summary
Introduced
02/11/2025
02/11/2025
In Committee
02/11/2025
02/11/2025
Crossed Over
Passed
Dead
02/28/2025
02/28/2025
Introduced Session
2025 Regular Session
Bill Summary
In state fiscal year 2026-27, the bill requires the department of revenue, the department of education, and the department of transportation to implement a budgeting method in which all expenses, both existing and new, must be justified for the fiscal year and every function is analyzed for its needs and costs (zero-based budgeting) when submitting a budget request. In state fiscal year 2027-28 and each state fiscal year thereafter, the bill requires all state agencies in all principal departments to implement zero-based budgeting when submitting a budget request. In state fiscal year 2026-27 and each state fiscal year thereafter, the office of state planning and budgeting is required to develop and digitally distribute to state agencies information related to zero-based budgeting training and to provide virtual sessions for the purpose of training state agencies to implement zero-based budgeting. In state fiscal year 2027-28 and each state fiscal year thereafter, the office of state planning and budgeting is required to submit to the general assembly an annual report detailing the effectiveness of zero-based budgeting. All budget requests that implement zero-based budgeting must be publicly accessible on the general assembly's website, and the state auditor is required to conduct periodic financial audits to ensure state agencies' compliance with zero-based budgeting requirements.
AI Summary
This bill introduces zero-based budgeting (ZBB), a budgeting method requiring all expenses to be justified and each function analyzed for its needs and costs, to be implemented by state agencies in Colorado. In state fiscal year 2026-27, the departments of Revenue, Education, and Transportation will be the first to adopt ZBB when submitting budget requests. Starting in state fiscal year 2027-28, all state agencies in principal departments will be required to use this budgeting approach. The Office of State Planning and Budgeting will develop and provide digital training materials and virtual training sessions to help agencies implement ZBB, and will subsequently submit annual reports to the Joint Budget Committee detailing the effectiveness of this budgeting method. Additionally, all ZBB budget requests will be made publicly accessible on the General Assembly's website, and the State Auditor will conduct periodic audits to ensure agencies' compliance with ZBB requirements. The bill is set to take effect after the 90-day period following the final adjournment of the general assembly, with the possibility of a referendum vote in November 2026 if challenged.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
House Committee on Appropriations Postpone Indefinitely (on 02/28/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://leg.colorado.gov/bills/hb25-1216 |
Fiscal Note FN1 | https://leg.colorado.gov/sites/default/files/documents/2025A/bills/fn/2025a_hb1216_00.pdf |
Fiscal Note/Analysis - Budget Staff Analysis SA1 | https://leg.colorado.gov/sites/default/files/documents/2025A/bills/fn/2025a_hb1216_hse.pdf |
BillText | https://leg.colorado.gov/sites/default/files/documents/2025A/bills/2025a_1216_01.pdf |
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