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JBC authorizes draft to transfer interest from nonexempt cash funds to general fund to blunt TABOR impact
Summary
The Joint Budget Committee voted 6‑0 to ask staff to draft a bill transferring treasury interest earned on a targeted set of nonexempt cash funds into the General Fund for 2024‑25 and 2025‑26 to reduce TABOR‑driven pressure on General Fund balances.
The Joint Budget Committee voted 6-0 to ask staff to draft legislation that would transfer certain treasury interest earned on nonexempt cash funds to the general fund for the current and next two fiscal years as a tool to reduce the fiscal pressure from TABOR refunds.
The measure is a staff‑led response to unexpectedly large interest earnings on state cash funds in FY 2023‑24. JBC staff told members that interest credited to many cash funds rose sharply as interest rates increased, and that interest earnings on a relatively small number of large funds accounted for the majority of the $187 million in TABOR‑counted interest in 2023‑24. The draft legislation the committee authorized would capture treasury pool interest on a targeted list of funds for FY 2024‑25 and FY 2025‑26 and would consider a broader, administratively complex mechanism for later years.
Why it matters: Under Colorado’s…
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