The Capital Development Committee on Wednesday voted 4-2 to request that the state treasurer transfer up to $2,500,562 from the general fund to the Capital Complex Master Plan Improvement Fund for fiscal year 2024-25, and after debate rejected a separate request for a similar transfer for fiscal year 2025-26.

The motion that passed directs the treasurer to move funds “pursuant to section 24-75-307 of the Colorado Revised Statutes,” a statute committee staff said allows the treasurer to transfer funds upon the committee’s request. A prior, separate motion to request up to $2,498,994 for fiscal year 2025-26 failed on a 3-3 roll call.

Committee staff Beau Pogue said the transfers relate to a long-running capital complex renovation and footprint-reduction project. “Every year, dollars 20,000,000 is set aside in the general fund to pay for the National Western Center COP annual payment. That's about $17,500,000. Upon request by the CDC to the state treasurer by July 1 of every year, the treasurer may transfer the difference, or about $2,500,000, to a fund to help pay for the capital complex renovation and footprint reduction project,” Pogue said.

Pogue told the committee CDC staff had misinterpreted a 2023 statute change and believed a $2.5 million transfer was automatic; the statute instead made automatic a different transfer. “CDC staff definitely wants to abide by statute and we recognize that we, sort of fumbled in interpreting the statute,” he said, adding the transfer request and the treasurer’s transfer are both discretionary.

Seth Ford, legislative liaison for the Department of Personnel and Administration, told members the complex renovation had been scoped as roughly a 10-year effort and that the project’s timeline depends on “the speed with which that funding is delivered.” He said the department had not obligated the amounts that failed to be transferred on July 1 of 2023 and July 1 of 2024 because it was still in planning phases and had not issued major procurement solicitations.

Several members expressed unease about committing state dollars to the project while other capital needs remain unfunded. Representative Winter said he could not, “in good faith,” vote to advance the transfer given the state’s budget deficit and constituent concerns about spending priorities. The committee’s chair and another member described the project as costly and discretionary compared with other unmet capital needs, and asked for more detail on how much has been spent to date, how much is being held, and the remaining anticipated costs.

Other committee members argued stopping or pausing the funding would delay the project and could create compliance issues. “If we don't ultimately fund this project ... we will face some of the same issues that you may be seeing elsewhere, down the road,” said Ford, urging the committee to weigh statutory expectations and the work already underway.

The committee record shows the first motion — to request transfer for fiscal year 2025-26, moved by Senator Henriksen — failed 3-3. The second motion, to request transfer for fiscal year 2024-25, also moved by Senator Henriksen, passed 4-2. Voting for the successful FY24-25 motion were Senator Henriksen, Representative Lindsay, Elton B. (recorded vote), and Senator Judah; Representatives Winter and the committee chair voted no.

Committee staff also said they would provide additional information requested by members, including a status update on the project timeline, a breakdown of funds expended and held, and follow-up with the state treasurer. The committee discussed scheduling a follow-up meeting before July 1 and settled on a July 1 meeting date for further business.

Background: Committee staff told members the capital complex project was listed as a $216,000,000 project in the last capital cycle. The transfers discussed are a relatively small share of that total but, staff said, timing of the transfers affects the project schedule and procurement. The committee’s motions relied on section 24-75-307, Colorado Revised Statutes, which authorizes transfers by the state treasurer on request of the Capital Development Committee.