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February 7, 2024 SB 24-053
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated January 29, 2024)
Drafting Number:
Prime Sponsors:
LLS 24-0465
Sen. Coleman
Rep. Herod; Ricks
Date:
Bill Status:
Fiscal Analyst:
February 7, 2024
Senate Finance
John Armstrong | 303-866-6289
john.armstrong@coleg.gov
Bill Topic: RACIAL EQUITY STUDY
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill requires History Colorado to study the ongoing effects of slavery and
subsequent systemic racism on Black Coloradans that may be attributed to practices,
systems, and policies of the state, and establishes a commission to assist this effort
and to contract for an economic impact study. The bill increases state expenditures
through FY 2026-27, assuming sufficient gifts, grants, and donations are received.
Appropriation
Summary:
No appropriation is required. The Black Coloradan Racial Equity Study Cash Fund is
continuously appropriated to History Colorado and the Legislative Department.
Fiscal Note
Status:
This revised fiscal note reflects the introduced bill, as amended by the Senate State,
Veterans, and Military Affairs Committee.
Table 1
State Fiscal Impacts Under SB 24-053
1
Budget Year
FY 2024-25
Out Year
FY 2025-26
Out Year
FY 2026-27
Revenue Cash Funds at least $500,000 - -
Total Revenue at least $500,000 - -
Expenditures Cash Funds $519,371 $473,671 $523,045
Centrally Appropriated $98,345 $98,345 $51,557
Total Expenditures $617,716 $572,016 $574,603
Total FTE 5.3 FTE 5.3 FTE 2.8 FTE
Transfers - - -
Other Budget - - -
1
The bill intends for all costs to be paid from gifts, grants, and donations to the Black Coloradan Racial Equity Study
Cash Fund, and creates a trigger of $500,000 received for work to begin. The fiscal note assumes that enough funding
will be received to cover the costs shown in Table 1 through FY 2026-27. If adequate funding is not received, these
costs may require General Fund. Page 2
February 7, 2024 SB 24-053
Summary of Legislation
The bill establishes the Black Coloradan Racial Equity Commission within the Legislative
Department to conduct a study to determine, and make recommendations related to, any
potential historical and ongoing effects of slavery and subsequent systemic racism on Black
Coloradans that may be attributed to practices, systems, and policies of the state.
Historical research for the study will be conducted by History Colorado staff in the Department
of Higher Education and Legislative Council Staff will assist the commission. The bill establishes
quarterly reporting requirements to the commission on study progress. History Colorado must
submit the study to the commission and any recommendations within 2.5 years. At this point,
the commission must enter into an agreement with one or more third-party entities to complete
an economic analysis of the financial impact of systemic racism on Black Coloradans.
The work of the commission and the study hinge on receiving adequate gifts, grants, and
donations. Gifts, grants, and donations are credited to the newly created Black Coloradan Racial
Equity Study Cash Fund. Money in the fund is continuously appropriated to History Colorado
and the Legislative Department. The fund must raise at least $500,000 by June 30, 2025, in order
for the study to occur; otherwise, the funds are returned to the donors.
The Commission consists of the Executive Director of History Colorado and Governor, Speaker of
the House, and President of the Senate appointees, totaling 14 members, including two
Representatives and two Senators. Non-legislative members of the committee serve without
compensation but may be reimbursed for expenses incurred. The bill establishes timelines for
the commission to meet and the topics of their study.
State Revenue
The bill is expected to increase state revenue to the Black Coloradan Racial Equity Study Cash
Fund by at least $500,000 in FY 2024-25, and by amounts adequate to cover state expenditures
thereafter, as shown in Tables 1 and 2. Gifts, grants, and donations will cover the cost to conduct
the study, fund the work of the commission, and contract for an economic analysis, as required
by the bill. The fiscal note assumes that sufficient gifts, grants, and donations will be received by
July 1, 2024, for the budget year costs, in order for History Colorado and the commission to start
work immediately. Gifts, grants, and donations are not subject to the state’s TABOR revenue
limit.
State Expenditures
The bill increases state expenditures from the Black Coloradan Racial Equity Study Cash Fund by
at least $594,000 in FY 2024-25 and about $330,000 in FY 2025-26. The fiscal note estimate is
based on the minimum required expenditures in order for the study to take place. However,
based on an estimated cost of $1.8 million to complete the study over three years, the actual
expenditures will increase if additional donations or appropriations are received above the fiscal
note estimate. Expenditures are shown in Table 2 and detailed below. Page 3
February 7, 2024 SB 24-053
Table 2
Expenditures Under SB 24-053
FY 2024-25 FY 2025-26 FY 2026-27
History Colorado
Personal Services $384,291 $384,291 $192,145
Operating Expenses $6,400 $6,400 $3,200
Capital Outlay Costs $33,350 - -
Meetings and Facilitation $12,350 - -
Travel $5,280 $5,280 -
Research Consultants $50,000 $50,000 -
Centrally Appropriated Costs
1
$93,576 $93,576 $46,788
FTE – Personal Services 5.0 FTE 5.0 FTE 2.5 FTE
History Colorado Subtotal $585,247 $539,547 $242,133
Legislative Department
Personal Services $22,039 $22,039 $22,039
Member Per-Diem and Travel Costs $5,661
$5,661
$5,661
Economic Study - - $300,000
Centrally Appropriated Costs
1
$4,769
$4,769
$4,769
FTE – Personal Services 0.3 FTE 0.3 FTE 0.3 FTE
Legislative Department Subtotal $32,470 $32,470 $332,470
Total Cost $617,716 $572,016 $574,603
Total FTE 5.3 FTE 5.3 FTE 2.8 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
History Colorado. History Colorado will have staff, consulting, and meeting costs to meet the
bill’s requirements, as outlined below.
Staff. History Colorado require 5.0 FTE to conduct research to complete the study and
report. These staff include 1.0 FTE Program Manager and 4.0 FTE Research Associates
specializing in fiscal impacts, educational impacts, criminal justice impacts, and health care
impacts to Black Coloradans. Standard operating expenses and capital outlay costs are
included for this staff, and costs assume a July 1, 2024, start date, and a December 1, 2026,
end date. Page 4
February 7, 2024 SB 24-053
Meeting expenses and travel. Meeting costs are estimated at $12,350 in FY 2024-25 only,
assuming two facilitated public comment meetings. Travel costs are included for research
staff through FY 2025-26.
Research consultants. History Colorado will contract with other research agencies, including
community representatives, descendant scholars, survivors of racism, and other experts in
order to complete the study. Costs assume 200 hours of research consultation at a rate of
$250 per hour.
Legislative Department. Legislative Council Staff requires 0.3 FTE Research Associate to
provide support to the commission as they meet to conduct the study. Additionally, the four
legislative members of the commission will incur $5,661 in reimbursement for per diem and
expense reimbursement. In FY 2026-27, the Legislative Department requires an estimated
$300,000 for the commission to contract for an economic study; actual costs will depend on the
terms of contract following the procurement process.
Governor’s Office. Workload will minimally increase for the Governor’s Office of Boards and
Commissions to make the required appointment under the bill. This work can be accomplished
within existing appropriations.
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.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed, except that work on the study does not occur unless the state
receives gifts, grants, or donations of at least $500,000 by June 30, 2025.
Technical Note
The bill has two potential technical issues concerning the donation trigger to implement the bill
and the sharing of the newly created cash fund by two agencies, as described below.
Donations requirement. The bill requires all components of the studies and the commission’s
work to be funded with gifts, grants, and donations, and states that it is the intent of the General
Assembly not to use General Fund to cover the costs of the bill. However, the $500,000 donation
trigger for implementation is below the estimated costs of the bill. As shown in Tables 1 and 2,
the costs for the study and the commission are estimated at approximately $1.6 million over
three years, which will likely create a General Fund obligation if sufficient donations are not
received.
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February 7, 2024 SB 24-053
Cash fund appropriations. The bill continuously appropriates funding to two separate agencies
from a single newly created cash fund. For accounting purposes, the bill should make a direct,
annual appropriation to one or both agencies to ensure that spending does not exceed available
revenue in the fund. Additional information on potential options for appropriations will be
provided if the bill is referred to Senate Appropriations.
State and Local Government Contacts
History Colorado Legislative Council 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.