Page 1 January 17, 2023 SB 23-027 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Fiscal Note Drafting Number: Prime Sponsors: LLS 23-0495 Sen. Cutter Date: Bill Status: Fiscal Analyst: January 17, 2023 Senate Health & Human Services Shukria Maktabi | 303-866-4720 shukria.maktabi@coleg.gov Bill Topic: FOOD PANTRY ASSISTANCE GRANT PROGRAM Summary of Fiscal Impact: ☐ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☐ Local Government ☐ Statutory Public Entity The bill extends funding for the food pantry assistance grant program in the Department of Human Services through FY 2026-27 and repeals the program on July 1, 2028. This bill will increase expenditures through FY 2026-27. Appropriation Summary: For FY 2023-24, the bill requires an appropriation of $3,000,000 to the Department of Human Services. Fiscal Note Status: The fiscal note reflects the introduced bill. Table 1 State Fiscal Impacts Under SB 23-027 Budget Year FY 2023-24 Out Year FY 2024-25 Revenue - - Expenditures General Fund $3,000,000 $3,000,000 Transfers - - Other Budget Impacts General Fund Reserve $450,000 $450,000 Page 2 January 17, 2023 SB 23-027 Summary of Legislation From FY 2023-24 to FY 2026-27, this bill requires the General Assembly to appropriate $3 million annually from the General Fund to the Food Pantry Assistance Grant Program in the Department of Human Services (DHS). It also repeals the grant program on July 1, 2028. Background House Bill 20-1422 established the Food Pantry Assistance Grant Program in the DHS with the goal of supporting Colorado food pantries and food banks in purchasing food. House Bill 22-1364 extended the program indefinitely and provided an additional $3 million in funding from the General Fund for FY 2022-23. State Expenditures This bill increases General Fund expenditures for the Food Pantry Assistance Grant Program in the DHS by $3 million annually from FY 2023-24 to FY 2026-27. The grant program has already been established and does not require any additional implementation costs. As allowed under current law, the DHS will continue to retain 5 percent of the total funds ($150,000) for administrative expenses and to contract a third party to administer the grant program. The Department of Agriculture will also continue to provide technical assistance and coordination to grant program administrators. The workload in the Department of Agriculture can be absorbed within existing appropriations. Other Budget Impacts General Fund reserve. Under current law, an amount equal to 15 percent of General Fund appropriations must be set aside in the General Fund statutory reserve. Based on this fiscal note, the bill is expected to increase the amount of General Fund held in reserve by the amounts shown in Table 1, decreasing the amount of General Fund available for other purposes. Effective Date The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming no referendum petition is filed. State Appropriations For FY 2023-24, the bill requires a General Fund appropriation of $3,000,000 to the Department of Human Services. State and Local Government Contacts Agriculture Counties Human Services Information Technology 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.