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 Appropriations
Drafting number: LLS 25-0479
Fiscal Analyst:
Aaron Carpenter, 303-866-4918
aaron.carpenter@coleg.gov
Version: First Revised Note
Date: February 25, 2025
Fiscal note status: The fiscal note reflects the introduced bill, as amended by the House Health and
Human Services Committee.
Summary Information
Overview. The bill shifts funding for veterans’ mental health services to a new grant program in the
Behavioral Health Administration.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
Minimal State Expenditures
Appropriations. For FY 2025-26, the bill requires a reduction of $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 25, 2025 HB 25-1132
Summary of Legislation
The bill repeals and reenacts the Veterans Mental Health Services Program in the Department of
Military and Veterans Affairs (DMVA). Currently the program directly reimburses for mental
health services provided to eligible veterans living in community living centers. The bill allows
reimbursements for services that are complementary to mental health services such as
acupuncture and massage and requires the first $600,000 appropriated to the program to be for
eligible veterans.
In addition to direct provider reimbursements, the bill allows the program to provide grants to
nonprofit organizations to establish and expand community behavioral health programs for
service members, veterans, and their families. The bill requires the Behavioral Health
Administration (BHA) to award grants, outlines who is eligible to receive grants, what nonprofits
must demonstrate when applying for a grant, and how to prioritize applicants.
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. The Veterans Mental Health Services Program in the DMVA was created by
House Bill 23-1088 and receives a General Fund appropriation of $660,000 in FY 2024-25.
Assumption
Because the bill requires the BHA to grant money to nonprofit organizations, the fiscal note
assumes that the money from Proposition KK should be appropriated for use by the BHA, rather
than to the DMVA. Currently, Proposition KK money is appropriated to the BHA and then
reappropriated to the DMVA. The fiscal note also assumes all $5.0 million will go towards this
new grant program, as current General Fund appropriations to the Veterans Mental Health
Services Program in the DMVA already meet the requirements in statute and in the bill for the
General Assembly to appropriate at least $600,000 for the program.
Page 3
February 25, 2025 HB 25-1132
State Expenditures
While the bill shifts $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 $5 million 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.
Table 2
State Expenditures
All Departments
Department
Budget Year
FY 2025-26
Out Year
FY 2026-27
Department of Military and Veterans Affairs -$5,000,000 -$5,000,000
Behavioral Health Administration $5,000,000 $5,000,000
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 General Fund currently
appropriated to the program in FY 2024-25 and which is assumed to continue for FY 2025-26.
This bill reduces spending by the DMVA by $5 million.
Behavioral Health Administration
Expenditures will increase by $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 $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. Page 4
February 25, 2025 HB 25-1132
State Appropriations
For FY 2025-26, the bill requires a reduction of $5 million in reappropriated funds from the
Behavioral Health Administration to the Department of Veterans and Military Affairs for the
Veterans Mental Health Services Program. This reappropriation originates from the Behavioral
and Mental Health Cash Fund. This fund is continuously appropriated to the Behavioral Health
Administration, so no other adjustment in annual appropriations is required.
State and Local Government Contacts
Behavioral Health Administration Military and Veterans Affairs
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.