Page 1 July 1, 2024 HB 24-1206 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Final Fiscal Note Drafting Number: Prime Sponsors: LLS 24-0987 Rep. Bird; Sirota Sen. Kirkmeyer; Zenzinger Date: Bill Status: Fiscal Analyst: July 1, 2024 Signed into Law Anna Gerstle | 303-866-4375 anna.gerstle@coleg.gov Bill Topic: SCHOOL FOOD AUTHORITIES Summary of Fiscal Impact: ☐ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☐ Local Government ☐ Statutory Public Entity The bill specifies that facility schools, residential child care facilities, and the Colorado School for the Deaf and Blind are school food authorities, making them eligible for state nutrition programs. The bill increases state expenditures on an ongoing basis. Appropriation Summary: For FY 2023-24, the bill requires and includes an appropriation of $17,752 to the Colorado Department of Education. For FY 2024-25, the bill requires an appropriation of up to $483,812 to the Colorado Department of Education. See State Appropriations section. Fiscal Note Status: The final fiscal note reflects the enacted bill, which was recommended by the Joint Budget Committee as part of its supplemental budget package. Table 1 State Fiscal Impacts Under HB 24-1206 Current Year FY 2023-24 Budget Year FY 2024-25 Out Year FY 2025-26 Revenue - - Expenditures General Fund Exempt Account $17,752 up to $483,812 up to $483,812 Transfers - - Other Budget Impacts - - - Page 2 July 1, 2024 HB 24-1206 Summary of Legislation The bill adds facility schools, residential child care facilities, and the Colorado School for the Deaf and Blind to the list of school food authorities, making them eligible for state nutrition programs, including the Healthy Schools Meals for All program. These schools are currently treated as such by the federal school meal programs. Background The Healthy Schools Meals for All program provides free meals for public school students who are enrolled in a participating school district, charter school, or other entity that serves as a school food authority. Beginning in FY 2024-25, it also provides employee wage and local food purchasing grants. State Expenditures The bill increases state expenditures by $17,752 in the current FY 2023-24, and up to about $485,000 beginning in FY 2024-25. Program cost are paid from the Healthy School Meals for All Program General Fund Exempt Account. In FY 2023-24, CDE requires $17,752 to cover free meals for the rest of the year for students enrolled in schools that currently operate as a federal school food authority and are expected to begin participating in Healthy Schools Meals for All Program in the current school year. In FY 2024-25, costs will increase to cover free meals for students and include the additional schools in the grant programs being implemented under current law. These costs depend on the number of schools that choose to participate in the program, ranging from $259,812 if only school food authorities current participating in federal programs begin participating in the Healthy Schools Meals for All program, to $483,812 if all eligible schools participate. The fiscal note assumes the high end of the costs with all schools participating; however, the actual appropriations amount will be determined through the annual budget process. Table 2 Expenditures Under HB 24-1206 FY 2023-24 FY 2024-25 FY 2025-26 Department of Education Healthy School Meals for All $17,752 up to $483,812 up to $483,812 Effective Date The bill was signed into law by the Governor and took effect on March 8, 2024. Page 3 July 1, 2024 HB 24-1206 State Appropriations For the current FY 2023-24, the bill requires and includes an appropriation of $17,752 from the Healthy School Meals General Fund Exempt Account to the Colorado Department of Education. For FY 2024-25, the bill requires an appropriation of up to $483,812 from the Healthy School Meals General Fund Exempt Account to the Colorado Department of Education. No appropriation is included, as funding to cover these costs is instead included in the FY 2024-25 Long Bill. State and Local Government Contacts Education Joint Budget Committee Staff 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 the General Assembly website.