Joint Budget Committee denies most Treasury staffing requests, partially funds technology, delays Secure Savings enforcement and moves to end recovery pilot

The Joint Budget Committee voted this week on a package of Department of the Treasury budget requests that included staffing, technology, and program enforcement items.

Llewellyn Lowe, JBC staff, told the committee she was not recommending the Treasury's staffing requests and proposed pausing department growth after nearly doubling the workforce over six years. "I'm recommending right now that we pause growth of this department," Lowe said, describing requests that would have added 8.5 FTE and $1.1 million in total funds (including $752,100 General Fund and $374,880 cash funds). The committee adopted staff's recommendation to deny the administration and unclaimed-property staffing requests (R1 and R2). That motion passed 5–1.

The committee split decisions on technology and related costs. Lowe recommended limited funding for parts of the technology requests (R4 and R5) rather than full approval. She proposed $44,050 General Fund and $316,704 cash funds (from the Unclaimed Property Trust Fund) to address priority technology and related expenses, while declining larger items such as Debtbook software and Bloomberg Port. Committee members agreed to fund cybersecurity penetration testing and IT asset replacement and maintenance, and to deny or defer several enhancement purchases. A motion to approve staff recommendations for cybersecurity testing and IT asset management passed 6–0. For R5 (unclaimed property division technology and related expenses), the committee approved staff recommendations but excluded funding for travel and training; that motion passed 6–0.

The committee unanimously approved several housekeeping and short-gap requests tied to day-to-day operations: a bridge contract to cover leave reporting and tracking until statewide Kronos implementation (VA1) — $12,000 total funds, including $7,560 General Fund and $4,440 cash funds — was approved; a network and cabling upgrade (BA3) to keep existing infrastructure supported was approved; and line-item and base appropriation motions for both the administrative and unclaimed-property divisions were adopted consistent with committee choices.

On the Colorado Secure Savings program (R3), JBC staff recommended delaying start-up of a compliance and enforcement function that the statute contemplated. Lowe explained enforcement could be phased in later and that penalties/fees were expected to ultimately cover enforcement costs. The committee voted 6–0 to adopt staff's recommendation to delay establishing the enforcement staffing request (the department had asked for six compliance FTE). "My recommendation is no and that they delay enforcement," Lowe said during the briefing, and the committee voted to follow that recommendation.

The committee also moved on the Colorado Household Financial Recovery Pilot Program. Staff recommended not approving a $200,000 General Fund request for administrative costs, noting prior appropriations and contract work made the additional appropriation unnecessary. The committee voted 6–0 on staff recommendation and then voted — by unanimous voice vote — to give staff drafting authority to prepare legislation to terminate the pilot program. The committee also adopted a motion to return the program's continuously appropriated funding to the General Fund where not encumbered; committee members instructed staff to correct the appropriation to revert any unencumbered balance. "This is a pilot program with no end date," Lowe said; the committee directed staff to pursue statutory termination.

Finally, the committee adopted a staff-initiated General Fund relief option to reduce the annual appropriation for property tax reimbursement for property destroyed by natural causes. The line has been appropriated at $1 million in recent years but reverted extensively (roughly 90% in prior years). The committee voted to reduce the current-year appropriation and to set next-year funding at zero for that line item, subject to staff confirmation of any encumbrances; that motion passed 6–0. Craig Harper, JBC staff, noted that appropriations remain available to counties unless the General Assembly acts to remove them: "If it's appropriated, they have the authority to spend it if needed."

Votes at a glance: - R1 & R2 (administration and unclaimed-property staffing): staff recommendation to deny the requests — motion passes 5–1. - R4 (administration technology & related expenses): staff partial funding accepted for prioritized items (cybersecurity and IT asset maintenance) — motions approving those items passed 6–0. - R5 (unclaimed property technology & related expenses): staff recommendation with exclusion of travel and training approved — motion passes 6–0. - VA1 (admin leave reporting bridge): approved — motion passes 6–0. - BA3 (network and cabling upgrades): approved — motion passes 6–0. - R3 (Secure Savings compliance/enforcement): committee voted to delay enforcement/startup — motion passes 6–0. - R7 (Colorado Household Financial Recovery Pilot Program staff recommendation and drafting authority to terminate): motions passed 6–0. - S1 (property tax reimbursement appropriation reduction / reversion of unencumbered funds): motion adopted 6–0.

Why this matters: the committee prioritized limiting recurring staff growth and focused scarce General Fund dollars on cybersecurity and core IT asset maintenance while postponing new ongoing enforcement staffing and moving to end one pilot program whose appropriation has largely gone unused. Several decisions will reduce projected General Fund obligations but may require follow-up legislation to terminate programs or adjust statutory authorities.

What's next: staff were given drafting authority where statutory change appears necessary (pilot program termination, adjustment to the property-tax-reimbursement line), and the committee directed additional follow-up information on specific cost and encumbrance figures. The Treasury will return if the committee requests further reconciliation or detail on items the committee deferred or partially funded.