000
OSPBVolunteer FPPA OSPBAmendment 35 General Fund OSPBTransfers to Highway Users Tax Fund
1,200,000
0
0.0
(51,065)
0
51,065
(100.0)%
3,184
0
(3,184)
(100.0)%
(94,483,434)
(46.8)%
201,886,636
107,403,202
OSPBTransfers to State Education Fund (SB 13-234)
25,321,079
25,321,079
OSPBTransfers to Other Funds
61,324,280
64,241,202
2,916,922
3,952,898
1,000,000
(2,952,898)
(74.7)%
OSPBOther (JBC Approved 1331 Supplementals & Placeholders) SUBTOTAL Other Spending
Total Spending (Without TABOR Refund)
OSPBTABOR Refund TOTAL Spending (With TABOR Refund)
0
0.0 4.8%
$672,909,494
$372,197,703
($300,711,791)
(44.7)%
$10,270,022,143
$10,365,062,821
$95,040,678
0.9%
$36,467,850
$189,134,925
$152,667,075
418.6%
$10,306,489,993
$10,554,197,746
$247,707,753
2.4%
Appendix A - 2
Total General Fund Subject to Reserve Requirement FY 2016-17 FY 2015-16 Initial Governor's Budget Request Appropriation OP 01_B_Department of Agriculture 02_C_Department of Corrections
$9,706,234
$10,087,946
$ Change
% Change
$381,712
3.9%
(5,568,850)
(0.7)%
760,365,690
754,796,840
3,567,985,216
3,793,010,882
41,668,200
39,538,773
(2,129,427)
(5.1)%
6,124,354
6,068,811
(55,543)
(0.9)%
-- Office of the Lieutenant Governor
429,386
439,027
9,641
2.2%
-- Office of State Planning and Budgeting
587,132
588,174
1,042
0.2%
-- Economic Development Programs
27,833,265
27,791,304
(41,961)
(0.2)%
-- Office of Information Technology
6,694,063
4,651,457
(2,042,606)
(30.5)%
2,506,653,017
2,642,236,629
135,583,612
5.4%
06_G_Department of Higher Education
850,211,064
831,354,225
(18,856,839)
07_I_ Department of Human Services
811,905,208
836,373,426
24,468,218
08_J_Judicial Department
474,921,346
481,282,725
6,361,379
1.3%
8,008,584
13,947,929
5,939,345
74.2%
10_L_Department of Law
15,058,065
15,231,657
173,592
1.2%
11_M Legislative Department
43,297,162
44,238,528
941,366
12_N_Department of Local Affairs
18,926,224
18,722,214
(204,010)
03_D_Department of Education 04_E_Governor - Lt. Governor - State Planning and Budgeting -- Office of the Governor
05_U_Department of Health Care Policy and Financing
09_K_Department of Labor and Employment
13_O_Department of Military and Veterans Affairs
225,025,666
6.3%
(2.2)% 3.0%
2.2% (1.1)%
8,285,043
8,299,797
14,754
0.2%
14_P_Department of National Resources
27,671,518
28,861,640
1,190,122
4.3%
15_A_Department of Personnel
11,711,626
12,997,749
1,286,123
11.0% 6.5%
16_F_Department of Public Health and Environment 17_R_Department of Public Safety 18_S_Department of Regulatory Agencies 19_T_Department of Revenue 22_WDepartment of the Treasury OSUBTOTOAL Department Operating
OS OSPBOther Spending (1331 Supplementals & Placeholders)
44,087,694
46,936,327
2,848,633
125,170,650
125,439,904
269,254
1,923,405
1,777,519
(145,886)
(7.6)%
74,121,597
71,557,669
(2,563,928)
(3.5)%
3,285,508
3,341,312
$9,404,963,051
$9,780,033,691
55,804 $375,070,640
0.2%
1.7% 4.0%
$3,952,898
$1,000,000
($2,952,898)
(74.7)%
$3,952,898
$1,000,000
($2,952,898)
(74.7)%
Total Spending (Without TABOR Refund)
$9,408,915,949
$9,781,033,691
$372,117,742
4.0%
OSPBTABOR Refund TOTAL Spending (With TABOR Refund)
$0 $9,408,915,949
$0 $9,781,033,691
$0 $372,117,742
N/A 4.0%
SUBTOTAL Other Spending OSPB_BAL3
Appendix A - 3
Total General Fund Exempt from Reserve Requirement FY 2016-17 FY 2015-16 Initial Governor's Budget Request Appropriation OP 02_C_Department of Corrections
$3,500
0.0%
410,984
(16,609)
(3.9)%
06_G_Department of Higher Education
7,204,931
7,170,205
(34,726)
(0.5)%
08_J_Judicial Department
3,853,638
3,853,638
12_N_Department of Local Affairs
4,700,000
4,648,935
16_F_Department of Public Health and Environment 19_T_Department of Revenue 22_WDepartment of the Treasury
$20,258,268
% Change
427,593
05_U_Department of Health Care Policy and Financing
$20,254,768
$ Change
0
0.0
(51,065)
(1.1)%
427,593
410,984
(16,609)
(3.9)%
23,500,000
22,607,705
(892,295)
(3.8)%
131,781,075
153,470,708
21,689,633
16.5%
OSUBTOTAL Department Operating
$192,149,598
$212,831,427
$20,681,829
10.8%
OS CAP_Transfer to Capital Construction Fund
$271,801,088
$58,517,936
($213,283,152)
(78.5)%
OSPBOld Age Pension Fund / Older Coloradans Fund OSPBCigarette Rebate OSPBMarijuana Rebate to Local Governments OSPBAged Property Tax and Heating Credit OSPBHomestead Exemption OSPBInterest on School Loans OSPBVolunteer FPPA
108,998,907
5,515,377
5.1%
(1,034,157)
0
1,034,157
(100.0)%
1,014,779
0
(1,014,779)
(100.0)%
(1,250,000)
0
1,250,000
(100.0)%
(258,135)
0
258,135
(100.0)%
1,200,000
0
0.0
(51,065)
0
51,065
(100.0)%
3,184
0
(3,184)
(100.0)%
(94,483,434)
(46.8)%
1,200,000
OSPBAmendment 35 General Fund OSPBTransfers to Highway Users Tax Fund
114,514,284
201,886,636
107,403,202
OSPBTransfers to State Education Fund (SB 13-234)
25,321,079
25,321,079
0
0.0
OSPBTransfers to Other Funds
61,324,280
64,241,202
2,916,922
4.8%
$668,956,596
$371,197,703
($297,758,893)
(44.5)%
$861,106,194
$584,029,130
($277,077,064)
(32.2)%
OS SUBTOTAL Other Spending
Total Spending (Without TABOR Refund)
OSPBTABOR Refund TOTAL Spending (With TABOR Refund)
$36,467,850
$189,134,925
$152,667,075
418.6%
$897,574,044
$773,164,055
($124,409,989)
(13.9)%
OSPB_BAL2
Appendix A - 4
Total Cash Fund Comparison FY 2016-17 FY 2015-16 Initial Governor's Budget Request Appropriation
$ Change
% Change
01_B_Department of Agriculture
$30,740,614
$31,749,725
$1,009,111
3.3%
02_C_Department of Corrections
39,431,411
39,395,195
(36,216)
(0.1)%
1,186,095,361
1,074,221,228
(111,874,133)
(9.4)%
42,239,163
42,190,646
(48,517)
(0.1)%
12,205,245
12,109,166
(96,079)
(0.8)%
1,184
1,184
0
0.0%
0
0
0
N/A
-- Economic Development Programs
28,781,806
28,829,368
47,562
0.2%
-- Office of Information Technology
1,250,928
1,250,928
0
05_U_Department of Health Care Policy and Financing
1,031,847,224
991,324,107
06_G_Department of Higher Education
03_D_Department of Education 04_E_Governor - Lt. Governor - State Planning and Budgeting -- Office of the Governor -- Office of the Lieutenant Governor -- Office of State Planning and Budgeting
2,150,842,834
2,150,717,922
07_I_ Department of Human Services
348,624,954
360,224,239
08_J_Judicial Department
(3.9)%
(124,912)
(0.0)%
11,599,285
3.3% 0.6%
157,342,072
158,212,655
870,583
09_K_Department of Labor and Employment
74,251,770
76,492,015
2,240,245
10_L_Department of Law
15,796,431
15,513,109
11_M Legislative Department 12_N_Department of Local Affairs 13_O_Department of Military and Veterans Affairs
0.0
(40,523,117)
(283,322)
3.0% (1.8)%
179,000
179,000
0
0.0
209,230,174
211,033,163
1,802,989
0.9%
1,281,079
1,285,355
198,404,864
192,979,271
(5,425,593)
(2.7)%
13,830,708
13,433,092
(397,616)
(2.9)%
16_F_Department of Public Health and Environment
158,144,049
162,917,422
4,773,373
17_R_Department of Public Safety
184,486,485
190,655,664
6,169,179
80,292,863
77,347,008
(2,945,855)
220,417,302
227,218,607
6,801,305
3.1%
21,580,286
22,309,135
728,849
3.4%
14_P_Department of National Resources 15_A_Department of Personnel
18_S_Department of Regulatory Agencies 19_T_Department of Revenue 20_V_Department of State
4,276
0.3%
3.0% 3.3% (3.7)%
21_H_Department of Transportation
844,073,959
844,852,270
778,311
0.1%
22_WDepartment of the Treasury
346,610,762
354,332,699
7,721,937
2.2%
$7,355,743,365
$7,238,583,527
OSUBTOTAL Department Operating
($117,159,838)
(1.6)%
OS OSPBJBC Approved 1331 Supplementals
$1,475,726
$0
($1,475,726)
(100.0)%
OS SUBTOTAL Other Spending
$1,475,726
$0
($1,475,726)
(100.0)%
$7,357,219,091
$7,238,583,527
($118,635,564)
(1.6)%
OS TOTAL Spending
Appendix A - 5
Total Reappropriated Fund Comparison FY 2016-17 FY 2015-16 Initial Governor's Budget Request Appropriation 01_B_Department of Agriculture 02_C_Department of Corrections 03_D_Department of Education 04_E_Governor - Lt. Governor - State Planning and Budgeting -- Office of the Governor -- Office of the Lieutenant Governor -- Office of State Planning and Budgeting -- Economic Development Programs
$1,656,548 46,665,389
$1,656,548 46,713,766
$ Change
% Change $0
48,377 (111,346)
0.0 0.1%
29,757,276
29,645,930
180,261,421
216,652,429
36,391,008
(0.4)% 20.2%
684,171
772,191
88,020
12.9%
218,825
218,825
0
0.0%
1,546,654
1,578,088
31,434
N/A
91,520
92,775
1,255
1.4%
177,720,251
213,990,550
36,270,299
20.4%
7,805,549
7,059,407
(746,142)
(9.6)%
06_G_Department of Higher Education
701,803,695
683,021,791
(18,781,904)
(2.7)%
07_I_ Department of Human Services
131,723,226
127,019,684
(4,703,542)
(3.6)%
33,940,651
34,079,556
138,905
0.4%
4,439,547
9,410,955
4,971,408
112.0%
44,863,650
44,895,797
32,147
0.1%
-- Office of Information Technology 05_U_Department of Health Care Policy and Financing
08_J_Judicial Department 09_K_Department of Labor and Employment 10_L_Department of Law 11_M Legislative Department 12_N_Department of Local Affairs 13_O_Department of Military and Veterans Affairs
1,165,000
1,165,000
0
0.0
10,487,107
11,624,134
1,137,027
10.8%
800,000
800,000
8,701,045
8,025,162
155,658,987
160,330,156
16_F_Department of Public Health and Environment
37,535,004
37,149,358
17_R_Department of Public Safety
34,175,433
38,245,604
4,875,289
4,614,232
14_P_Department of National Resources 15_A_Department of Personnel
18_S_Department of Regulatory Agencies 19_T_Department of Revenue 21_H_Department of Transportation OSUBTOTAL Department Operating
5,314,170
5,930,280
19,777,338
4,777,338
$1,461,406,325
$1,472,817,127
0 (675,883) 4,671,169 (385,646) 4,070,171 (261,057) 616,110
0.0 (7.8)% 3.0% (1.0)% 11.9% (5.4)% 11.6%
(15,000,000)
(75.8)%
$11,410,802
0.8%
OS OSPBJBC Approved 1331 Supplementals
$62,738
$0
($62,738)
(100.0)%
OS SUBTOTAL Other Spending
$62,738
$0
($62,738)
(100.0)%
$1,461,469,063
$1,472,817,127
$11,348,064
0.8%
OS TOTAL Spending
Appendix A - 6
Total Federal Funds Comparison FY 2016-17 FY 2015-16 Initial Governor's Budget Request Appropriation OP 01_B_Department of Agriculture
$ Change
% Change
$4,170,657
$4,110,453
($60,204)
1,259,937
1,357,641
97,704
650,649,929
651,357,009
707,080
0.1%
6,492,609
6,511,867
19,258
0.3%
3,868,011
3,908,145
40,134
1.0%
-- Office of the Lieutenant Governor
0
0
0
N/A
-- Office of State Planning and Budgeting
0
0
0
N/A
2,503,598
2,482,722
121,000
121,000
5,343,721,014
5,252,128,000
02_C_Department of Corrections 03_D_Department of Education 04_E_Governor - Lt. Governor - State Planning and Budgeting -- Office of the Governor
-- Economic Development Programs -- Office of Information Technology 05_U_Department of Health Care Policy and Financing 06_G_Department of Higher Education
22,494,551
22,540,831
07_I_ Department of Human Services
622,405,770
583,077,871
08_J_Judicial Department 09_K_Department of Labor and Employment 10_L_Department of Law 12_N_Department of Local Affairs 13_O_Department of Military and Veterans Affairs 14_P_Department of National Resources 16_F_Department of Public Health and Environment 17_R_Department of Public Safety 18_S_Department of Regulatory Agencies 19_T_Department of Revenue 21_H_Department of Transportation OP SUBTOTAL Department Operating
(20,876) 0 (91,593,014) 46,280 (39,327,899)
(1.4)% 7.8%
(0.8)% 0.0 (1.7)% 0.2% (6.3)%
4,425,000
4,425,000
0
0.0
100,821,204
141,918,572
41,097,368
40.8%
1,793,877
1,764,653
(29,224)
76,876,045
77,021,024
144,979
0.2%
215,025,057
215,117,024
91,967
0.0%
(1.6)%
29,141,800
27,101,500
(2,040,300)
294,153,882
300,701,669
6,547,787
2.2%
59,499,919
59,659,984
160,065
0.3%
1,486,010
1,415,740
(70,270)
824,388
824,388
573,062,075
555,000,000
$8,008,303,724
0
(7.0)%
(4.7)% 0.0
(18,062,075)
(3.2)%
$7,906,033,226
($102,270,498)
(1.3)%
OS OSPBJBC Approved 1331 Supplementals
$19,222
$0
($19,222)
(100.0)%
OS SUBTOTAL Other Spending
$19,222
$0
($19,222)
(100.0)%
$8,008,322,946
$7,906,033,226
($102,289,720)
(1.3)%
OS TOTAL Spending
Appendix A - 7
Total FTE Comparison FY 2015-16 Initial Appropriation
FY 2016-17 Governor's Budget Request
$ Change
% Change
OP 01_B_Department of Agriculture
280.4
281.4
1.0
0.4%
02_C_Department of Corrections
6,239.8
6,241.9
2.1
0.0% 0.8%
03_D_Department of Education 04_E_Governor - Lt. Governor - State Planning and Budgeting -- Office of the Governor -- Office of the Lieutenant Governor -- Office of State Planning and Budgeting
598.8
603.3
4.5
1,088.7
1,090.4
1.7
0.2%
67.1
67.1
0.0
0.0%
6.0
6.0
0.0
0.0%
19.5
19.5
0.0
0.0%
-- Economic Development Programs
60.3
60.3
0.0
0.0%
-- Office of Information Technology
935.8
937.5
1.7
0.2%
421.2
424.5
3.3
0.8%
06_G_Department of Higher Education
23,856.3
23,856.3
0.0
0.0
07_I_ Department of Human Services
4,970.9
4,837.7
(133.2)
(2.7)%
08_J_Judicial Department
4,592.3
4,599.5
7.2
0.2%
09_K_Department of Labor and Employment
1,030.3
1,270.8
240.5
23.3%
10_L_Department of Law
477.6
477.6
0.0
0.0
11_M Legislative Department
281.3
281.3
0.0
0.0
12_N_Department of Local Affairs
171.5
173.4
1.9
1.1%
13_O_Department of Military and Veterans Affairs
1,392.3
1,392.4
0.1
0.0%
14_P_Department of National Resources
1,462.6
1,462.7
0.1
0.0%
407.4
413.0
5.6
1.4%
16_F_Department of Public Health and Environment
1,289.3
1,294.5
5.2
0.4%
17_R_Department of Public Safety
1,727.1
1,738.5
11.4
0.7%
583.6
585.5
1.9
0.3%
1,367.1
1,392.8
25.7
1.9%
137.3
137.3
0.0
0.0
3,326.8
3,326.8
0.0
0.0
31.9
31.9
0.0
0.0
55,734.5
55,913.5
179.0
0.3%
05_U_Department of Health Care Policy and Financing
15_A_Department of Personnel
18_S_Department of Regulatory Agencies 19_T_Department of Revenue 20_V_Department of State 21_H_Department of Transportation 22_WDepartment of the Treasury OP TOTAL FTE
Appendix A - 8
John W. Hickenlooper Governor
EXECUTIVE BUDGET REQUEST
Henry Sobanet Director, OSPB
Statewide Budget Overview FY 2016-17 Major Budget Highlights -- General Fund Reserve & Major Issues (in Millions) Issue
Major General Fund Issues FY 2015-16 FY 2016-17 $36.47 $189.13
TABOR Refund
Budget Highlights
GF /1
K-12 Education Formula Funding Medicaid Caseload Growth /2 K-12 Increase to Negative Factor Base Reductions for Higher Education Provider Rate Decrease
$273.85 161.72 (50.00) (20.00) (19.50)
FY 2016-17 Major Budget Highlights (in Millions, except for FTE) TF FTE Budget Changes By Major Area $165.14 84.88 0.00 (39.18) (45.62)
0.0 0.0 0.0 0.0 0.0
GF /1
Base Budget Changes Common Policy / NonPrioritized Issues Mandatory Funding and Caseload Issues Other Request Items Total Department Operating Change
$4.08 21.38 431.78 (61.49) $395.75
TF ($42.74) 30.48 252.98 (52.99) $187.73
FTE 47.4 0.0 0.0 131.6 179.0
/1 General Fund columns throughout this document include both General Fund and General Fund Exempt. /2 Includes caseload increases for the Medicaid program, Children's Basic Health Plan, Office of Community Living, and Medicare Modernization Act payments.
FY 2016-17 Department Budgets Request -- November 2, 2015
(in Millions) General Fund Department Agriculture Corrections Education Governor Health Care Policy and Financing Higher Education Human Services Judicial /3 Labor and Employment Law /3 Legislature /3 Local Affairs Military and Veterans Affairs Natural Resources Personnel and Administration Public Health and Environment Public Safety Regulatory Agencies Revenue State /3 Transportation Treasury /3 TOTAL /4
Total Funds
FY 2015-16
FY 2016-17
Approp $9.71 780.62 3,567.99 41.67 2,507.08 857.42 811.91 478.77 8.01 15.06 43.30 23.63 8.29 27.67 11.71 44.52 125.17 1.92 97.62 0.00 0.00 135.07 $9,597.11
Request $10.09 $775.06 $3,793.01 $39.54 2,642.65 838.52 836.37 485.14 13.95 15.23 44.24 23.37 8.30 28.86 13.00 47.35 125.44 1.78 94.17 0.00 0.00 156.81 $9,992.87
FY 2015-16
$ Change $0.38 (5.57) 225.03 (2.13) 135.57 (18.89) 24.47 6.36 5.94 0.17 0.94 (0.26) 0.01 1.19 1.29 2.83 0.27 (0.15) (3.46) 0.00 0.00 21.75 $395.75
Department Agriculture Corrections Education Governor Health Care Policy and Financing Higher Education Human Services Judicial /3 Labor and Employment Law /3 Legislature /3 Local Affairs Military and Veterans Affairs Natural Resources Personnel and Administration Public Health and Environment Public Safety Regulatory Agencies Revenue State /3 Transportation Treasury /3 TOTAL /4
Approp $46.27 867.98 5,434.49 270.66 8,890.45 3,732.56 1,914.66 674.48 187.52 77.51 44.64 320.22 225.39 263.92 181.20 534.35 403.33 88.58 324.18 21.58 1,436.91 481.68 $26,422.57
FY 2016-17
Request $47.60 862.52 5,548.24 304.89 8,893.16 3,694.80 1,906.70 681.85 241.77 77.41 45.58 323.05 225.50 256.97 186.76 548.12 414.00 85.15 328.14 22.31 1,404.63 511.14 $26,610.30
$ Change $1.33 (5.46) 113.75 34.23 2.70 (37.75) (7.96) 7.37 54.25 (0.11) 0.94 2.83 0.11 (6.95) 5.56 13.77 10.67 (3.42) 3.96 0.73 (32.28) 29.47 $187.73
Request
$ Change
/3 Placeholder assumption contained in the Governor's Request. /4 May not add due to rounding errors.
Other General Fund Issues -- Currently Outside of Operating and Revenue Requests
(in Millions) Issue Other General Fund Adjustments Outside Operating Budgets General Fund Transfers for Capital Construction TABOR REFUND TOTAL
Total FY 2016-17 General Fund Request (operating request plus items outside of operating request)
November 2, 2015
Approp $401.11 271.80 36.47 $709.38
$313.68 58.52 189.13 $561.33
$10,306.49
$10,554.20
($87.43) (213.28) 152.67 ($148.04)
$247.71
Page 1
John W. Hickenlooper Governor
EXECUTIVE BUDGET REQUEST
Henry Sobanet Director, OSPB
Major Changes in FY 2016-17 Department Operating Budgets Reflects changes to Current FY 2015-16 Appropriations Issue
General Fund
Reappropriated Funds
Cash Funds
Federal Funds
Total Funds
FTE
Department of Corrections Base Budget Changes Other Non-Prioritized Requests (Common Policy & Other) External Capacity Caseload Increase Community Provider Rate Increase Medical Caseload Food and Utility Inflation Increases Total Changes Requested for K-12 Education
$399,532 280,033 (5,994,665) (1,273,348) 378,881 644,217 ($5,565,350)
($80,132) 25,922 0 0 0 17,994 ($36,216)
$48,377 0 0 0 0 0 $48,377
$97,704 0 0 0 0 0 $97,704
$465,481 305,955 (5,994,665) (1,273,348) 378,881 662,211 ($5,455,485)
2.1 0.0 0.0 0.0 0.0 0.0 2.1
$926,427 21,527 (50,000,000) 273,848,027 0 229,685 $225,025,666
($8,314,253) 0 0 (108,709,371) 5,149,491 0 ($111,874,133)
($196,452) 13,081 0 0 0 72,025 ($111,346)
$707,080 0 0 0 0 0 $707,080
($6,877,198) 34,608 (50,000,000) 165,138,656 5,149,491 301,710 $113,747,267
4.5 0.0 0.0 0.0 0.0 0.0 4.5
($17,457,028) 3,653,647 141,702,419 (3,793,986) (25,277) 16,865,498 6,969,260 (12,886,073) 538,543 $135,567,003
($2,518,837) 1,623,775 (30,982,323) 7,447,782 (11,208,331) 0 0 (945,958) (3,939,225) ($40,523,117)
($755,072) 0 0 0 0 0 0 0 8,930 ($746,142)
($40,442,899) 6,305,231 (50,439,278) 9,777,071 (6,371,408) 0 4,941,063 (21,921,090) 6,558,296 ($91,593,014)
($61,173,836) 11,582,653 60,280,818 13,430,867 (17,605,016) 16,865,498 11,910,323 (35,753,121) 3,166,544 $2,704,730
3.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.3
($1,100,302) 4,141 (20,000,000) 1,112,096 1,092,500 ($18,891,565)
($453,835) 423 0 0 0 ($453,412)
$392,001 0 (19,181,905) 0 328,500 ($18,461,404)
$46,280 0 0 0 8,000 $54,280
($1,115,856) 4,564 (39,181,905) 1,112,096 1,429,000 ($37,752,101)
0.0 0.0 0.0 0.0 0.0 0.0
($820,899) 11,728,177 5,978,651 4,687,425 4,111,685 2,207,911 0 0 (4,684,022) 1,259,290 $24,468,218
($1,131,810) 727,496 614,959 0 0 961,045 0 5,526,272 (1,098,677) 6,000,000 $11,599,285
($5,211,857) 67,129 0 0 0 634,670 0 0 (245,499) 52,015 ($4,703,542)
($39,897,502) 89,623 160,242 0 0 0 2,226,460 0 (1,906,722) 0 ($39,327,899)
($47,062,068) $12,612,425 $6,753,852 $4,687,425 $4,111,685 $3,803,626 $2,226,460 $5,526,272 ($7,934,920) $7,311,305 ($7,963,938)
(233.4) 0.0 2.7 78.8 7.5 0.0 8.1 0.9 0.0 2.2 (133.2)
Department of Education Base Budget Changes Other Non-Prioritized Requests (Common Policy & Other) K-12 NF Increase Total Program Increase (School Finance Formula) Categorical Programs All Other Total Changes Requested for K-12 Education
Department of Health Care Policy and Financing Base Budget Changes Other Non-Prioritized Requests (Common Policy & Other) Medical Services Caseload Increases Behavioral Health Community Programs Increases Children Basic Health Plan Caseload Increases Medicare Modernization Caseload Increases Office of Community Living Caseload Increases Provide Rate Adjustments All Other Total Changes Requested for HCPF
Department of Higher Education Base Budget Changes Other Non-Prioritized Requests (Common Policy & Other) Base Reduction for Public Colleges and Universities Fort Lewis Native American Tuition Waivers All Other Total Changes Requested for Higher Education
Department of Human Services Base Budget Changes Other Non-Prioritized Requests (Common Policy & Other) County Child Welfare Staffing - Phase 2 DYC Security Staffing in Facilities Court Ordered Evaluation and Jail-based Bed Space Early Intervention Caseload Increase Child Care Quality Initiatives Substance Use Disorder Prevention and Treatment Programs Community Provider Rate Decrease All Other Total Changes Requsted for Human Services
/1 Includes only the amount in the Human Services request. Another $5.0 million is requested in the legislation placeholder for the Elder Abuse Task Force.
All Other Departments Base Budget Changes Other Non-Prioritized Requests (Common Policy & Other) Community Provider Rate Increase All Other Requested Changes Total All Other Department Changes
$22,135,148 5,690,323 (658,873) 7,981,899 $35,148,497
$18,031,146 354,185 0 5,742,424 $24,127,755
$5,237,797 (74,378) 0 30,221,440 $35,384,859
$27,615,952 (26,313) 0 201,712 $27,791,351
$73,020,043 5,943,817 (658,873) 43,488,602 $121,793,589
270.9 0.0 0.0 31.4 302.3
$4,082,878 21,377,848 (19,502,316) 431,779,187 (41,985,128) $395,752,469
$5,532,279 2,731,801 (2,044,635) (137,341,707) 13,962,424 ($117,159,838)
($485,206) 5,832 (245,499) 634,670 11,501,005 $11,410,802
($51,873,385) 6,368,541 (23,827,812) (42,092,552) 9,154,710 ($102,270,498)
($42,743,434) $30,484,022 ($45,620,262) $252,979,598 (7,366,989) $187,732,935
47.4 0.0 0.0 0.0 131.6 179.0
$152,667,075 (213,283,152)
$0 0
$0 0
$0 0
$152,667,075 (213,283,152)
0.0 0.0
0 (19,222) ($19,222)
(84,475,741) (4,510,584) ($149,602,402)
0.0 0.0 0.0
($102,289,720)
$38,130,533
179.0
Total Statewide Operating Budget Request Base Budget Changes Other Non-Prioritized Requests (Common Policy & Other) Community Provider Rate Decrease Mandatory Funding and Caseload Changes All Other Requested Changes Total Statewide Changes
Outside the Operating Request (change amount only) TABOR Refund Capital Construction Decrease General Fund Forecasted expenditures outside operating budgets (i.e. OAP, cigarette and marijuana rebates, interest on school loans, etc.) Other and Placeholder Adjustments Total Outside the Operating Request
(84,475,741) (2,952,898) ($148,044,716)
0 (1,475,726) ($1,475,726)
TOTAL FY 2016-17 Funding Request Change from the current FY 2015-16 Appropriation
$247,707,753
($118,635,564)
November 2, 2015
0 (62,738) ($62,738)
$11,348,064
Page 2
General Fund and State Education Fund Revenue The General Fund is the State’s main account for funding its core programs and services such as education, health and human services, public safety, and courts. It also helps fund capital construction and maintenance needs for State facilities and, in some years, transportation projects. The largest revenue sources for the General Fund are income and sales taxes paid by households and businesses in the state, which are heavily influenced by the performance of the economy. In addition to the General Fund, some State programs and services are funded from the federal government and various “cash funds.” Cash funds receive revenue from certain taxes, user fees, and charges that are generally designated for specific programs. The State Education Fund is a cash fund that receives a portion of income taxes to help fund K-12 education. In this way, the State Education Fund is more like a special account in the General Fund. The following discusses the OSPB September 2015 forecast for General Fund and State Education Fund revenue. However, the November 2015 budget request is based on an average of the September revenue forecasts from OSPB and Legislative Council Staff. Although the two forecasts are similar based on comparable assessments of economic conditions, the Legislative Council Staff General Fund revenue forecast is 2 percent lower over the FY 2015-16 to FY 2016-17 period, amounting to about $420 million. Given the inherent uncertainty in revenue projections, averaging the forecasts provides a more conservative assumption for funds available for the budget. Income and sales taxes are the largest sources of money used by the General Fund and State Education Fund ─ The following pie chart shows the composition of the revenue sources that go to both the State General Fund and State Education Fund for FY 2016-17 based on the OSPB September forecast. Income, sales, and use taxes make up 96 percent of the total.
1
Graph 1. Projected Revenue for the General Fund and State Education Fund in FY 2016-17, $s in Millions Corporate Income, $763.1, 7%
Other, $418.8, 4%
Total: $11.5 Billion
Sales/Use, $3,163.2, 28%
Individual Income, $7109.5, 62%
Source: OSPB September 2015 forecast
General Fund money credited to the State Education Fund ─ The State Education Fund (SEF) annually receives one-third of one-percent of total taxable income under the Colorado Constitution. Therefore, a portion of revenue from income taxes is diverted from the General Fund to the SEF every year. Because this revenue comes from taxable income, it follows the trends in the State’s individual income and corporate income tax revenue collections. The diversion is forecasted at $590.4 million in FY 2016-17, an expected increase of 9.2 percent from FY 2015-16. The SEF also receives money from other sources, most notably transfers of other money from the General Fund as specifically authorized by statute. In recent years, one-time transfers of money in excess of the required General Fund ending reserve have produced higher than usual amounts of resources for the State Education Fund. This has resulted in the SEF funding a larger share of K-12 education than it has historically. However, the recent higher spending relative to the lower levels of revenue is placing increasing strain on the fund’s balance. Economic conditions affect revenue to the General Fund and State Education Fund ─ Income and sales tax collections are heavily influenced by the performance of the economy. When more people earn and spend larger amounts of money, and businesses experience better conditions, tax revenue grows. Conversely, revenue declines during economic downturns, sometimes by large amounts as income and spending levels fall. 2
The graph below illustrates historic and forecasted revenue to the General Fund. Since 2000, Colorado’s economy has been affected by two major recessions ─ one during the 2001 to 2002 period and one in 2008 to 2009. During each of those recessions, revenue fell by over $1 billion, or around 16 percent. The graph includes the OSPB September 2015 forecast for General Fund revenue in FY 2015-16 and FY 2016-17. Colorado’s diverse mix of industries and its high-skilled, entrepreneurial population will produce continued revenue growth during this time. However, the contraction in the oil and gas industry, weaker stock market performance, and sluggish global economic conditions are contributing to slower General Fund revenue growth in FY 2015-16. Despite continued economic growth, the graph shows that General Fund revenue in FY 2016-17 is expected to remain slightly below FY 2007-08 levels when adjusted for population growth and inflation. Graph 2. General Fund Revenue, Actual and Forecast, with Revenue Adjusted for Population Growth and Inflation since FY 2007-08, $s in Billions Forecast
$12.0
$10.9 Revenue Adjusted for $9.8 $10.2 Population Growth and Inflation $9.0
$10.0 $8.0
$s in Billions
$6.5 $6.0
$6.9 $5.5 $5.4 $5.7
$6.1
$7.5 $7.7
$8.5
$6.7 $6.4
$7.1
$7.7
$4.0 $2.0 $0.0
Source: Office of the State Controller and OSPB September 2015 forecast
Individual Income Tax Income tax paid by individuals is by far the largest source of tax revenue to the State. In FY 2016-17, income tax revenue is projected to total $7.1 billion, representing 62 percent of total General Fund revenue. Individual income tax is paid on most sources of household income, such as wages, investments, and royalties. The income that individuals receive from their businesses, except businesses that are organized as C-corporations, is also generally subject to the individual income tax. In a growing economy, income tax revenue increases at a relatively steady pace from job growth and expanding business activity. On the other hand, investment income received by individuals 3
can fluctuate more than the overall economy from year to year, contributing to volatility in income tax revenue. Changes to federal and State tax deductions and exemptions, as well as to State tax credits, can also contribute to volatility. The graph below shows the trend in individual income tax revenue since FY 2000-01 and includes the OSPB September 2015 forecast through FY 2016-17. After robust growth last fiscal year, the slower growth in FY 2015-16 is due to the contraction in the oil and gas industry, weaker expected growth in investment income, sluggish global economic conditions, and tax policies that will reduce tax liabilities. Income tax collections are expected to grow at a higher rate in FY 2016-17 as these conditions abate and as the economic expansion continues to provide income-earning opportunities for Coloradans. Graph 3. Individual Income Tax Revenue, History and Forecast, $s in Millions $8,000
Forecast
$7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0
Source: Office of the State Controller and OSPB September 2015 forecast
Corporate Income Tax Certain corporations, called C-corporations, pay income tax through the corporate income tax system if they are doing business in the state. Corporate income tax revenue is expected to total $763.1 million in FY 2016-17. Corporate income tax collections are driven by corporate profit levels and corporations’ sales in Colorado. Similar to the individual income tax, changes to federal and State tax deductions and exemptions, such as on expenses and losses, as well as to State tax credits, can make corporate tax collections more volatile, especially during changes in broader economic conditions. As shown in the graph below, corporate income tax revenue experienced robust growth in the first part of the current expansion as a result of increasing sales in the rebounding economy and leaner business operations that increased profits. Corporate tax revenue growth has moderated, however, due to higher levels of business competition, tighter labor conditions, and more costly business inputs that are lowering profit margins as the economic expansion matures. 4
Graph 4. Corporate Income Tax Revenue, History and Forecast, $s in Millions $900
Forecast
$800 $700 $600 $500 $400 $300 $200 $100 $0
Source: Office of the State Controller and OSPB September 2015 forecast
Sales and Use Taxes The State’s sales and use tax revenue makes up around 30 percent of General Fund revenue. Most products and a small number of services are subject to the tax, and both households and businesses pay sales and use taxes. Sales and use tax revenue is expected to total nearly $3.2 billion in FY 2016-17, which equates to about $113 billion in taxable purchases. As shown in the graph below, sales and use tax revenue grows at a steady pace when the economy is expanding and declines during recessions. Due to continued economic and population growth, state sales and use tax revenue will grow through FY 2016-17. However, the contraction in the oil and gas industry is contributing to less robust sales and use tax revenue growth in FY 2015-16 than in prior years.
5
Graph 5. Sales and Use Tax Revenue, History and Forecast, $s in Millions $3,500
Forecast
$3,000 $2,500 $2,000 $1,500 $1,000 $500 $0
Source: Office of the State Controller and OSPB September 2015 forecast
Other Revenue to the General Fund Several smaller sources make up the rest of General Fund revenue. These include excise taxes on cigarette, tobacco, and liquor products; taxes paid by insurers on premiums; pari-mutuel wagering; interest income; and fines and fees. As shown in the graph below, revenue from these sources has been relatively flat since FY 2000-01, and is projected to total $418.8 million in FY 2016-17. Graph 6. Other General Fund Revenue, History and Forecast, $s in Millions $800
Forecast
$600
$400
$200
$0
6
John W. Hickenlooper Governor
Department of Agriculture
Henry Sobanet Director, OSPB
November 2, 2015
FY 2016-17 Budget Request Fact Sheet
Department of Agriculture
TOTAL FUNDS General Fund Cash Funds Reappropriated Funds Federal Funds FTE
FY 2015-16 Appropriation $46,274,053 $9,706,234 $30,740,614 $1,656,548 $4,170,657 280.4
FY 2016-17 Request $47,604,672 $10,087,946 $31,749,725 $1,656,548 $4,110,453 281.4
FY 2016-17 Change $1,330,619 $381,712 $1,009,111 $0 ($60,204) 1.0
Percent Change 2.9% 3.9% 3.3% 0.0% (1.4%) 0.4%
Department Description Colorado’s agriculture industry contributes significantly to the state’s overall economy, creates employment for more than 173,000 Coloradans, and generates an estimated $40 billion in economic activity annually. The Colorado Department of Agriculture (CDA) supports the industry and all of Colorado’s citizens through a wide range of regulatory and service related activities that are delivered through the Office of the Commissioner and CDA’s seven operating divisions. These divisions include the Animal Health Division, the Brands Division, the Colorado State Fair, the Conservation Services Division, the Inspection and Consumer Services Division, the Markets Division, and the Plant Industry Division.
Share of FY17 Statewide Operating Total Funds
Share of FY17 Statewide Operating General Fund 0%
0%
State Total
Department Total
Governor’s Office of State Planning and Budgeting FY 2016-17
State Total
Department Total
Major Factors Affecting the FY 2016-17 CDA Budget •
The Department of Agriculture is requesting an increase of $1.33 million total funds (2.9 percent) in its FY 2016-17 budget. This includes a $0.38 million General Fund increase (3.9 percent). One new FTE is requested in FY 2016-17.
•
After the legalization of marijuana, the number of complaints of pesticide misapplication has increased significantly, resulting in lag times for sample turnaround and a backlog of samples. Longer turnaround time delays enforcement action that may be necessary and backlog can lead to potential sample degradation. The Department requests $90,865 and 1.0 FTE from the Marijuana Tax Cash Fund in FY 2016-17 and $86,162 and 1.0 FTE ongoing to support the pesticide regulatory program.
•
The Department has been tasked with the development of hemp regulatory activities and hemp seed certification activities. The current level of revenue from fees is not covering expense. SB 15-196 allowed the Department to change its fee matrix; however, sufficient funding for the program will not be reach until FY 2017-18. The Department requests a net increase of $220,471 for FY 2016-17, comprised of an increase of $349,810 and 1.0 FTE from the Marijuana Tax Cash Fund and a decrease of $129,339 spending authority from the hemp Cash Fund.
Governor’s Office of State Planning and Budgeting FY 2016-17
John W. Hickenlooper Governor
Department of Corrections
Henry Sobanet Director, OSPB
November 2, 2015
FY 2016-17 Budget Request Fact Sheet
Department of Corrections
TOTAL FUNDS General Fund Cash Funds Reappropriated Funds Federal Funds FTE
FY 2015-16 Appropriation $867,977,195 $780,620,458 $39,431,411 $46,665,389 $1,259,937 6,239.8
FY 2016-17 Request $862,521,710 $775,055,108 $39,395,195 $46,713,766 $1,357,641 6,241.9
FY 2016-17 Change ($5,455,485) ($5,565,350) ($36,216) $48,377 $97,704 2.1
Percent Change (0.6%) (0.7%) (0.1%) 0.1% 7.8% 0.0%
Department Description The Colorado Department of Corrections (DOC) manages, supervises and operates 19 state-owned correctional facilities and contracts with private providers for additional bed space at four correctional facilities. As of September 30, 2015, the DOC is responsible for housing and supervising a total of 20,469 offenders in both state and private facilities and for supervising 7,800 parolees. The DOC budget includes 6,239.8 FTE in FY 2015-16, including correctional officers, teachers, maintenance staff, medical providers, food service staff, and administrators. The DOC also operates the Youthful Offender System which serves as a middle tier sentencing option for violent youthful offenders. In addition, the DOC operates treatment and education programs for offenders who are incarcerated and on parole to help reduce the likelihood that an offender returns to prison. The Department also operates the Colorado Correctional Industries (CCi) which is a self-funded enterprise agency within the DOC that employs offenders in various businesses.
Share of FY17 Statewide Operating Total Funds 3%
State Total
Department Total
Governor’s Office of State Planning and Budgeting FY 2016-17
Share of FY17 Statewide Operating General Fund 7%
State Total
Department Total
Major Factors Affecting the FY 2016-17 DOC Budget In FY 2016-17, the Division of Criminal Justice (DCJ) projects that the population under the jurisdiction of the Department of Corrections will be 21,051 by the end of the fiscal year. The request for the Department of Corrections reflects a total funds decrease of $5.5 million (-0.6%), with $5.6 million (-0.7% decrease) coming from the General Fund. Highlights of the DOC request include: •
A decrease of $6.0 million General Fund due to a decrease in the projected offender population from the DCJ’s December 2014 forecast. This request equates to a need for 297 fewer beds.
•
A $1.3 million General Fund cut to provider rates. This includes external providers that house offenders, provide clinical treatment, and conduct parole community service programs.
•
Two requests related to inflationary and rate increases, including $328,981 General Fund to account for food inflation and $315,236 General Fund for increased utility costs.
•
$378,881 General Fund to cover increased medical and pharmaceutical costs for offenders.
Governor’s Office of State Planning and Budgeting FY 2016-17
John W. Hickenlooper Governor
Department of Education
Henry Sobanet Director, OSPB
November 2, 2015
FY 2016-17 Budget Request Fact Sheet
Department of Education
TOTAL FUNDS General Fund Cash Funds Reappropriated Funds Federal Funds FTE
FY 2015-16 Appropriation $5,434,487,782 $3,567,985,216 $1,186,095,361 $29,757,276 $650,649,929 598.8
FY 2016-17 Request $5,548,235,049 $3,793,010,882 $1,074,221,228 $29,645,930 $651,357,009 603.3
FY 2016-17 Change $113,747,267 $225,025,666 ($111,874,133) ($111,346) $707,080 4.5
Percent Change 2.1% 6.3% (9.4%) (0.4%) 0.1% 0.8%
Department Description The Colorado Department of Education (CDE) is the administrative arm of the Colorado State Board of Education. CDE provides leadership, resources, support, and monitoring for the state’s 178 school districts, 1,600 schools, and over 130,000 educators to meet the needs of the state’s 865,454 public school students. CDE also provides services and support to boards of cooperative educational services (BOCES), to early learning centers, state correctional facility schools and libraries, the state’s library system, adult/family literacy centers, and General Education Diploma (GED) testing centers. In addition, CDE supports the Colorado School for the Deaf and the Blind and the Charter School Institute.
Share of FY17 Statewide Operating Total Funds
Share of FY17 Statewide Operating General Fund 36%
20%
State Total
Department Total
Governor’s Office of State Planning and Budgeting FY 2016-17
State Total
Department Total
Major Factors Affecting the FY 2016-17 CDE Budget •
Our budget request for K-12 education Total Program (school finance formula funding) includes a $162.6 million increase (2.6%) in total funds. Of this amount, $182.4 million is from an increase from State sources (a 4.5 percent increase) offset by a decrease of $19.8 million in local share (compared to revised FY 2015-16 local share estimates). With this proposal, average per pupil funding for K-12 education will increase by $103.11 (1.4 percent) to $7,397.52.
•
Since FY 2010-11, the K-12 Total Program Funding formula has included an additional factor called the “negative factor”. The negative factor reduces the funding amounts calculated by the other factors included in the school finance formula. In FY 2015-16, the negative factor reduced formula funding by $855.2 million or 12.13 percent. The current State budget outlook requires that the negative factor be increased by $50 million in FY 2016-17 to $905.2 million or 12.47 percent of Total Program funding. The increase in K-12 funding mentioned above reflects the amount calculated after the additional $50 million reduction to formula funding.
•
Our proposal will leave a projected ending fund balance in the State Education Fund of $102.8 million at the end of FY 2016-17. This represents approximately 1.6% of Total Program spending. The drop in the ending balance for the State Education Fund avoids a bigger decrease in the negative factor but also provides less of a reserve to use in case of any further drops in other state revenue sources.
•
The budget request includes an increase approximately $5.1 million from the State Education Fund in FY 2016-17 and subsequent fiscal years to fund a 1.8 percent inflationary increase for the education programs commonly referred to as “categorical programs”. Consistent with past year requests, the request allocates the $5.1 million increase amongst the different categorical programs based on the “gap” in funding between the actual reported revenue received by the programs versus the actual reported expenditures as reported to the Department of Education by individual districts.
•
The budget request includes an increase of $229,685 General Fund to increase funding at the Colorado School for the Deaf and the Blind (CSDB). Teachers at CSDB are statutorily required to be paid the equivalent of employees in the El Paso District 11 based upon the previous school year’s teacher salary schedule. This increase will ensure that CSDB has the necessary funding to meet this statutory requirement without reductions to other programs at the school.
Governor’s Office of State Planning and Budgeting FY 2016-17
John W. Hickenlooper Governor
Offices of the Governor
Henry Sobanet Director, OSPB
November 2, 2015
FY 2016-17 Budget Request Fact Sheet
Governor's Offices
TOTAL FUNDS General Fund Cash Funds Reappropriated Funds Federal Funds FTE
FY 2015-16 Appropriation $270,661,393 $41,668,200 $42,239,163 $180,261,421 $6,492,609 1,088.7
FY 2016-17 Request $304,893,715 $39,538,773 $42,190,646 $216,652,429 $6,511,867 1,090.4
FY 2016-17 Change $34,232,322 ($2,129,427) ($48,517) $36,391,008 $19,258 1.7
Percent Change 12.6% (5.1%) (0.1%) 20.2% 0.3% 0.2%
Department Description The Governor’s Office is the administrative head of the executive branch of Colorado State Government. As Chief Executive, the Governor works to deliver services to the citizens of Colorado and to ensure effective agency operations in the Executive Branch. Offices within the Governor’s Office include the Colorado Energy Office, the Lieutenant Governor’s Office, the Office of State Planning and Budgeting, the Office of Economic Development and International Trade, and the Office of Information Technology. The Colorado Energy Office promotes market-based solutions for economic development in the energy industry. The Lieutenant Governor acts in the capacity of the Governor when the Governor is out of the state or is otherwise unable to perform his constitutional responsibilities. The Office of State Planning and Budgeting provides the Governor with information and recommendations to make sound public policy and budget decisions. The Office of Economic Development and International Trade assists in strengthening Colorado’s prospects for long-term economic growth by providing broad-based support to Colorado businesses. Finally, the Office of Information Technology oversees technology initiatives throughout the state and implements strategies to maximize efficiencies in information technology service delivery. These strategies are provided through the application of a centralized enterprise system.
Share of FY15 Statewide 1% Operating Total…
State Total
Department Total
Governor’s Office of State Planning and Budgeting FY 2016-17
Major Factors Affecting the FY 2016-17 Governor’s Office Budget •
The Governor’s Office is requesting an increase of $34.2 million total funds (12.6 percent) in its FY 2016-17 budget. This includes a $2,129,427 reduction (-5.1 percent) in General Fund.
•
The Governor’s Office is requesting an increase of $20,000 in cash fund spending authority from the Mansion Activity Fund to allow the Residence to cover its current expenses by matching the spending authority with the current level of revenue and expenses.
•
The Office of Economic Development and International Trade is requesting $3.0 million General Fund in FY 2016-17 and ongoing for the Colorado Office of Film, Television & Media (COFTM) to enable COFTM to continue the 20 percent rebate and loan guarantee programs for eligible film, television, and other creative productions. COFTM indicates that during FY 2014-15, 17 film projects were approved; based on figures provided in the project applications, COFTM expects the projects to bring over $84.5 million of economic impact to Colorado and create 1,076 new jobs.
•
The Office of Information Technology (OIT) is requesting an increase of $1.0 million Reappropriated Funds in FY 2016-17 and ongoing to fund the next round of initiatives related to Secure Colorado. These funds will allow OIT to purchase an advanced security event analytics tool that will help identify the most urgent cyber-security events to be investigated.
•
OIT is requesting $22,428,801 Reappropriated Funds in FY 2016-17, and $26,438,593 Reappropriated Funds in FY 2017-18 for the CBMS/PEAK annual base adjustment. The increased base funding will allow for necessary adjustments to operating and contract costs, provide approximately 135,000 annual vendor pool hours to address imperative program changes, and fund vendor transition costs.
•
OIT is requesting $306,344 Reappropriated Funds for FY 2016-17, and $312,949 Reappropriated Funds in FY 2017-18, to complete the purchase and implementation of the End User Configuration Management Tool. The Tool will assist OIT in proactively monitoring and supporting the State’s computer systems and assets.
•
OIT is requesting $158,873 Reappropriated Funds and 1.0 FTE in FY 2016-17, and $135,574 Reappropriated Funds and 1.0 FTE in FY 2017-18 and beyond, to hire an Application Developer for the ongoing support and maintenance of the Niche Records Management System for the Colorado State Patrol.
Governor’s Office of State Planning and Budgeting FY 2016-17
John W. Hickenlooper Governor
Department of Health Care Policy and Financing
Henry Sobanet Director, OSPB
November 2, 2015
FY 2016-17 Budget Request Fact Sheet
Department of Health Care Policy and Financing
TOTAL FUNDS General Fund Cash Funds Reappropriated Funds Federal Funds FTE
FY 2015-16 Appropriation $8,890,454,397 $2,507,080,610 $1,031,847,224 $7,805,549 $5,343,721,014 421.2
FY 2016-17 Request $8,893,159,127 $2,642,647,613 $991,324,107 $7,059,407 $5,252,128,000 424.5
FY 2016-17 Change $2,704,730 $135,567,003 ($40,523,117) ($746,142) ($91,593,014) 3.3
Percent Change 0.0% 5.4% (3.9%) (9.6%) (1.7%) 0.8%
Department Description The Department of Health Care Policy and Financing receives federal funding as the single state agency responsible for administering the Medicaid program (Title XIX) and the State Child Health Insurance Program (Title XXI), known as the Children’s Basic Health Plan. In addition to these programs, the Department administers the Colorado Indigent Care Program, the Old Age Pension State Medical Program, as well as the Home and Community-Based Services Medicaid Waivers. The Department also provides health care policy leadership for the state’s Executive Branch. Most of the Department’s programs are funded in part by the federal Centers for Medicare and Medicaid Services (CMS). The Medicaid program receives approximately 50% of its funding from the federal government and the Children’s Basic Health Plan receives approximately 65% of its funding from the federal government.
Governor’s Office of State Planning and Budgeting FY 2016-17
Major Factors Affecting the FY 2016-17 HCPF Budget •
•
The Department’s FY 2016-17 request includes an increase of $2.7 million total funds, $135.6 million General Fund, for caseload and per capita changes for Medicaid, Child Health Plan Plus (CHP+), and the Medicare Modernization Act (MMA). o
In FY 2016-17, the average Medicaid caseload is forecast to be 62,512 higher than the FY 2015-16 appropriation, or 4.85%. The increase is predominantly driven by the continued implementation of SB 13-200, which expands the Medicaid income threshold from 100% FPL to 133% FPL.
o
In FY 2016-17, the average CHP+ caseload is forecast to be 2,780 higher than the FY 201516 appropriation, or 4.68%. The increase in caseload is primarily attributable to the federal insurance mandate and continued economic improvement, leading to children qualifying for CHP+ as opposed to Medicaid.
o
Cost increases are tempered by the expiration of temporary rate increases originally provided in the Affordable Care Act and extended by the General Assembly, along with a proposal to reduce Hospital Provider Fee revenue by $100 million from the most current projections. The budget also includes a proposed 1% rate reduction to most providers.
The budget includes requests that will allow the Department to maximize federal funding to improve clients’ health and be responsive to the needs of clients, providers and other stakeholders. These include the following: o
$7.1 million total funds, $0 General Fund, $0 cash funds and $7.1 million federal funds to increase the federal funds appropriation for county administration to more accurately reflect the percentage of activities eligible for the enhanced match rate. The Department requests to align the County Administration federal funds appropriation with the expected percentage of enhanced match eligible activities, 65%, in order to reimburse the counties as much of their cost to process applications and provide case maintenance as possible and to encourage counties to continue to meet timeliness and backlog requirements.
o
$11.9 million total funds, $6.97 million General Fund, to fund the caseload increases in the Office of Community Living. The proposed budget allows for the continuation of the policy of having no waiting lists for individuals with intellectual or developmental disability who are eligible for the Supported Living Services and Children’s Extensive Support programs, along with allowing for emergency placements and transitions for individuals not covered under other programs.
Governor’s Office of State Planning and Budgeting FY 2016-17
John W. Hickenlooper Governor
Department of Higher Education
Henry Sobanet Director, OSPB
November 2, 2015
FY 2016-17 Budget Request Fact Sheet
Department of Higher Education
TOTAL FUNDS General Fund Cash Funds Reappropriated Funds Federal Funds FTE
FY 2015-16 Appropriation $3,732,557,075 $857,415,995 $2,150,842,834 $701,803,695 $22,494,551 23,856.3
FY 2016-17 Request $3,694,804,974 $838,524,430 $2,150,717,922 $683,021,791 $22,540,831 23,856.3
FY 2016-17 Change ($37,752,101) ($18,891,565) ($124,912) ($18,781,904) $46,280 0.0
Percent Change (1.0%) (2.2%) (0.0%) (2.7%) 0.2% 0.0%
Department Description The Department of Higher Education serves as the central administrative and coordinating agency for higher education (comprised of 29 public institutions, three area vocational schools, over 330 occupational schools, and over 100 private degree authorizing institutions). Over 160,000 resident full-time FTE attend Colorado public institutions, with 45 percent of the students attending two-year and certificate granting institutions. The Department oversees system-wide planning, financial aid allocations, degree and program authorizations; recommends state funding allocations to the institutions; and coordinates statewide tuition policies. The Department collects and analyzes data to help inform decision makers, colleges, students, and the public and collaborates with other state agencies including the Colorado Department of Education on P20 alignment and the Department of Labor and Employment on workforce training.
Governor’s Office of State Planning and Budgeting FY 2016-17
Major Factors Affecting the FY 2016-17 Higher Education Budget The Department of Higher Education requests $3,694.8 million total funds, including $838.5 million General Fund for FY 2016-17. This request is $18.9 million General Fund (2.2 percent) lower than the FY 2015-16 appropriation. The primary components of this request are described below: •
$20.0 million General Fund reduction for Public Institutions of Higher Education. The Department of Higher Education is requesting a $20 million General Fund reduction to higher education in FY 2016-17. This request is made solely for state General Fund budget balancing purposes. Per statute, the public higher education budget is implemented through the HB14-1319 performance outcomes model. Governing Boards budget needs for FY 2016-17 are anticipated to drive average tuition increases of 8.7 percent (median of 9.2 percent). However, the impact and corresponding tuition increases would vary significantly by institution.
•
$1.1 million General Fund for the Fort Lewis College Native American Tuition Waiver. Colorado is required via Federal treaty and state law to provide full tuition assistance to any qualified Native American student who attends Fort Lewis College. The Department requests an increase of $1,112,096 General Fund to fund the Fort Lewis College Native American Tuition Waiver in FY 2016-17.
•
$8,000 Reappropriated Funds for WICHE Dues. WICHE is a regional organization comprised of 15 western states which provides interstate student and research benefits. The Department requests an increase of $8,000 reappropriated funds to pay for the increase from $137,000 to $145,000 in the Western Interstate Commission for Higher Education (WICHE) dues for FY 201617.
•
$0 change in General Fund is requested for Cumbres & Toltec Scenic Railroad. History Colorado requests continuation funding for the Cumbres & Toltec Scenic Railroad for FY 2016-17. Pursuant to direction from prior legislative intent and footnote, the Cumbres & Toltec Scenic Railroad has submitted a decision item to increase $1.1 million General Fund and a companion base adjustment to reduce $1.1 million General Fund for a net combined impact of $0 General Fund in FY 2016-17.
Governor’s Office of State Planning and Budgeting FY 2016-17
John W. Hickenlooper Governor
Department of Human Services
Henry Sobanet Director, OSPB
November 2, 2015
FY 2016-17 Budget Request Fact Sheet
Department of Human Services
TOTAL FUNDS General Fund Cash Funds Reappropriated Funds Federal Funds FTE
FY 2015-16 Appropriation $1,914,659,158 $811,905,208 $348,624,954 $131,723,226 $622,405,770 4,970.9
FY 2016-17 Request $1,906,695,220 $836,373,426 $360,224,239 $127,019,684 $583,077,871 4,837.7
FY 2016-17 Change ($7,963,938) $24,468,218 $11,599,285 ($4,703,542) ($39,327,899) (133.2)
Percent Change (0.4%) 3.0% 3.3% (3.6%) (6.3%) (2.7%)
Department Description The Colorado Department of Human Services serves Colorado’s most vulnerable populations. It assists struggling Colorado families who need food, cash, and energy assistance to provide for their families; families in need of safe and affordable child care; children at risk of abuse or neglect; families who struggle to provide care for their adult children with developmental disabilities; youth who have violated the law; Coloradans who need effective treatment for mental illness or substance use disorders; and families who need resources to care for their elderly parents or nursing home care for their veteran parents. The Department of Human Services has approximately 5,000 employees and a budget of $1.9 billion in FY 2015-16.
Share of FY17 Statewide Operating Total Funds
Share of FY17 Statewide Operating General Fund 8%
7%
State Total
Department Total
Governor’s Office of State Planning and Budgeting FY 2016-17
State Total
Department Total
Major Factors Affecting the FY 2016-17 DHS Budget The request for the Department of Human Services reflects a total funds decrease of $8.0 million (0.4 percent), including a $24.5 million increase (3.0 percent) coming from the General Fund. Highlights of the request include: •
$6.7 million ($5.9 million General Fund) for counties to hire 100 new child welfare caseworkers in FY 2016-17 and beyond. This is phase two of the Department’s staffing request to address high workloads for county employees.
•
$4.6 million in General Fund and 78.8 FTE to hire additional staff in Youth Corrections to ensure the safety and security of youth and staff in the facilities. Additionally, this request helps the Department better align with the standards of the Federal Prison Rape Elimination Act. This is phase two of the Department’s staffing request to address safety and security in the Youth Corrections’ facilities.
•
$4.1 million General Fund and 7.5 FTE to address the staffing at the Colorado Mental Health Institute at Pueblo and bed capacity needs resulting from an increased demand for court-ordered competency evaluation and restoration services.
•
$3.8 million total funds, including $2.2 million General Fund, to fund an increase in caseloads in the Early Intervention program. This request will allow the Department to provide services to an additional 467 children, equivalent to a 6.0 percent caseload increase.
•
$2.2 million in federal Child Care Development Funds to address child care quality. This includes $673,524 for additional contracted staff to meet new federal annual visitation requirements and $1.6 million to continue quality initiatives originally funded through Race to the Top.
•
An increase from the Marijuana Tax Cash Fund to support a variety of substance abuse programs, including $4.7 million for intensive residential treatment programs, $300,000 for Sober Living Homes, and $500,000 for Supported Employment services for individuals with substance use disorders.
•
A reduction of $49.4 million total funds, including $4.9 million General Fund, and 233.1 FTE due to the transfer of the Division of Vocational Rehabilitation to the Department of Labor and Employment per Senate Bill 15-239.
Governor’s Office of State Planning and Budgeting FY 2016-17
John W. Hickenlooper Governor
Judicial and Elected Officials
Henry Sobanet Director, OSPB
November 2, 2015
FY 2016-17 Budget Request Fact Sheet
Judicial Department and Elected Officials Judicial Total Funds General Funds Cash Funds Reappropriated Funds Federal Funds FTE
$681,853,574 $485,136,363 $158,212,655 $34,079,556 $4,425,000 4,599.5
Law $77,405,216 $15,231,657 $15,513,109 $44,895,797 $1,764,653 477.6
Legislature $45,582,528 $44,238,528 $179,000 $1,165,000 $0 281.3
Treasury $511,144,719 $156,812,020 $354,332,699 $0 $0 31.9
State $22,309,135 $0 $22,309,135 $0 $0 137.3
•
The Governor does not submit budget requests for the Judicial Department or for the elected officials (Law, Legislature, Treasury, and State). The budgets are directly submitted by those respective departments. However, in order to build the Governor’s FY 2016-17 budget, OSPB estimates the costs for those departments in the Governor’s overall budget request.
•
In estimating the FY 2016-17 costs, OSPB used each department’s total FY 2015-16 appropriation as a continuing FY 2016-17 base budget. OSPB then applied special bill annualizations plus any other base adjustments provided by those departments.
•
To this base budget estimate, OSPB made additional adjustments. These adjustments include a 1.0 percent increase on the FY 2016-17 continuing base estimate of General Fund subject to the spending provisions of Section 24-75-201.1, C.R.S. This inflator drives a combined General Fund cost of $5.3 million for these departments. In addition to the inflator, OSPB included estimated common policy costs for each department. Total compensation common policies were estimated using unadjusted July 2015 payroll data that was distributed by the Department of Personnel & Administration (DPA). Operating common policies reflect actual FY 2016-17 allocations provided by DPA and the Governor’s Office of Information Technology. In total, $17.2 million Total Funds ($16.2 million General Fund) was added for the common policy costs for Judicial and the elected officials.
•
These estimates do not try to anticipate caseload or other requested increases for the Judicial Department, Law, Legislature, Treasury, or State Department, nor do they represent the official budget for these departments.
Governor’s Office of State Planning and Budgeting FY 2016-17
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Governor’s Office of State Planning and Budgeting FY 2016-17
John W. Hickenlooper Governor
Department of Labor and Employment
Henry Sobanet Director, OSPB
November 2, 2015
FY 2016-17 Budget Request Fact Sheet
Department of Labor and Employment
TOTAL FUNDS General Fund Cash Funds Reappropriated Funds Federal Funds FTE
FY 2015-16 Appropriation $187,521,105 $8,008,584 $74,251,770 $4,439,547 $100,821,204 1,030.3
FY 2016-17 Request $241,769,471 $13,947,929 $76,492,015 $9,410,955 $141,918,572 1,270.8
FY 2016-17 Change $54,248,366 $5,939,345 $2,240,245 $4,971,408 $41,097,368 240.5
Percent Change 28.9% 74.2% 3.0% 112.0% 40.8% 23.3%
Department Description The Colorado Department of Labor and Employment (CDLE) provides information and tools to help Colorado businesses and workers remain competitive. CDLE is comprised of five main divisions. These include the Division of Labor, which administers Colorado employment and labor laws; the Division of Oil and Public Safety, which is responsible for a variety of regulatory functions related to public health and safety; the Division of Workers’ Compensation, which administers and enforces the provisions of the Workers’ Compensation Act; the Division of Employment and Training, which includes Workforce Development Programs, the Colorado Workforce Development Council and Labor Market Information; the Division of Unemployment Insurance; and the newly transferring Division of Vocational Rehabilitation.
Share of FY17 Statewide Operating Total Funds 1%
State Total
Department Total
Governor’s Office of State Planning and Budgeting FY 2016-17
Share of FY17 Statewide Operating General Fund 0%
State Total
Department Total
Major Factors Affecting the FY 2016-17 CDLE Budget The Department of Labor and Employment is requesting a total budget of $241.8 million in FY 2016-17, which represents an increase of $54.2 million total funds or 28.9 percent over FY 2015-16. The majority of this change is due to the transfer of the Division of Vocational Rehabilitation from the Department of Human Services to the Department of Labor and Employment, as required by S.B. 15-239. This transfer includes $49.4 million total funds ($4.9 million General Fund and $38.8 million federal funds) and 233.1 FTE in the base budget for CDLE. Statewide, this was a net-zero transfer with a corresponding reduction in the budget of the Department of Human Services. One-time project management funds of $665,330 General Fund were appropriated to CDLE in FY 2015-16 for the transfer through S.B. 15-239 and were annualized out of (removed from) the base budget in FY 2016-17. Other base-related changes in the Department reflect an increase of $4.4 million total funds and 0.3 FTE for statewide common policy adjustments and annualized appropriations from 2015 legislation with fiscal impact.
Due to the transfer of the Division of Vocational Rehabilitation explained above, the Department is requesting an additional $371,107 total funds ($79,077 General Fund and $292,176 federal funds) and 2.6 FTE for administrative support and leased space costs that are necessary for operation of the Division. The FTE will support administrative, financial and human resources positions in the Executive Director’s Office to handle procurement and contracting for the business operations, and payroll and other functions related to a 23 percent increase to the Department’s FTE count. These positions were recommended after careful review of the transfer by executive merger teams.
The Department is also requesting an increase of $412,854 cash funds from the Unemployment Revenue Fund and 4.5 FTE in the Division of Unemployment Insurance Investigations and Criminal Enforcement Unit. The funding will support criminal investigators to handle unemployment claim and benefit fraud.
Governor’s Office of State Planning and Budgeting FY 2016-17
John W. Hickenlooper Governor
Department of Local Affairs
Henry Sobanet Director, OSPB
November 2, 2015
FY 2016-17 Budget Request Fact Sheet
Department of Local Affairs
TOTAL FUNDS General Fund Cash Funds Reappropriated Funds Federal Funds FTE
FY 2015-16 Appropriation $320,219,550 $23,626,224 $209,230,174 $10,487,107 $76,876,045 171.5
FY 2016-17 Request $323,049,470 $23,371,149 $211,033,163 $11,624,134 $77,021,024 173.4
FY 2016-17 Change $2,829,920 ($255,075) $1,802,989 $1,137,027 $144,979 1.9
Percent Change 0.9% (1.1%) 0.9% 10.8% 0.2% 1.1%
Department Description The Department of Local Affairs (DOLA) serves as the State agency interface between the State and local communities primarily focused on strengthening these communities and enhancing livability. DOLA provides financial support to local communities for community needs and professional technical services (including training and technical assistance) to community leaders in the areas of governance, affordable housing, and property tax administration. Financial resources are made available to communities and housing providers either through statutory formula distributions or through competitive grants at the discretion of the Executive Director with guidance from citizen and member-appointed boards. Roughly 90 percent of the Department's annual budget is invested directly in local communities in the form of grants, distributions, or low interest loans.
Governor’s Office of State Planning and Budgeting FY 2016-17
Major Factors Affecting the FY 2016-17 DOLA Budget •
The Department of Local Affairs is requesting an increase of $2.8 million total funds (0.9 percent) in its FY 2016-17 budget. This includes a $0.2 million decrease (-1.1 percent) in General Fund.
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As of FY 2016-17, the Mortgage Servicing Settlement dollars used to support the Fort Lyon Supportive Residential Community will be fully expended, leaving a shortfall of approximately $1.8 million. The Department is requesting $1,765,786 cash funds and 1.0 FTE in FY 2016-17 to support the continued operation of Fort Lyon until the program is able to access federal funds to fill the gap, as originally intended. The Department is requesting funding from the Marijuana Tax Cash Fund (MTCF) because Fort Lyon provides transitional housing and supportive services including connection to drug treatment to homeless individuals with histories of substance abuse. This is an ongoing request, which is conditional based on the availability of federal funding. If federal funds are not available for FY 2017-18, the request will annualize to $1,765,786.
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The remaining increase for FY 2016-17 is attributable to statewide common policy adjustments. These include increases for employee benefits ($37,106 total funds, with a reduction of $48,259 General Fund), the Department’s share of the Annual Fleet Vehicle request submitted by the Department of Personnel & Administration ($16,844 total funds, $10,160 General Fund), the Department’s share of the Secure Colorado request submitted by the Office of Information Technology ($($5,640 reappopriated funds), and various other adjustments.
Governor’s Office of State Planning and Budgeting FY 2016-17
John W. Hickenlooper Governor
Department of Military and Veterans Affairs
Henry Sobanet Director, OSPB
November 2, 2015
FY 2016-17 Budget Request Fact Sheet
Department of Military and Veterans Affairs
TOTAL FUNDS General Fund Cash Funds Reappropriated Funds Federal Funds FTE
FY 2015-16 Appropriation $225,391,179 $8,285,043 $1,281,079 $800,000 $215,025,057 1,392.3
FY 2016-17 Request $225,502,176 $8,299,797 $1,285,355 $800,000 $215,117,024 1,392.4
FY 2016-17 Change $110,997 $14,754 $4,276 $0 $91,967 0.1
Percent Change 0.0% 0.2% 0.3% 0.0% 0.0% 0.0%
Department Description The Department of Military and Veterans Affairs provides assistance and protection in the event of emergencies and disasters for the citizens of Colorado, provides assistance for Colorado veterans, and houses the state’s Civil Air Patrol. The National Guard maintains a ready military force that can augment the active duty military, and is available to the State for assistance during emergencies and disasters.
Governor’s Office of State Planning and Budgeting FY 2016-17
Major Factors Affecting the FY 2016-17 DMVA Budget •
The Department of Military and Veterans Affairs is requesting an increase of $110,997 total funds (0.0 percent) in its FY 2016-17 budget. This includes a $14,754 increase (0.2 percent) in General Fund.
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The increase for FY 2016-17 is attributable to statewide common policy adjustments. These include increases for employee benefits ($198,147 total funds, $106,835 General Fund), the Department’s share of the Annual Fleet Vehicle request submitted by the Department of Personnel & Administration ($10,412 General Fund), the Department’s share of the Secure Colorado and Enterprise Tools requests submitted by the Office of Information Technology ($2,598 General Fund and $4,274 General Fund, respectively), and various other adjustments.
Governor’s Office of State Planning and Budgeting FY 2016-17
John W. Hickenlooper Governor
Department of Natural Resources
Henry Sobanet Director, OSPB
November 2, 2015
FY 2016-17 Budget Request Fact Sheet
Department of Natural Resources
TOTAL FUNDS General Fund Cash Funds Reappropriated Funds Federal Funds FTE
FY 2015-16 Appropriation $263,919,227 $27,671,518 $198,404,864 $8,701,045 $29,141,800 1,462.6
FY 2016-17 Request $256,967,573 $28,861,640 $192,979,271 $8,025,162 $27,101,500 1,462.7
FY 2016-17 Change ($6,951,654) $1,190,122 ($5,425,593) ($675,883) ($2,040,300) 0.1
Percent Change (2.6%) 4.3% (2.7%) (7.8%) (7.0%) 0.0%
Department Description The Colorado Department of Natural Resources (DNR) is responsible for the management of the water, land, wildlife, minerals and energy, oil & gas, state trust lands, and outdoor recreation resources of the State. Its mission is to develop, preserve, and enhance Colorado’s natural resources for the benefit and enjoyment of current and future citizens and visitors. This includes use or access to some resources, promotion of the responsible development of select resources, and the protection or preservation of other resources.
Share of FY17 Statewide Operating Total Funds 1%
State Total
Department Total
Governor’s Office of State Planning and Budgeting FY 2016-17
Share of FY17 Statewide Operating General Fund 0%
State Total
Department Total
Major Factors Affecting the FY 2016-17 DNR Budget •
The Department of Natural Resources is requesting a net decrease of $9.6 million total funds (-3.8 percent) in FY 2015-16. Included in this net decrease is a $200,000 net increase (0.8 percent) in General Fund. The Department’s FY 2015-16 request reflects a reduction of $11.8 million cash funds associated with one-time funding provided in FY 2014-15 for water projects in HB14-1333 ($5.4 million) and for species conservation projects in SB14-188 ($6.5 million). In total, base related changes account for a decrease of $10.5 million total funds from the FY 2014-15 appropriation. These base decreases are offset somewhat by net increases of $0.9 million total funds associated with FY 2015-16 decision items. The Department’s four prioritized decision items are described below:
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The State Land Board requests a transfer of $90,000 Cash Fund spending authority from the DNR Executive Director’s Office, Administration, Payments to OIT Long Bill Line Item appropriation to the State Board of Land Commissioners Program Costs Long Bill Line Item appropriation for the purpose of paying the ongoing licensing cost of the Automated Trust Land Asset System (ATLAS). In FY 2012-13, the Legislature appropriated $1.5 million to upgrade the State Land Board’s asset system, and that appropriation has covered both the costs of the Automated Trust Land Asset System (ATLAS) implementation, as well as its licensing fees, until the end of FY 2015-16. ATLAS tracks 9,000 leases, 5,000 customers, and 37,000 assets, and facilitates the accurate distribution of revenues to trust beneficiaries through the state’s accounting system, CORE.
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The Division of Parks and Wildlife requests an increase in Cash Fund spending authority of $1,024,000 per year to purchase 256 portable radios annually for four consecutive fiscal years, beginning in FY 2016-17 and ending in FY 2019-20. This request is in response to the failure and general aging of the Division’s Motorola Astro Spectra Mobile and XTS 3000 portable radios, which are now considered obsolete. The Division currently has 1,024 radios that are in need of replacement, and proposes to replace them with Motorola APX 6000 portable radios and APX 6500 mobile radios, at a cost of $4,000 per unit; there are no FTE or salary costs associated with this request.
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The State Land Board requests $87,515 Cash Funds and 1.0 FTE to hire a West Slope Asset Manager. In the past two fiscal years (FY 2014-15 and FY 2015-16), the State Land Board has hired similar positions in the Northern and Southern regions using FTE that were made available through Lean processes and other efficiencies, but there are no more unutilized FTE available for this request. Based on the successes of the previous two hires, the State Land Board anticipates that this additional FTE will improve the Board’s stewardship over the Western region, reduce illegal use of State Land Board land, and increase the value and income from West Slope state trust properties, among other things.
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The Division of Parks and Wildlife request a transfer of 3.0 existing appropriated FTE from the Division’s Wildlife Operations line item, to the Habitat Partnership Program line item, which currently has no appropriated FTE. The Habitat Partnership Program (HPP), which develops partnerships among Colorado landowners, land managers, sportsman, the public, and CPW, currently employs independent contractors for the purposes of handling administrative duties and project management for the 19 volunteer committees that make up the Habitat Partnership Program. The Division plans to discontinue the use of independent contractors, and to use the HPP’s existing Cash Fund spending authority to fund the 3.0 FTE positions.
Governor’s Office of State Planning and Budgeting FY 2016-17
John W. Hickenlooper Governor
Department of Personnel & Administration
Henry Sobanet Director, OSPB
November 2, 2015
FY 2016-17 Budget Request Fact Sheet
Department of Personnel and Administration
TOTAL FUNDS General Fund Cash Funds Reappropriated Funds Federal Funds FTE
FY 2015-16 Appropriation $181,201,321 $11,711,626 $13,830,708 $155,658,987 $0 407.4
FY 2016-17 Request $186,760,997 $12,997,749 $13,433,092 $160,330,156 $0 413.0
FY 2016-17 Change $5,559,676 $1,286,123 ($397,616) $4,671,169 $0 5.6
Percent Change 3.1% 11.0% (2.9%) 3.0% 0.0% 1.4%
Department Description The Department of Personnel and Administration (DPA) provides centralized services to State agencies that are necessary for the operation of Colorado State government. These services include: supporting and maintaining the integrity of the State personnel system; managing the State’s insurance pool; providing management, monitoring, and oversight of the State’s financial and purchasing operations; providing administrative law judge services statewide; developing statewide total compensation and operating expense policies common to all departments; and providing statewide central services such as travel, mail, data entry, reprographics, facility maintenance and fleet. The Department also manages the State’s new Colorado Operations Resource Engine financial system, also known as CORE.
Governor’s Office of State Planning and Budgeting FY 2016-17
Major Factors Affecting the FY 2016-17 DPA Budget •
The Department of Personnel & Administration is requesting an increase of $5,559,676 total funds (3.1 percent) in its FY 2016-17 budget. This includes a $1.3 million increase (11.0 percent) in General Fund.
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The Department is requesting $311,804 in reappropriated fund spending authority to add 4.5 FTE to the Office of Administrative Courts and to increase the leased space for the Southern Regional office in Colorado Springs for FY 2016-17. The request will annualize to $290,464 in FY 2017-18. Costs will be allocated to state agencies through the statewide common policy for Administrative Law Judge Services and the General Fund impact of this request is $38,428. The additional FTE would allow the Office to continue to meet statutory deadlines as well as provide the level of service expected of this State program. The additional space will allow for better customer service with the addition of a second court room.
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The Department is requesting to transfer $342,749 in reappropriated fund spending authority from the Fuel and Automotive Supplies line item to the Operating Expenses line item within the Fleet Management Program and Motor Pool Services program. This will better align the program operating expenses with available funding. Of the total amount that will be transferred, $142,749 will be used to pay the auction fees on vehicle disposals. This will allow for the disposal of an average of 636 vehicles per year. The remaining $200,000 of the total amount will be used to cover the fixed and variable costs of running the motor pool for the State.
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The Department is requesting to replace 711 vehicles for the State Fleet Management (SFM) program, of which 306 are potential CNG eligible vehicles. To accomplish this, the Department will require an increase of $766,084 in reappropriated funds to the Department’s Vehicle Replacement Lease/Purchase line item. For individual State agencies, this request will require a reduction of $393,052 total funds, (including a reduction of $21,788 General Fund) for the respective Vehicle Lease Payments appropriations. Replacing 711 vehicles in FY 2016-17 will reduce SFM’s projected maintenance and fuel costs by $1,448,511.
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The remaining increase requested for FY 2016-17 is attributable to statewide common policy adjustments, including an increase of $2.8 million for estimated liability claims and $1.2 million for liability legal services. These estimates are actuarially determined for the Department on an annual basis. The State’s actuary takes into account previous loss experience and a number of other historical and forecasted trends to develop this figure. The increase in claims estimates can be attributed to S.B. 13-023 which increased the Colorado Government Immunity Act payment caps from $150,000 to $350,000 for a single person and from $600,000 to $990,000 for two or more persons.
Governor’s Office of State Planning and Budgeting FY 2016-17
John W. Hickenlooper Governor
Department of Public Health and Environment
Henry Sobanet Director, OSPB
November 2, 2015
FY 2016-17 Budget Request Fact Sheet
Department of Public Health and Environment
TOTAL FUNDS General Fund Cash Funds Reappropriated Funds Federal Funds FTE
FY 2015-16 Appropriation $534,348,222 $44,515,287 $158,144,049 $37,535,004 $294,153,882 1,289.3
FY 2016-17 Request $548,115,760 $47,347,311 $162,917,422 $37,149,358 $300,701,669 1,294.5
FY 2016-17 Change $13,767,538 $2,832,024 $4,773,373 ($385,646) $6,547,787 5.2
Percent Change 2.6% 6.4% 3.0% (1.0%) 2.2% 0.4%
Department Description The Department of Public Health and Environment is comprised of 11 divisions. These divisions are organized into three groups: 1) Administration and Support; 2) Environmental Programs consisting of the Air Pollution Control Division, Water Quality Control Division, Hazardous Materials and Waste Management Division, and Environmental Health and Sustainability; and 3) Health Programs including the Center for Health and Environmental Information, Laboratory Services, Disease Control and Environmental Epidemiology, Prevention Services, Health Facilities and EMS, and the Office of Emergency Preparedness and Response. The Department of Public Health and Environment’s mission is to protect and improve the health of Colorado’s people and the quality of its environment.
Share of FY17 Statewide Operating Total Funds 2%
State Total
Department Total
Governor’s Office of State Planning and Budgeting FY 2016-17
Share of FY17 Statewide Operating General Fund 0%
State Total
Department Total
Major Factors Affecting the FY 2016-17 CDPHE Budget •
The Department of Public Health and Environment is requesting new decision items that total $7.2 million total funds, including $3.7 million General Fund in its FY 2016-17 budget request.
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The Department is requesting $2.5 million General Fund for the Family Planning Program to prevent unintended pregnancies and provide contraceptive care to low-income women.
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The Department is requesting $1.7 million cash funds to provide grants to emergency medical and trauma service agencies in Colorado that need additional resources to provide appropriate services to Colorado citizens and visitors.
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The Department is requesting a policy change to expand eligibility to cervical cancer screenings to women from the ages of 21 to 39. This will drive an increase in total funds costs to the Department of Health Care Policy and Financing of $291,528.
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The Department is requesting $1.2 General Fund to sustain the Clean Water Program until FY 2017-18. After this point, the Department intends to seek a legislative change to increase fees for the Clean Water Program.
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The Department is requesting $346,612 cash funds to develop a dedicated marijuana consumer call line and data system to monitor the adverse health effects of marijuana.
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The Department is requesting $238,000 cash funds to expand the use of three health surveys to gather regional data on the use of marijuana and any related health or social impacts.
Governor’s Office of State Planning and Budgeting FY 2016-17
John W. Hickenlooper Governor
Department of Public Safety
Henry Sobanet Director, OSPB
November 2, 2015
FY 2016-17 Budget Request Fact Sheet
Department of Public Safety
TOTAL FUNDS General Fund Cash Funds Reappropriated Funds Federal Funds FTE
FY 2015-16 Appropriation $403,332,487 $125,170,650 $184,486,485 $34,175,433 $59,499,919 1,727.1
FY 2016-17 Request $414,001,156 $125,439,904 $190,655,664 $38,245,604 $59,659,984 1,738.5
FY 2016-17 Change $10,668,669 $269,254 $6,169,179 $4,070,171 $160,065 11.4
Percent Change 2.6% 0.2% 3.3% 11.9% 0.3% 0.7%
Department Description The mission of the Colorado Department of Public Safety is “Engaged employees working together to provide diverse public safety services to local communities and safeguard lives.” The Department promotes, maintains, and enhances public safety through law enforcement, criminal investigations, fire and crime prevention, emergency management, recidivism reduction, and victim advocacy. The Department also provides professional support of the criminal justice system, fire safety and emergency response communities, other governmental agencies, and private entities. The Department’s goal is to serve the public through an organization that emphasizes quality and integrity.
Share of FY17 Statewide Operating Total Funds 2%
State Total
Department Total
Governor’s Office of State Planning and Budgeting FY 2016-17
Share of FY17 Statewide Operating General Fund 1%
State Total
Department Total
Major Factors Affecting the FY 2016-17 CDPS Budget The Department of Public Safety is requesting an increase of $10.7 million total funds (2.6 percent) in its FY 2016-17 budget. This includes a $269,254 increase (0.2 percent) in General Fund. The small increase in General Fund is due to changes in the base budget including common policy adjustments and annualizations of legislation with a fiscal impact. The major changes this year are seen in cash and reappropriated fund sources. The main cash increases are in the Highway Users Tax Fund “Off-the’Top” revenues allocated to the Colorado State Patrol; and in smaller amounts, various other cash funds held by the Department. The overall Department reappropriated funds are increased to allow spending authority in the Executive Director’s Office that were previously spent directly from cash funds in the division’s operating budgets. This will accommodate the mission expansion and growth that the Department has experienced over the past several years, while allowing for the department-wide restructuring described below.
The Department proposes a restructure of resources which results in a net increase of $4,438,154 Reappropriated Funds spending authority to the Department’s budget. Of this, $916,309 will be used to support an additional 5.0 FTE and operating costs in the Executive Director’s Office (EDO) necessitated by the new structure. The consolidation of administrative resources across the Department will improve efficiency in the budget, financial, planning, policy, procurement, risk management, fleet, and facility services functions of the agency. In total, this proposal will realign 68.0 FTE and $5,030,078 total funds from the divisions into the EDO for department-wide management and administration. This net neutral transfer will include the refinancing of cash- and reappropriated-funded FTE with indirect cost recoveries. It will not impact the General Fund or generate any new fee revenue.
The Department is requesting an increase of $261,040 in cash funds spending authority and 2.0 FTE for State Patrol troopers. This will help the Department to deliver the necessary services essential to highway safety, including traffic mitigations, highway patrols, and crash response investigations. The E-470 Public Highway Authority has requested an increase in patrolling hours due to growing traffic and safety concerns on the E-470 corridor. The Department’s budget also includes $5.1 million total funds (including $4.4 million cash funds) for trooper salary increases (an increase of 7.0 percent in pay levels over FY 2015-16) as recommended in the Total Compensation Report and as required by statute.
A one-time increase of $75,000 cash funds from the Marijuana Tax Cash Fund is requested in FY 2016-17 to conduct a survey of jail inmates to determine the impacts on jail populations from the legalization of marijuana. The outcome of this study will be the collection and analysis of accurate data on the homeless populations in the county jails surveyed. Data collected from this survey will allow the Division of Criminal Justice to deliver a more complete picture of the impacts of marijuana legalization to the General Assembly, the Governor’s Office, and the public.
The Department is requesting a decrease of $658,873 General Fund for FY 2016-17 and beyond to account for a community provider rate decrease of 1.0 percent, which includes the Community Corrections Providers who contract with the Department of Public Safety. Based on the September 2015 forecast, the state projects a $400 million budget deficit for FY 2016-17. The decreased funding would offset a portion of the projected budget deficit.
Governor’s Office of State Planning and Budgeting FY 2016-17
John W. Hickenlooper Governor
Department of Regulatory Agencies
Henry Sobanet Director, OSPB
November 2, 2015
FY 2016-17 Budget Request Fact Sheet
Department of Regulatory Agencies
TOTAL FUNDS General Fund Cash Funds Reappropriated Funds Federal Funds FTE
FY 2015-16 Appropriation $88,577,567 $1,923,405 $80,292,863 $4,875,289 $1,486,010 583.6
FY 2016-17 Request $85,154,499 $1,777,519 $77,347,008 $4,614,232 $1,415,740 585.5
FY 2016-17 Change ($3,423,068) ($145,886) ($2,945,855) ($261,057) ($70,270) 1.9
Percent Change (3.9%) (7.6%) (3.7%) (5.4%) (4.7%) 0.3%
Department Description The Colorado Department of Regulatory Agencies protects the citizens of Colorado from fraudulent or dangerous businesses and professionals by regulating state-chartered financial institutions, public utilities, insurance providers, and a host of professional occupations, and it enforces state civil rights laws. The Department is primarily cash funded by regulated entities and collects fees from professional licensing, registration, and public utilities, which are set based on legislative appropriations specific to operating and regulatory oversight expenses.
Governor’s Office of State Planning and Budgeting FY 2016-17
Major Factors Affecting the FY 2016-17 DORA Budget •
The Department of Regulatory Agencies is requesting a decrease of $3.4 million total funds (-3.9 percent) in its FY 2016-17 budget. This includes a $145,886 reduction (-7.6 percent) in General Fund.
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The Department is requesting an adjustment to its Leased Space line item to reflect the terms and savings of the Department’s newly executed lease for its space at 1560 Broadway. The Department was able to negotiate significant one-time savings due to rent credits, graduated lease escalations, and up-front free rent. For FY 2016-17, the impact to the budget is a reduction of $2,374,716 total funds, including $97,037 General Fund, $1,964,298 cash funds, $272,917 reappropriated funds, and $40,464 federal funds. The request will annualize to $41,989 total funds for FY 2017-18, with annual adjustments each year after pursuant to the terms of the lease.
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The Department continues to be a leading consumer of legal services from the Department of Law, accounting for $10.4 million and approximately 110,000 legal hours. This represents over 30 percent of statewide legal hours. The expected change in the blended hourly legal rate from $95.01 to $96.15 accounts for a $125,000 budget increase for FY 2016-17.
Governor’s Office of State Planning and Budgeting FY 2016-17
John W. Hickenlooper Governor
Department of Revenue
Henry Sobanet Director, OSPB
November 2, 2015
FY 2016-17 Budget Request Fact Sheet
Department of Revenue
TOTAL FUNDS General Fund Cash Funds Reappropriated Funds Federal Funds FTE
FY 2015-16 Appropriation $324,177,457 $97,621,597 $220,417,302 $5,314,170 $824,388 1,367.1
FY 2016-17 Request $328,138,649 $94,165,374 $227,218,607 $5,930,280 $824,388 1,392.8
FY 2016-17 Change $3,961,192 ($3,456,223) $6,801,305 $616,110 $0 25.7
Percent Change 1.2% (3.5%) 3.1% 11.6% 0.0% 1.9%
Department Description The Department of Revenue’s mission is to provide quality service to customers in fulfillment of its fiduciary and statutory responsibilities while instilling public confidence through professional and responsive employees. The Department’s key responsibilities are to (1) administer, audit, and enforce taxes, fees, and licenses covered under Colorado’s laws, including the collection and distribution of more than $12.5 billion annually; (2) issue driver licenses and identification cards, oversee the statewide vehicle titling and registration system, maintain driver records, and enforce the State’s auto emissions program through the Division of Motor Vehicles; (3) regulate individuals and entities in the liquor, tobacco, gaming, racing, auto, and marijuana industries through the Enforcement Business Group; and (4) administer the Colorado Lottery.
Share of FY17 Statewide Operating Total Funds 1%
State Total
Department Total
Governor’s Office of State Planning and Budgeting FY 2016-17
Share of FY17 Statewide Operating General Fund 1%
State Total
Department Total
Major Factors Affecting the FY 2016-17 DOR Budget The Department of Revenue is requesting a total budget of $328.1 million in FY 2016-17, an increase of $3,961,192 total funds (1.2 percent) over its FY 2015-16 budget. The net increase includes a $3.5 million reduction (3.5 percent) in General Fund.
The Department’s request continues initiatives begun in FY 2014-15 aimed to improve customer service, reduce wait times, and modernize the operations and financing of the Division of Motor Vehicles (DMV). In both FY 2014-15 and FY 2015-16, a one-year General Fund subsidy was provided to the Department to offset declining revenue streams from driver’s license, identification document and other DMV fees. In FY 2016-17, the Department is requesting a net increase of $836,501 cash funds to continue supporting operations while improving wait times, and to ensure an adequate supply of driver’s license documents to meet increasing demand. Despite the increased revenue from increasing certain fees authorized in S.B. 14-194, the Licensing Services Cash Fund (LSCF) will continue to have a deficit in FY 2016-17 and beyond. This request includes $3.2 million of spending authority from Highway User’s Tax Fund (HUTF) “Off-the-Top” revenues offset by a corresponding decrease of $2.3 million in spending authority from the LSCF in FY 2016-17 and thereafter. The additional $836,501 of spending authority is needed—to be shifted from the Personal Services line item to the Driver’s License Documents line item—due to the increased cost to produce a driver’s license and increased license issuance. The request for funding from the HUTF is in support of the FY 2016-17 statewide fiscal balancing strategy and will require a legislative change.
The Earned Income Tax Credit (EITC) is required to be implemented in 2016 by state law (Section 39-22-123 (1) (b), C.R.S.). The Department is requesting $1,304,530 General Fund and 16.7 FTE in FY 2016-17 and $1,646,329 General Fund and 23.4 FTE in FY 2017-18 and beyond to implement the tax credit. Complex auditing requirements have developed due to increased fraudulent and erroneous payments experienced at the federal level for EITC (the IRS estimates an error rate of 24 percent). Combined with a complete conversion to a new tax system since the early 2000s when the EITC was last available, the Department does not currently have sufficient staff to implement or adequately regulate the EITC into the new tax system. Funding will better equip the Department to reduce the impact of fraud and filing errors anticipated to accompany the EITC and will address the increased workload resulting from a new credit being claimed.
The Department is requesting a fund mix adjustment in FY 2016-17 and ongoing to shift $23,813 spending authority from General Fund to cash funds in the Executive Director’s Office Postage line item to align the appropriation with postage utilization. This request decreases General Fund spending authority and increases cash fund spending authority with no increase to the Department’s total appropriation.
The Department is requesting a budget neutral alignment of the Long Bill over the course of two fiscal years. Starting in FY 2016-17, the Department requests a shift of $596,998 General Fund and 11.0 FTE from the Long Bill sub-group (B) Taxation and Compliance Division to sub-group (C) Taxpayer Service Division. In FY 2017-18, the Department requests for the Hearings Division to be moved from the Enforcement Business Group section of the Long Bill to the Executive Director’s Office. This budget neutral alignment of the Long Bill provides a clearer and more visible representation of the Department’s organizational structure.
Governor’s Office of State Planning and Budgeting FY 2016-17
John W. Hickenlooper Governor
Department of Transportation
Henry Sobanet Director, OSPB
November 2, 2015
FY 2016-17 Budget Request Fact Sheet
Department of Transportation
TOTAL FUNDS General Fund Cash Funds Reappropriated Funds Federal Funds FTE
FY 2015-16 Appropriation $1,436,913,372 $0 $844,073,959 $19,777,338 $573,062,075 3,326.8
FY 2016-17 Request $1,404,629,608 $0 $844,852,270 $4,777,338 $555,000,000 3,326.8
FY 2016-17 Change ($32,283,764) $0 $778,311 ($15,000,000) ($18,062,075) 0.0
Percent Change (2.2%) 0.0% 0.1% (75.8%) (3.2%) 0.0%
Department Description The Colorado Department of Transportation (CDOT) is the cabinet department that plans for, operates, maintains, and constructs the state-owned transportation system, including state highways and bridges. The Department coordinates modes of transportation and integrates governmental functions in order to reduce the costs incurred by the state and the public in transportation matters. The state’s transportation system is managed by CDOT under the direction of the Colorado Transportation Commission, composed of eleven members who represent specific districts. Each commissioner, appointed by the Governor and confirmed by the Senate, serves a four-year term. The commission directs policy and adopts departmental budgets and programs.
Share of FY17 Statewide Operating Total Funds 5%
State Total
Department Total
Governor’s Office of State Planning and Budgeting FY 2016-17
Share of FY17 Statewide Operating General Fund 0%
State Total
Department Total
Major Factors Affecting the FY 2016-17 CDOT Budget •
The Department of Transportation is requesting an increase of $144.5 million total funds (11.3 percent) in its FY 2016-17 budget. The Department is not requesting any General Fund in this budget.
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Flood Recovery: Flooding of historic proportion in September 2013 severely damaged the transportation infrastructure in multiple regions of Colorado. More than 30 highways at one point were closed due to infrastructure damage, destruction, or water standing on the highways. The flooding was the largest natural disaster affecting Colorado infrastructure since the 1965 South Platte flood. CDOT has worked hard to restore access to all areas impacted by flooding through the installation of temporary infrastructure followed by construction of permanent replacement roadways. CDOT expects a reduction in federal disbursements for recovery from $174.5 million in FY16 to $127.4 million in FY17
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Portfolio, Cash, and Program Management: The Portfolio, Cash, and Program Management initiative provides the management infrastructure to implement the cash-based programming and budgeting that makes possible the accelerated funding for construction related to the five-year Responsible Acceleration of Maintenance and Partnerships program (see the following bullet point for additional information about RAMP). The initiative also provides management for scheduling and monitoring the one-time, 50 percent increase in the total capital construction program using the new cash-based programming and budgeting methodology.
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Federal Funding: The Moving Ahead for Progress in the 21st Century Act (MAP-21) was signed in 2012, guaranteeing federal disbursements from the Highway Trust Fund. While still in effect after multiple extensions, there is no guarantee that MAP-21 will be reauthorized for 2016. An interruption of federal funding will significantly impact CDOT's expected revenue for FY 2016-17. New legislation, if signed, could also impact CDOT's expected revenue. In the event of new legislation, CDOT will adjust its revenue and forecasting models to match any new federal disbursement formula. This may have an impact on CDOT's FY 2016-17 budget.
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Asset Management Focus: CDOT’s first Risk-Based Asset Management Plan was introduced in December 2013. The plan focuses on the efficient and effective preservation of the transportation system using a risk-based/lowest lifecycle cost approach to assets including bridges, pavement, maintenance assets, buildings, vehicle fleet, tunnels, culverts, rockfall-mitigation sites, and Intelligent Transportation Systems (ITS) equipment.
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General Fund Transfer: CDOT’s FY 2015-16 budget request no longer reflects a projected transfer of $102.6 million from the General Fund as required by Senate Bill 09-228. This projection is based on the most recent forecast from the Office of State Planning and Budgeting. As a result of the expected size of the TABOR refunds in FY 2016-17 and FY 2017-18, SB 09-228 transfers are projected to be eliminated.
Governor’s Office of State Planning and Budgeting FY 2016-17
Department of Agriculture
Priority: R-01 Pesticide Laboratory Augmentation FY 2016-17 Decision Item Request
Cost and FTE
This request seeks $90,865 and 1.0 FTE in FY 2016-17 and $86,162 and 1.0 FTE in FY 2017-18 and ongoing from the Marijuana Tax Cash Fund for a qualified analytical chemist in the Colorado Department of Agriculture (CDA) Biochemistry pesticide laboratory.
Current Program
The CDA Biochemistry Laboratory (BCL) is part of the pesticide program and provides the service of laboratory analysis for pesticide residues on all types of matrices, including marijuana. The program provides analysis to assist in determining if a misapplication or misuse has occurred. The BCL has 2.5 FTE for receiving, storing, preparing, and analyzing samples and for processing data, performing QA/QC checks, and reporting the results. Sample turnaround times (from receipt at the laboratory to delivery of results) can take several weeks to multiple months depending on how many compounds are detected and the levels present.
Problem or Opportunity
The number of complaints of pesticide misapplication has increased significantly since marijuana became a legal crop – 45 complaints in calendar year 2014 and 63 complaints calendar YTD 2015. As CDA conducts compliance assistance meetings and inspections in the marijuana facilities, the volume of samples will continue to increase. Currently, the lab has insufficient resources to provide a quick turnaround on samples so enforcement action can be taken if necessary. Additional staff is needed to process the volume of samples being generated by the marijuana industry.
Consequences of Problem
There is a significant lag time (several weeks to multiple months) in determining whether a misapplication occurred and delivering the data to take action on the issue if one has occurred. Samples are stored while awaiting analysis. Long turnaround times between receipt at the lab and the start of analysis may cause degradation of the samples. Shortening turnaround times significantly reduces or eliminates this variability.
Proposed Solution
One additional FTE will be hired to conduct analyses and process data. It is estimated that the target turnaround time of 14-30 days could be achieved with the additional 1.0 FTE. The request seeks $90,865 and 1.0 FTE in FY 2016-17, with an annualization to $86,162 and 1.0 FTE in FY 2017-18 ongoing.
Department of Agriculture
Priority: R-02 Hemp Regulatory and Seed Certification Program Support FY 2016-17 Decision Item Request
Cost and FTE
This request seeks $220,471 total funds in FY 2016-17, comprised of an increase of $349,810 and 1.0 FTE from the Marijuana Tax Cash Fund and a decrease of $129,339 spending authority from the Hemp Cash Fund for development of the hemp regulatory activities and the hemp seed certification activities. One additional FTE is requested. This should be one time funding with the expenses being transferred to the Hemp Cash Fund for FY 2017-18.
Current Program
The Colorado Department of Agriculture (CDA) is the regulatory agency for industrial hemp. The full regulatory program, along with a seed certification program, is in development. Access to industrial hemp seed has been a challenge for Colorado growers. The limited amount of available seed is not certified to produce plants with a THC concentration at or below 0.3 percent. Crop yields that exceed 0.3 percent THC are destroyed at a loss to the grower.
Problem or Opportunity
The hemp regulatory program is designed to be self-funded; however, the program expenses have been higher than originally expected and significantly out-paced revenues generated. During the 2015 legislative session, the Industrial Hemp Act was amended to allow CDA to change the fees to better address program expenses in future years. SB 15-196 also gave funding to this program in FY 2015-16 from the Marijuana Tax Cash Fund, and authority to spend in FY 2016-17 out of the Hemp Cash Fund.
Consequences of Problem
Without funding, CDA will take longer than anticipated to develop the correct regulatory framework for the program, providing less than adequate oversight of this developing industry and putting the state at risk of not complying with federal guidelines. Slower development of the seed certification program will require more testing of crop material, which is expensive to both the state and the registrant.
Proposed Solution
Using the Marijuana Tax Cash Fund to supplement the Hemp Cash Fund in FY 2017-18 will allow CDA time to develop the process to collect adequate fees for the program in future years. The additional 1.0 FTE will assist with the seed certification program.
Department of Corrections
Priority: R-01 Food Service Inflation FY 2016-17 Change Request
Cost and FTE •
The Department of Corrections (DOC) is requesting a $328,981 General Fund increase in FY 201617 in the Food Service subprogram for food inflation. The request reflects a 2.0 percent increase for the Food Service Operating appropriation as well as the Purchase of Services appropriation for meals prepared by the Colorado Mental Health Institute at Pueblo (CMHIP).
Current Program • •
The Food Service subprogram provides quality, nutritious meals to over 14,189 offenders, 3 meals per day, and 365 days per year. This equates to approximately 15,536,955 meals being prepared every year. The food service program at CMHIP prepares meals for offenders housed at the San Carlos Correctional Facility, LaVista Correctional Facility (LVCF), and the Youthful Offender System. The Department reimburses CMHIP for these costs under the Purchase of Services line in the Food Service subprogram.
Problem or Opportunity • • •
The United States Department of Agriculture (USDA) is projecting 2 to 3 percent food inflation in calendar year 2015. Current funding will not allow the Department to provide a nutritious and quality meal to offenders without a corresponding increase to offset rising food costs. The request will also increase the funding to CMHIP for meals provided at the Pueblo facilities to keep pace with the rate of inflation. Due to a population change at LVCF, the Department is requesting an additional amount to offset the increase of 16 female beds.
Consequences of Problem •
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Without additional operating funds, DOC and CMHIP will continue to absorb increasing food costs and restrict spending in other operating areas, such as deferring necessary critical equipment replacement and routine maintenance. For CMHIP, this may also affect other critical areas, such as patient transportation, durable medical goods, and work-therapy supplies. The continued deferral of equipment replacement beyond the range of acknowledged standards will expand obsolescence to where negative returns accumulate. The Department will experience higher maintenance on worn out machines, equipment break downs resulting in the purchase of higher cost convenience foods, and more staff time to deal with disruptive situations.
Proposed Solution • •
DOC is requesting an inflationary increase of $317,943 related to raw food prices split between DOC and CMHIP. An additional $11,038 is needed to offset the increase of female beds at LVCF. The funding request will allow DOC and CMHIP to keep pace with raw food increases so that both departments can provide quality meals to offenders.
Department of Corrections
Priority: R-02 Utilities Inflation FY 2016-17 Budget Request
Cost and FTE •
The Department of Corrections (DOC) is requesting a base funding increase of $315,236 General Fund (GF) and $17,994 Cash Funds (CF), totaling $333,230 for FY 2016-17 in the Utilities subprogram to address statewide rate increases for utilities. This represents a 1.6 percent increase from FY 2015-16.
Current Program •
The Utilities subprogram facilitates delivery of reliable, cost-effective utility services to all DOC buildings, equipment, and other systems to provide a secure and safe living and working environment. Electric, gas, propane, water, and wastewater (sewer) services are components of necessary utilities provided to staff and offenders housed in DOC facilities.
Problem or Opportunity •
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Utility rates for all of the four major utility commodities - electric, natural gas, water, and sewage continue to increase. Current funding is not sufficient to cover the rates charged by utility providers serving DOC. The Department continues to experience annual utility rate increases from 16 different providers statewide. The Department used current usage and estimated utility rate increases to determine the utility rate impact department wide, and projections of annual expenses in FY 2016-17.
Consequences of Problem • •
Based upon utility usage for the Department and the rate increases statewide, the Department estimates increased utility costs of $333,230 in FY 2016-17. The Utilities subprogram does not have the flexibility to absorb an increase of this magnitude and adequate funding will prevent overspending in the utilities line item appropriation.
Proposed Solution •
DOC is requesting a base building increase of $315,236 General Fund and $17,994 cash funds, totaling $333,230, in FY 2016-17 in the Utilities subprogram, as there is little indication that rates will decrease. This represents a 1.6 percent increase overall in electricity, natural gas, and water and sewer and associated rate charges with utilities.
Department of Corrections
Priority: R-03 Medical Caseload FY 2016-17 Change Request
Cost and FTE •
The Department requests a net General Fund increase of $378,881 in FY 2016-17 in the Medical Services Subprogram appropriations. This increase represents a 0.8 percent increase over the FY 201516 funding level. The request will address changes in Per Offender Per Month (POPM) rates in the Purchase of Medical Services from Other Facilities, Catastrophic Medical Expenses, and Purchase of Pharmaceuticals line items.
Current Program •
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The Department is statutorily mandated to provide medical care for offenders. The recipients of medical services are offenders housed in correctional facilities (both State and private), including those in the Youthful Offender System (YOS). Private prison and pre-release parole revocation populations are excluded to calculate the eligible recipients of pharmaceuticals. For FY 2016-17, the Department projects an eligible population of 18,372 offenders for purchased medical services and 14,313 for pharmaceuticals.
Problem or Opportunity •
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The Department is proposing a change in the way catastrophic medical expenses are defined. Rather than the current method, which defines catastrophic expenses on an aggregate per person basis, the Department proposes defining these expenses on a per claim basis to allow for more accurate forecasting during the budget setting process. Compared to the current funded levels, the proposed methodology would result in an increase in POPM of $5.52 in the Purchase of Medical Services rate and a decrease of $3.75 in the Catastrophic Medical Expenses for FY 2016-17. Due to a rise in prescription drug inflation, the Purchase of Pharmaceuticals rate is projected to increase from $104.17 POPM to $108.75 POPM. Statistics for FY 2013-14 indicate that 33 percent of offenders have moderate to severe medical needs.
Consequences of Problem •
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If the requested funding changes are not implemented, the Department would be underfunded in the Purchase of Medical Services and Purchase of Pharmaceuticals line items, and overfunded in the Catastrophic Medical Expenses line, resulting in appropriations that do not accurately reflect projected medical spending levels in the current fiscal year. The Department is mandated by Colorado State Statute to provide a full range of health care to offenders; not providing medical coverage puts the Department at risk for litigation.
Proposed Solution •
This request will adjust funding to match medical POPM needs and will allow the Department to provide statutorily-mandated health care to the offender population.
Department of Corrections
Priority: R-04 External Capacity Caseload FY 2016-17 Change Request
Cost and FTE •
The Department of Corrections (DOC) requests a $5,994,665 General Fund reduction in FY 201617 in order to match private prison and jail bed needs with the projected offender population. This request represents a 5.9 percent decrease in FY 2016-17 from the current FY 2015-16 funding level.
Current Program •
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DOC protects the citizens of Colorado with the effective management of criminal offenders in controlled environments that also provide meaningful work and self-improvement opportunities to assist offenders with community re-entry. Private prison providers are utilized for housing offenders in excess of DOC’s physical capacity. In addition, local jails hold offenders that are awaiting a prison bed. The Department’s budget supports an operational capacity of 14,351 state prison beds, 4,266 private prison beds, and 748 jail beds.
Problem or Opportunity • • •
The population projection from the August 2015 Colorado Division of Criminal Justice interim forecast indicates the prison population is increasing through 2021; however, the expected growth will happen at a slower pace than previously forecasted. The slower increase in population growth is resulting in a lesser need for private prison and jail beds than are currently funded. The relocation of 64 male offenders from the La Vista Correctional Facility to other appropriate male facilities is further reducing the need for jail beds to house overflow female offenders.
Consequences of Problem • •
The Department has more external capacity beds than needed for housing male and female offenders based on the most recent population forecast for FY 2016-17. The appropriation of more funding than is required will unnecessarily commit scarce General Fund resources that could be used for other purposes.
Proposed Solution •
This ongoing request will allow the Department to meet offender bed requirements in FY 2016-17 with the appropriate level of funding.
Department of Corrections
Priority: R-05 Provider Rate Decrease FY 2016-17 Change Request
Cost and FTE •
The Department of Corrections is requesting a General Fund reduction of $1,273,348 in FY 201617 to support a 1.0 percent provider rate decrease.
Current Program •
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The Department receives funding in the Payments to House State Prisoners subprogram to pay for the costs of housing offenders externally. The types of beds provided in this program include those found at county jails, private prison facilities, and community corrections facilities. Contract services in the Clinical subprograms (Medical, Mental Health, and Drug and Alcohol) provide various types of staff who deliver treatment to offenders, including physician and nursing care, mental health assessments and treatment, and substance abuse treatment. Parole and Community Supervision currently have contracts with service providers that provide various services including, but not limited to, mental health treatment and drug and alcohol services.
Problem or Opportunity • •
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Recent revenue forecasts indicate that the state will face a funding shortfall in FY 2016-17. Since FY 2013-14, providers have received cumulative funding increases from the state totaling 6.2 percent. The proposed slight reduction in provider rates across multiple state agencies will help close the projected budget deficit in FY 2016-17.
Consequences of Problem •
Should this request not be approved, the state will have to consider other potentially more drastic measures to close the projected funding gap for FY 2016-17.
Proposed Solution •
Decrease various appropriations that support external providers by $1,273,348 to support a 1.0 percent decrease in per diem rates for external capacity facilities as well as contracts that support clinical providers and parole community service programs.
Priority: R-1 Increase State Spending for Total Program FY 2016-17 Change Request
Cost and FTE •
The Department requests an increase of $182.6 million total funds in FY 2016-17 for adjustments to the state share portion of the K-12 school finance formula and the Hold Harmless Full-Day Kindergarten Program. The Department’s request represents a 4.5 percent increase to the state share amount for K-12 funding from revised FY 2015-16 estimates.
Current Program •
Colorado’s 178 school districts are funded for 855,391 pupils statewide. Most of the revenues used to support public schools in Colorado are provided by the Public School Finance Act. Based on the formulas and requirements contained in this Act, the Department estimates the state share for funding public schools will increase by $182.6 million in FY 2016-17.
Problem or Opportunity •
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In FY 2016-17, the Department projects that total student enrollment will increase by 1.2 percent (10,063 pupils). The Department also projects at-risk students will increase by 1.4 percent (4,433 pupils). The Department requests a 19 percent increase to the Accelerating Students through Concurrent Enrollment (ASCENT) enrollment slots (an increase of 105 students). The FY 2016-17 inflationary factor is 1.8 percent based on the Office of State Planning and Budgeting (OSPB’s) September 2015 Economic Forecast. Based on the formulas and requirements contained in the School Finance Act and State Constitution, the growth in pupil enrollment and inflation and the desire to provide additional funding results in an increase to the state share of funding for public schools of $182.6 million in FY 2016-17 over revised FY 2015-16 estimates.
Consequences of Problem •
In order to finance the $182.6 million increase for public schools, the Department requests an increase of $223.8 million General Fund, $7.8 million from the State Public School Fund and a decrease of $49.0 million from the State Education Fund.
Proposed Solution •
The request provides an additional $182.6 million for public schools in state funds. The request also includes an increase to the negative factor of $50 million for a total negative factor in 2016-17 of $905 million. The Department’s request also preserves a $102.8 million fund balance in the State Education Fund.
Priority: R-2 Constitutionally Required Increase for Categorical Programs in FY 2016-17
Cost and FTE •
The Department requests an inflationary increase of $5.1 million from the State Education Fund in FY 2016-17 and beyond for education programs commonly referred to as “categorical programs”.
Current Program •
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In addition to funding provided to public schools from the School Finance Act formula, Colorado school districts may also receive funding to pay for specific categorical programs designed to serve particular groups of students or particular student needs. Total funding appropriated for these programs in FY 2015-16 is $453.1 million. Of this amount, $141.8 million is General Fund, $144.8 million is from the State Education Fund, $104,000 are funds transferred from other state agencies, and $166.5 million is from federal funds. The programs that receive this funding include special education programs for children with disabilities, English language proficiency education, public school transportation, career and technical education programs, special education for gifted and talented children, expelled and atrisk student grants, small attendance centers, and comprehensive health education.
Problem or Opportunity •
Section 17 of Article IX of the State Constitution requires that the General Assembly provide inflationary increases for categorical programs each year. The Office of State Planning and Budgeting’s September 2015 Economic Forecast indicates a 1.8 percent inflationary rate adjustment for FY 2016-17.
Consequences of Problem •
A 1.8 percent inflationary rate results in a $5.1 million increase in the state funding for categorical programs. The State Education Fund has sufficient revenues to pay for this cost increase.
Proposed Solution •
The Department recommends the $5.1 million funding increase be allocated to the categorical programs with the greatest needs. Specifically the Department requests an increase of $3.2 million for special education for children with disabilities, $408,000 for English language proficiency programs, $993,700 for public school transportation, $377,800 for career and technical education and $126,600 for special education for gifted and talented students.
Priority: R-3 CPP Tax Check Off – Preschool In-service FY 2016-17 Change Request
Cost and FTE •
The Department requests spending authority of $72,025 from the Public Education Fund created by Senate Bill 11-109.
Current Program • • •
The Colorado Preschool Program (CPP) serves children who are at risk and who might otherwise lag behind peers, when they enter kindergarten. The CPP is currently authorized for 28,360 half-day preschool slots. Recent legislative expansions to the program through the Early Childhood At-Risk Enhancement slots (ECARE) have funded 8,200 additional slots for school districts to serve eligible children through half-day or full-day preschool, or full-day kindergarten.
Problem or Opportunity •
The funding made available from the tax check off provides an opportunity to provide training and materials to CPP providers throughout the state around literacy and mathematics.
Consequences of Problem •
Although outcomes for CPP graduates place them well above their similar peers who did not participate in CPP, longitudinal data indicates that outcomes for literacy and mathematics can be improved.
Proposed Solution •
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The in-services and training materials seek to improve outcomes in early literacy and mathematics by providing instruction regarding best practices in early literacy and early mathematics instruction to CPP providers throughout Colorado. The primary goal is to provide a series of regional workshops focused on early literacy, mathematics, and supporting strategies. And supply materials such as follow up tool kits, technical assistance, and replication of all materials for district preschool administrators.
Priority: R-4 CSDB Teacher Salary Increases FY 2016-17 Change Request
Cost and FTE •
The Colorado School for the Deaf and the Blind (CSDB) requests an increase of $229,685 General Fund in FY 2016-17 for salary increases for the teachers employed at the school.
Current Program •
CSDB teachers are statutorily required to be paid the equivalent of employees in El Paso District 11 based upon the previous school year’s teacher salary schedule and the established CSDB procedures adopted to implement the salary schedule.
Problem or Opportunity •
CSDB teachers, who follow the District 11 scale, will not receive any State of Colorado across-theboard or merit salary increases, as they are compensated in accordance with the provisions of the salary schedule adopted by the Colorado Springs District 11 Board of Education as of January 1 of the previous fiscal year. The Colorado Springs District 11 Board of Education and the Colorado Springs Education Association agreed upon a four percent (4%) one-time, non-recurring across the board compensation to be paid in school year 2015-2016 and revised the school year 2015-2016 teacher salary schedule. Under the revised teacher salary schedule, first year teacher pay increased to $34,750 and all teachers are placed on the new salary schedule.
Consequences of Problem • •
If not funded, CSDB will still be required to compensate the teachers based upon statue but will be forced to reduce services in other areas to fund the increases. According to C.R.S (2009) Section 22-80-106.5, CSDB is required to compensate teachers based upon the El Paso District 11 salary schedule and the established CSDB procedures adopted to implement the salary schedule.
Proposed Solution •
CSDB proposes funding the four-percent (4%) one-time, non-recurring across the board compensation and placement of teachers based upon the El Paso District 11 pay schedule.
Governor’s Office
Priority: R-01 Mansion Activity Fund FY 2016-17 Change Request
Cost and FTE
The Governor’s Office is requesting an additional $20,000 in cash fund spending authority at the Governor’s Mansion for FY 2016-17 and ongoing.
Current Program
The Residence is a multi-use facility that can serve as a home, event facility, cultural and civic amenity, and tourist destination. It is designed to meet the needs of government agencies, Colorado citizens, and visitors to the state. The budget is derived from fees charged to clients hosting events. The revenue is intended to cover the event materials and staffing costs, as well as office expenses, maintenance and repair costs, and the purchasing of needed equipment. The Residence welcomes approximately 12,500 attendees to an average of 140 yearly events which are hosted primarily by government agencies and non-profit organizations. The Residence’s tour program welcomes approximately 10,000 visitors annually.
Problem or Opportunity
Currently, the revenue and expenditures associated with events held at the Residence are greater than the appropriated spending authority. In FY 2014-15, revenue generated by the Residence totaled $219,736 but the appropriated amount of spending authority is $200,000. The revenue generated above the spending authority reverts to the General Fund at the end of the fiscal year and additional expenses are absorbed through the Administration of Governor’s Office and Residence line item. This reduces funding available for other administrative needs.
Consequences of Problem
Without the spending authority increase, the Governor’s Office will need to defer repairs and purchases and likely need to start turning away events. Turning away events will greatly jeopardize carefully cultivated relationships with both the public and government agencies.
Proposed Solution
The increase will allow the spending authority to match the expenditures and revenue generated through the use of the Residence. The increase to the spending authority will allow the Governor’s Office to strategically plan and prioritize for future needed purchases and repairs.
Office of Economic Development and International Trade
Priority: R-02 COFTM Incentive Rebate Program FY 2016-17 Change Request
Cost and FTE
This request is for $3.0 million General Fund in FY 2016-17 and ongoing for the Colorado Office of Film, Television & Media (COFTM) to enable COFTM to continue the 20 percent rebate and loan guarantee programs for eligible film, television, and other creative productions.
Current Program
The COFTM incentive rebate program includes a 20 percent rebate for production-related expenses incurred in Colorado, subject to Economic Development Commission approval. COFTM also provides services such as location and permitting assistance, public relations, and general support. Service recipients are production companies and crew, but this program also impacts the broader community. Productions support direct and indirect jobs and boost economic and tourist activity.
Problem or Opportunity
Since the film incentive rebate of 20 percent began in 2012, jobs in the entertainment industry have increased significantly, representing 4,313 employees as of 2015 – an increase of 3.4 percent over the last three years. There are an additional 1,294 self-employed professionals and 474 production businesses as of 2014, a 3.3 percent increase from 2011. To maintain the program and continue to see growth in the entertainment jobs sector, COFTM needs more funding. COFTM received one-time funding of $3.0 million in FY 2015-16. Providing continued funding for COFTM incentives and loan guarantees will continue to build momentum created in previous fiscal years by attracting major productions, thereby enhancing Colorado’s image and business development. Since FY 2012-13, COFTM has incentivized 47 projects, and incentive and filming inquiries have increased dramatically because of available incentive funds.
Consequences of Problem
Without adequate funding, Colorado will not attract production companies and job opportunities will not be created. COFTM has denied the rebate to over 20 prominent production projects due to limited funding and therefore, productions went to other states that offered more incentive funding.
Proposed Solution
The proposed solution is to continue to fund COFTM for FY 2016-17 and ongoing with $3.0 million General Fund to continue incentivizing production activities in Colorado. Funding will allow for program growth and generate at least $15.0 million in direct production spending, and over $25.0 million in economic activity.
Office of Information Technology
Priority: R-02 CBMS/PEAK Annual Base Adjustment Request FY 2016-17 Change Request
Cost and FTE The Office of Information Technology, in conjunction with the Departments of Health Care Policy and Financing and Human Services, requests an incremental increase of $22,428,801 reappropriated funds ($14,977,106 General Fund) in FY 2016-17, annualized to $26,438,619 reappropriated funds ($17,880,744 General Fund) in FY 2017-18 and beyond for the Colorado Benefits Management System (CBMS), and the Program Eligibility and Application Kit (PEAK). This request provides funding for an on-going request for vendor pool hours by stakeholder, and other base adjustments specific to CBMS, PEAK, and other related applications.
Current Program • • •
Vendor pool hours are traditionally not included in the annual base appropriation, which makes it difficult to satisfy program, state, and federal needs in a timely fashion in many cases because of the existing budget structure. The current budget for CBMS (continuation base budget plus FY 2015-16 vendor pool hours appropriated) is $47.5 million total funds and supports approximately 121,000 vendor pool hours for development. If FY 2015-16 vendor pool hours are included in the “base budget”, the FY 2016-17 request is an increase of $7,023,856 total funds ($2.2 million General Fund) and the FY 2017-18 request is an increase of $8,033,647 total funds ($2.6 million General Fund).
Problem or Opportunity •
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The continuation base budget for CBMS is insufficient to support ongoing sustainability of CBMS and its related applications especially once the vendor contract for system maintenance and operations is re-solicited (the new contract will be effective July 1, 2017). Annual supplemental requests for vendor pool hours for application development have been approved by the General Assembly historically, but the same transparency can be achieved with an annual base appropriation for this function, which also will more accurately represent the total annual costs of CBMS and its related systems and applications. This request captures annual base increases for FY 2016-17 & FY 2017-18 that are intended to provide a sustainable operational framework to support CBMS, PEAK and its related applications in future fiscal years, including costs expected during vendor transition.
Consequences of Problem •
CBMS, PEAK, EDMS and other related systems and applications have been developed over the past several years without a base budget increase. This request provides the budgetary adjustments necessary to continue support of these systems and applications in order to mitigate significant risk to security and quality.
Proposed Solution • •
The requested base increase includes adjustments to operating and contract costs and a request for annual appropriation of vendor pool hours by stakeholder to allow more flexibility to support state, federal and program requirements. Consumer operational support resources identified are in part contingent upon the level of annual development hours approved via this request, and additional resources for an integrated support model to coordinate with existing call center resources is included.
Priority: R-4 MMA State Contribution Payment FY 2016-17 Change Request
Cost and FTE
The Department requests a reduction of $1,318,801 General Fund for FY 2015-16; an increase of $16,865,498 General Fund for FY 2016-17; and an increase of $29,880,484 General Fund for FY 2017-18 to the Medicare Modernization Act State Contribution Payment line item. This request does not require any additional FTE.
Current Program The Department serves clients who are eligible for both Medicaid and Medicare. Dual-eligible clients are provided prescription drug coverage through the federal Medicare program. The State is required to reimburse the federal government for the amount the federal Centers for Medicare and Medicaid Services (CMS) determines is the State’s obligation for such prescription drug coverage, which is also called the “clawback” payment. Problem or Opportunity The State’s obligation varies from year to year and is affected by changes in caseload and the per member per month (PMPM) rate, which is also determined by CMS. The Department must annually forecast both anticipated caseload and PMPM rate to ensure the State is adequately funded to meet its reimbursement obligation to the federal government. Consequences of Problem If this request is not approved and the State is unable to meet its reimbursement obligation to the federal government, the Department would be at risk of having the amount due for the clawback payment – plus interest – deducted from the federal funds received for the Medicaid program, generating overexpenditures on other line items. Proposed Solution The Department requests adjustment to the appropriation in the Medicare Modernization Act State Contribution Payment line item to meet the State’s obligation to the federal government for prescription drug coverage for dual-eligible clients while reducing the risk of reverting funds that could be used for other purposes.
Priority: R-5 Office of Community Living Cost and Caseload Adjustments FY 2016-17 Change Request
Cost and FTE
In FY 2015-16, the Department requests a reduction of $14,834,944 total funds, including a decrease of $7,288,014 General Fund. For FY 2016-17, the Department requests an increase $11,910,323 total funds, including an increase $6,969,260 General Fund. For FY 2017-18, the Department requests an increase of $25,586,833 total funds, including an increase $14,441,858 General Fund. These funds will be used to fund Home and Community Based Services (HCBS) waiver program costs.
Current Program Effective March 2014, the Department manages three Medicaid –HCBS waiver programs for people with developmental disabilities, Adult Comprehensive Services (DD), Supported Living Services (SLS) and Children’s Extensive Services (CES). These programs ensure delivery of services such as residential care, day habilitation services and behavioral services, as well as case management, and are delivered through a variety of approved providers. Problem or Opportunity Appropriations do not accurately reflect the estimated number of enrollments, full program equivalents (FPE), or cost per FPE, based upon current enrollment and spending trends as well as input from program information. This issue poses the problem of under-expenditure in the current year without action because the Department estimates that newly authorized enrollments will not be filled as quickly as originally forecasted. In the request and out years, based on current policies, higher than expected estimated per-capita waiver costs pose the problem of over-expenditure without action. Consequences of Problem If the appropriations are not adjusted, the Department would likely revert a significant amount of funding in the current year. Additionally, in the request and out years, over-expenditure is expected if additional funding is not appropriated through this request. Reverting funds in the current year and over-expending funds in the request and out years would compromise the Department’s ability to provide services the maximum number of people with intellectual and developmental disabilities. Proposed Solution The Department requests to adjust existing expenditure and enrollment appropriations and designated full program equivalents (FPE) within three Medicaid waiver programs for people with intellectual and developmental disabilities to maintain the current policy of having no waiting lists for the HCBS-SLS and HCBS-CES waivers and to accommodate emergency enrollments, foster care transitions, Colorado Choice Transitions (CCT), and youth transitions. The outcomes of this proposed solution would be a more accurate budget that would be measured by comparing estimated expenditure to actual expenditure once the data is available.
Priority: R-7 County Administration Financing FY 2016-17 Change Request
Cost and FTE
The Department requests $7,105,769 total funds, $0 General Fund, $0 cash funds and $7,105,769 federal funds to increase the federal funds appropriation for county administration to more accurately reflect the percentage of activities eligible for the enhanced match rate. The request also includes transferring existing funding between line items related to eligibility determination and to re-organize the Long Bill to more accurately reflect the Department's current strategy as the eligibility vendor has been re-procured and certain activities previously performed by the vendor have been transferred to counties.
Current Program The eligibility vendor and Colorado’s counties are reimbursed for Medicaid and Children’s Health Plan Plus (CHP+) eligibility determination based upon staffing and related costs necessary to provide service to Coloradans. Problem or Opportunity The current appropriations for eligibility determination do not include the appropriate amount of federal funds to reflect the current programs. As the Department's strategy for eligibility determination and ongoing case management has evolved, the General Assembly's organization of the Department's Long Bill and spending authority has not been completely updated. Consequences of Problem
If additional federal funding spending authority is not approved, the General Fund restriction due to the (M) headnote would limit the Department’s ability to fully reimburse counties for the state share of expenditures, requiring additional county funds be used to cover costs, which in turn limits the funding available for counties to reinvest in other programs.
Proposed Solution The Department requests to align the County Administration federal funds appropriation with the expected percentage of enhanced match eligible activities, 65%, in order to reimburse the counties as much of their cost to process applications and provide case maintenance as possible and to encourage counties to continue to meet timeliness and backlog requirements. The Department requests to move funding from the Centralized Eligibility Vendor line item to other contracts, as the re-procured contract has shifted activities and costs to other vendors and the counties. Adjustments to the Long Bill structure and spending authority are imperative to ensure transparency and allocate funding efficiently across contracts.
Priority: R-9 Old Age Pension State Medical Program Funding Adjustment FY 2016-17 Change Request
Cost and FTE FY 2016-17: the Department requests a reduction of $3,939,225 total funds, consisting entirely of cash funds from the Old Age Pension Health and Medical Care Fund; and FY 2017-18 and ongoing: the Department requests a reduction of $3,926,452 total funds from cash funds from the Old Age Pension Health and Medical Care Fund. The decrease in funding will allow the Department’s budget to more accurately reflect the forecasted expenditures in the Old Age Pension Health and Medical Care Program, otherwise known as the OAP State Only (OAP-SO) Medical Care Program. Current Program The OAP-SO program provides limited medical care for Coloradans who are recipients of benefits through Colorado’s Old Age Pension Cash Assistance Program, administered by the Department of Human Services. The OAP-SO program is 100% State-funded and is not a federal entitlement. Eligible recipients for the OAP-SO program benefits are over the age of sixty and are ineligible for Medicaid. The OAP-SO program is currently funded through the Old Age Pension Health and Medical Care Fund established in Article XXIV of the Colorado Constitution, Section 7(C), and section 25.5-2-101 C.R.S. Problem or Opportunity Caseload and expenditures for OAP-SO Program have decreased significantly primarily resulting from new provisions of SB 13-200 which expand Medicaid eligibility to clients previously eligible for OAP-SO, and as a result the appropriation is much larger than necessary to support the costs of the program. The caseload and costs have shifted to the Medical Services Premiums line where State obligation of costs is less due to the federal financial participation through Medicaid. Consequences of Problem Without a funding adjustment, the Department’s spending authority will exceed the program’s forecasted expenditures. Proposed Solution
The Department requests a reduction in funding to align the Department’s appropriation with the forecasted expenditures in the OAP-SO program.
Priority: R-11 Decreased Federal Medical Assistance Percentage FY 2016-17 Change Request
Cost and FTE
The Department requests an increase of $0 total funds, including an increase of $538,543 General Fund, $8,930 reappropriated funds and a decrease of $547,473 in federal funds for FY 2016-17.
Current Program Pursuant to Section 1905(b) of the Social Security Act, a state’s FMAP is a function of the state’s per capita personal income relative to national per capita personal incomes. FMAP is determined by the Secretary of Health and Human Services each year; historically, Colorado’s FMAP has been 50%, with the exception of years when the FMAP was temporarily increased to combat the effects of recession and, most recently, FY 2014-15 when the FMAP was increased because the State’s per capita personal income was below the national average. Problem or Opportunity
The Department anticipates a decrease of 0.30% points to its FMAP, resulting in an FMAP of 50.42% respectively effective October 2016 through September 2017. The decrease in FMAP is not accounted for in several line items in the November 1, 2015 request. These line items are from the (1) Executive Director’s Office, (5) Indigent Care Program, (6) Other Medical Services, and (7) Department of Human Services Medicaid-Funded Programs Long Bill groups.
Consequences of Problem
The previously assumed FMAP of 50.72% for FY 2016-17 understates General Fund and cash funds need, and, additional State funding is necessary to continue providing services for Medicaid clients.
Proposed Solution
The Department requests a decrease in the federal funds appropriation and an increase in General Fund and reappropriated funds for FY 2016-17 to account for the decreased FMAP.
Priority: R-12 Medicaid Provider Rate Reductions FY 2016-17 Change Request
Cost and FTE
The Department proposes to permanently reduce rates paid to most Medicaid physical health fee-for-service and managed care providers by 1% effective July 1, 2016, in order to meet State budget balancing requirements in FY 2016-17. The Department estimates that the proposed rate reductions will reduce expenditure by approximately $35,753,121 total funds, $12,886,073 General Fund, and $945,958 cash funds in FY 2016-17, with a reduction of $40,010,683 total funds, $14,515,473 General Fund, and $1,291,984 cash funds in FY 2017-18.
Current Program Colorado’s Medicaid program currently provides health care access to more than 1,161,206 individuals, encompassing Colorado’s most vulnerable populations. Medicaid includes physical and mental health fee-for-service and physical and mental health managed care. Problem or Opportunity
The Department requests to reduce Medicaid expenditure, based on the revenue projections and projected budget deficit for the State for FY 2016-17.
Consequences of Problem
The State is required to balance its budget each fiscal year. Provider rate reductions are necessary to satisfy this requirement.
Proposed Solution
This requested expenditure reduction would be accomplished through a 1% across the board rate reduction for most Medicaid physical health fee-for-service and managed care providers, effective July 1, 2016.
Priority: R-1I Supplemental Medicare Insurance Benefit Increase FY 2016-17 Change Request
Cost and FTE
The Department estimates that it will require $35,367,854 total funds, including $20,067,127 General fund in FY 2015-16 and $74,436,815 total funds, including $42,479,001 General fund in FY 2016-17 to account for the potential increase to the Medicare Part B premiums as well as an increase to Medicare deductibles by 52 percent. This funding is for FY 2015-16 and FY 2016-17 and does not require additional FTE.
Current Program The Department currently pays premiums for Medicare Part B and in some cases Part A for clients who are dually eligible for both Medicaid and Medicare. The Department also pays coinsurance for these clients, so any changes to the required deductibles for these clients are the responsibility of the Department. Problem or Opportunity
As proposed in the 2015 Annual Report of the Boards of Trustees of the Federal Hospital Insurance and Federal Supplementary Medical Insurance, Medicare Part B premiums may increase by about 52 percent, from $104.90 in calendar year 2015 to $159.30 in calendar year 2016. Long-term medical costs related to Medicare beneficiaries are expected to increase significantly; in order to ensure there is sufficient revenue to meet projected expenses in future years, the trustees are recommending an increase to premiums beginning January 1, 2016. The Department pays coinsurance and premiums for the dually eligible population and if the premiums rise, the Department will be responsible for covering the cost increases.
Consequences of Problem
A premium increase of this magnitude will require the Department to use General Fund to fund a significant portion of the increase. If the problem is not addressed, the Department risks a significant General Fund over expenditure.
Proposed Solution
The Department proposes to increase the appropriation for Medical Services Premiums by $35,367,854 total funds, $20,067,127 General Fund in FY 2015-16 and $74,436,815 total funds, $42,479,001 General Fund in FY 2016-17 in order to pay the State’s portion of Medicare premiums and deductibles should the current levels increase by what the trustees propose.
Priority: R-1 Base Reduction Request FY 2016-17 Change Request
Cost and FTE •
The Department of Higher Education is requesting a $20 million General Fund reduction to higher education in FY 2016-17. This request is made solely for state General Fund budget balancing purposes.
Current Program
• • • • •
Over 160,000 resident full-time students attend Colorado public institutions, with 45 percent of the students attending two-year and certificate granting institutions. Past studies have shown Colorado public higher education institutions to be among the most productive in the nation. Colorado’s public higher education systems’ efficiency was confirmed in a new 2015 study. From 2005-06 to FY 2013-14, tuition as a percent of median income increased by 78 percent. That is, Colorado median income grew by a cumulative 16 percent over this time while resident tuition grew by a cumulative 106 percent due to less state funding. SB14-001 capped Colorado resident tuition increases at no more than 6.0 percent for FY 2014-15 and FY 2015-16 and made significant General Fund investments in higher education to make this possible. In fact, tuition increases were considerably lower than the authorized cap in most cases. In 2014 the General Assembly passed HB14-1319 which allocates higher education funding based on performance outcomes. These outcomes include institutional productivity and degrees completed, student retention, STEM degrees, and low-income (Pell) students.
Problem or Opportunity
•
The General Fund budget for public higher education is reduced by $20 million in the FY 2016-17 request. The reduction is necessary in order to balance the Colorado state budget within the available revenue.
Consequences of the Base Reduction • •
• •
The HB14-1319 performance outcomes model was revised this year, pursuant to the JBC’s Request for Information (RFI) and its June 2015 direction to the Department of Higher Education. Necessarily, the FY 2016-17 request with the $20 million reduction is run through the statutory performance outcomes model. The reduction of $20 million General Fund in the Colorado public higher education system may result in higher tuition increases at many institutions. Using a fairly conservative growth measure of 1.8 percent inflation ($50.8 million) plus mandated PERA AED and SAED increases ($5.8 million), an additional $56.6 million is necessary for the Governing Boards just to “break even." (Note this calculation translates into around $72 million for all higher education areas.) In this context, a reduction of $20 million for higher education further compounds this fiscal pressure and translates into a total of $76 million that must be generated from students through tuition. This need would translate into potential average tuition increases of 8.7 percent (median of 9.2 percent). However, the impact and corresponding tuition increases would vary significantly by institution. Institutions already operating with comparatively few operating funds may have difficulty enhancing the quality of educational programs and offerings and strengthening the financial positions of the institutions. No reductions are taken in the financial aid line items.
Priority: R-2 Fort Lewis Native American Tuition Waiver FY 2016-17 Change Request
Cost and FTE •
The Department requests an increase of $1,112,096 General Fund to fund the Fort Lewis College Native American Tuition Waiver in FY 2016-17. This increase would bring the total appropriation for the waiver to $17,269,714 General Fund.
Current Program •
Colorado is required via Federal treaty and state law to provide full tuition assistance to any qualified Native American student who attends Fort Lewis College.
Problem or Opportunity •
The Federal treaty with Colorado applies to all Native American students throughout the United States. Therefore, the appropriation must cover both resident and non-resident tuition for participating students. Current funding would fall short of the program cost by $1,112,096 General Fund in FY 2016-17.
Consequences of Problem •
If the funding for the Fort Lewis Native American Tuition Waiver is not increased, Colorado will be out of compliance with Section 23-52-105 (1) (b), C.R.S.
Proposed Solution •
The Department requests that the Fort Lewis College Native American Tuition Waiver funding be increased to cover Native American student enrollment and tuition costs.
Priority: R-3 WICHE Dues Increase FY 2016-17 Request
Cost and FTE • The Department requests an increase of $8,000 reappropriated funds to pay for the increase in the Western Interstate Commission for Higher Education (WICHE) dues for FY 2016-17. Current Program • WICHE is a regional organization comprised of 15 western states which provides interstate student and research benefits. • Membership allows Colorado higher education institutions to participate in the Western Undergraduate Exchange program whereby students can pay 150 percent of resident tuition to attend the out-of-state institutions. Problem or Opportunity • WICHE has increased its participation dues, from $137,000 to $145,000, an increase of $8,000. Consequences of Problem • The Department does not have adequate spending authority in its line item to pay these dues. Proposed Solution • An increase of $8,000 reappropriated funds for the WICHE line item will allow the Department to pay the increased fees and maintain its membership.
Priority: HC-1 Continued Investment in Cumbres & Toltec Scenic Railroad Sustainability FY 2016-17 Request
Cost and FTE •
• •
The Department of Higher Education, History Colorado requests continuation funding for the Cumbres & Toltec Scenic Railroad from the FY 2015-16 appropriation level for FY 2016-17. This decision item for $1,421,000 ($1,092,500 General Fund) is associated with a companion base adjustment of -$1,421,000 total funds (-$1,092,500 General Fund) for a net combined impact of $0 change in total funds and General Fund in FY 2016-17 relative to FY 2015-16. The decision item (and base adjustment) is made in compliance with Footnote #19 to the FY 2013-14 Long Bill (SB13-230) which stated that funding is not “assumed” to continue after FY 2015-16. If funding can continue for five years at current levels, the Cumbres & Toltec Scenic Railroad could move toward being self-sustaining and thereafter funding could be dramatically reduced.
Current Program • The Cumbres & Toltec Scenic Railroad is a major economic engine for southern Colorado and northern New Mexico. It provides 76-80 direct jobs seasonally and 26-30 full-time jobs, and has a reported $15 million impact on the local economy. Cumbres & Toltec Scenic Railroad has revamped its management, and has increased ridership and ticket revenue significantly. The railroad has produced an $182,000 operating profit for the first time in the 44 years of State ownership. A five year strategic plan has been created and implemented. The Cumbres & Toltec seeks the means to become significantly more self-sustaining. Problem or Opportunity • In FY 2012-13, Cumbres & Toltec Scenic Railroad had approximately 40 years of deferred maintenance. Cumbres & Toltec scenic railroad received funding that allowed three years of funding “catch up” in its capital needs. The railroad now seeks a final phase of funding which will allow it to fulfill its strategic plan goal of greater sustainability. Consequences of Problem • The Cumbres & Toltec Scenic Railroad seeks to meet its business objective of building a sustainable operation and reducing its reliance on the state. If the Cumbres & Toltec Scenic Railroad does not have the continuing capital funding it will not be able to turn a profit and move toward becoming self-sustaining. Proposed Solution • Continuing the FY 2015-16 funding level into FY 2016-17 will give the Cumbres & Toltec Scenic Railroad a reliable funding plan to address capital needs for the next five years and ensure its efforts toward long-term funding sustainability. The emphasis of the capital investment will be in the areas of track and roadway structures, locomotives, passenger cars and facilities for five years. • After the railroad is brought to a condition enabling a move to a maintenance mode, the annual cost of capital maintenance will be significantly lower. Ultimately the goal is to have the cost of annual capital maintenance supported by operating revenues.
Priority: R-01 County Child Welfare Staff – Phase 2 FY 2016-17 Change Request
Cost and FTE •
The Department of Human Services requests $6,753,852 total funds ($5,978,651 General Fund, $614,959 cash funds, and $160,242 federal funds) and 2.7 FTE for FY 2016-17 to increase county staffing in response to a workload study performed by the Colorado Office of the State Auditor. This is a 100% increase in funding for additional county staff and oversight. This funding annualizes to $6,760,069 total funds ($5,983,811 General Fund, $614,959 cash funds, and $161,299 federal funds) and 3.0 FTE in FY 2017-18.
Current Program •
The Department’s Division of Child Welfare provides services to protect children from harm and assists families in caring for and protecting their children. The Division’s programs comprise Colorado’s effort to meet the needs of children who must be placed or are at risk of placement outside of homes for reasons of protection or community safety.
Problem or Opportunity •
• • •
The OSA workload study conducted in 2014 determined that counties need additional staff to meet program goals and achieve outcomes. The Department is attempting to attract more qualified child welfare professionals in the field to minimize workload and improve practices. While 100 county positions were funded in FY 2015-16, the current staffing level does not meet the Office of the State Auditor recommended staffing level. This request is for Phase Two of a multi-phased approach to getting counties staffed appropriately. Increased staffing allows county workers more time to work with children, youth and families to provide quality services.
Consequences of Problem •
High staff turnover, or lack of sufficient staff, would impact the ability to deliver quality services, or could lead to a degradation of services affecting safety measures, continuity, and quality.
Proposed Solution •
The Department requests $6,753,852 total funds to support counties in hiring additional staff to better manage a more appropriate number of cases and to provide educational stipends to expand the reach of recruitment of qualified child welfare candidates.
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Priority: R-02 DYC Security Staffing in Facilities – Phase 2 FY 2016-17 Change Request
Cost and FTE
•
The Department requests $4,687,425 General Fund and 78.8 FTE to appropriately fund staffing for state secure facilities and to contract for a special education needs assessment in FY 2016-17. The request annualizes to $7,268,262 General Fund and 125.0 FTE in FY 2017-18.
Current Program •
• • •
The Division of Youth Corrections (DYC) provides a continuum of residential services that encompass juvenile detention, commitment and parole, and operates 10 State-owned secure facilities which include diagnostic, education, and program services for juveniles. The Division of Youth Corrections currently has 503 direct care staff and serves an average daily population of 1,025 youth in commitment and detention. The recent infusion of staff has yielded lower fights and assaults but a further decrease is needed in these behaviors to yield safe and secure environments. The special education programming in DYC provides direct and consultative services to youth in its facilities with individualized education plans (IEPs) in the six state commitment facilities.
Problem or Opportunity • •
•
The Division has not historically used direct-care staffing levels based on staff to youth ratios. The Division continues to serve more complex youth which tend to elevate the number of fights and assaults experienced in facilities. The last six months of calendar year 2014 averaged 104.1 assaults/fights per month compared to the first six months of calendar year 2015 which has averaged 86.6 assaults per month. While this represents a 16.8% decrease, the level of assaults/fights is still considerably above the historical average. The current ratio of youth to special education teachers in DYC is 29:1. DYC is not able to adequately maintain federally required processes with such high ratios of youth to teachers.
Consequences of Problem •
•
Failure to adequately staff secure facilities may ultimately lead to a degradation of services that could manifest in an increased number of violent and self-harming acts, youth and staff injuries, and an overall unsafe environment. Recent staff increases correlate to a decreased rate of fights and assaults which were previously increasing. The Department expects this to continue, but only to a point without additional staffing. Colorado will not be in adherence to the federal Prison Rape Elimination Act standards, which in part outlines appropriate staff to youth ratios that Colorado does not currently meet.
Proposed Solution •
The Department requests additional funding to support safe environments in State-operated secure facilities and represents Phase 2 of the original funding request which was requested for and funded in FY 2015-16.
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Priority: R-03 Court Ordered Evaluation Caseload and Jail-based Beds FY 2016-17 Change Request
Cost and FTE •
The Department requests $4,111,685 General Fund and 7.5 FTE in FY 2016-17 and $4,117,235 General Fund / 7.6 FTE in FY 2017-18 and ongoing to hire additional psychologists and administrative staff and to create bed space to manage the projected increase in court ordered competency evaluations and restorations to competency.
Current Program • • •
Competency evaluations and restorations are ordered by the courts and conducted by Department psychologists at the Colorado Mental Health Institute at Pueblo (CMHIP) or in a jail-based setting. Inpatient competency services are provided by the Department as a core function of the Institute. In FY 2014-15, one full-time clinician on average preformed 133.5 evaluations and restorations. The Jail-based Restoration program provides restoration to competency services to pretrial detainees in a jail-based setting instead of in a State Mental Health Institute to help reduce the wait time for inpatient restoration and evaluation services.
Problem or Opportunity •
•
•
Competency evaluations increased 14.9% (from 1,466 to 1,684) and restoration orders increased 46.0% (from 389 to 568) in FY 2014-15 as compared to FY 2013-14. Further, competency evaluations are projected to increase by 5.7% and restorations by 4.8% in FY 2015-16. The Department is under a settlement agreement of an existing federal district court lawsuit. The settlement requires the Department to “admit pretrial detainees to the hospital for restorative treatment or competency evaluations no later than 28 days after the pretrial detainee is ready for admission, and shall maintain a monthly average of 24 days or less for admission.” The Department does not have sufficient psychologist staff or bed space capacity to meet the demand for the competency services.
Consequences of Problem • •
If the problem is not fixed, the Department is at risk of violating the terms of the lawsuit and could be at risk for further legal action regarding wait times for all admissions. Any other alternative to meeting the settlement agreement would require the Department to reduce service levels and the Institutes, potentially compromising staff and patient safety.
Proposed Solution •
The Department submitted and was granted an emergency supplemental funding request in September 2015 in order to increase the FTE that conduct the competency evaluations and to expand the jail-based program. Through this request, the Department is requesting to continue the funding.
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Priority: R-04 Annual Child Care Licensing Visits FY 2016-17 Change Request
Cost and FTE •
The Department is requesting $673,524 in federal Child Care Development Fund (CCDF) for 9.2 contract Licensing Specialists, and a 0.8 State FTE Licensing Supervisor in FY 2016-17; this annualizes to $735,527 and 10.0 Contract FTE and 1.0 State FTE Licensing Supervisor in FY 201718 beyond to increase the frequency of licensing inspections to meet new federal regulations.
Current Program •
• •
In FY 2014-15, the Department received funding to increase the frequency of licensing inspections to once every 18 months which is less than the recommended practice of one unannounced inspection annually. Currently the Office of Early Childhood’s Division of Early Care and Learning employs 15 State Licensing Specialists and 41 contract Licensing Specialists. Licensing Specialists inspect a wide variety of health, safety, technical coaching, and other programmatic requirements to ensure quality in licensed child care facilities.
Problem or Opportunity •
•
The 2014 reauthorization of the federal Child Care Development and Block Grant Act Section 658E requires “not less than annually, an inspection (which shall be unannounced) of each such child care provider and facility in the State for compliance with all child care licensing standards, which shall include an inspection for compliance with health, safety, and fire standards as a condition of receiving funds” effective November 2016. Annual, unannounced visits are more likely to detect serious violations and hazards to children.
Consequences of Problem • •
If the Department does not meet the new federal requirement for annual inspections, it risks losing its entire CCDF allocation of approximately $80 million annually. Without additional staff to conduct annual visits, the Department will have difficulty detecting safety issues at various child care facilities.
Proposed Solution •
•
The Department is requesting funding for 9.2 contract Licensing Specialists, and a 0.8 State FTE Licensing Supervisor in FY 2016-17 to improve the caseload ratio to 1:86, allowing for one unannounced inspection annually. Improved caseload ratios will ensure compliance with the federal annual inspection requirement and will also enhance safety and quality in licensed child care facilities.
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Priority: R-05 Early Intervention Caseload Growth FY 2016-17 Change Request
Cost and FTE •
•
The Department is requesting an increase of $3,803,626 total funds including $2,207,911 General Fund, $961,045 cash funds, and $634,670 reappropriated funds for early intervention (EI) direct services and service coordination in FY 2016-17 and $7,102,305 total funds including $4,187,217 General Fund, $1,884,814 cash funds, and $1,030,274 reappropriated funds in FY 2017-18. The funding is needed to serve an additional 467 eligible infants and toddlers in the EI program, or 6.0% caseload growth.
Current Program • •
•
The Department is designated as the lead agency in Colorado under Part C of the federal Individuals with Disabilities Education Act (IDEA). The Early Intervention (EI) program provides developmental services to over 13,000 infants and toddlers, birth through age two, who have developmental delays and disabilities in order to enhance development in several areas. Federal regulations require the State to adopt a policy to make appropriate EI services available to all eligible infants and toddlers and their families.
Problem or Opportunity •
•
The projected number of children needing EI services exceeds the estimated number used during the FY 2014-15 supplemental request and the FY 2015-16 decision item. These requests assumed a 5.3% caseload growth, while more recent data suggests a caseload growth of 6.0%. Federal regulations under Part C of IDEA do not allow the State EI program to have a wait list. Without sufficient funding, the EI services needed to support the development of infants and toddlers cannot be provided.
Consequences of Problem •
•
If the EI program is not fully funded and services are not available to eligible children and families as required under 34 CFR, Section 303.101(a)(1), the State will not meet the Part C requirement to provide services in a timely manner and will be at risk of forfeiting eligibility for the federal grant funds, a loss of $7 million. EI programs at the local level will have high caseloads without adequate funding, which result in poorer quality of support for children and families.
Proposed Solution •
The Department requests an increase of $3,803,626 total funds including $2,207,911 General Fund, $961,045 cash funds, and $634,670 reappropriated funds for the purpose of funding the additional caseload growth beyond original projections. Funding will support the provision of direct services and service coordination to 467 infants and toddlers from birth through the age of two years who have developmental delays or disabilities, and their families. Page R-05-3
Priority: R-06 Children’s Savings Accounts Initial Deposit FY 2015-16 Suppl Request
Cost and FTE •
The Department of Human Services is requests a reduction of $100,000 total funds/General Fund from the Child Support Enforcement, Automated Child Support Enforcement system in FY 201617and FY 2017-18, and a commensurate increase in the Colorado Children’s Savings Accounts (new line item) for the purpose of providing initial deposits to college savings accounts for children.
Current Program •
The Department is proposing to create a Children’s Savings Account (CSA) Pilot Program for lowincome, preschool-age children, and their families served in Head Start settings across the State for the purpose of increasing low-income children’s college aspirations and enrollment, while simultaneously building economic opportunities for low-income families and creating a more educated, competitive workforce for the State.
Problem or Opportunity •
•
Less than 10 percent of students from low-income families graduate from college by their mid-20’s due to increasing education costs, gaps in financial aid, and a lack of user-friendly saving options and incentives for low income families. These factors often result in a belief that higher education is unattainable.. In Colorado, 37.8 percent of residents 25 and older have a bachelor's degree or higher; however, only 16.8 percent of Coloradans in poverty have a bachelor's degree.
Consequences of Problem • • • •
45 percent of students from low-income families have lower college expectations. There are few user-friendly savings options for low-income families to save for college, as the current range of college savings incentives and products don’t work for low-income families. Low-income households face a particular burden paying for college as dependent students from families with incomes below $40,000 experience unmet need between $5,000 and $7,000 annually. Students from low- to-middle income families will continue to rely more heavily on borrowing as 7 out of 10 who earned a degree from a 4-year public institution graduated with loans compared with 4 out of 10 from households with incomes above $120,000.
Proposed Solution
• The Department of Human Services is requesting $100,000 total funds/General Fund in FY 2016-17 and FY 2017-18 for the purpose of providing initial $50 deposits to college savings accounts for up to 2,000 children per year in the Colorado CSA Pilot Program. This pilot program is being designed as a public/private partnership such that additional funds for program administration and implementation (i.e., matched funds, incentives) are being privately raised by the Department.
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Priority: R-07 Continuation of Child Care Quality Initiatives FY 2016-17 Change Request
Cost and FTE •
•
The Department of Human Services (Department) is requesting $1,552,936 in federal Child Care Development Fund spending authority and 7.3 FTE in FY 2016-17 to continue child care quality initiatives, including the Colorado Shines Quality Rating and Improvement System (QRIS). This request annualizes to $3,066,241 and 14.6 FTE in FY 2017-18 and beyond. The FTE requested are not new staff. Instead, they are a continuation of federal Race to the Top Early Learning Challenge (RTT-ELC) grant-funded positions at the Department and the Department of Education.
Current Program • •
The Department launched the Colorado Shines QRIS in November 2014. This program ensures that quality program standards are applied to approximately 4,600 licensed early learning programs in the State. The Professional Development and Information System (PDIS) is the statewide web-based system supporting professional development for Colorado’s early childhood workforce. The PDIS includes required coursework for early care and learning programs wanting to achieve a Colorado Shines QRIS level 2 or higher quality rating.
Problem or Opportunity • •
The Department has laid a foundation for improving both equitable access and quality in early care and learning programs through RTT-ELC and existing child care quality initiatives. RTT-ELC funding will expire in December 2016. The requested funding supports the Colorado Shines framework, including coaching, rating administration, inter-rater reliability for assessor staff, ongoing training and professional development opportunities for early childhood teachers, and hosting, operating and maintenance costs for the technology systems (Colorado Shines Technology System and the PDIS).
Consequences of Problem •
Without Colorado Shines, the State would lack a measure of program quality, making it impossible to measure the impact of quality improvement efforts (on child care programs as reflected in the Department’s Wildly Important Goals & C-Stat Measure).
Proposed Solution • •
The Department is requesting $1,552,936 in federal funds spending authority to utilize the Child Care Development Fund to support the ongoing sustainability of the Colorado Shines QRIS and its associated technology systems to improve the quality of child care services. Colorado Shines incorporates the effective use of data to guide program improvement as outcomes are measured using the Colorado Shines technology system. This system is integrated with other state data systems to support the evaluation of program outcomes. The enhanced system will benchmark quality for consumers and broaden awareness of the components of quality.
Page R-07-3
Priority: R-08 Title IV-E Waiver Cash Funds FY 2016-17 Change Request
Cost and FTE •
The Department requests $6,000,000 cash funds in the Title IV-E Waiver cash fund beginning in FY 2016-17 through FY 2019-20 to increase the spending authority for a total of $12,000,000 over the course of the Waiver. There are no FTE associated with this request. This will increase the spending authority in the Title IV-E Waiver Demonstration Project line item by 100%.
Current Program • •
•
The Division of Child Welfare provides services to protect children from harm and assist families in caring for and protecting their children. The Title IV-E Waiver Demonstration Project Cash Fund was created in FY 2014-15, in order to deposit funds that resulted from the Department negotiating excess federal funding for implementation of the Title IV-E Waiver Demonstration Project and shift practice from costly congregate care to prevention services. The Department will use the additional $6,000,000 to increase prevention and intervention services, continue expansion of IV-E Waiver interventions of family engagement, permanency roundtables, trauma-informed assessment and treatment and kinship support, establish a standard Level of Care tool, and payout earned savings to counties for any reduction in Title IV-E costs which are derived from a reduction in out-of-home placements.
Problem or Opportunity •
•
Increasing the spending authority for services, such as expansion to trauma services through the Resiliency Center and a Level of Care tool to provide counties with guidance towards the appropriate level of services provision through the Title IV-E Waiver Demonstration Project will increase the funding available for the IV-E Waiver interventions. Families who have kin placed with them and adoptive families need additional support services in order to maintain a safe and stable environment for the children and youth in their care.
Consequences of Problem • •
Undrawn federal funds one year after the end of the Waiver in 2020 will revert back to the federal government causing Colorado to lose the federal funds negotiated in the Waiver. Without the use of these funds, counties may experience barriers to implementing effective interventions, preventive and supportive services to the most vulnerable population, children and youth.
Proposed Solution
• The Department requests $6,000,000 cash fund spending authority in FY 2016-17 to use the funds for prevention and intervention services and continued expansion of IV-E Waiver interventions. There will be no increase to the General Fund.
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Priority: R-09 Transfer of the Division of Vocational Rehabilitation - Indirect Costs FY 2016-17 Change Request
Cost and FTE •
The Department requests $1,094,283 General Fund in FY 2016-17 and beyond in order to subsidize the Department’s reduction of indirect cost recoveries as a result of the transfer of the Division of Vocational Rehabilitation (DVR) to the Department of Labor and Employment (CDLE).
Current Program • • • •
DVR exists to provide work-related assistance to individuals whose disabilities result in barriers to employment or independent living. DVR services are provided at 27 field and satellite offices located throughout the state and include overall appropriations of $55,039,884 total funds and 231.2 FTE. DVR plays a significant role in the Department’s federally approved Public Assistance Cost Allocation Plan, which allocates $2,092,543 or 4% of the Department’s total indirect costs to DVR. Senate Bill 15-239 transfers many of the Department’s DVR programs, including appropriations of $46,153,846 total funds and 229.7 FTE to CDLE no later than July 1, 2016.
Problem or Opportunity •
•
•
The total indirect costs for central support services and direct office overhead of the Department will remain the same after the transfer of DVR. These central service staff will continue to support the Department’s remaining programs. The Department’s remaining programs can absorb some of the indirect costs previously allocated to DVR, but will be unable to fully offset the decrease in General Fund and federal funds indirect revenue collected by DVR. The Department will not be able to fund all of its central support services that are typically covered through indirect revenue.
Consequences of Problem • •
Without additional General Fund, the Department will not be able to fund all of its current central support services that are typically covered through indirect revenue. As a result, it is possible that the Department will over-expend many of its programs’ personal services line items that have indirect overhead charges allocated to them.
Proposed Solution • •
The Department requests General Fund to help offset the reduction of indirect revenues that will no longer be collected due to the transfer of DVR. This will allow the Department to continue to fund all of its indirect costs, direct overhead costs, and centralized support services.
Page R-9-01
Priority: R-10 Tribal Placements Funding Waiver FY 2016-17 Change Request
Cost and FTE •
The Department requests to change the language in Long Bill letternote “e” in FY 2016-17 and ongoing in (5) Division of Child Welfare, Child Welfare Services which directs funding for Native American children to include Department-approved child welfare services rather than be limited to only tribal placements. The request does not include any change to the amount of funding identified in the letternote.
Current Program • • •
The Division of Child Welfare provides services to protect children from harm and assist families in caring for and protecting their children. The Department has agreements with both federally recognized Tribes in Colorado, the Southern Ute Indian and the Ute Mountain Ute Tribes, for the tribal placements of Native American children. Currently, the Department is only reimbursing the Ute Mountain Ute Tribe for more restrictive outof-home placement services since the Southern Ute Indian Tribe does not have Title IV-E eligible children.
Problem or Opportunity • •
• •
The agreements need to be updated to reflect current child welfare practice throughout the State. Reimbursing the Tribes under the current structure and agreements does not afford the Tribes to fully utilize the funding identified in the Long Bill for the tribal placement of, or more generally the provision of child welfare services to, Native American children. Native American children need access to the same service supports to which all other Colorado children are afforded. The language in the Long Bill needs to be changed to include “Department-approved child welfare services that promote the safety and well-being of Native American children and youth.”
Consequences of Problem •
Tribal children will not be able to access the necessary supports that help promote safety, permanency and well-being.
Proposed Solution • •
•
The Department requests this technical correction to the Long Bill to continue to provide funding to the Tribes for necessary services to tribal children. The Department proposes to collaborate with the Tribes to identify various eligible types of flexible spending options, including but not limited to, kinship placements, and various wrap-around service supports. The Department will conduct working sessions with the Tribes to produce individual agreements between the Department and the two Tribes.
Page R-10-3
Priority: R-11 Intensive Residential Treatment for Substance Use Disorders FY 2016-17 Change Request
Cost and FTE •
The Department is requesting $4,726,272 cash funds and 0.9 FTE from the Marijuana Tax Cash Fund in FY 2016-17 and $6,148,606 and 0.9 FTE in FY 2017-18 and beyond to increase availability of intensive residential treatment for substance use disorders to serve those with the most severe disorders that are not being addressed through the current treatment system.
Current Program • • •
The Department contracts with the statewide behavioral health provider system to deliver comprehensive, evidence-based substance use disorder treatment services. Services include detoxification, outpatient, intensive outpatient, and residential levels of care. Residential care is not covered by Medicaid and its availability is very limited.
Problem or Opportunity •
• •
Those individuals who cannot stop using substances without professional help and without leaving their homes and communities are not able to maintain abstinence from substance use or enter recovery. The publicly-funded substance use disorder treatment system lacks sufficient capacity for the intensive residential treatment needed by individuals with the most severe substance use problems. This effort is linked to the Department’s C-Stat measures related to increased access to treatment and engagement in services.
Consequences of Problem • •
People with severe substance use issues often do not have access to the appropriate type of care to enable them to enter recovery. Severe substance use issues go untreated and thereby continue to cause significant disruption for individuals, families, communities, and society.
Proposed Solution •
• •
The Department proposes to increase available intensive residential treatment services by five facilities statewide with 0.9 FTE and $4,726,272 cash funds from the Marijuana Tax Cash Fund in FY 2016-17. Two facilities will provide services to women who are pregnant and parenting, one facility will serve individuals aged 18-25, and two facilities will be non-specialty facilities. This request will create 80 more residential treatment beds, with the potential to assist up to 960 more Coloradans to enter recovery from substance use disorders. Page R-11-3
Priority: R-12 Sober Living Homes FY 2016-17 Change Request
Cost and FTE •
The Department requests $300,000 in FY 2016-17 and $195,125 in FY 2017-18 and ongoing in cash funds from the Marijuana Tax Cash Fund to create a statewide program to contract for the expansion of consumer-run sober living facilities.
Current Program • •
Often, individuals complete substance use disorder treatment but lack the opportunity for a drug free living environment to assist them in maintaining sobriety. Sober living programs are peer-run and self-sustaining, and also offer safe, alcohol and drug free homes and support systems for those who choose them.
Problem or Opportunity •
•
There is insufficient capacity in the current system to meet the demand for sober homes and support systems. People discharging from residential treatment programs, or leaving jail or prison are at great risk of a relapse in their addiction. The lack of aftercare recovery supports, such as those provided by sober living, has been a long standing problem. By far, the most requested service for those in early recovery is sober living. Data from a federal grant administered by the Department from 2010 – 2014 showed that 1,865 clients participated in sober living services. Funding for that program has expired and clients needing that service are no longer supported by the Department.
Consequences of Problem •
•
Without access to a supportive recovery environment, relapse rates will continue to be high. Studies indicate that between one half and two-thirds of clients who complete treatment relapse within one year (Bottlender & Soyka, 2005 and Miller, Walters & Bennett, 2001). This creates a significant burden on the State in costs across criminal justice and social service systems. The lack of sober living options for people in early recovery jeopardizes the Department’s goal of healthy living in the community for people with substance use disorders.
Proposed Solution • • • •
Contract funds will be utilized for contractor staff and operational costs. Once operational, the sober living homes will become self-sustaining. This will reduce housing barriers for many people in recovery from substance use disorders who are leaving treatment programs, incarceration, and community corrections facilities. The primary metric to be evaluated will be the successful opening of up to 15 new sober living facilities within the contract year and creating up to 60 new self-sustaining beds.
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Priority: R-13 Supported Employment for Individuals with Severe Substance Use Disorder
FY 2016-17 Change Request
Cost and FTE •
The Department requests $500,000 in FY 2016-17 and ongoing in cash funds from the Marijuana Tax Cash Fund to implement evidence-based supported employment programs to serve individuals with severe substance use disorders.
Current Program • • •
•
The Department has implemented the Individual Placement and Support (IPS) model of supported employment in 11 Community Mental Health Centers using existing resources and grant support. From April 2011 through June 2015, the program provided services to 576 clients, with rates of employment among clients rising from 19% to 35% after implementation. The IPS model of supported employment has been proven by over 22 randomized control trials to be one of the most effective employment programs in helping behavioral health clients find competitive employment. The Behavioral Health Needs Analysis commissioned by the Department recommended the continued implementation and expansion of the individual placement and support model of supported employment (IPS/SE) as an evidence-based practice.
Problem or Opportunity • •
Funding does not currently exist to implement IPS at provider agencies that specialize in serving individuals with chronic substance use disorders. Unemployed individuals in the substance use treatment program currently do not have IPS as a recovery-based service that is available in the continuum of care.
Consequences of Problem •
Individuals who are unemployed tend to use more services, take longer in their recovery, and have higher recidivism than those who are employed during treatment.
Proposed Solution • • • •
The Department proposes to implement the IPS model of supported employment in five provider agencies to serve individuals who are unemployed and have a severe substance use disorder. Each of the five sites would have two contract employment specialists to serve an estimated 30 clients per employment specialist per year, totaling an estimated 300 clients served per year. The program will provide needed training and technical assistance to allow provider agencies to implement the IPS model of supported employment with fidelity. The program will develop competitive and collaborative employment opportunities for clients and employers.
Page R-13-3
Priority: R-14 Behavioral Health Crisis Services Staffing FY 2016-17 Change Request
Cost and FTE •
•
The Department requests $0 total funds / 2.7 FTE in FY 2016-17 and $0 total funds / 3.0 FTE in FY 2017-18 and ongoing to have the appropriate staffing level to manage the Colorado Behavioral Health Crisis Response System. The FTE have an incremental cost of $219,209 in FY 2016-17 and $221,325 in FY 2017-18 and ongoing. There is currently $1,384,980 in unobligated funds in the Crisis Response System line item. The Department recommends re-purposing $219,209 of the unobligated funds in the Crisis Response System line item for the FTE.
Current Program •
•
The statewide Behavioral Health Crisis Services System provides an array of integrated services that are available twenty-four hours a day, seven days a week, to respond to individuals who are in a behavioral health emergency. The services are delivered through walk-in crisis stabilization units, mobile crisis units, and residential and respite services.
Problem or Opportunity •
SB 13-266 “Coordinated Behavioral Health Crisis Response” appropriated 1.0 FTE for the crisis system. The scale, complexity of the client mix, geography, quality assurance activities, fiscal and data oversight, contract monitoring, and program evaluation exceed the effort of existing staff.
Consequences of Problem • •
The Department does not have the ability to appropriately manage and monitor the contracted services purchased with the Behavioral Health Crisis Services System dollars. Currently, the Department lacks a consistent process or policies to carry out contract monitoring on a regular basis. This includes conducting regular site visits, implementing updates mandated by federal and state guidelines, and providing ongoing monitoring and oversight to contractors as well as providing proactive technical assistance, training, and compliance support.
Proposed Solution • •
The Department requests 2.7 FTE in FY 2016-17 to ensure that the crisis services are appropriately managed through quality assurance and consistent fiscal and contract oversight. The FTE will improve timely and effective program delivery through technical assistance for the providers on fiscal and data issues.
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Priority: R-15 Utilities Cost Increase FY 2016-17 Change Request
Cost and FTE •
The Department of Human Services requests $305,968 total funds, including $253,953 General Fund and $52,015 reappropriated funds to support the increased cost of utility commodities for all DHS owned and operated buildings with approximately 80% of the space dedicated to 24 X 7 operations. This request is a 3% increase to the Utilities appropriation.
Current Program • •
Electricity accounts for 36.1% of the utility cost, water 6.4%, sewer 4.3%, natural gas 18.5%, coal 5.3%, and energy performance contract/building automation/other 29.4%. Other utility-related expenses include: permits; certifications; water rights fees; annual fees for testing inspections of water, tap and sewer required by multiple agencies; legal issues; diesel fuel for generators; recycling fees; salt for water softeners; and other utility-related expenses.
Problem or Opportunity •
• •
The cost of the commodities has grown substantially since the last request in FY 2013-14: electricity 12.4%, water 7.3%, sewer 32.3%, coal has been nearly flat, and natural gas had a reduction of 25.8%. Current funding is not sufficient to cover the projected rates charged by utility providers. Building temperatures are highly regulated in most 24 x 7 facilities, thus minimizing the potential of lowering and/or raising them in an attempt to conserve and/or minimize energy usage. The building automation system does control temperatures and conserve energy within facilities where applicable.
Consequences of Problem •
Increase in the commodity costs are a direct cost to the Department. If not funded, the Department will have to absorb the cost of rising utilities within program operating budgets. This would reduce funding available for other operating functions such as routine maintenance.
Proposed Solution •
•
The Department requests $305,968 total funds for the purpose of supporting the increased cost of utility commodities for all DHS owned and operated buildings with approximately 80% of the space dedicated to 24 X 7 operations. By increasing the Utility Line appropriation to accommodate these increased energy commodities’ costs, the Department will continue to provide the (energy usage) funds necessary for direct care of the patients, clients, youth, and elders housed in the owned and operated buildings of the Department.
Page R-15-3
Priority: R-16 State Ombudsman Program Head Note Addition and Letternote Modification FY 2016-17 Budget Amendment
Cost and FTE •
•
The Department requests a modification to the federal funds letternote “a” and the addition of an (I) head note to the federal funds associated with the State Ombudsman Program line item in the DHS Long Bill in order to accurately reflect the way funding and expenditures occur. There is no budgetary impact or FTE associated with the request.
Current Program •
•
The Older Americans Act Ombudsman program provides services to elderly residents of licensed nursing facilities and assisted living residences involved in complaints and/or assistance to older adult residents. The federal funds letternote and lack of a head note in the Long Bill have not kept pace with the federal funding changes within the Program.
Problem or Opportunity • • •
The Long Bill does not accurately reflect how federal Older Americans Act dollars are spent in the State Ombudsman Program line item. Currently, the federal funds letternote “a” reflects the funding source as Title III of the Older Americans Act, which is no longer fully accurate. The federal funds in the line item are for informational purposes only, but there is no (I) head note to distinguish this.
Consequences of Problem •
Since the current federal funds letternote and lack of a head note do not accurately reflect the funding sources and expenditures, there is potential for misconceptions related to the expenditures of the funds.
Proposed Solution •
•
To accurately reflect expenditures in the State Ombudsman Program, the Department requests an adjustment to the federal funds letternote “a” to include Title VII funds of the Older Americans Act, in addition to Title III funds. The Department also proposes the addition of an (I) head note for the federal funds, similar to all the other line items in this section of the Long Bill with federal fund sources, to more accurately reflect how this appropriation is spent by indicating the “informational only” nature of these federal funds.
Page R-16-03
Priority: R-17 DYC Title IV-E Technical Correction FY 2016-17 Change Request
Cost and FTE • •
The Department requests a net zero technical correction to (11) Division of Youth Corrections, (C) Community Programs Long Bill funding in FY 2016-17 and ongoing. The technical correction consists of a $927,661 General Fund increase in Parole Program Services, and decreases of $527,661 General Fund in Purchase of Contract Placements and $400,000 General Fund in Personal Services in Community Programs.
Current Program •
•
The Division of Youth Corrections (DYC) operates ten state-owned secure facilities for detention and commitment which include diagnostic, education, and program services for juveniles. In addition, the State places youth at three state-owned, privately operated facilities. In FY 2015-16, the Title IV-E Technical Correction for DYC R-19 was approved by the JBC as submitted by the Department, which recognized the accurate line items for earning IV-E, however General Fund from Personal Services and Contract Placements was supposed to transfer to Parole Program Services to replace the Title IV-E appropriation so the General Fund was not rebalanced.
Problem or Opportunity •
This second and final step to the technical correction initiated in FY 2015-16 will allow the Department to have funding appropriated where expenditures occur.
Consequences of Problem • •
•
Without a rebalancing of General Fund, the Parole Program Services line is underfunded and the Purchase of Contract Placements and Personal Services lines are overfunded in General Fund. With the removal of federal funds from Parole Program Services, and without replacing it with General Fund, this line item is now $927,661 short (nearly 20% of the historical appropriation) in total funds. Without this technical correction, services that provide youth with having a successful transition from commitment to parole, and for successful completion of parole is curtailed to FY 2014-15 funding levels. These services include a wide variety of treatment; assessments and evaluation; educational, family, and other professional services and support; and surveillance and monitoring.
Proposed Solution • •
The Department requests this technical correction to continue to provide the appropriate level of services for parole and transition for youth in DYC facilities. The Department will be requesting a supplemental for this correction in FY 2015-16.
Page R-17-3
Priority: R-18 Grand Junction Regional Center Physicians Services FY 2016-17 Change Request
Cost and FTE •
The Department requests a reduction of $88,946 General Fund and 0.5 FTE in FY 2016-17 and beyond through the elimination of the personal services cost for contracting for a physician provider for the Home and Community Based Services waiver for individuals with developmental disabilities (HCBS-DD) program at the Grand Junction Regional Center (GJRC).
Current Program •
•
•
The residents served by the HCBS-DD waiver program at GJRC receive services by the regional community provider and should receive their medical care from a community provider, similar to all other HCBS-DD waiver participants living in the Grand Junction area. While recently evaluating its cost methodology at the Regional Centers, the Department discovered that physician services paid for with General Fund at GJRC was duplicating services paid for through payments made by the Medicaid State Plan to the community provider. GJRC has worked with the community provider to transition all HCBS-DD waiver program residents at GJRC to physicians in the community during FY 2014-15.
Problem or Opportunity •
The General Fund and 0.5 FTE for physician services at GJRC are duplicative, as the Department has successfully placed all residents with a community practice (Community Physician Provider) who is paid through the Medicaid State Plan.
Consequences of Problem • •
If the General Fund and FTE are not removed, the Department will revert these appropriations in FY 2016-17 and in future years. This reduction will not affect resident services as all individuals have been placed with a community practice.
Proposed Solution •
•
•
The Department requests a reduction of $88,946 General Fund and 0.5 FTE in FY 2016-17 and beyond based on the personal services cost for contracting for a physician provider for the HCBSDD waiver program at GJRC already being covered through Medicaid. GJRC pursued health care services in the community through other waiver programs throughout the State. In collaboration with the community, the Department was successful in placing all residents with a community practice. The Community Physician Provider currently bills Medicaid directly for their services. Page R-18-03
Priority: R-19 Community Provider Rate Adjustment FY 2016-17 Change Request
Cost and FTE •
The Department requests a reduction of $7,934,920 total funds including reductions of $4,684,022 General Fund, $1,098,677 cash funds, $245,499 reappropriated funds from the Department of Health Care Policy and Financing, and $1,906,722 federal funds in FY 2016-17 and beyond for a 1.0% rate decrease for contracted community provider services.
Current Program •
•
Numerous agencies in the State of Colorado contract with community providers to provide services to eligible clients. The General Assembly has the authority to provide annual inflationary increases or decreases based on budget projections and constraints The programs in the Department of Human Services that typically receive community provider rate adjustments include County Administration, Child Welfare, Child Care, Mental Health Community Programs, Vocational Rehabilitation, and community programs in Youth Corrections.
Problem or Opportunity • •
Based on the revenue projections for the State of Colorado, a 1% provider rate reduction is proposed to address a projected budget deficit in FY 2016-17. Since FY 2013-14 providers have experienced a 6.2% cumulative increase, including increases of 2.0% in FY 2013-14, 2.5% in FY 2014-15, and 1.7% in FY 2015-16.
Consequences of Problem •
If the request is not approved, the state will have to consider other potentially more drastic measures to close the projected funding gap for FY 2016-17.
Proposed Solution •
An across the board 1.0% decrease for contracted community provider services resulting in a reduction of $7,934,920 total funds, including reductions of $4,684,022 General Fund, $1,098,677 cash funds, $245,499 reappropriated funds from the Department of Health Care Policy and Financing, and $1,906,722 federal funds in FY 2016-17 and beyond will aid in addressing projected revenue shortfalls for the State in FY 2016-17.
Page R-19-09
Priority: R-20 Realignment of Office of Early Childhood Programs FY 2016-17 Change Request
Cost and FTE • • •
The Department requests to realign the Long Bill to match the organizational structure of the Office of Early Childhood (OEC). The Department requests that this change become effective in the FY 2017-18 Long Bill. There is no new funding or new FTE associated with this request.
Current Program •
•
SafeCare Colorado and Colorado Community Response programs are contained within (5) Division of Child Welfare, Community-based Child Abuse Prevention Services Long Bill line item. The Promoting Safe and Stable Families program is listed under the (6) (A) Division of Early Care and Learning (DECL). All three of these programs operate in the (6) (B) Division of Community and Family Support (DCFS). Early Childhood Councils is listed under DCFS, but operates in the DECL and is currently listed under DCFS, but operates in the DECL.
Problem or Opportunity •
•
The OEC was established in 2012. Since that time, it has grown and evolved but the Long Bill structure has not changed. The current Long Bill structure does not match the organizational and operational structure that the OEC has developed. SafeCare Colorado and Colorado Community Response programs have recently come under the auspices of the Office of Early Childhood, so no previous realignment efforts have been made.
Consequences of Problem •
The incorrect structure causes difficulty tracking budgets and accounting expenditures, and complicates communications and reporting for the Department.
Proposed Solution • •
The Department requests a comprehensive technical adjustment to the Long Bill to realign the programmatic budgets to reflect the current operational structure of the agency. This solution will result in a Long Bill that matches the organizational structure of the Department, which will reduce confusion and increase transparency with community partners and families served.
Page R-20-3
Priority: R-01 Unemployment Insurance Enforcement FY 2015-16 Change Request
Cost and FTE The Department requests 4.5 temporary FTE and $412,854 cash fund spending authority in FY 2016-17 and FY 2017-18 from the Unemployment Revenue Fund to conduct criminal investigations involving crimes affecting Unemployment Insurance. Revenue is available to support this request and no additional cash fees will be added. Current Program The Unemployment Insurance (UI) Division provides temporary compensation to individuals who are laid off through no fault of their own. The payment of unemployment benefits is funded through employer premiums. The Investigations and Criminal Enforcement (ICE) unit was established for the purpose of conducting criminal investigations involving crimes affecting the Colorado Department of Labor and Employment (CDLE). Under that directive, ICE has dedicated itself to the detection, investigation, and prosecution of crimes perpetrated against the CDLE – specifically the Division of Unemployment Insurance (UI) – and to the recovery of CDLE’s assets. Currently, all fraud cases sent to the ICE unit have a minimum monetary threshold of $10,000. Problem or Opportunity The ICE unit has a large backlog of cases (approximately 150 at any given time), which is currently 173 cases. The ICE unit receives new cases each month to investigate for criminal charges, and has received 108 new cases since January 2015 (through August). Consequences of Problem Without additional staff and funding, some of the UI fraud cases will not be criminally investigated or prosecuted due to the backlog and the statute of limitations in some instances. ICE currently holds approximately $2.3 million in potential collections from unassigned cases waiting to be investigated, in addition to the normal yearly caseload. Theft against the CDLE will continue, with or without additional investigative resources; however, it is imperative that the CDLE is able to combat UI fraud to the best of its ability and show the citizens and employers of Colorado that the CDLE addresses fraud seriously and is an excellent steward of the monies that have been entrusted to them. Proposed Solution The Department requests 4.5 temporary FTE and $412,854 cash fund spending authority in FY 2016-17 and FY 2017-18 from the Unemployment Revenue Fund to conduct criminal investigations involving crimes affecting Unemployment Insurance. The temporary FTE will be in place for two years, after which, the need for ongoing staff support will be evaluated. Additional staff and funding will provide more support to perform criminal investigations, resulting in cases being run more efficiently, increasing the amount of money that CDLE can recover through restitution. Increasing restitution collections ultimately increases the solvency of the Unemployment Insurance Trust Fund in addition to holding perpetrators accountable for their criminal behavior.
Priority: R-02 Transfer of the Division of Vocational Rehabilitation FY 2016-17 Change Request
Cost and FTE The Department of Labor and Employment (CDLE) requests 2.6 FTE and $371,253 total funds ($79,077 General Fund and $292,175 federal funds) in FY 2016-17, annualizing to $357,748 total funds ($76,200 General Fund and $281,547 federal funds) in FY 2017-18 ongoing, to support the transfer of the Division of Vocational Rehabilitation (DVR) from the Department of Human Services. Current Program The Division of Vocational Rehabilitation (DVR) provides work-related assistance to individuals whose disabilities result in barriers to employment or independent living. During the 2015 legislative session, S.B. 15-239 moved the DVR from the Department of Human Services to CDLE, transferring a total appropriation of $48,039,446 and 229.7 FTE. Problem or Opportunity The Department of Human Services is transferring an additional 3.4 FTE from its Office of Administrative Solutions that provided direct program support services to DVR. However, CDLE has a need for additional administrative support to provide financial, budget and human resources functions. Where the Department of Human Services may have realized efficiencies between all the programs sharing central administration, CDLE as a smaller department will not be able to fully recognize these. The transfer of 3.4 FTE and associated funding offsets some of CDLE’s need for administrative support, but does not provide enough resources for the substantial amount of procurement, contracts, and new staff being added to the Department through the transfer. Additionally, CDLE will secure new leased space to integrate the new division headquarters staff into the Department’s current office building. Consequences of Problem Without additional support staff, the necessary procurement and contract negotiation will be slowed for the Department, federal requirements may not be met or may be delayed in being met, and it will be difficult to coordinate the administrative duties that are required for a division that spans many field offices statewide. The people DVR serve may not receive the services they need in a timely manner. Proposed Solution The Department is requesting $371,253 total funds, of which, $200,154 total funds and 2.6 FTE will support a contracts/purchasing agent, a budget and policy analyst, and a program assistant to assist with payroll and other human resources duties associated with the DVR. The requested positions will support Accounting, Budgeting, Contracts and Procurement, Human Resources, and training for DVR staff. The Department also requests $171,099 total funds for additional leased space costs associated with the transfer of employees. The additional 2.6 FTE that the Department of Labor and Employment requests will combine with the 3.4 vacant FTE transferring from the Department of Human Services for a total of 6.0 FTE in administrative support. The addition of 2.6 FTE will cover positions that are not transferring, but are necessary central functions for successful operation of the new division.
Priority: R-01 Fort Lyon Supportive Residential Community FY 2016-17 Change Request
Cost and FTE
The Department of Local Affairs requests $1,765,786 in cash funds from the Marijuana Tax Cash Fund (MTCF) and 1.0 FTE in FY 2016-17 to support the operation of the Fort Lyon Supportive Residential Community until the program is eligible for federal funding.
Current Program
The Department, in collaboration with the Colorado Coalition for the Homeless and Bent County, is creating a transitional residential community at Fort Lyon, with enhanced support and services to help chronically homeless individuals with substance use disorders, mental illness, and/or cooccurring conditions. The program places an emphasis on homeless veterans. During FY 2014-15, the program served 364 unique individuals; of these, 57 were transitioned to permanent housing, 43 obtained employment, and 103 were enrolled in educational programs. For FY 2015-16, the Department is appropriated $3.2 million General Fund to operate Fort Lyon, with additional financial support from the 2012 Mortgage Servicing Settlement funds.
Problem or Opportunity
As of FY 2016-17, the Mortgage Settlement dollars formerly used to fund Fort Lyon will be fully expended, leaving a shortfall of approximately $1.8 million. The Center for Medicare and Medicaid Services (CMS) is conducting an analysis of whether or not Fort Lyon should be considered an Institute for Mental Disease (IMD). The Department is confident it will not be determined to be an IMD; however, until this determination is made, Fort Lyon is unable to access Medicaid, HUD, and VA funds originally intended to fill the gap left by the expenditure of Mortgage Settlement dollars.
Consequences of Problem
Without the requested appropriation, the number of formerly homeless residents of Fort Lyon would have to be substantially reduced. Given that maintenance and operations of the facility are a fixed cost, the savings would need to be realized by decreasing the programs and services budget line item. The loss of $1.8 million dollars would result in a reduction of 171 residents annually. Without Fort Lyon, individuals that could reside and receive supportive services at Fort Lyon will remain homeless and the State will continue to pay costs through other local and state programs.
Proposed Solution
The Department’s request is to fully fund operation and treatment costs at Fort Lyon with MTCF funding until such time as other funding sources are approved or granted. If federal funding is obtained, the Department will revise this request accordingly.
For FY 2015-16, housing homeless individuals at Fort Lyon will result in cost savings to the State of approximately $26,168 per resident, based on a projected average of 250 residents per month.
Priority: R-1 State Board of Land Commissioners Automated Trust Land Asset System (ATLAS) Licenses FY 2016-17 Change Request
Cost and FTE
This net-zero change request is for the transfer of $90,000 Cash Funds from the Payments to OIT line item to the State Land Board’s Program Costs line item. This request implements the reduction of Office of Information Technology (OIT) support and the increase in licensing fees associated with the State Land Board’s new Automated Trust Land Asset System (ATLAS).
Current Program In FY 2012-13, the Legislature appropriated $1.5 million to upgrade the State Land Board’s asset management system. The appropriation covered ATLAS costs until the end of FY 2015-16. ATLAS tracks 9,000 leases, 5,000 customers, and 37,000 assets, and facilitates the accurate distribution of revenues to trust beneficiaries through the state’s accounting system, CORE. Problem or Opportunity When the State Land Board first requested, and the General Assembly ultimately approved, funding for a new asset management system, the final product had not yet been chosen. Working with the Governor’s Office of Information Technology (OIT), the State Land Board selected a product that came in under the original $1.5 million appropriation which allowed the Land Board to cover licensing costs during implementation. That funding is now at an end. The Land Board’s previous asset management system required a full-time IT employee to manage and maintain. That is not required for the new ATLAS, and that IT employee has retired. Consequences of Problem
Without the licenses to operate the system, the State Land Board will not be able to benefit from this IT investment. The stewardship of public lands and revenue generated for trust beneficiaries, primarily K-12 education, will suffer.
Proposed Solution
The funding for a full-time position in OIT is no longer necessary to maintain the State Land Board’s system. By transferring this funding to the Land Board’s Program Costs line it will be possible to fund the ongoing license costs without an increase in Long Bill spending.
Department of Natural Resources
Priority: R-02 CPW Digital Radio Replacement FY 2016-17 Change Request
Cost and FTE •
Colorado Parks and Wildlife (CPW) needs to replace 1,024 mobile and portable radios over the next four years at a total cost of $4,096,000. The total cost will be split between Wildlife Cash and State Parks Cash based on the number of radios being replaced for Parks and the number of radios being replaced for Wildlife.
Current Program •
CPW has 1,301 radios assigned across the agency to officers, biologists, technicians, hatchery staff and individual parks. These radios are used for law enforcement, customer service, emergency response, and work coordination by full-time employees, seasonal employees, volunteers, and interpreters.
Problem or Opportunity •
• •
The majority of the existing inventory of the Astro Spectra Mobile and XTS 3000 portable radios utilized by Colorado Parks and Wildlife are obsolete (1,024 out of 1,301 radios). Over the past 18 months, many radios have failed. No support is currently available by manufacturers for parts and repairs. Current inventory is not compatible with the newer 700 mhz radio tower sites and with current encryption practices utilized by many agencies. These radios do not meet the interoperability compliance standards as outlined in Section 24-71.3-119 C.R.S. through the Office of Information Technology (OIT).
Consequences of Problem • •
•
Radios are essential for mission critical communications with dispatch and first responders, and provide a level of safety for staff as they go about their daily duties across the state. CPW provides staff, who need the ability to communicate when away from their vehicle, with a mobile and portable radio. Mobile radios provide reliable coverage in marginal signal areas and portable radios provide a critical level of service and safety for staff when away from their vehicles. As existing inventory fails, fewer radios will be available for staff; staff could also be unable to communicate due to incompatibility of current inventory with newer sites and encryption. This would result in a reduced ability for CPW to meet its mandate regarding law enforcement, customer service, and coordination with other public safety agencies across the state, especially in emergencies.
Proposed Solution •
•
Purchase APX 6000 portable radios and APX 6500 mobile radios at a rate of 256 radios per year at a cost of $1,024,000 per year over the next four years. These radios have a useful life of ten years and will provide the agency with the ability to communicate on both the 700 mhz and 800 mhz frequencies, as well as the necessary level of encryption needed to improve communication between staff and necessary agencies. These new radios will ensure that staff is provided with safety equipment that is reliable and repairable. After the Division’s existing inventory of radios has been replaced with up-to-date models, CPW will implement a regular replacement cycle.
Priority: R-3 State Board of Land Commissioners West Slope Asset Management FY 2016-17 Change Request
Cost and FTE
•
The State Land Board requests an increase of $87,515 Cash Fund spending authority and 1.0 FTE to hire a West Slope Asset Manager.
Current Program
• •
The State Land Board manages three million acres of land and four million acres of mineral rights for the benefit of its trust beneficiaries, primarily K-12 education. The State Land Board earns over $160 million each year and has an annual operating budget of $4.8 million. The State Land Board has two District Managers in the western region of Colorado. These managers are responsible for managing more than 800,000 acres and 2,500 leases over a 31 county area.
Problem or Opportunity
• • • •
•
The State Land Board does not have sufficient FTE to effectively manage its assets in the western part of Colorado. Regular and frequent inspections identify issues and lead to corrective actions prior to lease renewal. Within the western region of the state, the State Land Board’s agriculture leases are inspected only once during a 10 year term and many non-agricultural leases are not inspected on a regular basis. There are a number of potential property acquisitions and dispositions in western Colorado, but only the highest priority transactions are currently pursued due to lack of staffing. The State Land Board has Resource Specialists in the northern and southern regions of Colorado. These positions have (1) doubled the number of agricultural inspections; (2) increased the use of range-monitoring equipment to track and address rangeland conditions; (3) instituted regular inspections of non-agricultural leases and; (4) allowed the district managers to pursue water development, land transactions, and the marketing of new leasing opportunities on state trust land. Though the positions hired in the northern and southern regions were able to utilize FTE that were freed up through Lean processes and other efficiencies, there are no more unutilized FTE available for this request.
Consequences of Problem
•
Without sufficient staffing in the western part of Colorado the State Land Board will struggle to increase income and stewardship over this vast area.
Proposed Solution
•
Based on the success of the existing regional position in the northern and southern regions, the State Land Board request an increase $87,515 Cash Funds and 1.0 FTE to fund a West Slope Asset Manager.
Department of Natural Resources
Priority: R-04 Transfer FTE Between Line Items FY 2016-17 Change Request
Cost and FTE •
Colorado Parks and Wildlife (CPW) seeks to reduce the number of full-time equivalent (FTE) positions currently appropriated to the division’s Wildlife Operations line item by 3.0, and simultaneously add 3.0 FTE to the division’s Habitat Partnership Program line item. This request is a net-zero change in FTE and no change to the cash (or other) funding appropriated to either line item.
Current Program • •
•
The Habitat Partnership Program (HPP) develops partnerships among Colorado landowners, land managers, sportsmen, the public, and CPW to reduce wildlife conflicts, particularly those associated with forage and fencing. The Habitat Partnership Program (HPP) is implemented largely through a volunteer statewide council and 19 volunteer local committees. The committees approve mitigation projects to address problems that deer and elk can cause private agricultural landowners, who provide much of the habitat that these animals depend on. The Habitat Partnership Program (HPP) is funded entirely by revenue from the sale of big game licenses. HPP typically receives between $2.0 and $2.2 million in revenue annually. This funding is continuously appropriated.
Problem or Opportunity •
•
Historically the Habitat Partnership Program (HPP) program has used independent contractors to handle project management and administrative duties for the 19 local committees. Between them, the 19 committees conduct 90-110 meetings per year. HPP mitigation projects annually involve more than 100 purchase orders and more than 250 payments to vendors. The use of contractors for what is regular, ongoing work that requires extensive knowledge of state financial management is not optimal. Colorado Parks and Wildlife (CPW) believes permanent full-time staffing will be a more efficient and effective way to manage the workload associated with the HPP committees.
Consequences of Problem • •
Without staff support, current HPP staff will not be able to handle the workload associated with a dispersed program. Without adequate staffing, the ability to achieve the statutory purpose of HPP will decrease, which could lead to an increase in the forage and fencing issues that HPP was created to reduce.
Proposed Solution • •
• •
The Habitat Partnership Program (HPP) is an existing line item in the CPW section of the Long Bill, with $2.5 million in continuously appropriated cash spending authority annually, but no appropriated FTE. CPW proposes transferring 3.0 existing appropriated FTE from the division’s Wildlife Operations line item to the Habitat Partnership Program line item. CPW will use the HPP line item’s existing cash spending authority to fund the 3.0 FTE positions, at approximately the Administrative Assistant II level. CPW will discontinue the use of contractors to support the program, with the resulting savings being used to offset FTE personal services and operating. This request will not result in any change (increase or decrease) to the division’s total FTE appropriation or spending authority. The HPP line item’s cash spending authority will remain unchanged at $2.5 million. CPW currently has vacancies within the division’s overall FTE appropriation, and the HPP program generates sufficient annual revenue to support the personal services for 3.0 positions and their associated operating costs.
Priority: R-01 Resources for Administrative Courts FY 2016-17 Change Request
Cost and FTE The Department is requesting $311,804 in reappropriated funds spending authority to add 4.5 FTE to the Office of Administrative Courts and to increase the leased space for the Southern Regional office in Colorado Springs for FY 2016-17 and ongoing. This is an 11.3% increase in FTE for the Office and a 6.7% increase for the Department’s leased space line item. Costs will be allocated to state agencies through the statewide common policy, and the General Fund impact is $38,428. Current Program The Office of Administrative Courts (OAC) provides an accessible, independent, cost-effective administrative law adjudication system for Colorado. The OAC conducts mediations, holds hearings and decides cases for more than 50 state departments, agencies, boards, and county departments as well as serves the State’s citizens. There are three OAC offices to serve Colorado; the main office located in Denver, the Western Regional Office in Grand Junction, and the Southern Regional Office in Colorado Springs. Problem or Opportunity Over the last five years the OAC has seen a 35.1% increase in opened cases, as well as an increase in complex cases heard. The OAC has not had a permanent increase in FTE in over five years, while caseload has continued to grow. The Office has attempted to mitigate any service interruptions, including the use of video and telephone conferencing for hearings whenever case type allows. In addition the Office maximizes scheduling opportunities and has increased the number of available court rooms. The Office’s previous lease for the Southern Regional office was unexpectedly terminated by the property management company with 30 days’ notice to vacate. The OAC was able to negotiate a significantly lower price per square foot for the new location which also allowed for increased space to add an additional court room in the southern region. Consequences of Problem For many of the cases opened with the OAC there are statutory requirements for when a case either must be set, or ruled on, or in some cases both. The Office serves a wide variety of clients, from state agencies to school districts to the Colorado citizen. In many cases a delay in services could mean the difference in paychecks received or getting students back to school in a timely manner. Without additional funding for leased space, the OAC will be unable to retain space for a second court room that allows for improved customer service for the southern region’s citizens. Proposed Solution The OAC is requesting $290,574 to hire 3.0 Clerks at the Technician II level and 1.5 Administrative Law Judges at the Administrative Law Judge II level. These positions would be spread across the three service locations. The additional FTE would allow the Office to continue to meet statutory deadlines as well as provide the level of service expected of this State program. The Office is also requesting $21,230 for leased space in Colorado Springs. The additional space will allow for better customer service with the addition of a second court room.
Priority: R-02 Fleet Re-alignment FY 2016-17 Change Request
Cost and FTE The Department is requesting to transfer $342,749 in reappropriated funds spending authority from the Fuel and Automotive Supplies line item to the Operating Expenses line item within the Fleet Management Program and Motor Pool Services program. This request is budget-neutral. Current Program Fleet Management Program and Motor Pool Services was created by the legislature to optimize the use of taxpayer dollars used in vehicle purchasing, maintenance, and fuel for the State and realizes significant savings by negotiating low cost, high volume contracts. Problem or Opportunity
Beginning with the FY 2013-14 budget (S.B. 13-230), the Operating Expenses appropriation of $25,728,564 for Fleet Management Program and Motor Pool Services was divided into two separate line items in the Long Bill: Fuel and Automotive Supplies was provided $25,514,293 and Operating Expenses was allocated the balance of $214,271. When the split was performed, funding for auction fees associated with the disposal of vehicles and funding for motor pool program vehicle leases was placed in the Fuel and Automotive Supplies line item instead of the Operating Expenses line item. As a result there is insufficient funding in the Operating Expenses line item to pay for these duties. Operating expenditures for the Fleet program have exceeded the Operating Expenses appropriation in both FY 2013-14 and FY 2014-15. This issue is anticipated to continue until the appropriations are permanently adjusted.
Consequences of Problem For FY 2013-14 and FY 2014-15, the Department requested to transfer funds from the Fuel and Automotive Supplies line item to the Operating Expenses line item to prevent over-expenditures; both transfer requests were approved as they are considered “like purposes” by the State Controller’s Office. If this request is not approved the program will continue to request transfers at the end of the fiscal year; however, if a transfer request is not approved, the Department may over-expend its Operating Expenses appropriation. Proposed Solution
This request is to transfer $342,749 in reappropriated funds spending authority from the Fuel and Automotive Supplies line item to the Operating Expenses line item within the Fleet Management Program and Motor Pool Services program. Of this amount, $142,749 will be used to pay the auction fees. This will allow for the disposal of an average of 636 vehicles per year. The remaining $200,000 will be used to cover the fixed and variable costs of running the motor pool for the State.
Priority: R-03 Annual Fleet Vehicle Request FY 2016-17 Change Request
Cost and FTE The Department of Personnel & Administration is requesting to replace 711 fleet vehicles (306 of which are designated as potential Compressed Natural Gas (CNG) vehicles), which will require a decrease of ($393,052) in appropriated funds for all state agencies’ vehicle lease payment appropriations, and an increase of $766,084 for the Department’s (4) Division of Central Services, (C) Fleet Management Program and Motor Pool Services, Vehicle Replacement Lease, Purchase, or Lease/Purchase line item for FY 2016-17. Current Program The Department is charged with the oversight of the State Fleet, including its maintenance, operation, and replacement as necessary. All departments that participate in the State Fleet program are impacted by this request. Problem or Opportunity On an annual basis, the Department of Personnel & Administration submits a fleet replacement request to address the needs of individual state agencies across the State. The Department’s Fleet Management Program analyzes each vehicle on an annual basis to determine its replacement eligibility. This year, 2,147 vehicles were identified as potentially eligible. Due to budget and resource constraints, for FY 2016-17 the Department has included 711 replacement vehicles, in the most critical need of replacement. Consequences of Problem Replacement vehicles for the Colorado State Patrol represent 18.9 percent of the request. These vehicles routinely travel at a high rate of speed under various conditions. Failing to replace these vehicles in a timely fashion would significantly increase the likelihood of failure of key components, thereby increasing the probability of injury to patrolmen. For other agencies, replacement vehicles are typically requested because the cost to maintain the older vehicle meets or exceeds the cost of replacing the vehicle. Proposed Solution
The Department proposes the replacement of 711 state fleet vehicles, 306 of which are CNG vehicles. The incremental cost to State agencies is estimated to be ($393,052) total funds. The proposed solution is anticipated to save the State $1,448,511 between reduced maintenance costs and reduced fuel expense. For this request, the non-CSP vehicles recommended for replacement through the fleet replacement methodology average 127,563 miles.
Department of Public Health and Environment
Priority: R-02 Continue General Fund Subsidy for Clean Water Sectors FY 2016-17 Decision Item Request
Cost and FTE •
The Colorado Department of Public Health and Environment’s Water Quality Control Division is seeking a $1,208,007 General Fund appropriation in FY 2016-17, and a $1,318,302 General Fund appropriation in FY 2017-18, in order to sustain the Clean Water Program through FY 2017-18 when the Department intends to seek a legislative change to increase fees for the Clean Water Program.
Current Program • •
The Clean Water Program has delegated authority through the United States Environmental Protection Agency (EPA) to control pollution in state waters, through the issuance of water quality permits, inspections, technical/compliance assistance and fee collection. The Program provides technical/compliance assistance to stakeholders, in addition to the permitting and inspections, which fosters strong working relationships that are beneficial to public health.
Problem or Opportunity • • • •
Without the ability to increase fees, the Department will be unable to cover the actual cost of its statutory obligations. Fees for the Clean Water Program are established in statute and cannot be modified by the Water Quality Control Commission. Without the funding the Program will be unable to continue its current level of operations leading to permitting and inspection delays as well as staff reductions, creating delays for stakeholders. House Bill 15-1249 revised the current fee structure by creating five sectors within the Clean Water Program to ensure that each sector is paying its own share and not subsidizing other sectors. However, HB 15-1249 did not raise the fees.
Consequences of Problem • • •
A reduction in resources will reduce the Department’s ability to provide timely services, and may result in less protection of public health and the environment. The high-level of service provided by the Clean Water Program will be significantly reduced. There will be delays in permitting and inspections, and also a reduction to the technical/compliance assistance provided to stakeholders that is critical to maintaining collaborative work practices.
Proposed Solution • • •
The request for $1,208,007 of General Fund in FY 2016-17 and $1,318,302 General Fund in FY 2017-18 will provide the Department the ability to continue its current operations while providing the time for the Department to seek legislative changes to increase the fees. Granting the request will allow for the Program to continue its operations at its current level by eliminating the need for staff reductions, and a reduction to services provided. The Department is planning on seeking legislative changes to increase the fees.
Department of Public Health and Environment.
Priority: R-03 Emergency Medical and Trauma Grants Program FY 2016-17 Decision Item Request
Cost and FTE • • •
This request seeks $1,750,000 in Cash Fund spending authority to increase grants to local Emergency Medical Services (EMS) providers. The source of the funds is the Emergency Medical Services Cash Fund which is a statutory fee of $2.00 for each vehicle registration in the State. This request does NOT necessitate a fee increase.
Current Program •
• •
Grant funds are made available to organizations that have the provision of EMS and trauma services as their primary purpose. This includes EMS agencies, facilities, clinics, fire agencies, training centers, community colleges and other public and private providers of emergency medical and trauma services in Colorado. Currently, the program grants approximately $6.7 million each year to EMS providers in Colorado. The grants address four categories of needs, including provider grants, education grants, system improvement and emergency grants for needs that fall outside the normal grant timelines.
Problem or Opportunity • • • • • •
The EMS provider community in Colorado has consistently documented a need for grants that exceed the available funding of the program. In February 2015, EMS providers requested a total of $9.45 million in grants. In that same year the grants program had spending authority of $6,693,896. The fund balance at the end of FY 2013-14 was $2,164,578. There is an average fund balance increase of $522,000 per year. There is sufficient fund balance and on-going revenue to increase the amount of grant funding available to EMS providers.
Consequences of Problem •
Without adequate funding, equipment, training and personnel needed to protect lives is not available to emergency service providers.
Proposed Solution • • •
Increasing the spending authority for the grants program by $1,750,000 will address some of the unmet needs of the Emergency Medical Service and Trauma provider community. Ultimately, the citizens and visitors of Colorado will benefit from this solution as the EMS provider community will be better equipped, staffed and trained to respond to medical and traumatic (i.e. car accidents) incidences across the State. With an additional $1,750,000 the program could finance several more ambulances per year, provide funds for Emergency Medical Technician personnel in local communities, or provide funds to increase the systems and coordination between providers.
Department of Public Health and Environment
Priority: R-04 Cervical Cancer Eligibility Expansion FY 2016-17 Decision Item Request
Cost and FTE • • • •
This is a joint request between the Colorado Department of Public Health and Environment (CDPHE) and the Department of Health Care Policy and Financing (HCPF). This request is for authorization to make a policy change to expand the age eligibility of women being screened for cervical cancer from the current ages of 40 to 64 to include women 21 to 39. CDPHE has sufficient funding to expand the age eligibility without a funding increase. The eligibility change may impact the number of women treated through the Breast and Cervical Cancer Treatment Program (BCCP) Medicaid, driving an estimated $291,528 budget impact for HCPF ($107,119 Cash Funds and $184,409 in matching Federal Funds.)
Current Program •
The CDPHE Women’s Wellness Connection (WWC) program provides breast and cervical cancer screenings to women age 40 through 64 statewide through contractual agreements with at least 45 agencies operating over 130 clinics.
Problem or Opportunity • • • •
•
Cervical cancer is one of the most preventable forms of cancer. Multiple medical organizations recommend cervical cancer screening (via Pap test) start at 21 years of age. As a result of the Affordable Care Act (ACA) and Medicaid expansion, fewer women ages 40 through 64 years now need WWC-funded breast and cervical cancer screening services. While WWC has the funding and statutory authority to expand age eligibility for cervical cancer screening, this policy change directly impacts HCPF’s BCCP Medicaid costs, as an estimated 54 additional eligible women with pre-cancerous or cancerous diagnoses seek treatment, with an approximate on-going total cost to HCPF of $252,757. HCPF has sufficient funds in its Breast and Cervical Cancer Prevention and Treatment Fund to cover the additional cost of treatment without a General Fund impact.
Consequences of Problem •
Without WWC’s cervical cancer screening age expansion, an estimated 2,681 at-risk, low-income women ages 21 through 39 years will not access timely cervical cancer screening and diagnostic procedures to prevent late stage cervical cancer diagnoses, resulting in higher treatment costs and higher mortality rates.
Proposed Solution • •
The proposed age eligibility expansion permits WWC and BCCP Medicaid to provide additional women with cervical cancer screening, diagnostics and treatment and will help avert future costs to women and health care systems because of a decreased incidence of late stage cancers. In addition to HCPF’s projected $252,757 in on-going treatment costs, the request includes $38,771 to DHS for one-time system modifications ($31,050 Cash Funds and $7,719 Federal Funds.)
Department of Public Health and Environment
Priority: R-05 CDPHE Long Bill Adjustments FY 2016-17 Decision Item Request
Cost and FTE • •
The Colorado Department of Public Health and Environment (CDPHE) has identified a number of items in its FY 2015-16 Long Bill that it would like to adjust in order to have the FY 2016-17 Long Bill more accurately reflect the Department’s statutory, financial and operational structure. This is a net $0 request.
Current Program • •
The Department is constantly evolving and changing in order to respond to needs and opportunities to become more efficient and effective in protecting public health and the environment. These changes can involve programmatic realignment and restructuring as well as blending and expanding the scope of programs.
Problem or Opportunity • • •
This request seeks a number of adjustments to the CDPHE Long Bill so that it will accurately reflect Department operations. The request includes various adjustments such as name changes, line item location changes, and FTE authority transfers. Authorizing these changes will eliminate confusion and improve transparency, accuracy, and efficiency for the Department’s Long Bill appropriations.
Consequences of Problem • •
If these adjustments are not made, the Department’s Long Bill will not accurately represent the Department’s funding and structure for the changes identified. In some cases, failure to authorize the requested adjustments could mean that programs do not operate as efficiently or effectively as they could, thus risking public health or environmental damage.
Proposed Solution • • • •
•
In order to ensure that the Department’s Long Bill accurately reflects the functions and current operational structure of the Department, adjustments, such as name changes and line item realignments, to the Long Bill are being requested. If the requested adjustments are authorized, the Department’s Long Bill will more accurately reflect Department funding and structure. This will increase transparency and understanding of the Department’s funding and functions. Some of the requested adjustments, such as the shift within the Hazardous Materials and Waste Management Division or the shifts between the Health Facilities Division and Disease Control Division, will result in more efficient and effective programs that are better able to positively impact public health and environmental quality. This request is net $0.
Department of Public Health and Environment
Priority: R-6 Compliance and Reporting Accountant FY 2016-17 Decision Item Request
Cost and FTE • •
The Department is requesting $85,323 and 1.1 FTE reappropriated funds from indirect costs in FY 2016-17 and $80,150 and 1.1 FTE in on-going funding to support compliance and reporting functions in the Department. This request is to increase spending authority only as the Department will generate the revenue through indirect cost recoveries.
Current Program • • •
The Accounting Unit at CDPHE is responsible for tracking and accounting for approximately 300 federal grants and hundreds of millions of dollars in federal, state and private funds. The Department receives funding from approximately 300 different sources, all of which require set-up in the accounting system; monitoring and verification of expenditures; and reporting. Currently, two accountants and one supervisor in the Accounting unit are responsible for all the grant tracking and reporting functions.
Problem or Opportunity • • • • •
For more than ten years, the Department has experienced an increase in grant funding from $198 million in FY 2004-05 to a projected $294 million in FY 2015-16. This represents an increase of more than $95 million, or roughly 33 percent. As a result of increasing complexity in federal reporting requirements, the burden on the Department staff has increased significantly. In an effort to streamline the compliance and reporting process, the Department has taken several steps to improve efficiency and productivity. Despite these efficiency efforts, the unit still does not have sufficient resources to perform its essential duties.
Consequences of Problem • • •
The Department will continue to struggle to meet federal reporting deadlines and complete billing processes on time. Systematic failure to meet federal deadlines can result in federal sanctions ranging from being designated as a high-risk agency to the loss of federal grant funds. The Department also may be subject to audit findings as they relate to failure to account for funding in an accurate and timely way.
Proposed Solution •
This request seeks to add $85,323 in reappropriated funds spending authority from indirect cost recoveries and 1.1 FTE in FY 2016-17 and $80,150 and 1.1 FTE to help address the growth in grant revenue over the past several years and the increased complexity of grant reporting requirements.
Department of Public Health and Environment
Priority: R-7 Lab Building Maintenance and Repair FY 2016-17 Decision Item Request
Cost and FTE •
•
CDPHE is requesting a one-time increase of $419,957 and an on-going request of $81,450 of Reappropriated Funds spending authority for the Building Maintenance Long Bill line in the Administration and Support Division, to provide for ongoing maintenance and repair at the State Laboratory Building. This request is to increase spending authority only as the Department will generate the revenue through indirect cost recoveries.
Current Program • •
The Colorado Department of Public Health and Environment (CDPHE) owns the State Laboratory Building, which is located at the Lowry campus in Denver. The people of Colorado depend upon the State Laboratory to ensure the accuracy of tests for tuberculosis and other infectious diseases; genetic newborn disorders; all breath alcohol tests given in the state; drinking water; radiation exposure; and many other tests performed to protect public health.
Problem or Opportunity • • •
Since acquiring the building nearly two decades ago, the department has had $271,858 in spending authority for general maintenance and repair of the 87,000 square foot facility. In May 2015, the department contracted for an audit to assess the condition of the building. . The report details numerous repairs required to keep the building and equipment running properly.
Consequences of Problem •
If any equipment used to ensure the validity and accuracy of lab tests is compromised as a result of poor building maintenance, e.g. temperatures above or below optimal levels, the public may be at risk for serious illness and disease.
•
If environmental control systems do not maintain specified conditions, down time could result in the suspension of critical testing and services.
Proposed Solution • • •
•
The requested $81,450 on-going increase to the building maintenance and repair line will allow the Department to respond to increasing costs in services such as custodial, trash and snow removal. The requested one-time increase of $338,507 in FY16-17 will allow one-time repairs to windows, floors and mechanical systems necessary to ensure the lab is operational. If the requested funding is authorized, the State Laboratory will be maintained at a level required by federal, state and industry standards. The State Laboratory will be able to continue performing analyses necessary to protect public health and the environment.
Department of Public Health and Environment
Priority: R-08 Leave Payouts Line Increase FY 2016-17 Decision Item Request
Cost and FTE •
This request is for $257,199 on-going Reappropriated Funds spending authority in indirect cost recoveries to the Department’s Leave Payout line item.
Current Program • • • •
Personnel Rules require Departments to pay terminating employees for unused accrued leave. The Department has a centralized Leave Payouts line item in the Administration Division that is used to pay sick and annual leave payouts for all retiring and terminating employees. The Leave Payouts line item is funded through indirect cost recoveries. The current Leave Payouts line item appropriation of $481,145 has not increased in over ten years.
Problem or Opportunity • • •
• •
Federal regulations (OMB Circular A-87) do not allow leave payouts to be paid directly from federal grant sources. Leave payouts can be charged to federal grants through the indirect cost allocation model, which means all leave payout costs should be covered through the indirect rate assessment. Because over half of CDPHE’s total funding is derived from federal sources, the Department created the Leave Payouts line item to manage leave payouts consistently across all fund sources. This as Payments to OIT or Lease Payments; all centralized costs are paid through the indirect cost pool which is annualized each year with any cost increases. For the last several years, sick and annual leave payout costs have exceeded the Leave Payout line item appropriation. When expenses exceed the leave payout appropriation, programs must pay the leave payout costs directly from their budgets in addition to paying indirect payments for leave payouts.
Consequences of Problem • • •
If there is not sufficient funding in the Leave Payouts line item there is no available funding source for payouts for federally-funded employees. Without sufficient funding in the Leave Payouts line, General Fund, Cash Fund, and Reappropriated Fund sources subsidize federal fund leave payouts. Without sufficient funding, some programs are required to pay for leave payouts both through indirect cost payments, and again through direct payments, which is not equitable.
Proposed Solution • • •
The Department is requesting an increase of $257,199 to the Leave Payouts line item to ensure that sufficient funding is available for all leave payouts within the indirect cost recovery methodology and helps ensure programs are not paying extra leave payouts, resulting in disparate treatment. The $257,199 amount is based on an average of the leave payout shortfall over the last four years. Appropriating adequate funding to the central Leave Payouts line item will ensure consistency and equity in the way leave payouts are funded in the Department.
Department of Public Health and Environment
Priority: R-9 Cubicle Replacement FY 2016-17 Decision Item Request
Cost and FTE •
CDPHE is requesting $371,818 reappropriated funds from indirect cost recoveries for FY 2016-17 and for seven years thereafter to replace the Department’s aging cubicles.
Current Program • •
CDPHE’s main campus is located in leased space on Cherry Creek Drive South in Glendale. This campus houses approximately 1,200 Department employees. The Department has occupied this space since 1993 and the current lease expires in 2026.
Problem or Opportunity • • • • • • •
A significant number of the existing cubicles and furniture on campus were several years old when the Department moved in 22 years ago. The majority of the cubicles are in poor condition and in a state of disrepair. Most of the original cubicles are no longer in compliance with the current building and fire codes related to electrical and data storage. The Department is struggling to find the space necessary to house additional staff being added as a result of federal grants, legislation and decision items. In some situations, two to four staff members are sharing a single cube, and storage spaces are being converted to house staff. The Department, not the lessor, is responsible for providing and maintaining cubicles and furniture. The Department does not have sufficient spending authority in its operating line to fund to replacement of the cubicles. More than half of the Department’s funding comes from federal grants, and purchasing new cubicles and furniture is not an allowable direct expense on most federal grants.
Consequences of Problem • •
Without sufficient space for new staff, the Department may be forced to delay hiring new FTE received through a legislative or programmatic change. Delaying hiring new FTE could negatively impact the work required and relationships with our public health partners and stakeholders.
Proposed Solution • • • • •
The Department is requesting $371,818 in reappropriated funds spending authority for each of the next eight years to replace an estimated 80 cubes per year. Because cubes benefit all divisions and funding sources, the Department is requesting that indirect cost recoveries be used to fund this request. If approved, the Department would be able to replace existing cubes and increase the number of cubes to expand and fully utilize current space. Implementing an eight year, planned cubicle replacement process will increase employee safety and address space constraints. It is estimated that space reengineering could increase capacity by approximately 10 % or 58 cubes.
Department of Public Health and Environment
Priority: RM-01 Health Survey Data Collection FY 2016-17 Decision Item Request
Cost and FTE •
CDPHE is requesting on-going Marijuana Tax Cash Funds in the amount of $238,000 for the administration of three health surveys that provide regional data on the use of marijuana and related social impacts.
Current Program • • • •
SB 13-283 requires CDPHE to examine the impact of marijuana legalization on patterns of marijuana use broken down by county and race/ethnicity. CDPHE currently collects health data by region, not by county. County-level data collection is more resource intensive and may impact confidentiality in smaller counties. CDPHE conducts three population-based surveys to collect data on a variety of health indicators, including the use of marijuana and related social impacts. CDPHE uses term-limited or temporary staff in the Survey Research Program to collect the data via random digit-dial telephone surveys from Colorado residents using scientifically proven methods.
Problem or Opportunity • • •
CDPHE does not receive any marijuana cash funding to support data collection regarding marijuana for these three health surveys; yet this data is the primary source for detecting prevalence of marijuana use, perceived risk of use, age of first use, use in households with children, etc. In order to analyze marijuana use patterns, CDPHE must employ sampling strategies and weighting techniques that will produce a large enough sample size to support the statistical analysis of marijuana use at the regional level (note: some regions are counties). The funding available to CDPHE is insufficient to fully support region level data collection and falls short of the sampling required to provide county and race/ethnicity estimates required by SB 13-283.
Consequences of Problem •
Without additional funding, CDPHE will not be able to collect enough data to produce region and race/ethnicity estimates, preventing the department from providing data on annual trends of marijuana use in the adult population, access among the youth population, and use prior to, during or post pregnancy, including use during breastfeeding.
Proposed Solution • • • •
An additional $238,000 in funding is needed to enable CDPHE to obtain region level estimates of marijuana use. With the requested funding, the Department will be able to survey a large enough sample size to support the statistical analysis of marijuana use patterns by race and ethnicity at the regional level. The department is requesting a modification to C.R.S 25-1.5-111 to change the requirement of collecting “county level” data to “region level” data to align with the department’s collection of data by health statistics regions. This information will contribute to public policy and public education efforts intended to reduce the negative impacts of marijuana use.
Department of Public Health and Environment
Priority: RM-02 Poison Center Enhanced Marijuana Data Collection FY 2016-17 Decision Item Request
Cost and FTE •
The Colorado Department of Public Health and Environment (CDPHE) requests $364,612 in FY 2016-17 and $283,329 on-going from the Marijuana Tax Cash Fund for a contract with the Rocky Mountain Poison and Drug Center (RMPDC) to develop a dedicated marijuana consumer call line and data system. This funding will provide health information to consumers and adverse health effects monitoring information to CDPHE.
Current Program • • •
Trends in adverse health effects potentially associated with marijuana are monitored by CDPHE. Through specially trained registered nurses backed up by physician toxicologists, the RMPDC provides 24-hour per day toll-free telephone access to information on the response to potentially life-threatening poison exposures. The RMPDC provides three core services: patient care (i.e. the call center), professional and public education, and public health and toxic surveillance response.
Problem or Opportunity • • • •
The volume/content of calls to the RMPDC provides trends on marijuana-related incidents. Call data collected by RMPDC are the only real-time data available to determine whether there overconsumption, poisonings, or other illnesses associated with marijuana use. Currently, RMPDC does not collect specific information on the product name, source, and dose of marijuana, which are vitally important in measuring trends and investigating outbreaks. Also, RMPDC has not typically been viewed by the general public as the first place to call for a bad reaction to a recreational drug.
Consequences of Problem • • •
Without a focused education effort, individuals will continue to be unaware of the RMPDC as a resource in the event of a bad reaction to a recreational drug. Ongoing lack of information on the type, source, and dose of marijuana products associated with adverse health outcomes prevents development of new policies to protect public health and development of targeted prevention campaigns. Lack of data hinders epidemiological investigations of an outbreak due to a contaminated product.
Proposed Solution • • • •
This request seeks funding to develop and implement a dedicated toll-free telephone number that can be placed on all marijuana product packaging, industry websites, and outreach materials. This dedicated phone line will provide medical information to concerned callers and collect data to allow efficient monitoring of adverse health effects. The request would also fund development of a data system to include detailed information on the type, name, and source of the marijuana product. The data collected by the RMPDC will provide important new data to monitor trends in terms of potency, product source (regulated vs. unregulated markets), type (edible vs. smokable), and dose of marijuana.
Priority: R-01 Realignment of Executive Director’s Office FY 2016-17 Change Request
Cost and FTE The Department requests $4,438,154 Reappropriated Funds spending authority to fund five new positions in the Executive Director’s Office (EDO) and to consolidate administrative resources department wide to improve efficiency in the budget, financial, planning, policy, procurement, risk management, fleet, and facility services functions of the agency. In total, this proposal will realign 68.0 FTE and $5,030,078 total funds from the divisions into the EDO for department-wide management and administration. This net neutral transfer will include the refinancing of cash and reappropriated funded FTE with indirect cost recoveries. Current Program The Department consists of the Executive Director’s Office and the following five operating divisions: Colorado Bureau of Investigation, Colorado State Patrol, Division of Criminal Justice, Division of Fire Prevention and Control, and the Division of Homeland Security and Emergency Management. Most of the Department’s administrative functions are decentralized at the division level, which can make succession planning, information-sharing, and cross-training challenging. The Department’s total FTE appropriation in FY 2015-16 is 1,727.1. Problem or Opportunity Between FY 2007-08 and FY 2015-16, the Department has grown by more than 400 FTE, or nearly 32 percent, largely due to programmatic transfers and new legislative mandates. However, the Department’s central service functions have not grown and are no longer sufficient to serve the agency’s current size. By consolidating and restructuring existing administrative resources, the Department can realize efficiencies with minimal new FTE growth and no General Fund impact. Efficiencies expected from this consolidation include improved cross-training, succession planning, collaboration and communication, and consistency across the agency, and tighter spans of control. Consequences of Problem If the proposed approach is not approved, the Department will continue to operate less efficiently than is optimal for its size. Without the proposed reallocation, functions that can be efficiently managed at the department-level will continue to be managed at the division-level, with potential redundancy and inconsistency. Proposed Solution
The Department proposes to realign FTE and existing budgets to improve support for internal and external customers. The new EDO staff include: 1.0 FTE Chief Financial Officer, 2.0 FTE Assistant Directors, 1.0 FTE Compliance Specialist/Auditor, and 1.0 FTE Human Resources Specialist. This proposed consolidation aims to improve collaboration and communication agency-wide to ensure that employees are working together in the various public safety roles that the Department serves.
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Priority: R-02 Additional E-470 Troopers FY 2016-2017 Change Request
Cost and FTE For FY 2016-17, the Department requests an increase of $261,040 in Cash Funds spending authority with 2.0 FTE, annualizing to an increase of $211,381 with 2.0 FTE in FY 2017-18. The E-470 Public Highway Authority (Authority) has requested an increase in patrolling hours as referenced in the revised Intergovernmental Agreement between the Authority and the Patrol. Current Program As designated by the Patrol Act, C.R.S. 24-33.5-201, troopers are responsible for promoting safety, protecting human life and preserving highways of the state through strict enforcement of the laws and regulations of highway and traffic safety. Such duties include 24/7/365: traffic enforcement, accident mitigation, proactive policing to reduce fatal and injury crashes, and criminal interdiction. Since 1991, the Patrol has contracted with the Authority to provide 24/7/365 enforcement services as defined in the Patrol Act. Problem or Opportunity The Department has worked under the same FTE appropriation for the E-470 contract since 2005. However, traffic on the E-470 corridor has increased by 42 percent from 2005 to 2015. By 2020, the Authority estimates an additional traffic increase of 27 percent. The E-470 Public Highway Authority has requested the Patrol to increase patrolling hours beginning in FY 2016-17 to address the growth in highway usage. Consequences of Problem The ratio of troopers to Colorado residents on highways is decreasing, impacting the Patrol’s ability to address incremental safety needs caused by growth in population, driver’s licenses, vehicle miles traveled, and coupled with the growth along the E-470 highways. Reduced visibility decreases safety for the motoring public. For example, if this request is not approved the Patrol will continue to fail to meet Strategic Goals and Performance Measures such as reducing DUI/DUID caused fatal and injury crashes. Currently, DUI/DUID fatal and injury crashes have increased 6.9 percent in the last year, while the performance measure is set at decreasing these crashes and fatalities by 10 percent in 2014. Proposed Solution The addition of FTE and associated resources will allow the Department to deliver the necessary services essential to delivering the Patrol’s mission and ensuring standard operating duties are met, including traffic mitigations, highway patrols, and crash response investigations.
Priority: R-03 Jail Survey Study on Impacts of Marijuana Legalization FY 2016-17 Change Request
Cost and FTE The Department requests a one-time increase of $75,000 Cash Funds from the Marijuana Tax Cash Fund in FY 2016-17 to conduct a survey of jail inmates to determine the impacts on jail populations from the legalization of marijuana. There will be a $5,000 expense for a review from an Institutional Review Board and $70,000 to contract with a vendor for data collection. Current Program Pursuant to §24-33.5.516(1), C.R.S., the Division of Criminal Justice (DCJ) is mandated to study the public safety impact of retail marijuana. The county jails play a critical public safety role. If the expansion of retail marijuana is increasing the jail population, it is critical to understand the scope and nature of the increase, including understanding the crimes associated with the increase. Problem or Opportunity Officials from three county jails are reporting a large increase in jail population that is classified as homeless. The perception is that the increase coincides with the legalization of marijuana, while the reality of this connection is unknown. Conducting a survey of this population would provide knowledge-based information about this issue, subsequent public safety issues, and the impacts on the criminal justice system. Consequences of Problem
Anecdotal information does not help make the connection between the increase in jail homeless populations and legalized marijuana. The costs associated with jail incarceration vary between $50-$90/day, depending on the jurisdiction. The homeless are disproportionately represented in Colorado jails for a variety of offenses; however, the State currently does not know what these are, and therefore are unable to develop crime prevention programs aimed at this population. If homeless individuals are moving to Colorado to use recreational marijuana or to work in the industry, then the disproportionate incarceration will increase local jail costs, and the crimes that resulted in jail incarceration have a negative impact on public safety. In order to propose solutions, it is critical to understand the scope of the problem.
Proposed Solution The Department requests the $75,000 one-time funding for FY 2016-17 to conduct a survey of incoming inmates in a sample of jails to determine if legal marijuana use is linked to incarceration, homelessness, and criminal behavior. The outcome of this study will be the collection and analysis of accurate data on the homeless populations in the county jails surveyed. Data collected from this survey will allow DCJ to deliver a more complete picture of the impacts of marijuana legalization to the General Assembly, the Governor’s Office, and the public.
Priority: R-04 Leased Space True-up FY 2016-17 Change Request
Cost and FTE In order to align funding for leased space in the EDO Leased Space line, the Department requests a transfer of appropriated spending authority from the Division of Fire Prevention and Control (DFPC) operating line items to the Executive Director’s Office (EDO) Leased Space line item for FY 2016-17 and beyond, with a net reduction of $55,145 cash funds. Current Program The mission of the Colorado Division of Fire Prevention and Control (DFPC) is to safeguard those that live, work, learn and play in Colorado, by reducing threats to lives, property and the environment. The Division safeguards the public through: fire prevention and code enforcement; wildfire preparedness, response, suppression, coordination, and management; training and certification; public information and education; and technical assistance to local governments. Problem or Opportunity The Department’s appropriation for leased space in the EDO does not account for existing DFPC leases, and the Department needs to move spending authority from the Division’s operating line items into the EDO Leased Space line item. Effective July 1, 2012, H.B. 12-1283 transferred fire prevention and suppression functions from the Colorado State Forest Service (CSFS) to the DFPC as the Wildland Fire Management Section (WFMS). The program's responsibilities require staff to be strategically located around the state. When the program existed under CSFS, the majority of its staff was located in various CSFS-owned buildings. Only two staff members were located in commercial leased space contracted by CSFS. Because WFMS now exists within DFPC, the Department must provide leased space for more existing staff. Senate Bill 14-164 provided funding for DFPC to stand-up a Colorado Firefighting Air Corps. As a result, the Division procured additional leased space throughout the state for aviation resources and staff, in particular Single Engine Air Tanker (SEAT) bases and helicopter crews. The funding for these leases was included in the operating line items instead of the Leased Space line item. Consequences of Problem If the transfer of spending authority from operating appropriations to the EDO Leased Space line item is not approved, the Department will continue to pay for leases out of operating appropriations and not from the EDO Leased Space line item. Proposed Solution In order to align funding for leased space in the EDO Leased Space line, the Department requests a transfer of appropriation spending authority from DFPC operating appropriations to the EDO Leased Space line for FY 2016-17 and beyond, with a net reduction of $55,145 to the Department’s budget.
Priority: R-05 Eliminate Policing Institute Line Item FY 2016-17 Change Request
Cost and FTE The Department requests the elimination of the Colorado Regional and Community Policing Institute (CRCPI) line item. Elimination of the CRCPI line item will result in a decrease of ($100,000) spending authority, including ($50,000) Re-appropriated Funds and ($50,000) Federal Funds for FY 2016-17 and beyond. Current Program The Colorado Regional and Community Policing Institute (CRCPI) program was designed to enhance public safety throughout Colorado by strengthening the performance of Colorado law enforcement agencies and improving the overall quality of life for Colorado communities. This was accomplished through training, education, and technical assistance for Colorado law enforcement. Problem or Opportunity The Division of Criminal Justice (DCJ) within the Department of Public Safety no longer receives funding for the Colorado Regional and Community Policing Institute (CRCPI) program. Funding for this program was eliminated in 2011. The funding at the federal level was reduced from $1.5 billion to less than $200 million. In addition, the programmatic priorities shifted and the main focus became creating jobs and putting officers on the street. This was not part of the program at the state level. Consequences of Problem The Department’s annual budget will continue to be inaccurately reported in the Long Bill. Proposed Solution Eliminate the CRCPI line item from the DCJ Crime Control and System Improvement Section. Elimination of the line item will provide a more accurate and updated version of the funding and programs within DCJ.
Priority: R-06 Community Corrections Provider Rate Decrease FY 2016-17 Change Request
Cost and FTE The Department requests a decrease of ($658,873) General Fund for FY 2016-17 and beyond to account for a community provider rate decrease of 1.0 percent, which includes the Community Corrections Providers who contract with the Department of Public Safety (DPS). Current Program The Community Corrections Program provides funding to 36 community corrections providers, 22 boards, 53 programs, and all referral agencies. The recipients of the services are offenders housed in correctional facilities that are transitioning out into the community, diversion programs, and specialized services such as substance abuse treatment, offender assessments, intensive residential treatments and outpatient therapeutic community programs. For FY 2015-16, the Department was budgeted $65,887,342 in Community Corrections Program that is eligible for the provider rate decrease. Problem or Opportunity Based on the September 2015 forecast, the state projects a $400 million budget deficit for FY 201617. The 1.0 percent community provider rate decrease represents a decrease of per diem rates paid to providers in both the standard and specialized community corrections line items. Consequences of Problem
Should this request not be approved, alternative budget cuts will need to be determined.
Proposed Solution The Department requests a decrease of ($658,873) General Fund in the Office of Community Corrections to address a 1.0 percent community provider rate decrease. The decreased funding would offset a portion of the state’s projected budget deficit.
Priority: R-01 Annualize Terms of New Department Lease Agreement FY 2016-17 Change Request
Cost and FTE The Department requests that its Leased Space line item be adjusted to reflect the terms and savings of the Department’s newly executed lease for its space at 1560 Broadway. Specifically, this includes reducing spending authority by $2,374,717 total funds for FY 2016-17 associated with one-time savings. The request will annualize to $41,989 total funds for FY 2017-18, with annual adjustments each year after pursuant to the terms of the lease. Current Program The Department presently occupies consolidated space at 1560 Broadway in Denver to house operations of approximately 600 employees, over 300 board members, and 55 regulatory programs. The current rate is $18.10 per square foot for 165,764 square feet of space. The Department is in the tenth year of a 10-year agreement for this lease which expires June 30, 2016. For FY 2015-16, the Department is appropriated $3,193,641 for leased space, which includes $97,037 General Fund, $2,653,882 Cash Funds, $372,072 Reappropriated Funds and $70,650 federal funds. Problem or Opportunity New Lease Executed July 2016. After two years of planning efforts to determine options for future leased space, the Department executed a lease agreement for its existing 165,764 square feet beginning July 1, 2016 and ending March 31, 2027. This lease agreement includes a period of free rent between July 1, 2016 and March 31, 2017, resulting in one-time savings of over $2 million, followed by ten years of paid rent at an average rate of $22.77 per square foot. Follow-up from FY 2015-16 Cycle. The request is provided in follow-up to information and terms provided by the Department to the JBC during the last legislative session at the Department’s budget hearing and figure-setting presentations. Favorable Budget Impact. The budget impact of the new lease agreement is significantly less than expected in both the short and long term, owing to $4.2 million in rent credits, graduated lease escalations, and $2 million in up-front free rent. Consequences of Problem If the proposed solution is not approved, the Department will have significant excess spending authority in its leased space appropriation. Proposed Solution
The proposed solution is to reduce the Leased Space line item by $2.4 million in FY 2016-17 to capture one-time savings associated with the newly executed lease agreement. The Department will make annual adjustments pursuant to the terms of the lease for each year after through FY 2026-27 when the new leased expires.
Priority: R-01 Division of Motor Vehicles Funding Deficit FY 2016-17 Change Request
Cost and FTE The Department requests a net increase of $836,501 cash funds in the Division of Motor Vehicles (DMV) to support operations while continuing to improve DMV wait times, and to ensure an adequate supply of driver’s license documents to meet increasing demand. This request includes $3.2 million of spending authority from Highway User’s Tax Fund (HUTF) “Off-theTop” offset by a corresponding decrease of $2,363,499 in spending authority from the Licensing Services Cash Fund (LSCF) in FY 2016-17 and thereafter. Current Program The appropriations included in the DMV budget support administration, personal services, and operating expenses incurred in the operation of driver’s license offices. Revenue is collected from the issuance of driver’s licenses, commercial driver licenses, permits, and identification cards. In each of the fiscal years FY 2014-15 and FY 2015-16, the legislature approved one-time funding for the decision item “R-1, DMV Funding Deficit” as a General Fund appropriation to cover an operating gap between revenue and expenditures supporting the Driver’s Services section of the DMV. Problem or Opportunity As authorized by S.B. 14-194, the Department increased FY 2015-16 fees for driver’s license documents by an average of 16.5 percent. The Department increased most fees up to the 20 percent increase limit, except where limited to a lesser increase by the cost to provide the service or other constraints. Actual document issuance and issuance cost per document is expected to exceed the estimated amounts used in the FY 2015-16 decision item. Despite the increase in revenue from increasing fees, the LSCF is projected to continue to have a deficit in FY 2016-17 and beyond. Of this, $3.2 million is related to the amount of HUTF Off-the-Top support needed to address this deficit given the current operational activity. This deficit is in part due to the fact that the cost incurred to issue a driver’s license ($27.88) is greater than the fee the Department charges ($25.00), even after recent fee increases. Consequences of Problem Inadequate funding to fully finance DMV operations may result in a need for a reduction in workforce which will negatively impact customer service by increasing wait times. Current document issuance projections combined with the increased cost to issue each license, are estimated to result in an $836,501 shortfall in the Driver’s License Documents line item in FY 2016-17 that will inhibit the Department’s ability to meet the full demand for driver’s licenses, identification cards, and instruction permits. Proposed Solution
Based on the recommendation from the Governor’s Office of State Planning and Budgeting in support of their FY 2016-17 State-wide fiscal balancing strategy, the Department requests $3.2 million of ongoing HUTF Offthe-Top spending authority beginning in FY 2016-17 to fund the operating gap between revenue and expenditures related to customer demand in the DMV, offset by a reduction of $2,363,499 in spending authority from the LSCF. Dependent upon the $3.2 million spending authority from HUTF, the Department requests to shift $836,501 of Licensing Services Cash Fund spending authority from the Personal Services Line to the Driver’s License Documents line to provide adequate resources for growing document costs in FY 2016-17 and thereafter. This solution requires a legislative change to allow the Department to utilize HUTF Off-the-Top revenue.
Priority: R-02 Earned Income Tax Credit FY 2016-17 Change Request
Cost and FTE The Department requests $1,304,530 and 16.7 FTE in FY 2016-17, and $1,646,329 and 23.4 FTE in FY 2017-18 of ongoing General Fund appropriation for the cost to implement and regulate the refundable Earned Income Tax Credit (EITC). Current Program The Department’s Taxation Business Group is charged with the administration, collection, auditing, and enforcement of all taxes, fees, bonds, and licenses under Colorado tax laws. Article 10, Section 20 of the Colorado Constitution limits the amount of revenue the state may retain, spend, or save. Under this section, the Department is required to refund $153.6 million of FY 2014-15 revenue to taxpayers, a portion of which is refunded through the EITC. The EITC will be available during income tax year 2015 (refunded to taxpayers in 2016) and each year thereafter. Problem or Opportunity Based on the Internal Revenue Service’s (IRS’s) experience, refundable tax credits such as the federal EITC have high rates of taxpayer fraud and have high auditing requirements. The fraudulent activity is tied to the financial benefit of refundable credits, which allow a taxpayer a refund whether or not the taxpayer has a tax liability. For FY 2012-13, the IRS maintained that 24 percent (or $14.5 billion) of federal EITCs claimed were paid erroneously. Due to the complex auditing requirements combined with a complete conversion to a new tax system since the early 2000s when the EITC was last available, the Department does not currently have sufficient staff to implement or adequately regulate the EITC into the new tax system. Consequences of Problem Without the funding identified in this request, the Department will not have the resources to minimize fraud to the extent possible. The Department will not be able to adequately address taxpayer questions that arise from the credit, and the Department will have fewer resources to respond to other taxpayer calls. Proposed Solution Staff will provide up-front verification of filers to reduce the issuance of fraudulent refunds acquired through identity theft or other methods. Staff will also identify and resolve erroneous filings made to financially benefit from the credit. Staff will also provide call center assistance to persons with questions about the credit. Staff will be added to provide a review by the Department’s Discovery Section. This review is needed to identify EITCs that are granted by the IRS in error and thus, disallowed at the state level.
Priority: R-03 Postage Fund Mix Adjustment FY 2016-17 Change Request
Cost and FTE The Department requests a fund mix adjustment in FY 2016-17 and ongoing to shift $23,813 spending authority from General Fund to cash funds in the Executive Director’s Office Postage line item to align the appropriation with postage utilization. This request decreases General Fund spending authority and increases cash fund spending authority with no increase to the Department’s total appropriation. Current Program The Department of Revenue operates its own mail center due to the volume of mail it handles. The total FY 2015-16 Postage appropriation is $3,008,040, of which $2,670,430 is General Fund and $337,610 is cash funds. Problem or Opportunity Beginning in FY 2013-14, the Department experienced an increase in cash fund utilization due to an increase in marijuana postage expenses. The Department did not anticipate the full impact of increased postage expenses related to H.B. 13-1318, which established the regulatory structure for the sale of retail marijuana. To accommodate this increase, the Department shifted marijuana postage expenses to the Marijuana Enforcement line item that funds the program’s operations. In FY 2014-15, the Department experienced an overall increase in cash fund utilization due to the continued increase in marijuana postage expenses along with other cash funded division utilization increases. The General Fund appropriation in the Postage line item is adequate to implement the fund mix adjustment and still meet the General Fund postage needs of the Department. Consequences of Problem Without this request, the Department will continue to shift cash fund postage expenses to operating line items to accommodate the increase in cash fund postage utilization. This will reduce the amount of available spending authority to meet the operational needs of the Department’s impacted cash fund divisions. Proposed Solution The Department requests a fund mix adjustment in FY 2016-17 and ongoing in the amount of $23,813 from the General Fund to cash funds to align the appropriation with utilization.
Priority: R-4 Long Bill Alignment FY 2016-17 Change Request
Cost and FTE The Department requests a budget neutral alignment of the Long Bill in FY 2016-17 and ongoing for a clearer and more visible representation of the Department’s organizational structure. The alignment changes are implemented over two years, FY 2016-17 and FY 2017-18 Current Program The protest section of the Taxation Business Group processes taxpayer responses to Department Notices of Deficiency and handles accounts receivable. The Hearings Division conducts administrative hearings for the Department of Revenue and its constituent agencies. The majority of hearings consist of Division of Motor Vehicles (DMV) hearings. Non-DMV hearings include: taxation; auto industry salesperson licensing denials and disciplinary actions; determinations by the state licensing authority on state liquor license denial and discipline; the enforcement of laws relating to the prohibition of the sale of cigarettes and tobacco products to minors; denials of retail and medical marijuana applications and discipline of retail and medical marijuana license holders; and the denial or suspension of racing licenses or imposition of fines. Problem or Opportunity
Duties of the protest section have shifted from the Taxation and Compliance Division to the income and business tax sections of the Taxpayer Service Division because these sections are responsible for handling taxpayer inquiries based on the Department’s notices. The Hearings Division conducts hearings on behalf of a number of divisions in the Department. To ensure the division’s independence, objectivity, and fairness, the Hearings Division Director reports to the Deputy Director in the Executive Director’s Office. The Hearings Division is currently appropriated within the Enforcement Business Group of the Long Bill, despite the fact that it conducts hearings on behalf of numerous divisions throughout the Department.
Consequences of Problem If the Long Bill alignment does not occur, funding will be inconsistent with the operational structure of the Department. Proposed Solution For FY 2016-17, the Department requests a shift of $596,998 General Fund and 11.0 FTE from the Long Bill sub-group (B) Taxation and Compliance Division to sub-group (C) Taxpayer Service Division. The total consists of $586,548 and 11.0 FTE in the Personal Services line item and $10,450 in the Operating Expenses line item. For FY 2017-18, the Department requests that a new Long Bill sub-group titled (A) Administration and Support be created in group (1) Executive Director’s Office, and that the Hearings Division sub-group be moved from (5) Enforcement Business Group to (1) Executive Director’s Office under a new sub-group entitled (B) Hearings Division.
Department of Transportation
Priority: R-01 Heat Is On Campaign FY 2016-17 Change Request
Cost and FTE
This request seeks $500,000 from the Marijuana Tax Cash Fund in FY 2016-17 to increase funding for the Heat Is On campaign, a statewide impaired driving public education campaign.
Link to Operations
The Colorado Department of Transportation (CDOT) manages statewide public awareness campaigns to prevent impaired driving in Colorado, paired with heightened enforcement by the Colorado State Patrol and local law enforcement. Efforts include campaign planning and execution, data collection, training, and DUI enforcement under section 405(d) of the federal transportation authorization bill (“Moving Ahead for Progress in the 21st Century Act” or “MAP-21”).
Problem or Opportunity
Colorado has a new felony DUI law that strengthens consequences for repeat offenders, although many residents of Colorado remain unaware of this change in statute. Unique in the nation, Colorado has a Driving While Ability Impaired (DWAI) threshold, which makes Colorado one of the most stringent states in the country for DUI enforcement. The target audience for the public awareness campaign is males, ages 21-34, who have a higher binge risk and are likely to combine drugs and alcohol. This audience may also be less aware of DUI laws and consequences, including those involving drugs. The campaign’s main awareness message is “Drink & Don’t Drive” and the campaign’s main enforcement message is “Heat Is On.” CDOT’s current funding is not adequate to expand further education on the felony DUI law and the risks associated with all forms of impaired driving. Funding is needed for a program that supports data collection, campaign creative development and a larger statewide media reach.
Consequences of Problem
Approximately one-third of traffic fatalities in Colorado involve an impaired driver. Without a robust awareness campaign, DUI-related fatalities could increase.
Proposed Solution
Administration will provide strategy, development, management, consultation and evaluation. Creative Development will further the execution of CDOT’s “Heat Is On” and “Drink & Don’t Drive” campaign and focus group message testing. Media buying will consist of a one-year statewide media campaign directed primarily to the target audience, while Public Relations execute a year-long PR strategy to further campaign messaging.
Behavioral patterns and message retention will be measured to inform future campaign efforts.
111 State Capitol Denver, Colorado 80203
November 2, 2015
The Honorable Edward Vigil Chair, Capital Development Committee Colorado State Capitol Denver, Colorado 80203
RE: OSPB Submission of FY 2015-16 Prioritized Capital Construction Requests
Dear Representative Vigil, As required by Section 24-37-304 (1) (c.3) (I), C.R.S., please find attached the Governor’s Office of State Planning and Budgeting (OSPB) prioritization of capital construction requests for FY 2016-17. This submission includes two binders, both of which are provided to the Capital Development Committee (CDC) staff. This November 2 package includes the following: • • • •
A prioritized list of capital construction projects utilizing Capital Construction Funds; A non-prioritized list of capital construction projects utilizing 100 percent federal or cash funds, all recommended for funding; A prioritized list of controlled maintenance projects; and An updated assessment of the need for a General Fund transfer into the Capital Construction Fund, applying forecast assumptions based on an average between the OSPB and Legislative Council economic forecasts from September 2015.
OSPB has recommended only 13 capital construction projects for funding in FY 2016-17. This recommendation will continue projects begun in FY 2015-16, and represents the fullest extent to which available revenues will support capital construction expenditures. Please note that the Department of Higher Education (CDHE) and the Commission on Higher Education reserve the ability under Section 23-1-306 (7) (a), C.R.S. to submit a prioritized list to the Capital Development Committee that may include projects not recommended by OSPB. OSPB has delegated review of all 100 percent cash funded projects for institutions of higher education to the Department of Higher Education. These cash requests will be submitted directly to the Capital Development Committee by CDHE. OSPB did not approve any inflationary adjustments for the FY 2016-17 capital construction requests.
200 E. Colfax Ave, Room 111, Denver, Colorado 80203
P 303.866.3317
Table CC-A: General Fund Transfer for Capital Construction Projects Forecast FY 2016-17 Uncommitted balance from prior year and transfer from HB13-1020
Forecast FY 2017-18 $0
$0
1.15%
1.15%
Non-CERF transfers into CCF during 2010 session Interest from Prior Year
$0 $2,932,329
$0 $948,830
Funds available Capital Construction Projects Level I Controlled Maintenance
$2,932,329
$948,830
($10,250,821)
($20,000,000)
Level ll Controlled Maintenance
$0
$0
Interest Annual Percentage
CDOT Transportation Projects MHI -Suicide Risk Mitigation Projects DYC Facility Refurbishment for Safety and Risk Mitigation, Modernization GTLRR Locomotive
($500,000) ($1,867,586) ($3,689,500)
($500,000) $0 ($5,517,550)
($300,000)
$0
CSU Chemistry Building Addition
($12,471,940)
UNC Campus Commons
($15,000,000)
Colorado Mesa University , Health Science, Nurse Practitioner
($9,230,212)
Pueblo Community College, Davis Academic Building, Capital Renewal
($5,807,143)
Adams YSC Replacement
$0
$0
($3,000,000)
($14,845,503)
Public Safety Communications Network Microwave Infrastructure
($11,193,784)
($11,193,784)
Jones and Palmer Halls Renovation, School for the Deaf and Blind
($7,600,185)
Subtotal Capital Projects Approved For Funding Transfer bill Information Technology Projects DOC Offender Management Info Syst.
($80,911,171)
($52,056,837)
$0
($10,487,960)
Modernizing Child Welfare Care Mng Sys.
($4,709,617)
($4,709,617)
Interoperability
($1,061,188)
($1,061,188)
($5,770,805) ($86,681,976) $25,231,711 $58,517,936
($16,258,765) ($68,315,602)
Subtotal IT Projects Approved For Funding and Supplementals All Projects Remaining in CCF after FY 2015-16 Senate Bill 09-228 Transfer General Fund Need OSPB
$68,315,602
FY 2016-17 Capital Construction Requests
OSPB Priority 1 2
CCHE Priority
Department
Division or Institution
Request Title
N/A N/A
Recommend Funding Yes Yes
Level I CM Human Services
3
N/A
Yes
Human Services
4
Continuation 1
Yes
Higher Ed
Not Applicable Colorado Mental Health Institutes Division of Youth Corrections CSU-FC
5
Continuation 3
Yes
Higher Ed
MSU
7 8
Continuation 4 Continuation 5
Yes Yes
Higher Ed Higher Ed
UNC-Greeley Pueblo Community College
9
N/A
Yes
Human Services
10
N/A
Yes
Higher Ed
Division of Youth Corrections History Colorado
Level I Controlled Maintenance - Partial Human Services: Suicide Risk Mitigation Phase III Human Services: DYC Facility Refurbishment for Safety and Risk Mitigation Higher Education: CSU Chemistry Building Addition Higher Education: Colorado Mesa University, Health Science, Nurse Practitioner Higher Education: UNC Campus Commons Department of Higher Education, Pueblo Community College, Davis Academic Building Renovation Human Services: Adams YSC Replacement
History Colorado: Georgetown Loop Business Capitalization Program 11 N/A Yes Office of Not Applicable Office of Information Tech.: Public Safety Information Communications Network Microwave Technology Infrastructure 12 N/A Yes Education Colorado School for the Department of Education: Renovate Jones and Deaf and Blind Palmer Halls 13 N/A Yes Education Colorado School for the Transportation: CDOT Transportation Projects Deaf and Blind Total Capital Construction Requests Recommended for Funding by the Governor
FY 2016-17 Request CCF CF/RF $10,250,821 $0 $1,867,586 $0
CC/ CM/ CR CM CC
TF $10,250,821 $1,867,586
CC
$3,689,500
$3,689,500
$0
$0
CC
$12,471,940
$12,471,940
$0
$0
CC
$11,735,212
$9,230,212
$2,505,000
$0
CC CC
$29,502,929 $5,807,143
$15,000,000 $5,807,143
$14,502,929 $0
$0 $0
CC
$3,000,000
$3,000,000
$0
$0
CC
$400,000
$300,000
$100,000
$0
CC
$11,193,784
$11,193,784
$0
$0
CC
$7,600,185
$7,600,185
$0
$0
CC
$500,000
$500,000
$0
$0
$98,019,100
$80,911,171
$17,107,929
$0
Page 1
FF $0 $0
FY 2016-17 Capital Construction Requests
OSPB Priority 14
CCHE Priority N/A
Recommend Funding No
15
1
No
Higher Ed
Colorado Veterans Community Living Centers FRCC
16
1
No
Higher Ed
UC-Anschutz
17
3
No
Higher Ed
UC-Boulder
18
4
No
Higher Ed
CSM
19
5
No
Higher Ed
CMU
20
6
No
Higher Ed
CSU-FC
21
N/A
No
Military Affairs
Not Applicable
22 23
N/A N/A
No No
Military Affairs Military Affairs
Not Applicable Not Applicable
24
7
No
Higher Ed
PPCC
25
8
No
Higher Ed
CCD
26 27
8 10
No No
Higher Ed Higher Ed
WSCU OJC
28 29 30 31
10 12 13 14
No No No No
Higher Ed Higher Ed Higher Ed Higher Ed
ADD AHEC ASU CSU-FC
32
15
No
Higher Ed
ASU
33
16
No
Higher Ed
CMU
34 35 36
17 18 19
No No No
Higher Ed Higher Ed Higher Ed
CMU CSU-P CSU-P
37
20
No
Higher Ed
UNC-Greeley
Department Human Services
Division or Institution
Request Title Human Services: CVCLC Safety & Accessibility Improvements Higher Education: FRCC Larimer Campus Health Care and Career Center Higher Education: UC-Anschutz Interdisciplinary Building Higher Education: UC-Boulder Aerospace Engineering Science Building Higher Education: CSM Green Center Renovation Higher Education: CMU Computer Science and Engineering Building Higher Education: CSU-FC Warner College of Natural Resources Military Affairs: Grand Junction Veterans One Stop Military Affairs: Revere Contiguous Lot Military Affairs: Metro Denver Readiness Center Land Higher Education: PPCC Student Learning Commons and Black Box Higher Education: CCD Technology Infrastructure Higher Education: WSCU Savage Library Higher Education: OJC Agricultural Sciences Building Higher Education: ACC Learning Commons Higher Education: AHEC King Center Renewal Higher Education: ASU Plachy Hall Renewal Higher Education: CSU-FC Shepardson Renovation Higher Education: ASU Nielsen Library Renovation Higher Education: CMU Performing Arts Renovation Higher Education: CMU Trigeneration Higher Education: CSU-P Psychology Building Higher Education: CSU-P Information Technology Upgrades and Security Higher Education: UNC Wireless and Network Infrastructure Upgrade
FY 2016-17 Request CCF CF/RF $2,278,060 $0
CC/ CM/ CR CC
TF $2,278,060
CC
$26,563,971
$19,657,338
$6,906,633
$0
CC
$53,623,115
$22,800,000
$30,823,115
$0
CC
$5,503,300
$4,834,369
$668,931
$0
CC
$6,021,857
$6,021,857
$0
$0
CC
$7,462,688
$5,000,000
$2,462,688
$0
CC
$20,817,437
$10,000,000
$10,817,437
$0
CC
$2,697,546
$2,697,546
$0
$0
CC CC
$1,200,000 $2,500,000
$1,200,000 $2,500,000
$0 $0
$0 $0
CC
$6,550,995
$4,847,735
$1,703,260
$0
CC
$1,342,134
$993,179
$348,955
$0
CC CC
$10,848,007 $1,793,800
$10,648,007 $1,393,800
$200,000 $400,000
$0 $0
CC CC CC CC
$2,362,387 $41,790,000 $4,314,450 $4,527,223
$1,748,166 $41,370,000 $4,314,450 $4,527,223
$614,221 $420,000 $0 $0
$0 $0 $0 $0
CC
$13,865,176
$13,865,176
$0
$0
CC
$8,794,497
$8,007,041
$787,456
$0
CC CC CC
$6,875,702 $16,519,873 $3,944,430
$6,256,888 $16,519,873 $3,944,430
$618,814 $0 $0
$0 $0 $0
CC
$3,123,300
$3,123,300
$0
$0
Page 2
FF $0
FY 2016-17 Capital Construction Requests
OSPB Priority 38
CCHE Priority 21
Recommend Funding No
Higher Ed
UC-Denver
39
22
No
Higher Ed
UC-CS
40
23
No
Higher Ed
LCC
41
23
No
Higher Ed
OJC
42
25
No
Higher Ed
PCC
43
26
No
Higher Ed
LCC
44
N/A
No
Transportation
Not Applicable
45
N/A
No
Transportation
Not Applicable
46
N/A
No
Transportation
Not Applicable
Total Capital Construction Requests
Department
Division or Institution
Request Title Higher Education: UC-Denver Engineering and Physical Sciences Building Higher Education: UC-CS Engineering and Physical Sciences Building Higher Education: LCC Technology Infrastructure Higher Education: OJC Technology Infrastructure II Higher Education: PCC Critical Core Technology Infrastructure Higher Education: LCC Vocational Trades Building Transportation: I-25 Fiber Optic Communications Infrastructure Transportation: Mountain Pass Safety Improvements Transportation: I-70 Fall River Road Pedestrain Bridge
FY 2016-17 Request CCF CF/RF $45,114,407 $15,000,000
CC/ CM/ CR CC
TF $60,114,407
CC
$7,551,960
$7,551,960
$0
$0
CC
$644,400
$644,400
$0
$0
CC
$637,500
$637,500
$0
$0
CC
$1,490,050
$1,490,050
$0
$0
CC
$1,996,733
$1,996,733
$0
$0
CC
$6,000,000
$6,000,000
$0
$0
CC
$2,550,675
$2,550,675
$0
$0
CC
$899,828
$899,828
$0
$0
$435,224,601
$346,345,162
$88,879,439
$0
Page 3
FF $0
Row 1 2 3 4 5
6
Request Title Level I Controlled Maintenance Partial Human Services: Suicide Risk Mitigation Phase III Human Services: DYC Facility Refurbishment for Safety and Risk Mitigation Higher Education: CSU Chemistry Building Addition Higher Education: Colorado Mesa University, Health Science, Nurse Practitioner Higher Education: Metropolitan State University Aeorospace Engineering Sciences Building
Higher Education: UNC Campus Commons Department of Higher Education, Pueblo Community College, 8 Davis Academic Building Renovation Human Services: Adams YSC 9 Replacement History Colorado: Georgetown 10 Loop Business Capitalization Program Office of Information Tech.: Public Safety Communications 11 Network Microwave Infrastructure 7
12
Department of Education: Renovate Jones and Palmer Halls
13
Transportation: CDOT Transportation Projects
Total Capital Construction Requests Recommended for Funding by the Governor
TF
Prior Appropriations CCF CF
RF
FF
TF
FY 2016-17 Prioritized Capital Construction Funds (CCF) FY 2016-17 CCF CF RF FF
TF
FY 2017-18 Expected Impact CCF CF
RF
FF
TF
FY 2018-19 Expected Impact CCF CF
RF
FF
Ongoing
Ongoing
Ongoing
$0
$0
$10,250,821
$10,250,821
$0
$0
$0
$20,000,000
$20,000,000
$0
$0
$0
$20,000,000
$20,000,000
$0
$0
$0
$13,857,344
$10,377,154
$0
$0
$3,480,190
$1,867,586
$1,867,586
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$3,100,000
$3,100,000
$0
$0
$0
$3,689,500
$3,689,500
$0
$0
$0
$5,517,550
$5,517,550
$0
$0
$0
$5,552,500
$5,552,500
$0
$0
$0
$44,094,678
$38,694,678
$5,400,000
$0
$0
$12,471,940
$12,471,940
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$3,000,000
$3,000,000
$0
$0
$0
$11,735,212
$9,230,212
$2,505,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$39,404,160
$23,000,000
$16,404,160
$0
$0
$23,595,840
$0
$23,595,840
$0
$0
$44,030,740
$23,000,000
$21,030,740
$0
$0
$29,502,929
$15,000,000
$14,502,929
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$3,569,619
$3,569,619
$0
$0
$0
$5,807,143
$5,807,143
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,982,833
$1,982,833
$0
$0
$0
$3,000,000
$3,000,000
$0
$0
$0
$14,845,503
$14,845,503
$0
$0
$0
$0
$0
$0
$0
$0
$1,200,000
$900,000
$300,000
$0
$0
$400,000
$300,000
$100,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$11,151,036
$11,151,036
$0
$0
$0
$11,193,784
$11,193,784
$0
$0
$0
$11,193,784
$11,193,784
???
$0
$0
$11,193,784
$11,193,784
$0
$0
$0
$8,074,925
$8,074,925
$0
$0
$0
$7,600,185
$7,600,185
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$500,000
$500,000
$0
$0
$0
$500,000
$500,000
$0
$0
$0
$500,000
$500,000
$0
$0
$0
$0
$500,000
$0
$0
$0
$173,965,335
$127,350,245
$43,134,900
$0 $3,480,190
$121,614,940
$80,911,171
$40,703,769
$0
$0
$52,056,837
$52,056,837
$0
$0
$0
$36,746,284
$37,246,284
$0
$0
$0
Page 4
Row
Request Title
14
Human Services: CVCLC Safety & Accessibility Improvements
Higher Education: FRCC 15 Larimer Campus Health Care and Career Center 16
17 18 19
20 21 22 23
Higher Education: UC-Anschutz Interdisciplinary Building Higher Education: UC-Boulder Aerospace Engineering Science Building Higher Education: CSM Green Center Renovation Higher Education: CMU Computer Science and Engineering Building Higher Education: CSU-FC Warner College of Natural Resources Military Affairs: Grand Junction Veterans One Stop Military Affairs: Revere Contiguous Lot Military Affairs: Metro Denver Readiness Center Land
Higher Education: PPCC Student 24 Learning Commons and Black Box Higher Education: CCD 25 Technology Infrastructure Higher Education: WSCU 26 Savage Library 27 28 29 30 31 32 33 34 35 36
37
38
39 40 41
Higher Education: OJC Agricultural Sciences Building Higher Education: ACC Learning Commons Higher Education: AHEC King Center Renewal Higher Education: ASU Plachy Hall Renewal Higher Education: CSU-FC Shepardson Renovation Higher Education: ASU Nielsen Library Renovation Higher Education: CMU Performing Arts Renovation Higher Education: CMU Trigeneration Higher Education: CSU-P Psychology Building Higher Education: CSU-P Information Technology Upgrades and Security Higher Education: UNC Wireless and Network Infrastructure Upgrade Higher Education: UC-Denver Engineering and Physical Sciences Building Higher Education: UC-CS Engineering and Physical Sciences Building Higher Education: LCC Technology Infrastructure Higher Education: OJC Technology Infrastructure II
Prior Appropriations CCF CF
TF
RF
FF
TF
FY 2016-17 Prioritized Capital Construction Funds (CCF) FY 2016-17 CCF CF RF FF
TF
FY 2017-18 Expected Impact CCF CF
RF
FF
TF
FY 2018-19 Expected Impact CCF CF
RF
FF
$0
$0
$0
$0
$0
$2,278,060
$2,278,060
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$26,563,971
$19,657,338
$6,906,633
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$53,623,115
$22,800,000
$30,823,115
$0
$0
$74,402,402
$30,823,115
$43,579,287
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$5,503,300
$4,834,369
$668,931
$0
$0
$74,896,700
$23,456,347
$51,440,353
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$6,021,857
$6,021,857
$0
$0
$0
$53,605,320
$17,829,014
$35,776,306
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$7,462,688
$5,000,000
$2,462,688
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$20,817,437
$10,000,000
$10,817,437
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0 $0
$0
$0
$0
$0
$2,697,546
$2,697,546
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,200,000
$1,200,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,500,000
$2,500,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$6,550,995
$4,847,735
$1,703,260
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,342,134
$993,179
$348,955
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$10,848,007
$10,648,007
$200,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,793,800
$1,393,800
$400,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,362,387
$1,748,166
$614,221
$0
$0
$3,025,909
$2,239,173
$786,736
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$41,790,000
$41,370,000
$420,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$4,314,450
$4,314,450
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$4,527,223
$4,527,223
$0
$0
$0
$13,482,700
$13,482,700
$0
$0
$0
$15,585,578
$6,585,578
$9,000,000
$0
$0
$0
$0
$0
$0
$0
$13,865,176
$13,865,176
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$8,794,497
$8,007,041
$787,456
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$6,875,702
$6,256,888
$618,814
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$16,519,873
$16,519,873
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$3,944,430
$3,944,430
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$3,123,300
$3,123,300
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$60,114,407
$45,114,407
$15,000,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$7,551,960
$7,551,960
$0
$0
$0
$22,827,394
$22,827,394
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$644,400
$644,400
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$637,500
$637,500
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Page 5
Row
Request Title
Prior Appropriations CCF CF
TF
RF
FF
TF
FY 2016-17 Prioritized Capital Construction Funds (CCF) FY 2016-17 CCF CF RF FF
TF
FY 2017-18 Expected Impact CCF CF
RF
FF
TF
FY 2018-19 Expected Impact CCF CF
RF
FF
42
Higher Education: PCC Critical Core Technology Infrastructure
$0
$0
$0
$0
$0
$1,490,050
$1,490,050
$0
$0
$0
$0
$0
$0
$0
$0
$0
43
Higher Education: LCC Vocational Trades Building
$0
$0
$0
$0
$0
$1,996,733
$1,996,733
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Transportation: I-25 Fiber Optic 44 Communications Infrastructure
$0
$0
$0
$0
$0
$6,000,000
$6,000,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,550,675
$2,550,675
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$899,828
$899,828
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0 $3,480,190
$458,820,441
$346,345,162
$112,475,279
$0
$0
$294,297,262
$162,714,580
$131,582,682
$0
$0
$52,831,862
$43,831,862
$9,000,000
$0
$0
Transportation: Mountain Pass 45 Safety Improvements Transportation: I-70 Fall River 46 Road Pedestrain Bridge Total Capital Construction Requests
$0
$0
$0
$173,965,335
$127,350,245
$43,134,900
Page 6
FY 2015-16 Capital Construction Cash Fund Requests Row
Department
Division or Institution
Request Title
CC/ CM/ CR
TF
CCF
CF
RF
FF
HUTF
Department of Agriculture: Biochemistry Laboratory Facility Pesticide Laboratory Augmentation Department of Corrections: Colorado Correctional Industries Small Projects
CC
$1,220,000
$0
$1,220,000 $0
$0
$0
CC
$660,000
$0
$660,000 $0
$0
$0
1
Agriculture
Not Applicable
2
Corrections
Colorado Correctional Industries
3
History Colorado
Historical Society
History Colorado: Regional Property Preservation Project
CC
$700,000
$0
$700,000 $0
$0
$0
4
Human Services
Regional Centers
Department of Human Services: Regional Center Capital Improvements Phase 1 Depreciation Fund Request
CC
$979,884
$0
$979,884 $0
$0
$0
5
Natural Resources
Wildlife
Natural Resources: Land and Water Acquisitions, Wildlife
CC
$9,300,000
$0
$9,300,000 $0
$0
$0
6
Natural Resources
Parks
Natural Resources: Park Infrastructure and Facilities, State Parks
CC
$19,837,320
$0
$19,837,320 $0
$0
$0
7
Natural Resources
Wildlife
Natural Resources: Infrastructure and Real Property Maintenance , Wildlife
CC
$3,799,502
$0
$3,799,502 $0
$0
$0
8
Natural Resources
Parks
CC
$950,000
$0
$950,000 $0
$0
$0
CC
$1,145,000
$0
$0 $0
$0 $1,145,000
$38,591,706
$0
$37,446,706 $0
$0 $1,145,000
Natural Resources: Land and Water Acquisitions, State Parks 9 Public Safety Colorado State Patrol Public Safety: Loma Replacement Eastbound POE Total Cash Funded Requests Approved for Funding by the Governor
Page 7
Row
Request Title
1
Department of Agriculture: Biochemistry Laboratory Facility Pesticide Laboratory Augmentation Department of Corrections: Colorado Correctional Industries Small Projects History Colorado: Regional Property Preservation Project Department of Human Services: Regional Center Capital Improvements Phase 1 Depreciation Fund Request
2
3 4
5 6
7
8
9
Natural Resources: Land and Water Acquisitions, Wildlife Natural Resources: Park Infrastructure and Facilities, State Parks Natural Resources: Infrastructure and Real Property Maintenance , Wildlife Natural Resources: Land and Water Acquisitions, State Parks
TF CCF $1,220,000 $0
Total CF $1,220,000
$1,320,000
$0
$1,400,000 $2,913,779
FF
HUTF
TF
FY 2015-16 Capital 100% Cash and Federal Funds Prior Appropriations FY 2016-17 CCF CF FF HUTF TF CCF CF $0 $0 $0 $0 $0 $1,220,000 $0 $1,220,000
$0
$0
$1,320,000
$0
$0
$660,000
$0
$660,000 $0
$0
$660,000
$0
$0
$1,400,000
$0
$0
$700,000
$0
$700,000 $0
$0
$700,000
$0
$2,913,779
$0
$0
$0
$0
$0 $0
$0
$979,884
FF
HUTF
TF
$0
$0
$660,000
$0
$0
$0
$700,000
$0
$0
$979,884
$0
FY 2017-18 Expected Impact CCF CF FF HUTF $0 $0 $0 $0 $0
$0
$0
$0 $0
$0
$0
$0
$0
$963,472
$0
$0 $0
$0
$963,472 $0
TF
FY 2018-19 Expected Impact CCF CF FF HUTF $0 $0 $0 $0 $0
$0
$0
$0 $0
$0
$0
$0
$0
$970,423
$0
$0 $0
$0
$0
$970,423 $0
$0
Ongoing
$0
Ongoing
$0
$0
Ongoing
$0
Ongoing $0
$0
$9,300,000
$0
$9,300,000
$0
$0
$9,300,000
$0
$9,300,000 $0
$0
$9,300,000
$0
$9,300,000 $0
$0
Ongoing
$0
Ongoing
$0
$0
Ongoing
$0
Ongoing $0
$0
$19,837,320
$0
$19,837,320
$0
$0
$0
$0
$0 $0
$0
$0
$0
$0 $0
$0
Ongoing
$0
Ongoing
$0
$0
Ongoing
$0
Ongoing $0
$0
$3,799,502
$0
$3,799,502
$0
$0
$0
$0
$0 $0
$0
$0
$0
$0 $0
$0
Ongoing
$0
Ongoing
$0
$0
Ongoing
$0
Ongoing $0
$0
$950,000
$0
$950,000
$0
$0
$950,000
$0
$950,000 $0
$0
$950,000
$0
$950,000 $0
$0
$0
$2,290,000
$1,145,000
$0
$0 $0
$1,145,000
$1,145,000
$0
$0
$0
$1,145,000
$0
$0
$0 $0
$0
$0
$0
$0
$0
Public Safety: Loma Replacement $2,290,000 $0 $0 Eastbound POE $9,143,779 $0 $6,853,779 $0 Total Cash Funded Requests Recommended for Funding by the Governor
$2,290,000
$2,505,000
$0
$1,360,000
$0 $1,145,000 $38,591,706
$0
$37,446,706
$0
$1,145,000
$11,213,472
$0
$11,213,472
$0 $0
$11,220,423
$0
$11,220,423
Page 8
$0 $0
Reference Number LEVEL 1 1
Score Agency Name
1
Controlled Maintenance FY 2015-16 Project Title, Phasing Project Funding Number Recommendation
Office of the State Architect University of Colorado at Boulder
Emergency Fund,
Project Balance
Cummulative Total
M80120
$2,000,000
$0
$2,000,000
Renovate Fire Sprinklers 2016and HVAC System, 055M15 SLHS, Ph 2 of 2
$793,198
$0
$2,793,198
University of Northern Colorado Department of Corrections
Fire Sprinkler Upgrades, 2015Seven Buildings, Ph 3 of 075M14 3 Improve Fire Suppression Systems, CCF, Ph 1 of 2
$1,126,460
$0
$3,919,658
$782,647
$1,033,643
$4,702,305
2
4
3
4
4
4
5
4
History Colorado
Georgetown Loop 2015Railroad Fire Mitigation, 084M14 Area B, Ph 3 of 3
$405,689
$0
$5,107,994
6
4
Northeastern Junior College
$467,500
$525,500
$5,575,494
7
4
Otero Junior College
$647,500
$500,000
$6,222,994
8
4
Pikes Peak Community College
$1,071,012
$0
$7,294,006
9
4
Pueblo Community College
Install Electronic Door Access System and Camera System, Ph 1 of 2 Repair/Upgrade Campus Security Access and Electronic Locks, Ph 1 of 2 Security Upgrades, Doors and Electronic Access System, Centennial & Rampart Building and Commons Area Security Upgrades, Three Campuses, Ph 1 of 2
$913,208
$962,550
$8,207,214
10
4
Front Range Community College
$1,037,689
$0
$9,244,903
11
4
$1,005,918
$1,948,966
$10,250,821
$10,250,821 $1,651,869
$4,970,659 $0
$10,250,821 $11,902,690
$343,275
$1,297,147
$12,245,965
$754,965
$803,628
$13,000,930
$578,643
$714,389
$13,579,573
Upgrade Campus Exterior and Interior Security, Westminster and Larimer Campuses Department of Upgrade Electronic Human Services Security Systems, Four DYC Centers, Ph 1 of 3
Recommended Funding TOTAL 12 5 Western State Colorado University 13 5 Colorado School of Mines
14
6
15
6
Upgrade HVAC Control System, Hurst Hall, Ph 1 of 1 Replace Hazardous 2016Laboratory Fume 056M15 Controls, Campus, Ph 2 of 4 Campus Fire Sprinkler 2015-081M Upgrades, Ph 3 of 5
University of Colorado at Boulder Auraria Higher Replace/Upgrade Fire Alarm Systems, Multiple Education Center Buildings, Ph 1 of 3
Page 9
Reference Number
Score Agency Name
16
6
17
6
18
6
19
8
20
8
21
8
University of Colorado Denver
22
8
Department of Corrections
23
8
Fort Lewis College
24
8
Adams State University
25
8
Colorado State University
26
10
27
10
28
10
29
10
30
10
LEVEL 1 TOTAL
Project Title, Phasing
Colorado State University Department of Military and Veterans Affairs
Repair College Lake Dam, Ph 2 of 2 Site Flood Mitigation, Building Envelope Repairs, Watkins Readiness Center, Ph 1 of 2 Department of Improve Perimeter Corrections Security, DRDC and DWCF, Ph 1 of 1 Office of Replace Microwave Site Information Towers - B Group, Ph 3 Technology of 3 Auraria Higher Tenth Street Pedestrian Education Corridor ADA Center Improvements, Ph 3 of 3
Project Number M13016
Funding Recommendation
Project Balance
Cummulative Total
$344,708
$0
$13,924,281
$667,130
$271,210
$14,591,411
$1,870,550
$0
$16,461,961
2015079M14
$1,072,335
$0
$17,534,296
M13049
$588,988
$0
$18,123,284
$742,193
$0
$18,865,477
$798,180
$0
$19,663,657
$650,911
$0
$20,314,568
$1,514,508
$0
$21,829,076
$800,865
$0
$22,629,941
$512,062
$0
$23,142,003
$996,364
$0
$24,138,367
$677,019
$0
$24,815,386
$321,860
$0
$25,137,246
$990,000
$0
$26,127,246
$26,127,246
$8,057,033
$26,127,246
Fire Detection System Replacement, 400 Building Series, Ph 1 of 1 Fire Alarm System Replacement and Fire Suppression Improvements, LCF, Ph 1 of 1 Pedestrian ADA Accessibility and Safety Improvements, Campus, Ph 1 of 1 Upgrade HVAC, Music Building, Ph 1 of 1
HVAC Upgrades, Chemistry Building, Ph 1 of 1 Department of Upgrade Building M13052 Human Services Automation System, Ph 3 of 3 University of Fire Sprinkler Upgrades, Northern McKee Building, Ph 1 of Colorado 1 University of Mitigation/Control of 2016-060M Colorado at Flood Water, Campus, Boulder Ph 2 of 2 Colorado State Flood Protection in University Tunnels and Heating Plant, Main Campus, Ph 1 of 1 Capitol Rehabilitate Elevators, Complex 690/700 Kipling and Facilities (DPA) Grand Junction Buildings, Ph 1 of 1
Page 10
Reference Number LEVEL 2 31
Score Agency Name
Project Title, Phasing
Project Number
Funding Recommendation
Project Balance
Cummulative Total
$589,977
$1,176,737
$26,717,223
$912,378
$1,493,939
$27,629,601
$1,139,615
$0
$28,769,216
$1,220,000
$1,563,841
$29,989,216
$312,498
$184,471
$30,301,714
Replace Fire Alarm System, AVCF, Ph 1 of 1
$634,780
$0
$30,936,494
Fire Sprinkler and HVAC Renovation, Education Building, Ph 1 of 3 Replace Electrical Switchgear, Building 500, Ph 1 of 3 Replacement of Chiller and HVAC Controls, TCF, Ph 1 of 1
$1,277,234
$2,394,803
$32,213,728
$690,989
$1,498,975
$32,904,717
$590,958
$0
$33,495,675
Colorado Community College System at Lowry
Install New Boilers, Chillers, AHUs, and Upgrade Controls, Building 697, Ph 1 of 1
$1,566,244
$0
$35,061,919
12
History Colorado
$269,596
$335,784
$35,331,515
42
12
Exterior Upgrades and ADA Accessibility, Grant Humphreys Mansion, Ph 1 of 2 Replace Boiler #3, Heating Plant, Ph 1 of 2
$1,528,254
$1,183,009
$36,859,769
43
14
University of Northern Colorado Department of Repair/Replace Roofs, Human Services CMHIFL, Ph 2 of 3
2015117M14
$1,044,775
$1,296,544
$37,904,544
44
14
$796,070
$0
$38,700,614
45
14
Roof Replacement M13019 Art/Music/Music Classroom, Ph 2 of 2 Replace Roof on Construction Technology Building, Ph 1 of 1
$573,925
$0
$39,274,539
12
Colorado State University
32
12
33
12
34
12
35
12
University of Colorado at Colorado Springs Colorado Repair/Safety Upgrade School for the Locker Room, Hubert Deaf and Blind Work Gymnasium, Ph 1 of 1 Front Range Replace Central Plant, Community Westminster Campus, Ph College 1 of 2 Colorado Campus Steam Branch 2014School of Mines Repairs, Ph 2 of 3 070M14
36
12
Department of Corrections
37
12
University of Colorado at Boulder
38
12
39
12
University of Colorado Denver Department of Corrections
40
12
41
Colorado State University Pueblo Red Rocks Community College
Replacement of Mechanical System, Bioenvironmental Research Building, Ph 1 of 3 Replace RTUs and Roof, Section C, University Hall, Ph 1 of 4
Page 11
Reference Number
Score Agency Name
Project Title, Phasing
46
14
47
14
48
14
49
14
50
14
51
14
52
14
Capitol Fire Alarm System Complex Upgrades at Centennial Facilities (DPA) Building, Ph 1 of 1
53
14
Colorado State University
54
14
State Fair Pueblo (CDA)
55
14
Office of Information Technology
56
14
Trinidad State Junior College
57
14
58
14
Department of Corrections
59
14
Adams State University
Project Number
Arapahoe Community College State Capitol Building (DPA)
Roof Replacement, South Building, Ph 1 of 1 Rehabilitate/Restore Exterior Windows and Facade, Ph 1 of 3 Pikes Peak Repair Exterior Community Walkways, Aspen College Building, Centennial Campus, Ph 1 of 1 Department of Replace Boiler Human Services Economizer, Central Plant, CMHIP, Ph 1 of 1
Funding Recommendation
Project Balance
Cummulative Total
$892,068
$0
$40,166,607
$1,180,000
$2,360,000
$41,346,607
$777,251
$0
$42,123,858
$974,857
$0
$43,098,715
$349,100
$0
$43,447,815
$1,048,523
$589,665
$44,496,338
$1,288,125
$0
$45,784,463
$943,285
$918,679
$46,727,748
$1,013,203
$1,057,325
$47,740,951
$585,046
$0
$48,325,997
$1,710,460
$0
$50,036,457
$262,445
$406,793
$50,298,902
Primary Electrical System Improvements, CTCF, Ph 1 of 4
$987,939
$3,536,180
$51,286,841
Roof Replacement, Various Buildings, Ph 1 of 2
$282,948
$501,785
$51,569,789
Department of Envelope Repairs, ACM Military and Remediation and Fire Veterans Affairs Detection, Longmont Readiness Center, Ph 1 of 1 Department of Replace HVAC System, M13062 Revenue 1881 Pierce, Ph 3 of 4
Replace/Repair Failing Walls, Pickett Center, Ph 1 of 2 Repair/Replace Water, 2015Sanitary, and Storm 100M14 Water Infrastructure on Fairgrounds, Ph 2 of 3 Replace Microwave Site 2015Rectifiers/Chargers, B 120M14 Group, Ph 2 of 2
Improvements to the HVAC System, Windows, and Indoor Air Quality, Berg Building, Ph 1 of 1 Auraria Higher Arts 191 Telecom EPO Education Replacement, Ph 1 of 2 Center
Page 12
Reference Number
Score Agency Name
60
15
Colorado Northwestern Community College Lamar Community College Department of Human Services
61
15
62
15
63
15
Colorado Community College System at Lowry
64
15
Pikes Peak Community College
65
15
Department of Corrections
66
15
Fort Lewis College
67
15
68
15
69
Project Title, Phasing
Project Number
Project Balance
Cummulative Total
$321,490
$0
$51,891,279
$300,084
$0
$52,191,363
$1,329,022
$1,564,948
$53,520,385
$481,194
$0
$54,001,579
Fire Sprinkler System Improvements, Centennial Campus, Ph 1 of 2 Critical Roof 2015Replacement, SCF, Ph 2 187M14 of 2 Replace Roof and Improve Drainage, ADA Access, Miller Student Services, Ph 1 of 2
$967,621
$543,649
$54,969,200
$744,098
$0
$55,713,298
$240,500
$970,321
$55,953,798
University of Colorado at Boulder Colorado Mesa University
Exterior Concrete Repairs, Engineering Center, Ph 1 of 1 Repair Roof, Horace Wubben Hall, Ph 1 of 1
$619,330
$0
$56,573,128
$428,824
$0
$57,001,952
15
Department of Public Safety
$740,300
$0
$57,742,252
70
16
Colorado State University
$196,052
$0
$57,938,304
71
16
$881,639
$0
$58,819,943
72
16
Morgan Community College Northeastern Junior College
Repairs/Upgrades to Mechanical and Electrical Systems, Three CSP Field Offices, Ph 1 of 1 Upgrade Vivarium HVAC, Pathology Building, Ph 1 of 1 Replace Campus Irrigation System, Ph 1 of 1 Replace Campus Main 2015Transformers, Ph 2 of 2 101M14
$121,482
$0
$58,941,425
73
16
$379,059
$389,089
$59,320,484
74
16
Building 500 Elevator 2015Code Deficiencies and 097M14 Repairs, Ph 2 of 3 Repair/Upgrade Automotive Classroom, Annex Building, Ph 1 of 1
$742,808
$0
$60,063,292
University of Colorado Denver Arapahoe Community College
Replace HVAC System, Allred-Real Building, Rangely Campus, Ph 1 of 1 Modernize Walkway Lighting, North Campus, Ph 1 of 1 Repair/Replace HVAC 2011Systems in A, B, C, D 124M14 and E Buildings, CMHIFL, Ph 2 of 3 Replace Chiller, Building 903, Ph 1 of 1
Funding Recommendation
Page 13
Reference Number
Score Agency Name
75
16
76
18
77
18
78
20
79
80
Project Title, Phasing
Department of Repair/Replace Human Services Emergency and Secondary Electrical Systems, CMHIP, Ph 1 of 3 Colorado Mesa Repair Roof, Building B, University Western Colorado Community College, Ph 1 of 1 University of Upgrades to HVAC, Colorado VAV Distribution and Denver Zone Control, Building 500, Ph 1 of 5
Funding Recommendation
Project Balance
Cummulative Total
$1,026,292
$2,157,726
$61,089,584
$495,128
$0
$61,584,712
$766,892
$2,759,484
$62,351,604
Colorado Replace North Side School for the Steam Line, Ph 1 of 2 Deaf and Blind
$356,420
$276,940
$62,708,024
20
Colorado Campus Chiller Repairs, School of Mines Ph 1 of 1
$629,579
$0
$63,337,603
20
Pueblo Community College
$636,551
$0
$63,974,154
$37,846,908
$29,160,687
$63,974,154
$1,109,501
$0
$65,083,655
$1,448,121
$4,582,343
$66,531,776
$1,194,635
$0
$67,726,411
Replace Boiler, Controls System and Clean Building Ducts, Health Sciences Building, Ph 1 of 1
LEVEL 2 TOTAL LEVEL 3 81
Project Number
21
Colorado State University
Replace Obsolete Building Automation Control System, Ph 1 of 1 HVAC Upgrades and IAQ Improvements, Electrical Engineering Center, Ph 1 of 4 Upgrade Campus Security and Life Safety Infrastructure Systems, Westminster and Larimer Campuses, Ph 1 of 1
82
21
University of Colorado at Boulder
83
21
Front Range Community College
84
21
Colorado Replace Roof, Building Community 697, Ph 1 of 1 College System at Lowry
$295,054
$0
$68,021,465
85
21
Department of Corrections
$844,376
$0
$68,865,841
Replace Boiler and Combustion Controls, FCF, Ph 1 of 1
Page 14
Reference Number
Score Agency Name
Project Title, Phasing
Project Number
Funding Recommendation
Project Balance
Cummulative Total
86
21
Colorado State University
Upgrade HVAC System, Moby Arena, Ph 1 of 2
$1,048,513
$1,046,205
$69,914,354
87
21
$0
$70,149,559
21
$1,055,043
$0
$71,204,602
89
24
Roadway Repair and Curb, Gutter, Drain Replacement, Mt. Lion Way, Ph 1 of 1 Replace Roof, CCF, Ph 1 of 1 Replace Absorber and Repair the Main Chilled Water Loop, Downtown Complex, Ph 1 of 2
$235,205
88
University of Colorado at Colorado Springs Department of Corrections Capitol Complex Facilities (DPA)
$1,541,293
$936,541
$72,745,895
90
24
University of Colorado Denver
$456,306
$0
$73,202,201
91
24
Western State Colorado University
Upgrade Electrical Cable and Switches, 400 Building Series, Ph 1 of 1 Repair/Replace Roofing System, Three Buildings, Ph 1 of 3
$510,181
$830,959
$73,712,382
92
24
Adams State University
Replace Sidewalk Curb and Gutter, Ph 1 of 2
$517,916
$439,050
$74,230,298
93
24
Colorado State University
Replace West Roof, Painter Center, Ph 1 of 1
$157,351
$0
$74,387,649
94
24
Colorado Upgrade Electrical Community Systems/Panels, Multiple College System Buildings, Ph 1 of 1 at Lowry
$366,974
$0
$74,754,623
95
24
Auraria Higher Replace/Repair North Education Chiller Plant Chilled Center Water Lines, Ph 1 of 1
$349,452
$0
$75,104,075
96
24
Colorado State University
$917,911
$0
$76,021,986
97
24
Pueblo Community College
$365,700
$0
$76,387,686
Replace Steam Heating System, Shepardson, Ph 1 of 1 Install Heat Exchanger and Associated Pumps and Controls, MT Building, Pueblo Campus, Ph 1 of 1
Page 15
Reference Number
Score Agency Name
98
24
99
24
100
24
101
24
102
24
103
24
104
24
105
24
106
24
107
24
108
24
109
24
110
28
111
28
112
28
Project Title, Phasing
Red Rocks Community College Department of Revenue Department of Corrections
Repair/Replace Electrical Service, Ph 1 of 1 Rehabilitate Elevators, 1881 Pierce, Ph 1 of 1 Freezer Cooler Equipment Repair and Replacement, CDOC, Ph 1 of 2 Department of Upgrades to HVAC Human Services Systems, Group Homes, Regional Centers, Ph 1 of 2 State Capitol Repair/Replace Building (DPA) Plumbing Systems and Sub Basement Steam System, Capitol, Ph 1 of 3 Pikes Peak Reroof Sections 5 and 6 Community of Aspen Building, College Centennial Campus, Ph 1 of 1 Colorado Replace Roof and Repair Talking Book Parking Lot Water Library Drainage, Colorado Talking Book Library, Ph 1 of 1
Project Number
Funding Recommendation
Project Balance
Cummulative Total
$282,300
$0
$76,669,986
$266,200
$0
$76,936,186
$698,474
$537,087
$77,634,660
$956,252
$993,930
$78,590,912
$1,464,000
$2,928,000
$80,054,912
$1,061,876
$0
$81,116,788
$364,200
$0
$81,480,988
Roof Replacement, Laboratory Building, Ph 1 of 1
$1,443,429
$0
$82,924,417
Boiler Replacements, Eight Buildings, Ph 1 of 2 Replace Roof, Fine Arts, Ph 1 of 1
$531,850
$695,000
$83,456,267
$271,854
$0
$83,728,121
Department of Repair/Replace Roofs Human Services (1st Tier), CMHIP, Ph 1 of 3 Camp George Repair/Upgrade/Asses West (DPA) Storm Drainage and Underground Utilities, Ph 1 of 1 Capitol Rehabilitate Elevators, Complex 1570 Grant Building, Ph Facilities (DPA) 1 of 1
$1,058,786
$2,410,287
$84,786,907
$495,000
$0
$85,281,907
$467,500
$0
$85,749,407
$958,925
$716,028
$86,708,332
$875,544
$1,758,802
$87,583,876
Department of Public Health and Environment Colorado State University Pueblo Colorado Mesa University
Lamar Community College
Upgrade Accessibility Code Compliance, Bowman and Administration Buildings, Ph 1 of 2 Department of Repair/Replace Roofs Human Services and HVAC Systems, GJRC, Ph 1 of 3
Page 16
Reference Number
Score Agency Name
113
30
114
30
115
30
116
30
117
32
118
32
119
36
LEVEL 3 TOTAL GRAND TOTAL
Project Title, Phasing
Project Number
Funding Recommendation
Project Balance
Cummulative Total
Department of Building Systems and Military and Security Repairs, Denver Veterans Affairs Readiness Center, Ph 1 of 1 Colorado Install New Boiler, Community Pumps, and Controls, College System Building 840, Ph 1 of 1 at Lowry
$495,290
$0
$88,079,166
$314,205
$0
$88,393,371
Colorado Repairs to Building School of Mines Envelope, Lakes Library, Ph 1 of 1 Colorado Mesa Replace Roof, University Admissions Offices, Ph 1 of 1 Front Range Modernize/Upgrade Community Three Elevators, College Westminster Campus, Ph 1 of 1 Department of Replace HVAC Human Services Equipment, Building 49 and Replace Water Softeners, Building 118, CMHIP, Ph 1 of 1
$430,843
$0
$88,824,214
$212,168
$0
$89,036,382
$378,103
$0
$89,414,485
$840,349
$0
$90,254,834
Colorado Remove Underground School for the Storage Tank, Ph 1 of 1 Deaf and Blind
$139,397
$0
$90,394,231
$26,420,077 $90,394,231
$26,420,077 $63,637,797
$90,394,231
Page 17
CCHE Approved FY 2015-16 State Funded Capital Priorities List Priority
Institution
Continuation 1
Chemistry Phase III CSU-FC
Continuation 2 MSU-Denver
Continuation 3 CMU Continuation 4 UNC Continuation 5 PCC 1
FRCC
1
UC-Anschutz
3
UC-Boulder
4
CSM
CMU 5 6
Project Name
CSU-FC
PPCC 7 CCD 8 8
WSCU
10
OJC
10
ACC
12
AHEC
13
ASU
14
CSU-FC
15
ASU
16
CMU
17
CMU
18
CSU-P
19
CSU-P
20
UNC
Funds
CCF CF TF Aeorospace Engineering CCF CF TF CCF Health Sciences CF TF Campus Commons CCF CF & FF TF Davis Academic Building CCF CF TF Larimer Campus Health Care CCF CF TF Interdisciplinary Building CCF CF TF Aerospace Engineering Science CCF CF TF Green Center Renovation CCF CF TF Computer Science and CCF Engineering Building CF TF Warner College of Natural CCF CF TF Student Learning Commons and CCF CF TF Technology Infrastructure CCF CF TF Savage Library CCF CF TF Agricultural Sciences Building CCF CF or FF TF Learning Commons CCF CF TF King Center Renewal CCF CF TF Plachy Hall Renewal CCF CF TF Shepardson Renovation CCF CF TF Nielsen Library Renovation CCF CF TF Performing Arts Renovation CCF CF TF Trigeneration CCF CF TF Psychology Building CCF CF TF Information Technology CCF CF TF Wireless and Network CCF CF TF
Prior Appropriations $38,694,678 $5,400,000 $44,094,678 $20,000,000 $16,404,160 $36,404,160 $3,000,000 $0 $3,000,000 $23,000,000 $21,030,740 $44,030,740 $3,569,619 $0 $3,569,619 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Request $12,471,940 $0 $12,471,940 $0 $23,595,840 $23,595,840 $9,230,212 $2,505,000 $11,735,212 $15,000,000 $14,502,929 $29,502,929 $5,807,143 $0 $5,807,143 $19,657,338 $6,906,633 $26,563,971 $22,800,000 $30,823,115 $53,623,115 $4,834,369 $668,931 $5,503,300 $6,021,857 $0 $6,021,857 $5,000,000 $2,462,688 $7,462,688 $10,000,000 $10,817,437 $20,817,437 $4,847,735 $1,703,260 $6,550,995 $993,179 $348,955 $1,342,134 $10,648,007 $200,000 $10,848,007 $1,393,800 $400,000 $1,793,800 $1,748,166 $614,221 $2,362,387 $41,370,000 $420,000 $41,790,000 $4,314,450 $0 $4,314,450 $4,527,223 $0 $4,527,223 $13,865,176 $0 $13,865,176 $8,007,041 $787,456 $8,794,497 $6,256,888 $618,814 $6,875,702 $16,519,873 $0 $16,519,873 $3,944,430 $0 $3,944,430 $3,123,300 $0 $3,123,300
Total
$51,166,618 $5,400,000 $56,566,618 $20,000,000 $40,000,000 $60,000,000 $12,230,212 $2,505,000 $14,735,212 $38,000,000 $35,533,669 $73,533,669 $9,376,762 $0 $9,376,762 $19,657,338 $6,906,633 $26,563,971 $45,597,598 $74,402,402 $120,000,000 $28,290,716 $52,109,284 $80,400,000 $23,850,871 $35,776,306 $59,627,177 $23,483,207 $9,322,516 $32,805,723 $10,000,000 $10,817,437 $20,817,437 $4,847,735 $1,703,260 $6,550,995 $993,179 $348,955 $1,342,134 $10,648,007 $200,000 $10,848,007 $1,393,800 $400,000 $1,793,800 $3,987,339 $1,400,957 $5,388,296 $41,370,000 $420,000 $41,790,000 $4,314,450 $0 $4,314,450 $24,595,501 $9,000,000 $33,595,501 $13,865,176 $0 $13,865,176 $8,007,041 $787,456 $8,794,497 $6,256,888 $618,814 $6,875,702 $16,519,873 $0 $16,519,873 $3,944,430 $0 $3,944,430 $3,123,300 $0 $3,123,300
Cumulative Current State Funds $12,471,940
$12,471,940
21702152 $36,702,152
$42,509,295
$62,166,633
$84,966,633
$89,801,002
$95,822,859
$100,822,859
$110,822,859
$115,670,594
$116,663,773
$127,311,780
$128,705,580
$130,453,746
$171,823,746
$176,138,196
$180,665,419
$194,530,595
$202,537,636
$208,794,524
$225,314,397
$229,258,827
$232,382,127
Page 18
21
UCD
Engineering and Physical
22
UCCS
Engineering and Physical
23
LCC
Technology Infrastructure
23
OJC
Technology Infrastructure II
25
PCC
Critical Core Technology
26
LCC
Vocational Trades Building
CCF CF TF CCF CF TF CCF CF TF CCF CF TF CCF CF TF CCF CF TF
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$45,114,407 $15,000,000 $60,114,407 $7,551,960 $0 $7,551,960 $644,400 $0 $644,400 $637,500 $0 $637,500 $1,490,050 $0 $1,490,050 $1,996,733 $0 $1,996,733
$45,114,407 $15,000,000 $60,114,407 $30,379,354 $0 $30,379,354 $644,400 $0 $644,400 $637,500 $0 $637,500 $1,490,050 $0 $1,490,050 $1,996,733 $0 $1,996,733
$277,496,534
$285,048,494
$285,692,894
$286,330,394
$287,820,444
$289,817,177
Page 19
Page 2 of 2 cc:
Representative Max Tyler, Vice-Chairman, JTC Representative Jonathan Singer, JTC Representative Jack Tate, JTC Senator Linda Newell, JTC Senator Beth Martinez Humenik, JTC Ms. Jessika Shipley, JTC Staff Mr. Matt Becker, JTC Staff Mr. Matt Kiszka, JTC Staff Mr. John Ziegler, JBC Staff Director Mr. Alfredo Kemm, JBC Staff Mr. Kevin Neimond, JBC Staff Mr. Erick Scheminske, Deputy Director, OSPB Ms. Andrea Day, OSPB Staff
200 E. Colfax Ave, Room 111, Denver, Colorado 80203
P 303.866.3317
Table CC-A: General Fund Transfer for Capital Construction Projects Forecast FY 2016-17 Uncommitted balance from prior year and transfer from HB13-1020
Forecast FY 2017-18 $0
$0
1.15%
1.15%
Non-CERF transfers into CCF during 2010 session Interest from Prior Year
$0 $2,932,329
$0 $948,830
Funds available Capital Construction Projects Level I Controlled Maintenance
$2,932,329
$948,830
($10,250,821)
($20,000,000)
Level ll Controlled Maintenance
$0
$0
Interest Annual Percentage
CDOT Transportation Projects MHI -Suicide Risk Mitigation Projects DYC Facility Refurbishment for Safety and Risk Mitigation, Modernization GTLRR Locomotive
($500,000) ($1,867,586) ($3,689,500)
($500,000) $0 ($5,517,550)
($300,000)
$0
CSU Chemistry Building Addition
($12,471,940)
UNC Campus Commons
($15,000,000)
Colorado Mesa University , Health Science, Nurse Practitioner
($9,230,212)
Pueblo Community College, Davis Academic Building, Capital Renewal
($5,807,143)
Adams YSC Replacement
$0
$0
($3,000,000)
($14,845,503)
Public Safety Communications Network Microwave Infrastructure
($11,193,784)
($11,193,784)
Jones and Palmer Halls Renovation, School for the Deaf and Blind
($7,600,185)
Subtotal Capital Projects Approved For Funding Transfer bill Information Technology Projects DOC Offender Management Info Syst.
($80,911,171)
($52,056,837)
$0
($10,487,960)
Modernizing Child Welfare Care Mng Sys.
($4,709,617)
($4,709,617)
Interoperability
($1,061,188)
($1,061,188)
($5,770,805) ($86,681,976) $25,231,711 $58,517,936
($16,258,765) ($68,315,602)
Subtotal IT Projects Approved For Funding and Supplementals All Projects Remaining in CCF after FY 2015-16 Senate Bill 09-228 Transfer General Fund Need OSPB
$68,315,602
FY 2015-16 Capital Construction IT Requests OSPB Priority
CCHE Priority
Recommend Funding
FY 2015-16 Request Department
Request Title
CC-IT
TF
GF
CF/RF
RF/FF
CC-IT
$1,458,125
$0
$0
$1,458,125
CC-IT
$515,972
$0
$192,119
$323,853
Human Services
Modernization of the Child Welfare CC-IT Case Management System
$6,749,617
$4,709,617
$0
$2,040,000
Human Services
Interoperability - Phase 2
$10,611,880
$1,061,188
$0
$9,550,692
$19,335,594
$5,770,805
$192,119
$13,372,670
1
Yes
Human Services
Child Care Automated Tracking System (CHATS) Modernization
2
Yes
Public Health Laboratory Information and Management System Environment
3
Yes
4
Yes
Total Information Technology Requests Recommended for Funding by the Governor
CC-IT
Page 1
FY 2015-16 Information Technology Requests FY 2016-17
Prior Appropriations Priority Request Title 1
Child Care Automated Tracking System (CHATS) Modernization 2 Laboratory Information Management System 3 Modernization of the Child Welfare Case Management System 4 Interoperability - Phase 2 Total Information Technology Requests Recommended for Funding by the Governor
TF
CCF
CF
RF
FF
TF
CCF
CF
FY 2017-18 Expected Impact RF
FF
TF
CCF
CF
RF
FF
TF
FY 2018-19 Expected Impact C CCF RF F $0 $0 $0 $0
FF
$1,533,125
$0
$0
$0
$1,533,125
$1,458,125
$0
$0
$0
$1,458,125
$0
$0
$0 $0
$0
$606,288 $6,824,567
$0 $4,648,707
$214,016 $0
$0 $0
$392,272 $2,175,860
$515,972 $6,749,617
$0 $4,709,617
$192,119 $0
$0 $0
$323,853 $2,040,000
$90,771 $6,749,617
$0 $4,709,617
$21,897 $0 $0 $0
$68,874 $2,040,000
$0 $0
$0 $0 $0 $0 $0 $0
$0 $0
$14,139,300 $23,103,280
$1,413,930 $6,062,637
$0 $214,016
$0 $0
$12,725,370 $16,826,627
$10,611,880 $19,335,594
$1,061,188 $5,770,805
$0 $192,119
$0 $0
$9,550,692 $13,372,670
$10,611,880 $17,452,268
$1,061,188 $5,770,805
$0 $0 $21,897 $0
$9,550,692 $11,659,566
$10,611,880 $10,611,880
$1,061,188 $0 $0 $1,061,188 $0 $0
$9,550,692 $9,550,692
Page 2
$0
