Expenditures in Excess of Appropriations

Plain English Breakdown

The official text does not specify how much extra money an agency can spend or define 'necessary' beyond the conditions listed.

Changes Rules for Spending More Than Approved Money

This law allows state agencies and universities to spend more than their budget if a federal funding cut is likely while the legislature is not in session.

What This Bill Does

• Allows state departments, institutions, and higher education schools to exceed their spending limits under new conditions.
• Adds 'lapse in federal appropriation' as a reason for extra spending when lawmakers are not meeting.
• Requires the Joint Budget Committee to determine that a federal funding cut is reasonably likely before allowing extra spending.
• Updates rules so that if the legislature provides more money, the agency's special power to spend over its limit ends.

Who It Names or Affects

• State departments
• State institutions and agencies
• Institutions of higher education in Colorado
• The state controller who approves extra spending

Terms To Know

Overexpenditure

Spending more money than the amount approved by law for a specific item.

Joint Budget Committee

A group of lawmakers that decides if federal funding cuts are reasonably likely to happen.

Limits and Unknowns

• The bill only applies when the General Assembly is not in a regular or special session.
• Extra spending is allowed for unforeseen events or expected drops in federal money, but only if the Joint Budget Committee says it is likely.

Official Summary Text

Under current law, the controller may allow any state department, institution, or agency of the state, including any institution of higher education, to make an expenditure in excess of the amount authorized by an item of appropriation for the fiscal year if certain conditions are satisfied. One of those conditions is that the overexpenditure is necessary due to unforeseen circumstances arising while the general assembly is not meeting in a regular or special session. The act modifies that condition to also allow an overexpenditure when it is necessary due to a lapse in a federal appropriation that the joint budget committee determines is reasonably likely to occur while the general assembly is not meeting in regular or special session during which such overexpenditure can be legislatively addressed.
The act also makes a conforming amendment to the process by which the general assembly can remove the spending restriction that the controller attaches to an overexpenditure. If a supplemental appropriation is enacted for the overexpenditure or a portion of it:
The controller's spending restriction is released in full; and
The department, institution, or agency of the state's overexpenditure authority ends.
(Note: This summary applies to this bill as enacted.)