SB 25-256 Fiscal Note Legislative Council Staff Nonpartisan Services for Colorado’s Legislature SB 25-256: FUNDS FOR SUPPORT OF DIGITAL TRUNKED RADIO Prime Sponsors: Sen. Kirkmeyer; Amabile Rep. Bird; Sirota Published for: Senate Appropriations Drafting number: LLS 25-1025 Fiscal Analyst: Josh Abram, 303-866-3561 josh.abram@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 annually transfers $15 million in severance tax revenue to support the digital trunked radio system. Types of impacts. The bill is projected to affect the following areas through FY 2034-35: State Expenditures State Transfers Appropriations. No appropriation is required as the Public Safety Communications Trust Fund is continuously appropriated to the Department of Public Safety. 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 $0 $0 Transferred Funds $15,000,000 $15,000,000 Change in TABOR Refunds $0 $0 Change in State FTE 0.0 FTE 0.0 FTE 1 Fund sources for these impacts are shown in the tables below. Page 2 March 31, 2025 SB 25-256 Table 1A State Transfers Fund Source Budget Year FY 2025-26 Out Year FY 2026-27 Local Government Severance Tax Cash Fund -$15,000,000 -$15,000,000 Public Safety Communications Trust Fund $15,000,000 $15,000,000 Net Transfer $0 $0 Summary of Legislation Beginning FY 2025-26, and continuing annually through FY 2034-35, the bill transfers $15 million from the Local Government Severance Tax Cash Fund to the Public Safety Communications Trust Fund in the Department of Public Safety (DPS). The DPS may only use money in the trust fund to support the digital trunked radio system, including site supporting infrastructure, and supporting software and hardware. Background The Office of Public Safety Communications in DPS includes the Digital Trunked Radio System. This system is a statewide wireless system that enables direct communications to the more than 1,000 state, local, federal, and tribal public safety agencies and emergency responders across the state. The digital trunked radio system vendor contract for $15 million includes $12 million for services and $3 million for program hardware, equipment upgrades, and maintenance. State Transfers For FY 2025-26, and each fiscal year through FY 2034-35, the bill transfers $15 million from the Local Government Severance Tax Cash Fund to the Public Safety Communications Trust Cash Fund. State Expenditures The bill refinances the digital trunked radio system in the DPS by using severance tax dollars received by the Department of Local Affairs. The Department of Local Affairs uses 70 percent of the Local Government Severance Tax Cash Fund for the Energy/Mineral Impact Assistance Fund Grant Program, which makes grants for local government infrastructure, land use planning, and similar projects. The bill reduces funding available for making grants through this program. Page 3 March 31, 2025 SB 25-256 Effective Date The bill takes effect upon signature of the Governor, or upon becoming law without his signature. State Appropriations No appropriation is required. Funds in the Public Safety Communications Trust Cash Fund are continuously appropriated to the Department of Public Safety. State and Local Government Contacts Joint Budget Committee 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.