CO SB016

Establishes two separate reserves within the Severance Tax Operational Fund: a "Core Reserve" for core departmental programs and a "Grant Program Reserve" for natural resources and energy grant programs.

The Core Reserve must equal the current fiscal year's operating appropriations for core departmental programs plus 15% of transfers to grant programs; this reserve cannot be used for grant program transfers.

The Grant Program Reserve must equal the maximum amount of annual transfers to natural resources and energy grant programs; it may offset temporary revenue reductions in core programs but only up to 15% of grant program transfers.

After the Core Reserve requirement is fully satisfied, any remaining money in the operational fund shall be transferred to the Severance Tax Perpetual Base Fund on August 15 following the fiscal year.

Maintains existing proportional reduction mechanisms for quarterly transfers (July 1, January 4, April 1) when severance tax revenues are insufficient to meet both core program needs and reserve requirements.