HB 25-1132
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1132: MILITARY FAMILY BEHAVIORAL HEALTH GRANT PROGRAM
Prime Sponsors:
Rep. Camacho; Stewart R.
Sen. Hinrichsen; Bridges
Published for: House Health & Human Services
Drafting number: LLS 25-0479
Fiscal Analyst:
Aaron Carpenter, 303-866-4918
aaron.carpenter@coleg.gov
Version: Initial Fiscal Note
Date: February 7, 2025
Fiscal note status: The fiscal note reflects the introduced bill.
Summary Information
Overview. The bill creates the Military Family Behavioral Health Grant Program in the Behavioral Health
Administration and redirects firearm excise tax money to this new program in place of the existing
Veterans Mental Health Services Program in the Department of Military and Veterans Affairs.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
State Expenditures
Appropriations. For FY 2025-26, the bill requires a reduction of $1.5 million of reappropriated funds from
the Behavioral Health Administration to the Department of Military and Veterans Affairs.
Table 1
State Fiscal Impacts
Type of Impact
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue $0 $0
State Expenditures (No Net Change)¹ $0 $0
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 0.0 FTE 0.0 FTE
1
The bill reduces expenditures in the Department of Military and Veterans Affairs and increases
spending in the Behavioral Health Administration, resulting in no net change in state expenditures. See
change by departments in Table 2. Page 2
February 7, 2025 HB 25-1132
Summary of Legislation
The bill creates the Military Family Behavioral Health Grant Program in the Behavioral Health
Administration (BHA). The grant program will provide grants to nonprofits to establish and
expand community behavioral health programs for service members, veterans, and their
families. The bill outlines who is eligible to receive grants, what nonprofits must demonstrate
when applying for a grant, and how the BHA must prioritize applicants.
The bill funds the new grant program using money transferred under current law from the
Firearms and Ammunition Excise Tax Cash Fund to the Behavioral and Mental Health Cash Fund.
Of the first $8 million transferred to the Mental Health Cash Fund under current law, the first
$5.0 million to be used to expand the Veterans Mental Health Services Program. Under this bill,
the amount dedicated to the Veterans Mental Health Services Program in the Department of
Military and Veterans Affairs (DMVA) is reduced to $3.5 million and $1.5 million must go toward
the new Military Family Behavioral Health Grant Program in the BHA.
Background
In November 2024, voters passed Proposition KK which created a new tax on firearms, firearm
parts, and ammunition. Currently, the first $30 million in excise tax revenue is transferred from
the Firearms and Ammunition Excise Tax Cash Fund to fund victim services and then the next
$5.0 million is transferred to the Behavioral and Mental Health Cash Fund for use to expand the
Veterans Mental Health Services program in the DMVA. Based on the fiscal note for
House Bill 24-1349, transfers to the Behavioral and Mental Health Cash Fund are projected to
begin in FY 2025-26.
State Expenditures
While the bill shifts $1.5 million in spending between state agencies and programs, it results in
no net change in state expenditures. The bill decreases expenditure in the DMVA by $1.5 million
by decreasing funding allocated to the Veterans Mental Health Services Program and increases
spending in the BHA to administer the new grant program by the same amount. This shift in
spending is shown in Table 2 and described below. Costs for both programs are paid from the
Behavioral and Mental Health Cash Fund. Should excise tax revenue not be sufficient to fully
fund the transfer to the Behavioral and Mental Health Cash Fund, the Veterans Mental Health
Services Program in the DMVA is first in line for funding, followed by the new grant program in
the BHA.
Page 3
February 7, 2025 HB 25-1132
Table 2
State Expenditures
All Departments
Department
Budget Year
FY 2025-26
Out Year
FY 2026-27
Department of Military and Veterans Affairs -$1,500,000 -$1,500,000
Behavioral Health Administration $1,500,000 $1,500,000
Total Costs $0 $0
Department of Military Affairs
Under current law, the Veterans Mental Health Services Program in the DMVA will receive an
additional $5.0 million in FY 2025-26, on top of the $660,000 they currently spend in FY 2024-25.
This bill reduces funding for the program by $1.5 million, which will result in total funding of
$4.2 million for the program in FY 2025-26 and ongoing, assuming current appropriations
continue at the same level. Because the department has not yet received excise tax funding, the
decrease in funds under the bill will not result in a reduction in services under the DMVA grant
program, but will instead limit expansion of the program once excise tax revenue is received by
the state.
Behavioral Health Administration
Expenditures will increase by $1.5 million in the BHA to distribute grants to local nonprofits that
provide mental health services to veterans and their families. The fiscal note assumes any
administrative expenses in BHA can be covered using the funding provided, but that overall any
administrative effort is minimal and most or all of the $1.5 million will go toward grants.
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 2025-26, the bill requires a reduction of $1.5 million in reappropriated funds from the
Behavioral Health Administration to the Department of Veterans and Military Affairs from the
Behavioral Health Cash Fund. Page 4
February 7, 2025 HB 25-1132
State and Local Government Contacts
Behavioral Health Administration
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.