Bill to Increase Collaboration, Efficiency Between Executive & Legislative Branches During Revenue Shortfalls Clears Committee

SB25B-001 improves collaboration between the Governor and the General Assembly during times of economic uncertainty
DENVER, CO
– Legislation sponsored by Senate President James Coleman, D-Denver, and Senator Judy Amabile, D-Boulder to balance the authority between the Governor and the General Assembly during times of economic uncertainty passed the Senate State, Veterans, and Military Affairs Committee today.
Under current law, the Governor has broad unilateral authority to suspend programs and services during a revenue shortfall via executive order.
SB25B-001
would require the Governor to notify the Joint Budget Committee (JBC) of executive orders to reduce spending and require the JBC to promptly meet with the executive branch to discuss the plan.
“Strong collaboration between the executive and legislative branches helps to create a more efficient government,”
said Coleman.
“This bill will improve collaboration during times when it is arguably most important, times when the state faces revenue shortfalls that require spending reductions. This legislation is a step in the right direction to ensuring the General Assembly has a stronger voice in these critical decision-making processes.”
“In times of economic uncertainty, the executive and legislative branches must work together to do what’s best for the people of Colorado,”
said Amabile.
“The Joint Budget Committee works year round to ensure that we’re budgeting responsibly, and it is only right that we have a seat at the table when the Governor is making spending reductions. This legislation is critical to ensuring collaboration as well as updating spending reduction triggers to better reflect the current size of our reserves, which Democrats have worked hard to build up since the COVID pandemic.”
The bill balances the authority between the Governor and the General Assembly by ensuring the JBC is involved in decision-making processes early on and by adding guardrails to the executive branch’s existing authority to help ensure that they continue to meet and implement legislative directives.
The bill would also update the required spending reduction triggers to more accurately reflect economic pressures and the current status of the reserve, which
Democrats have worked to build up to 15 percent
since the COVID pandemic when it fell below 4 percent. In addition to the triggers in existing law, the bill would add that if a regular quarterly revenue estimate indicates that the state needs to use an amount of the reserve equal to 2 percent of the general fund appropriations for that fiscal year (e.g. around $330 million for FY26), the Governor must take action to reduce spending.
SB25B-001 now moves to the Senate floor for further consideration. Track its progress
HERE
.