Joint Budget Committee begins CDOT figure setting; directs staff to draft bills on transfers and fee cuts, approves enterprise roll‑forwards

The Joint Budget Committee opened figure setting for the Colorado Department of Transportation on a staff presentation from Michelle Curry and approved several procedural motions while directing staff to draft legislation on two major budget items: reducing and rescheduling general fund transfers established by Senate Bill 21‑260 and cutting the road safety surcharge.

Ms. Michelle Curry, JBC staff, presented the figure setting materials and described the department's budget structure, noting that most CDOT appropriations are informational because the Transportation Commission controls spending in many areas. “A big majority of CDOT’s section is informational appropriations,” Curry said, adding that forecasts due in March will change the long bill amounts.

Why it matters

The committee’s work could change how much general fund support CDOT receives in the near term and how vehicle‑related fees flow into the Highway Users Tax Fund (HUTF). Members focused on transparency for one‑line administrative budgets, how enterprises such as the High Performance Transportation Enterprise (HPTE) and Multimodal Mitigation and Options Fund (MMOF) are spending money, and whether some enterprise balances or ARPA funds should be treated as a potential source of near‑term state funding.

Key decisions and committee directions

- Informational appropriations update: The committee approved a staff‑initiated motion permitting Curry to update informational appropriations for CDOT based on revised forecasts before long‑bill introduction. The motion carried without objection (5–0, one member excused).

- Draft legislation on SB21‑260 transfers (R3): CDOT’s statutory transfer created by Senate Bill 21‑260 dedicates a total of $747.5 million in general fund transfers to CDOT over multiple years (statutory schedule currently shows $100 million per year in early years). Curry described the department’s proposal to reduce near‑term transfers and push them into later years; her staff recommendation was a middle path. The committee voted to begin drafting legislation to reduce the transfers and extend the schedule, using a starting point suggested by Senator Kirkmeyer (a flipped payment schedule that would provide more general‑fund relief in the near term). The motion to begin drafting carried with no objection (6–0).

- Draft legislation on the road safety surcharge (R4): The department proposed lowering the statutory road safety surcharge tiers on motor vehicle fees (the department’s initial request would have reduced the surcharge by $11.10 per applicable fee, later revised). Staff recommended a $5.50 reduction, with a mechanism to allow the fee to revert in years when the state is not projected to hit the TABOR cap. The committee approved the staff recommendation and authorized staff to prepare accompanying legislation and distribution adjustments (motion carried 6–0).

- Administration division one‑line item: The committee approved the administration line item detail and base appropriation with permission for staff to align the line with common policy changes. That motion passed on a 3–2 vote, with Senator Kirkmeyer and Representative Taggart recorded as objecting and one member excused. Several members expressed concern that the single statutory line for CDOT administration (capped at 5% by statute) reduces legislative transparency and accountability.

- Enterprises, special purposes and ARPA funds: The committee approved line item detail or base appropriation motions for several CDOT enterprise funds (statewide bridge and tunnel enterprise; High Performance Transportation Enterprise; non‑attainment area air pollution mitigation enterprise; fuels impact enterprise) and approved a staff recommendation to continue the existing 3‑year roll‑forward footnote for the Multimodal Mitigation and Options Fund (MMOF) pending additional information. Members pressed for more detail on enterprise fund balances and actual expenditures; staff said appendix lists awardees and that much of the MMOF fund balance (roughly $117 million at one point) originated as ARPA and remains largely awarded but not yet spent.

- Clean Transit Enterprise: The committee approved 3‑year roll‑forward authority for annual appropriations to the Clean Transit Enterprise (previously requested by the department as continuous spending authority). Members approved a 3‑year roll‑forward as a compromise to give multi‑year project grants time to spend awarded funds; the motion passed without objection (6–0).

- Marijuana impaired driving program: Staff recommended reducing the appropriation from the Marijuana Tax Cash Fund for impaired driving programs to $450,000 (returning roughly $500,000 to the fund). The committee adopted the staff recommendation (6–0).

- Footnotes and RFIs: The committee approved continuation of long‑bill footnotes that provide roll‑forward authority for certain funds and approved requests for information (RFIs) that will require CDOT to provide revenue allocation plans, projected and actual revenues, and expenditures for enterprises and relevant divisions. The RFIs were amended in committee to request actual expenditures as well as projected revenues.

Committee concerns and follow‑up items

Multiple members repeatedly asked for greater transparency on CDOT cash funds and enterprise balances, including HUTF flows and the HPTE toll and fines revenue. Senator Kirkmeyer pressed for fund‑balance detail on enterprises; Representative Taggart and others asked CDOT to justify why projects planned in the 10‑year development plan could not be phased or reprogrammed if transfers were reduced in the near term.

Committee staff and leadership agreed to bring CDOT back for a focused briefing on the practical effects of a near‑term reduction to the SB21‑260 transfers and to explain MMOF/ARPA award schedules and obligations. The committee also directed staff to explore whether some one‑time enterprise windfalls could be used to offset near‑term needs; staff said legal and TABOR constraints will require further analysis.

Votes at a glance

- Motion to allow staff to update informational appropriations for new forecasts: Passed 5–0 (1 excused). - Motion to approve administration line item detail and base appropriation (with allowance to align with common policy changes): Passed 3–2 (Kirkmeyer, Taggart objecting; 1 excused). - Motion to begin drafting legislation to reduce and extend SB21‑260 transfers (R3): Passed 6–0. - Motion to approve staff recommendation for reduced road safety surcharge and distribution update and authorize drafting of legislation (R4): Passed 6–0. - Motions approving line item detail/base appropriations for statewide bridge & tunnel enterprise, HPTE, non‑attainment air pollution mitigation enterprise, fuels impact enterprise: each passed 6–0. - Motion to grant 3‑year roll‑forward authority for Clean Transit Enterprise appropriations (in lieu of continuous spending authority): Passed 6–0. - Motion to reduce marijuana impaired driving program appropriation to $450,000: Passed 6–0. - Motion to continue certain long‑bill footnotes and to issue RFIs requesting revenue allocation plans and actual revenue/expenditure reporting for enterprises: Passed 6–0.

What’s next

Staff will draft legislation reflecting the committee’s direction on SB21‑260 transfers and the road safety surcharge and will coordinate follow‑up briefings with CDOT to provide the requested fund‑balance, obligations and outlay detail. RFIs will be issued to obtain actual and projected revenues and expenditures for CDOT enterprises and selected funds so the committee can evaluate the impacts of any statutory or appropriation changes.

Short quotes from the record

"The Department of Transportation's budget is actually decided on by the Transportation Commission," Michelle Curry said, explaining why many CDOT amounts are presented as informational appropriations.

"I continue to be troubled by one‑line budgets, especially when one line totals over $50,000,000," Representative Tucker said, urging more transparency on administration spending.

"If we can start the drafting process, get this on the list, then I think that would be helpful," Director Greg Harper said when members discussed drafting legislation and getting CDOT in for an earlier briefing.

Ending

The committee paused its CDOT figure setting after approving motions to begin drafting legislation and issuing RFIs; members signaled they expect CDOT to return with detailed fund‑balance and expenditure information before the forecast in March. The Joint Budget Committee remained in recess at the end of the hearing while staff begin drafting the bills and collecting follow‑up materials.