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March 15, 2023 HB 23-1220
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 23-0333
Rep. Holtorf; McCormick
Date:
Bill Status:
Fiscal Analyst:
March 15, 2023
House Agriculture
John Armstrong | 303-866-6289
john.armstrong@coleg.gov
Bill Topic: STUDY REPUBLICAN RIVER GROUNDWATER ECONOMIC IMPACT
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill requires the Colorado Water Center to complete an economic analysis in the
Republican River Basin based on water usage. It will increase state expenditures from
FY 2023-24 through FY 2025-26.
Appropriation
Summary:
For FY 2023-24, the bill requires an appropriation of $146,238 to Colorado State
University.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under HB 23-1220
Budget Year
FY 2023-24
Out Year
FY 2024-25
Out Year
FY 2025-26
Revenue
- - -
Expenditures General Fund $146,238 $138,104 $66,983
Transfers - - -
Other Budget Impacts General Fund Reserve $21,936 $20,716 $10,047
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March 15, 2023 HB 23-1220
Summary of Legislation
The bill requires the Colorado Water Center, located within Colorado State University, to complete a
study of the economic impact to the areas of Colorado, Kansas, and Nebraska affected by the
Republican River basin of Colorado not meeting its obligation under the terms of the South Fork Focus
Zone Resolution to retire 25,000 acres of irrigated land in the zone. The center must update the General
Assembly on its progress in 2025, and deliver and post online the final report of the findings and
conclusions of the study by January 1, 2026. The bill repeals January 1, 2027.
Background
Colorado, Kansas, and Nebraska entered into an interstate compact on water usage for the Republican
River Basin in 1943. In 2016, a resolution was adopted from the three states that water flow in the
South Fork of the river should be improved. To improve flow, Colorado agreed in 2016 to reduce the
amount or irrigated acres from the river by 25,000 acres. In the event that Colorado does not reduce
its irrigated acres by 2027, it may submit a plan to reduce consumption in Colorado by other means,
according to the 2016 resolution. In 2018, Colorado agreed to pay Nebraska $4 million to settle claims
involving the overuse of water in the Basin in exchange for Nebraska agreeing not to sue Colorado for
compact violations that may have occurred prior to 2014.
State Expenditures
The bill increases state General Fund expenditures to Colorado State University by $146,286 in
FY 2023-24, $138,104 in FY 2024-25, and $66,983 in FY 2025-26 paid from the General Fund.
Expenditures are shown in Table 2 and detailed below.
Table 2
Expenditures Under HB 23-1220
FY 2023-24 FY 2024-25 FY 2025-26
Colorado State University
Personal Services $92,122 $94,268 $35,460
Graduate Student Tuition $12,116 $13,086 -
Travel Expenses $5,000 $5,000 $5,000
Data fees $37,000 $25,570 $26,523
Total $146,286 $138,104 $66,983
Colorado State University. The university will have costs to conduct the economic impact study,
including staff, tuition reimbursement, travel, and data fees, as outlined below.
Staff. One professor and one lecturer of Agricultural and Resource Economics will support the
study in the summer months. The Director of the Colorado Water Center will also work on the
study year-round.
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March 15, 2023 HB 23-1220
Graduate student tuition. Staff above will be assisted by two graduate students in agricultural
economics, devoting approximately 0.75 FTE to the project, with tuition support. These research
associates will work on economic analysis and stakeholder engagement.
Travel expenses. These staff and students will conduct approximately 5 trips per year to meet
with stakeholders in the Republican River Basin. Each trip is estimated to cost roughly $545 per
person, including 350 miles of travel at $0.66 per mile, hotel and per diem. Additionally, there is
estimated to be four trips to the capitol for legislative updates, which will include only mileage
charges.
Data fees. The Colorado Water Center will purchase economic data from a private vendor to
conduct economic analysis. These expenses are estimated based on similar economic data that
has been purchased by the Colorado Water Center.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature.
State Appropriations
For FY 2023-24, the bill requires General Fund appropriation of $146,286 to the Department of Higher
Education for allocation to the governing board of Colorado State University.
State and Local Government Contacts
Higher Education Colorado State University
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.