First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0802.01 Caroline Martin x5902
HOUSE BILL 25-1216
House Committees Senate Committees
Appropriations
A BILL FOR AN ACT
C
ONCERNING A REQUIREMENT THAT STATE AGENCIES IMPLEMENT101
ZERO-BASED BUDGETING.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
In state fiscal year 2026-27, the bill requires the department of
revenue, the department of education, and the department of
transportation to implement a budgeting method in which all expenses,
both existing and new, must be justified for the fiscal year and every
function is analyzed for its needs and costs (zero-based budgeting) when
submitting a budget request. In state fiscal year 2027-28 and each state
HOUSE SPONSORSHIP
Brooks,
SENATE SPONSORSHIP
Carson,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. fiscal year thereafter, the bill requires all state agencies in all principal
departments to implement zero-based budgeting when submitting a
budget request.
In state fiscal year 2026-27 and each state fiscal year thereafter, the
office of state planning and budgeting is required to develop and digitally
distribute to state agencies information related to zero-based budgeting
training and to provide virtual sessions for the purpose of training state
agencies to implement zero-based budgeting. In state fiscal year 2027-28
and each state fiscal year thereafter, the office of state planning and
budgeting is required to submit to the general assembly an annual report
detailing the effectiveness of zero-based budgeting.
All budget requests that implement zero-based budgeting must be
publicly accessible on the general assembly's website, and the state
auditor is required to conduct periodic financial audits to ensure state
agencies' compliance with zero-based budgeting requirements.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 2-3-208, amend (6);2
and add (1)(c) and (2.5) as follows:3
2-3-208. Budget requests - amendments - supplemental4
appropriation requests - deadlines - definitions. (1) As used in this5
section, unless the context otherwise requires:6
(c) "Z
ERO-BASED BUDGETING" MEANS A BUDGETING METHOD IN7
WHICH ALL EXPENSES, BOTH EXISTING AND NEW, MUST BE JUSTIFIED FOR8
THE FISCAL YEAR AND EVERY FUNCTION IS ANALYZED FOR ITS NEEDS AND9
COSTS.10
(2.5) (a) I
N STATE FISCAL YEAR 2026-27, WHEN SUBMITTING A11
BUDGET REQUEST TO THE JOIN T BUDGET COMMITTEE PURSUANT TO12
SUBSECTION (2)(a) OF THIS SECTION, THE FOLLOWING STATE AGENCIES13
SHALL, WITHOUT FURTHER APPROPRIATIONS FOR THE PURPOSES OF THIS14
SUBSECTION (2.5)(a), IMPLEMENT ZERO-BASED BUDGETING:15
(I) T
HE DEPARTMENT OF REVENUE ;16
(II) T
HE DEPARTMENT OF EDUCATION ; AND17
HB25-1216-2- (III) THE DEPARTMENT OF TRANSPORTATION .1
(b) I
N STATE FISCAL YEAR 2027-28 AND EACH STATE FISCAL YEAR2
THEREAFTER, WHEN SUBMITTING A BUDGET REQUEST TO THE JOINT3
BUDGET COMMITTEE PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION,4
ALL STATE AGENCIES IN ALL PRINCIPAL DEPARTMENTS SHALL , WITHOUT5
FURTHER APPROPRIATIONS FOR THE PURPOSES OF THIS SUBSECTION6
(2.5)(b),
IMPLEMENT ZERO-BASED BUDGETING.7
(c) I
N STATE FISCAL YEAR 2026-27 AND EACH STATE FISCAL YEAR8
THEREAFTER, THE OFFICE OF STATE PLANNING AND BUDGETING SHALL ,9
WITHOUT ANY FURTHER APPROPRIATIONS FOR THE PURPOSES OF THIS10
SUBSECTION (2.5)(c):11
(I) D
EVELOP AND DIGITALLY DISTRIBUTE TO STATE AGENCIES12
INFORMATION RELATED TO ZERO -BASED BUDGETING TRAINING; AND13
(II) P
ROVIDE VIRTUAL SESSIONS FOR THE PURPOSE OF TRAINING14
STATE AGENCIES TO IMPLEMENT ZERO -BASED BUDGETING.15
(d) I
N STATE FISCAL YEAR 2027-28 AND EACH STATE FISCAL YEAR16
THEREAFTER, THE OFFICE OF STATE PLANNING AND BUDGETING SHALL ,17
WITHOUT ANY FURTHER APPROPRIATIONS FOR THE PURPOSES OF THIS18
SUBSECTION (2.5)(d), SUBMIT TO THE JOINT BUDGET COMMITTEE A REPORT19
CONCERNING THE EFFECTIVENESS OF ZERO -BASED BUDGETING20
IMPLEMENTED PURSUANT TO SUBSECTIONS (2.5)(a) AND (2.5)(b) OF THIS21
SECTION. 22
(e) I
N STATE FISCAL YEAR 2026-27 AND EACH STATE FISCAL YEAR23
THEREAFTER, WITHOUT ANY FURTHER APPROPRIATIONS FOR THE PURPOSES24
OF THIS SUBSECTION (2.5)(e), ALL BUDGET REQUESTS THAT IMPLEMENT25
ZERO-BASED BUDGETING PURSUANT TO SUBSECTIONS (2.5)(a) AND (2.5)(b)26
OF THIS SECTION MUST BE PUBLICLY ACCESSIBLE ON THE GENERAL27
HB25-1216
-3- ASSEMBLY'S WEBSITE.1
(f) T
HE STATE AUDITOR SHALL , WITHOUT ANY FURTHER2
APPROPRIATIONS FOR THE PURPOSES OF THIS SUBSECTION (2.5)(f),3
CONDUCT OR CAUSE TO BE CONDUCTED AN AUDIT OF EACH STATE AGENCY4
TO ENSURE STATE AGENCIES ' COMPLIANCE WITH THE ZERO -BASED5
BUDGETING REQUIREMENTS DESCRIBED IN SUBSECTIONS (2.5)(a) AND6
(2.5)(b)
OF THIS SECTION.7
(6) For purposes of this section,
EXCEPT FOR SUBSECTION (2.5) OF8
THIS SECTION, the office of administrative services for independent9
agencies in the judicial department, created in section 13-100-103, is a10
state agency. Included agencies, as defined in section 13-100-102, are not11
state agencies for purposes of budget request submissions.12
SECTION 2. Act subject to petition - effective date. This act13
takes effect at 12:01 a.m. on the day following the expiration of the14
ninety-day period after final adjournment of the general assembly; except15
that, if a referendum petition is filed pursuant to section 1 (3) of article V16
of the state constitution against this act or an item, section, or part of this17
act within such period, then the act, item, section, or part will not take18
effect unless approved by the people at the general election to be held in19
November 2026 and, in such case, will take effect on the date of the20
official declaration of the vote thereon by the governor.21
HB25-1216
-4-