SB 25-238 Fiscal Note Legislative Council Staff Nonpartisan Services for Colorado’s Legislature SB 25-238: REPEAL SCHOOL MENTAL HEALTH SCREENING ACT Prime Sponsors: Sen. Amabile; Kirkmeyer Rep. Sirota; Taggart Published for: Senate Appropriations Drafting number: LLS 25-0989 Fiscal Analyst: Kristine McLaughlin, 303-866-4776 kristine.mclaughlin@coleg.gov Version: Initial Fiscal Note Date: March 31, 2025 Fiscal note status: This fiscal note reflects the introduced bill, which was recommended by the Joint Budget Committee as part of the FY 2025-26 Long Bill budget package. Summary Information Overview. The bill repeals the School Mental Health Screening Act. 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 and includes a reduction in appropriations of $2.9 million from the Behavioral Health Administration. Table 1 State Fiscal Impacts Type of Impact 1 Budget Year FY 2025-26 Out Year FY 2026-27 State Revenue $0 $0 State Expenditures (General Fund) -$2,856,824 -$2,834,813 Transferred Funds $0 $0 Change in TABOR Refunds $0 $0 Change in State FTE -3.0 FTE -3.0 FTE Page 2 March 31, 2025 SB 25-238 Summary of Legislation House Bill 23-1003 created a mental health screening program available to public schools serving grades 6 through 12, administered by the Behavioral Health Administration (BHA), to screen students into programs like the “I Matter” program. I Matter is also administered by the BHA and provides up to six free therapy sessions per year for youth in Colorado. The bill repeals the screening program on the bill’s effective date. Background The fiscal note for HB 23-1003 estimated that the bill would result in an increase in expenditures of about $2.9 million to conduct the screening and to refer them to the I Matter program. Senate Bill 24-001, continued the I Matter program and the fiscal note for SB 24-001 estimated that extending the program would costs $11.1 million ($6.0 million in continuation funding and $5.1 million to provide an additional 13,738 students that might be screened into the program). Instead, the General Assembly appropriated $5.0 million to the I Matter program for FY 2024-25, and the Joint Budget Committee, in its Long Bill figure setting for FY 2025-26, has continued funding for iMatter at this lower level. State Expenditures By repealing the school-based screening, the bill reduces state expenditures by $2.9 million annually as shown in Table 2. Eliminating the screening program may also decrease costs and participation in the I Matter program. Table 2 State Expenditures Fund Source Budget Year FY 2025-26 Out Year FY 2026-27 Personal Services -$234,917 -$234,917 Operating Expenses -$4,050 -$4,050 Capital Outlay Costs -$22,011 $0 Qualified Provider Contract -$2,011,706 -$2,011,706 Data Vendor Contract -$525,000 -$525,000 All Employee Insurance -$38,342 -$38,342 Supplemental PERA -$20,798 -$20,798 Total Cost -$2,856,824 -$2,834,813 Total FTE -3.0 FTE -3.0 FTE Page 3 March 31, 2025 SB 25-238 School Screenings Starting in FY 2025-26, the bill reduces expenditures in the BHA administration by $2.9 million ad 3.0 FTE to no longer provide school based screening. This cost savings is based on current appropriations for the program. Reduction in Referrals to the I Matter Program Removing the school-based screening program is also expected to reduce the number of referrals to the I Matter program. This may lower costs for the I Matter program, or alternately, reduce the risk of program waitlist or allow youths participating in the program to have additional therapy sessions within the program’s current appropriation. Based on prior decisions by the General Assembly to not appropriate additional money for the I Matter program based on the creation of the school-based screening program, it is assumed that no change to appropriations to the BHA for the I Matter program is required when repealing the screening program, and that the I Matter program will use available appropriations set by the General Assembly to maximize participation and the number of sessions for youths. Effective Date The bill takes effect upon signature of the Governor, or upon becoming law without his signature. State Appropriations For FY 2025-26, the bill requires and includes a reduction in General Fund appropriations of $2,856,824 from the Behavioral Health Administration, and 3.0 FTE 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.