JBC approves staff changes, funding fixes and directs revisions to DOC Sterling bill

JBC members on March 25 moved a package of technical and policy decisions as they continued work on the state’s long‑bill package, clarifying several carryovers and approving staff's recommendations on IT and capital projects. The committee also gave staff authority to revise a corrections bill creating temporary use of Centennial South’s C Tower while the Sterling prison project is underway, and asked staff to check with the Department of Corrections on any potential cost impact before final introduction.

The most consequential policy debate centered on the Department of Corrections’ plans for Sterling. JBC members voted to authorize staff to amend the bill so that, to the extent practicable, the Department must use existing state prison beds before placing people in Centennial South’s C Tower and to add a repeal date limiting the authority unless the department returns to the General Assembly. Staff and DOC officials told the committee that Sterling renovations will be done in phases and that the project could require moving roughly 250–300 inmates while work is under way. DOC also requested a one‑time appropriation for retrofit work; committee notes and staff discussion put that retrofit figure at roughly $1.8 million for temporary use of up to 316 beds in Centennial South C Tower, though the committee asked staff to confirm any transportation or other operational costs before final introduction.

The committee also addressed several budget technicals and comebacks. Staff identified an omitted $1.9 million in reappropriated funds tied to CBMS development work (the department of human services’ share), which translates to roughly $900,000 additional general fund for the CBMS comeback when combined with previously approved general‑fund elements. JBC staff asked the committee to accept the additional reappropriated funds so the comeback’s costs are fully funded; the committee approved the staff recommendation.

On workforce and grant items, committee members accepted a staff recommendation to annualize the hospitality education (ProStart) grant line back to the prior funding level rather than maintain a one‑time floor increase. The committee’s action reduced the appropriation from $500,000 to staff’s annualized level (the packet shows the staff recommendation as $420,037 as the corrected annualized amount) and the motion passed without objection.

Health policy and personnel reductions drew substantive attention. The committee resolved that for Health Care Policy and Financing the BA‑17 personal services reduction previously volunteered by the department (about $862,000 and 10 FTE) will be reflected, but the committee will take a partial additional 1.5% personal‑services common policy reduction only to the degree needed to reach the committee’s target rather than double‑counting reductions. Staff described the final approach as keeping the volunteered BA‑17 line and taking a smaller delta from the 1.5% common policy so the department is not “double penalized.” The motion to apply the combined approach passed on a committee voice vote.

On capital and IT priorities, the committee trimmed two projects from the CDC controlled‑maintenance list — a DOC living unit shower renovation and a Colorado School for the Deaf and Blind West Hall phase — producing about $23 million in savings against the CDC list and reducing the capital transfer requirement. The committee approved funding for a prioritized set of controlled‑maintenance and campus safety projects and directed staff to include a transfer for capital construction; staff will reflect the final dollar amount in the bill drafting. For IT capital, the committee approved the cash‑funded IT projects and the prioritized general‑fund IT projects above the funding line; the general‑fund IT package passed 5–1 with Representative Taggart recorded as objecting. The committee also approved adding a DOC pharmacy system IT project into the IT capital package; staff later updated the cost estimate, noting the shift will require roughly an additional $650,000 in general‑fund impact compared with prior assumption because the request had previously been in the operating base and not appropriated as capital.

Other approvals and procedural moves included: a staff technical correction to several Department of Natural Resources common policies, a tobacco revenue update to align the Tobacco Settlement Health Education Fund to the March OSPB forecast, and a motion authorizing staff to adjust the IT transfer bill in de minimis amounts as final numbers settle. The committee also agreed to a one‑time technical change to move a general‑fund transfer into the TABOR emergency reserve on June 30 (rather than July 1) to keep the reserve intact for FY 2025‑26.

Why it matters: The committee’s actions grouped a number of technical clarifications and project prioritizations that will affect the long bill’s bottom line and the allocation of one‑time and cash‑funded resources. The authority the committee gave staff to refine a DOC bill (and to ask DOC if the changes will increase cost) is intended to narrow controversy while preserving legislative oversight and a formal opportunity for DOC to request additional appropriations if operational realities change.

Quotes (from committee hearing)

- “There’s a couple issues here. One, there is no other facility that the department could open in order to house close custody inmates… we’re looking at about between 250 to 300 inmates that are currently at Sterling,” Justin Brackie, JBC staff, said, describing the capacity challenge and the phased nature of the Sterling work.

- “In order to actually implement the comeback as approved, this additional reappropriated funds to or from being received from the Department of Human Services is necessary,” Tom Dermody, JBC staff, said while explaining the $1.9 million reappropriation tied to CBMS development.

- “I would recommend I just come back after those decisions because if the committee votes to keep it in, there’s an annualization to approve…,” Miss Kanagaraja, JBC staff, on the ProStart (hospitality education) grant recommendation.

Ending

The Joint Budget Committee moved multiple technical corrections and policy clarifications forward and gave staff direction to continue drafting bills and fiscal language for the long bill, including authority to amend a DOC bill on the C Tower with limits and a repeal date. The committee will reconvene to complete remaining long‑bill decisions after staff incorporates the agreed technical changes and final fiscal estimates.

Votes at a glance

(Recorded tallies are from the transcript; most votes were recorded by voice and shown as unanimous unless noted.)

- Approve ProStart (Hospitality Education Grant) annualization correction (staff recommendation: reduce from $500,000 to staff annualized level) — vote: 6–0 (approved).

- Approve staff recommendation for CBMS comeback #34 to include additional reappropriated funds from DHS (to fully fund CBMS development costs) — vote: 6–0 (approved).

- Health Care Policy & Financing personal‑services approach (accept BA‑17 volunteered reduction and take delta to reach 1.5% common policy rather than double‑count) — vote: 6–0 (approved).

- Approve prioritized CDC controlled‑maintenance list with two projects removed (DOC shower and Colorado School for the Deaf and Blind West Hall) and to include a capital construction transfer (staff to reflect final amount in bill drafting) — vote: 6–0 (approved).

- Approve IT capital cash‑fund projects as prioritized — vote: 6–0 (approved).

- Approve general‑fund IT capital projects above the line (prioritized by JTC) — vote: 5–1 (approved; Representative Taggart objecting).

- Approve DOC pharmacy IT project as part of IT capital (move from operating to capital) — vote: 6–0 (approved); staff noted revised estimate adds roughly $650,000 general‑fund impact compared with prior assumptions.

- Authorize staff to amend the corrections bill (C Tower / Centennial South) as discussed and return to drafting with a repeal date unless extended by the legislature — no objections recorded (approved by consensus).

Notes on tallies: several other technical items (tobacco revenue adjustment, fleet/IT maintenance correction, transfers and small repeal/drafting approvals) were approved by unanimous voice vote; where a roll call or distinct no vote was recorded in the transcript it is noted above.

What to watch next

- Final fiscal notes on the DOC C‑Tower amendments, particularly potential transportation or operational costs if inmates must be moved during Sterling construction. - Final updated CBMS fiscal language showing the DHS reappropriation line and the combined general fund total for that comeback. - IT capital final transfer amounts and the DOC pharmacy IT line (confirmed additional $650,000 general‑fund exposure), which staff will fold into the transfer/IT capital bills.