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March 27, 2024 HB 24-1307
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated March 1, 2024)
Drafting Number:
Prime Sponsors:
LLS 24-0281
Rep. Lieder; Hamrick
Sen. Marchman
Date:
Bill Status:
Fiscal Analyst:
March 27, 2024
House Appropriations
Josh Abram | 303-866-3561
josh.abram@coleg.gov
Bill Topic: HVAC IMPROVEMENTS FOR PUBLIC SCHOOLS
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☒ TABOR Refund
☒ School District
☐ Statutory Public Entity
The bill requires that public schools and districts satisfy certain requirements
concerning installation, inspection, and maintenance of heating, ventilation, and air
conditioning systems when using federal and state funding. The bill increases state
expenditures beginning FY 2024-25.
Appropriation
Summary:
For FY 2024-25, the bill requires an appropriation of about $1.5 million to the
Governor’s Office.
Fiscal Note
Status:
The revised fiscal note reflects the introduced bill, as amended by the House
Education Committee.
Table 1
State Fiscal Impacts Under HB 24-1307
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue Cash Funds - $140,382
Total Revenue - $140,382
Expenditures Cash Funds $1,485,090 $1,570,062
Centrally Appropriated $83,930 $104,060
Total Expenditures $1,569,020 $1,674,122
Total FTE 4.0 FTE 5.0 FTE
Transfers - -
Other Budget Impacts TABOR Refunds - $140,382
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March 27, 2024 HB 24-1307
Summary of Legislation
The bill requires that all public schools and districts adhere to technical specifications for the
installation, inspection, maintenance, review and reporting of heating, ventilation, and air
conditioning (HVAC) systems whenever improvements are made using federal money, or a
combination of federal and state funding specifically for HVAC improvements. Schools must
only employ certified contractors to perform HVAC improvements.
The bill permits public schools to apply for grants from federal and state sources, including the
Building Electrification for Public Buildings Grant Program in the Colorado Energy Office. Schools
may also access an existing grant navigation program administered by the Department of Local
Affairs, and coordinate with third parties for technical assistance related to HVAC installation
and in obtaining grant funding. The Governor’s office may use money in the Infrastructure
Investment and Jobs Act Cash Fund to provide grant writing support to schools and districts,
and to coordinate with third parties providing technical assistance to schools.
State Revenue
The bill increases state revenue in the DPS by up to $140,382 in FY 2025-26 from fees charged
to public schools and districts. As described below, the Department of Public Safety has an
increase in cash fund expenditures for inspections of public school fire suppression systems,
including HVAC improvements or installations beginning in FY 2025-26. The revenue impact is
calculated to match the expenditures in the State Expenditure Section. Fee revenue is subject to
TABOR.
State Expenditures
The bill increases state expenditures in the Colorado Energy Office by about $1.5 million in
FY 2024-25 and FY 2025-26, paid from the Infrastructure Investment and Jobs Act Cash Fund.
The bill increases expenditures in the Division of Fire Prevention and Control (DFPC) in the
Department of Public Safety (DPS) by about $140,000 in FY 2024-25, and by about $248,000 in
FY 2025-26, paid from the General Fund. Expenditures are shown in Table 2 and detailed below.
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March 27, 2024 HB 24-1307
Table 2
Expenditures Under HB 24-1307
FY 2024-25 FY 2025-26
Colorado Energy Office
Personal Services $361,810 $361,810
Operating Expenses $5,120 $5,120
Capital Outlay Costs $26,680 -
Travel $6,480 $6,480
Third-Party Contracts $1,085,000 $1,085,000
Centrally Appropriated Costs
1
$83,930 $83,930
FTE – Personal Services 4.0 FTE 4.0 FTE
Governor’s Office Subtotal $1,569,020 $1,542,340
Department of Public Safety
Personal Services - $73,331
Operating Expenses - $1,280
Capital Outlay Costs - $6,670
Statewide Travel Expenses - $10,000
Radios - $8,600
Uniforms - $2,250
Personal Protective Equipment - $2,500
Leased Vehicles - $9,957
Variable Vehicle Costs - $5,664
Centrally Appropriated Costs
1
- $20,130
FTE – Personal Services - 1.0 FTE
DPS Subtotal - $140,382
Total Costs $1,569,020 $1,682,722
Total FTE 4.0 FTE 5.0 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
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March 27, 2024 HB 24-1307
Governor’s Office
Staff. Under current law, the Governor’s office provides grant writing support and project
planning for local governments and tribes. The office may authorize spending from the money
provided under the federal Infrastructure Investment and Jobs Act for infrastructure projects,
and other permissible uses. Expanding the current program to include HVAC improvements or
installations in schools and districts, the Governor’s Energy Office will add 1.0 FTE Contract
Administrator to oversee third party contracts, review and approve payments, and manage
memoranda of understanding between the office and schools and districts. The office will also
add 3.0 FTE School Grant and Tax Credit Navigators to market available state resources to public
schools, identify grants and other funding and financing opportunities, and provide technical
assistance for grant writing and project planning.
Third-party contracts. The office uses outside vendors and consulting firms to provide
additional assistance to current program participants. The office will contract with additional
consultants with expertise in the expanded assistance authorized in the bill, including HVAC
engineering systems, compliance with federal labor standards, project financing, and tax credits
and other incentives for HVAC improvements in schools.
Department of Public Safety
Staff. The DFPC in DPS provides building, fire, and safety code enforcement and fire-related
training and education to local governments, including public schools and districts. Within the
division, the Fire and Life Safety Section administers the fire, building, and life safety codes
adopted by the division for all public schools, and the Building Codes Branch of the division is
the designated code official. Inspectors conduct plan reviews and construction inspections for
building, mechanical, energy conservation, and fire suppression code adopted by the DFPC. This
bill is estimated to increase the number of HVAC improvement or replacement projects in public
schools. The DFPC currently estimates that HVAC inspections number about 15 annually.
Assuming this bill doubles the number of projects beginning in FY 2025-26, the DFPC requires
an additional 1.0 FTE Inspector and related costs such as travel, uniforms, personal protective
equipment, etc. The number of annual inspections is expected to continue to increase in
subsequent years, which may require additional FTE and resources; however, this amount has
not been estimated and must be addressed during the annual budget process.
Centrally appropriated costs. Pursuant to a Joint Budget Committee policy, certain costs
associated with this bill are addressed through the annual budget process and centrally
appropriated in the Long Bill or supplemental appropriations bills, rather than in this bill. These
costs, which include employee insurance and supplemental employee retirement payments, are
shown in Table 2.
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March 27, 2024 HB 24-1307
Other Budget Impacts
TABOR refunds. The bill is expected to increase the amount of state revenue required to be
refunded to taxpayers by the amounts shown in the State Revenue section above. This estimate
assumes the March 2024 LCS revenue forecast. A forecast of state revenue subject to TABOR is
not available beyond FY 2025-26. Because TABOR refunds are paid from the General Fund,
increased cash fund revenue will reduce the amount of General Fund available to spend or save.
School District
Public schools and districts will receive specialized grant writing support and other technical
assistance from the Governor’s energy office and third-party partners in order to address HVAC
system upgrades. Cost may increase to pursue additional HVAC projects, with costs offset to the
extent that additional grants and other resources become available. These costs will vary by
school district. When improvements are completed, districts pay the DPS for the final inspection.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his
signature.
State Appropriations
For FY 2024-25, the bill requires an appropriation of $1,485,090 from the Infrastructure
Investment and Jobs Act Cash Fund to the Governor’s Office, and 4.0 FTE.
State and Local Government Contacts
Labor
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.