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February 7, 2024 SB 24-032
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated January 19, 2024)
Drafting Number:
Prime Sponsors:
LLS 24-0242
Sen. Priola; Jaquez Lewis
Rep. Vigil
Date:
Bill Status:
Fiscal Analyst:
February 7, 2024
Senate Finance
Matt Bishop | 303-866-4796
matt.bishop@coleg.gov
Bill Topic: METHODS TO INCREASE THE USE OF TRANSIT
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☒ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill creates the Youth Fare Free Transit Grant Program, makes changes to the
Ozone Season Transit Grant Program, and creates a statewide transit pass
exploratory committee. It creates ongoing state transfers, increases state
expenditures, and may increase state revenue and local revenue and expenditures
beginning in FY 2024-25.
Appropriation
Summary:
No appropriation is required, as the affected cash funds are continuously
appropriated to the Department of Transportation.
Fiscal Note
Status:
The revised fiscal note reflects the introduced bill, as amended by the Senate
Transportation and Energy Committee. The bill was recommended by the
Transportation Legislation Review Committee.
Table 1
State Fiscal Impacts Under SB 24-032
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue
- -
Expenditures Cash Funds $14,046,219 $14,050,744
Centrally Appropriated $18,541 $21,868
Total Expenditures $14,064,760 $14,072,612
Total FTE 1.1 FTE 1.3 FTE
Transfers General Fund ($14.0 million) ($14.0 million)
Ozone Season Transit Grant Program Fund $7.0 million $7.0 million
Youth Fare Free Transit Grant Program Fund $7.0 million $7.0 million
Net Transfer $0 $0
Other Budget Impacts - -
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February 7, 2024 SB 24-032
Summary of Legislation
The bill creates a new grant program for youth transit in the Department of Transportation
(CDOT), relocates and extends an existing grant program from the Colorado Energy Office
(CEO) to CDOT, and creates a committee to study the creation of a statewide transit program.
Youth Fare Free Transit Grant Program. The bill creates the Youth Fare Free Transit Grant
Program to provide grants to the Regional Transportation District (RTD) or transit agencies for
fare free year-round transit services for youth riders. CDOT must establish policies governing the
grant program and to report to the General Assembly annually on the program. The State
Auditor must include the Regional Transportation District’s (RTD) use of grant money as part of
its next performance audit. The bill creates the Youth Fare Free Transit Grant Program Fund,
which consists of money the General Assembly appropriates or transfers to the fund, as well as
any gifts, grants, or donations received for the program, and requires a $7 million General Fund
transfer to the fund on July 1, 2024, and each year thereafter. The fund is continuously
appropriated to CDOT for administering the grant program.
Ozone Season Transit Grant Program. The bill relocates the Ozone Season Transit Grant
Program to CDOT (from the Colorado Energy Office), eliminates the program’s scheduled repeal,
and requires a $7 million General Fund transfer to the Ozone Season Transit Grant Program
Fund on July 1, 2024, and each year thereafter. The fund is continuously appropriated to CDOT
for administering the grant program.
Transit pass exploratory committee. The bill creates a statewide transit pass exploratory
committee within CDOT to produce a proposal for implementing a statewide transit pass. The
committee must be created by October 1, 2024, and produce a proposal by July 1, 2026, with an
implementation goal of January 1, 2028. The committee members are appointed by the
executive director of CDOT and must include representatives of a diverse group of transit
agencies throughout the state and other stakeholders.
State Revenue
The bill potentially increases state revenue to the Youth Fare Free Transit Grant Program from
gifts, grants, or donations; however, no sources have been identified at this time. Gifts, grants, and
donations are exempt from TABOR revenue limits.
State Transfers
Beginning in FY 2024-25, the bill requires the following transfers on July 1 each year:
$7 million from the General Fund to the Youth Fare Free Transit Grant Program Fund; and
$7 million from the General Fund to the Ozone Season Transit Grant Program Fund.
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February 7, 2024 SB 24-032
State Expenditures
The bill increases state expenditures by $14 million per year beginning in FY 2024-25, as shown
in Table 3 below. Costs in DOR are paid from the General Fund, and costs in CDOT are paid from
the State Highway Fund and various other cash funds available for the department’s
construction, maintenance, and operations budget. These costs are described in more detail
below.
Table 2
Expenditures Under SB 24-032
FY 2024-25 FY 2025-26
Department of Transportation
Personal Services $62,755 $73,694
Operating Expenses $1,024 $1,280
Capital Outlay Costs $6,670 -
Grants $13,975,770 $13,975,770
Centrally Appropriated Costs
1
$18,541 $21,868
Total Costs $14,064,760 $14,072,612
Total FTE 1.1 FTE 1.3 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of Transportation. The bill increases expenditures in CDOT to administer the
exploratory committee and grant programs in the bill. Standard operating and capital outlay
costs are included. Costs are paid from continuously appropriated fund sources in CDOT.
Staff. CDOT requires 1.0 FTE in FY 2024-25 and FY 2025-26 to administer stakeholder
outreach, meetings, and research associated with the exploratory committee. CDOT also
requires 0.3 FTE to manage both grant programs, including developing grant policies,
reviewing applications and reports, monitoring, and reporting to the legislature.
Grants. After administrative expenditures, the remaining money transferred for the grant
programs is available for CDOT to award grants to transit associations and RTD.
Office of the State Auditor. Auditing the Youth Fare Free Transit Grant Program in RTD
increases workload in the Office of the State Auditor. Since the RTD audit takes place during
RTD’s next performance audit, and since state law requires RTD to cover the costs of its audits,
no change in appropriations is required.
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. Page 4
February 7, 2024 SB 24-032
Local Government
The bill may increase workload for transit associations, transit agencies, and RTD to apply for,
implement, and report on grants. Transit agencies and RTD selected to receive grant funds will
have increased revenue and additional costs to operate the free fare programs. In addition, in
any year in which a grant award is less than the cost of implementing a free-fare program, the
difference in cost will, on net, increase operating costs for the agency or RTD and reduce
funding available for other services. Because program participation and local free fare program
design depend on decisions by local entities, and grant award amounts will be determined by
CDOT, these impacts are not estimated in the fiscal note. For informational purposes, RTD
estimates that foregone fare collections during ozone season are about $7 million per month,
and that providing free fares to youth reduces fare collections by up to $5 million per year.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his
signature, except the provisions related to the Ozone Season Transit Grant Program, which take
effect July 1, 2024.
State and Local Government Contacts
Colorado Energy Office Information Technology Personnel
Revenue State Auditor Transportation
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.