CO HB1072

Creates a new state budget stabilization reserve fund to replace the general fund reserve, requiring investment earnings to be credited to the fund for purposes of budget stabilization during economic downturns.

Requires increasing amounts of general fund moneys to be credited to the fund annually beginning FY 2009-10, gradually reaching 15% of general fund appropriations by FY 2017-18, with adjustments based on Colorado personal income growth rates.

Reduces the revenue shortfall threshold that triggers governor action from 50% of the existing general fund reserve to the greater of 2% of general fund appropriations or one-third the balance of the new stabilization reserve fund.

Makes conforming amendments to multiple statutes (sections 4-12) to replace references to the old general fund reserve requirement with references to the new state budget stabilization reserve fund throughout Colorado law.

Takes effect June 30, 2010, and includes a safety clause declaring the act necessary for immediate preservation of public peace, health, and safety.