H_FIN_2018A 01/24/2018 09:50:33 AM Committee Summary

Representative Lebsock, prime sponsor, presented House Bill 18-1035, which increases the General Fund statutory reserve requirement a half percent a year from 6.5 percent in the current fiscal year to 8.0 percent by FY 2020-21.

Representative Lebsock responded to questions from the committee. He distributed and explained amendments L.002, L.003, and L.004 [Attachments A, B, and C, respectively].  Committee discussion ensued on the bill and the amendments.

Representative Lebsock continued to address committee questions.

Ms. Melissa Martin, representing herself as an educator and as a parent of a child with special needs, testified from a neutral position on the bill.  Representative Lebsock responded to a concern raised by Ms. Martin.

The committee discussed amendment L.003 [Attachment A].

The committee discussed amendment L.003 [Attachment B].

Representative Beckman explained amendment L.006 [Attachment D].

The committee discussed whether amendment L.006 fits under the title of the bill.  The chair ruled that the amendment does fit under the title of the bill.

Committee discussion continued on amendment L.006, the TABOR reserve, and a statutory General Fund reserve.  Mr. Ed DeCecco, Office of Legislative Legal Services, discussed the assets that make up the TABOR reserve and how the TABOR reserve can be spent in the event of an emergency.  Mr. DeCecco also responded to questions about the statutory General Fund reserve.  He explained that the General Fund reserve is a cash reserve and does not include any physical assets.  Discussion continued on the restrictions associated with the use of both reserves.

Mr. Greg Sobetski, Legislative Council Staff, came to the table to address questions about how the two reserves are calculated. Mr. Sobetski and Mr. DeCecco continued to address committee questions about the TABOR reserve and the statutory General Fund reserve. Discussion also continued on amendment L.006.  Ms. Kori Donaldson, Legislative Council Staff, also provided input on the use of TABOR emergency reserve.

Representative Lebsock made some closing remarks on the bill.