CO HB1280

Beginning in fiscal year 2011-12, establishes a new spending limit for total state general fund appropriations set at 6% above the previous fiscal year's appropriations (replacing the prior 5% of Colorado personal income limit).

End-of-year general fund surplus, after accounting for required reserves and constitutional refunds, is transferred to the state rainy day fund until it reaches a target balance of 8% of total general fund appropriations.

Once the state rainy day fund reaches its 8% target, remaining surpluses are split with two-thirds going to the highway users tax fund and one-third to the capital construction fund.

During economic downturns, the general assembly may appropriate or transfer moneys from the state rainy day fund for any purpose by enacting a bill approved by a two-thirds majority vote in both houses.

Highway users tax fund transfers are allocated as 60% to the state highway fund, 22% to counties, and 18% to municipalities.