Colorado Office of the State Auditor

The report presents the budget outlook based on current law and the September 2025 forecast for General Fund revenue, cash fund revenue, and the state TABOR outlook. It also provides a preview of the school finance outlook, summarizes expectations for the U.S. and Colorado economies, and provides economic indicators for nine regions of the state.

The Legislative Audit Committee convened to discuss several key items. The committee released the Department of Public Health and Environment, Health Facilities and Emergency Medical Services Division, Health Facility Licensing Program and Cash Funds Public and Confidential Performance Audit Reports. An overview of the Colorado Public Employees' Retirement Association, Hybrid Defined Benefit Plan Study was presented. The committee also released the Public Employees' Retirement Association of Colorado Financial Audit and discussed the Annual Comprehensive Financial Report. There was also a discussion regarding potential legislation and the Colorado State University System's Evaluation of Cybersecurity Maturity Model Certification Readiness.

The committee considered an interim supplemental request related to the Women, Infants, and Children (WIC) supplemental food program. The request involves approving an overexpenditure of General Funds to cover anticipated WIC benefit costs in the event of a federal government shutdown. Concerns were raised regarding the request meeting interim supplemental criteria and the Department's authority to use state funds for WIC benefits. A revised request was submitted, assuring that state funds would only be used if the federal government shuts down and federal funding is unavailable, with a commitment to seek full reimbursement. Legislative proposals were discussed to clarify processes for approving spending in future federal shutdowns.

The Joint Budget Committee discussed an interim supplemental budget request for FY 2022-23 related to capital construction. The Department of Corrections (DOC) requested a net-zero transfer of funds from the Buena Vista Sanitary Sewer Line Replacement project to the East Cañon City Prison Complex (ECCPC) Water Tank Repair and Replacement project. Staff recommended approving an overexpenditure of cash funds for the ECCPC Water Tank Repair and Replacement project due to unforeseen construction cost information that was not available at the time of the original appropriation. The ECCPC project involves the purchase of a new water tank and the repair of an existing one to increase potable water storage capacity and comply with fire suppression code requirements.

The Legislative Audit Committee convened to discuss several evaluations, audits, and requests. The committee released the Evaluation of Colorado Department of Corrections, Budgeting Practices, May 2025, and discussed recommendations related to budget processes, fiscal constraints, and staffing. They also released the Department of Natural Resources, Division of Reclamation, Mining, and Safety, Mine Subsidence Protection Program, Performance Audit, May 2025, focusing on program information distribution and homeowner education. Additionally, the Pinnacol Assurance, Audited Statutory Financial Statements were released. The committee also discussed a status report on the Regional Transportation District's fiscal governance. Audit requests for the Colorado Energy Office and the Department of Local Affairs were reviewed, with the latter being approved. Finally, an audit of the Colorado Bureau of Investigation's Forensic Services Section was approved with an amended scope.