FirstSB180_H_APP.001 RegularNOT SessionAMENDED Seventy-fifthHOUSE GeneralCOMMITTEE Assembly STATE OF COLORADOREFERENCE ENGROSSEDREPORT This_______________________________ VersionMarch Includes7, All2025 AmendmentsChair Adoptedof onCommittee SecondDate ReadingCommittee inon theAppropriations House. of Introduction LLS NO.

25-0866.01After Pierceconsideration Livelyon x2059the SENATEmerits, BILLthe 25-180Committee SENATErecommends SPONSORSHIPthe Kirkmeyerfollowing: and Amabile, Bridges HOUSE SPONSORSHIP Taggart and Sirota, Bird Senate Committees House Committees Appropriations A BILL FOR AN ACT CONCERNING THE METHOD OF CALCULATING STATE POPULATION GROWTH FOR PURPOSES OF CALCULATING STATE FISCAL YEAR SPENDING PURSUANT TO SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION .

BillSB25-180 Summarybe (Note:referred to the Committee of the Whole with favorable recommendation.

This** summary*** applies** to*** this** bill as introduced and does notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov/.) Joint Budget Committee.

Section 20 of article X of the state constitution (TABOR) requires the maximum annual percentage change e n instatefiscalyearspendingtoequalinflationplusthepercentagechange m 2 Tn 2 Ng 3 Shading denotes HOUSE amendment.

Double underlining denotes SENATE amendment.

Ed r Capital letters or bold & italic numbers indicate new material to be added to existing law.

Dashes through the words or numbers indicate deletions from existing law.

d M instatepopulationinthepriorcalendaryearadjustedforrevenuechanges approved by voters.

Although TABOR does not specify how the state shall determine the percentage change in state population (population growth), the TABOR implementing statutes do.

For years in which there is not a decennial census, the TABOR implementing statutes require the statetocalculatepopulationgrowthbydeterminingthepercentagechange between:

! The federal census bureau's estimate of state population (census estimate) for the previous calendar year, as of December in the current calendar year;

and ! The census estimate for the current calendar year, as of December in the current calendar year.

The current method for calculating population growth can lead to either double-counting or under-counting population changes in census estimates.

If the federal census bureau revises a census estimate upward for a given year:

! The calculated population growth between the given year and the immediately preceding year will be understated, since the population growth between those years is based on an inaccurately low census estimate for the given year;

and ! Theunderstatedpopulationgrowthbetweenthegivenyear and the immediately preceding year is not corrected or carried forward when calculating population growth for subsequent years, as those calculations are based on the revised census estimate for the given year.

Put differently, if the federal census bureau revises a census estimate upward for a given year, population growth will be understated and the fiscalyearspendinglimitwillbelower.Theoppositeistrueifthefederal census bureau revises a census estimate downward.

In either case, under thecurrentmethodforcalculatingpopulationgrowth,populationgrowth would be measured inaccurately.

The bill adjusts the method of calculating population growth.

Under the bill, population growth is calculated by determining the percentage change between:

! The census estimate, as of December in the previous calendar year, for the previous calendar year;

and ! The census estimate, as of December in the current calendar year, for the current calendar year.

This approach prevents double-counting or under-counting population changes as a result of revised census estimates and results in a more accurate measurement of population growth.

The bill also makes conforming amendments.

-2- 180 Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.

In Colorado Revised Statutes, 24-77-103, amend (2)(b)(I), (2)(b)(II), (2)(b)(II.5)(B), and (2)(b)(II.5)(C);

and add (2)(a)(IV) and (2)(b)(I.5) as follows:

24-77-103.

Limitationonstatefiscalyearspending-legislative declaration - report.

(2) (a) (IV) TENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT:

(A) FOR THE PURPOSE OF DETERMINING THE MAXIMUM PERCENTAGE CHANGE IN STATE FISCAL YEAR SPENDING FOR ANY GIVEN FISCAL YEAR , SECTION 20 (7)(a) OF ARTICLE X OF THE STATE CONSTITUTION REQUIRES THE STATE TO ANNUALLY DETERMINE THE CHANGE IN STATE POPULATION FROM ONE CALENDAR YEAR TO THE NEXT WITH THE USE OF ANNUAL FEDERAL CENSUS BUREAU STATE POPULATION ESTIMATES;

(B) T HE APPROACH FOR DETERMINING THE CHANGE IN STATE POPULATION FOR STATE FISCAL YEARS COMMENCING BEFORE ULY 1, 2024,RESULTED IN BOTH DOUBLE-COUNTING AND UNDER -COUNTING OF POPULATION AS A RESULT OF REVISED FEDERAL CENSUS BUREAU STATE POPULATION ESTIMATES;

(C) DOUBLE COUNTING POPULATION FOR PURPOSES OF DETERMINING THE CHANGE IN STATE POPULATION RESULTS IN AN INCREASEDLIMITONSTATEFISCALYEARSPENDINGANDUNDER -COUNTING POPULATION FOR PURPOSES OF DETERMINING THE CHANGE IN STATE POPULATION RESULTS IN A REDUCED LIMIT ON STATE FISCAL YEAR SPENDING;

(D) FROM STATE FISCAL YEAR 2015-16THROUGH STATE FISCAL YEAR 2024-25, EXCLUDING THE FISCAL YEAR IMPACTED BY THE -3- 180 DECENNIAL CENSUS ,AS A RESULT OF REVISED FEDERAL CENSUS BUREAU ESTIMATES OF STATE POPULATION ,THERE WERE THREE FISCAL YEARS WITH SIGNIFICANT DOUBLE -COUNTING , TWO FISCAL YEARS WITH SIGNIFICANT UNDER-COUNTING ,AND FOUR FISCAL YEARS WITH NEITHER SIGNIFICANT DOUBLE-COUNTING NOR UNDER -COUNTING ;

(E) SECTION 20(7)(aOFARTICLE X OFTHESTATECONSTITUTION DOES NOT SPECIFY HOW THE STATE SHALL ANNUALLY DETERMINE THE CHANGE INSTATE POPULATIONBYANNUALFEDERALCENSUSESTIMATES ;

(F) IN BOTH HOUSE B ILL02-1310 AND SENATE B ILL02-179, ENACTED IN 2002,THE GENERAL ASSEMBLY MODIFIED HOW THE CHANGE INSTATEPOPULATIONISCALCULATEDFORPURPOSESOFSECTION 20(7)(a) OF ARTICLE X OF THE STATE CONSTITUTION , AND THESE BILLS ARE PRESUMED TO BE CONSTITUTIONAL ;AND (G) THEREFORE ,ITISWITHINTHEGENERALASSEMBLY SPLENARY POWER AND CONSISTENT WITH SECTION 20 (7)(aOF ARTICLEX OF THE STATE CONSTITUTION FOR THE GENERAL ASSEMBLY TO ENACT LEGISLATION THAT MODIFIES HOW POPULATION GROWTH IS CALCULATED FOR PURPOSES OF SECTION 20 (7)(a)OF ARTICLE X OF THE STATE CONSTITUTION TO MITIGATE BOTH POPULATION DOUBLE COUNTING AND POPULATION UNDER -COUNTING .

(b) (I) Except as otherwise provided in subparagraphs (II) and (II.5) of this paragraph (b)ECTIONS (2)(b)(IIAND (2)(b)(II.OF THIS SECTION,FOR STATE FISCAL YEARS COMMENCING BEFORE JULY 1, 2024, the percentage change in state population for any given calendar year shall beISthe percentage change between the estimate of state population due to be issued by the United States bureau of census in December of such calendar year with a reference date of July 1 of the -4- 180 same calendar year and the estimate of state population due to be issued bythe United States bureau of census in December of the same calendar yearwithareferencedateofJuly1oftheimmediatelyprecedingcalendar year.

(I.5) FR STATE FISCAL YEARS COMMENCING ON OR AFTER ULY 1,2024,THE PERCENTAGE CHANGE INSTATEPOPULATIONFORANYGIVEN CALENDARYEARISTHEPERCENTAGECHANGEBETWEENTHEESTIMATEOF STATEPOPULATIONISSUEDBYTHE U NITEDSTATESBUREAUOFCENSUSIN D ECEMBER OF THE CALENDAR YEAR WITH A REFERENCE DATE OFJULY 1 OFTHE SAME CALENDAR YEAR ANDTHE ESTIMATE OFSTATE POPULATION ISSUED BY THEUNITED STATES BUREAU OFCENSUSIN D ECEMBEROFTHE IMMEDIATELY PRECEDING CALENDAR YEAR WITH A REFERENCE DATE OF JULY 1OF THE IMMEDIATELY PRECEDING CALENDAR YEAR .