Colorado Bill Modifies Controller Allowance for Expenditures Exceeding Appropriations

Detected March 18th, 2026

Summary

Colorado HB26-1178 modifies the conditions under which the state controller can allow expenditures exceeding appropriations. The bill expands the criteria to include lapses in federal appropriations and adjusts the process for releasing spending restrictions when supplemental appropriations are enacted.

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What changed

Colorado HB26-1178 proposes amendments to the state's expenditure control laws. Specifically, it alters the conditions under which the controller may permit state departments, institutions, or agencies to exceed their allocated appropriations. The modification allows for overexpenditures not only due to unforeseen circumstances when the general assembly is not in session but also when a lapse in federal funding is anticipated and determined by the Joint Budget Committee to be likely during a legislative recess.

Furthermore, the bill refines the procedure for lifting spending restrictions imposed by the controller on such overexpenditures. If a supplemental appropriation is subsequently enacted to cover the overexpenditure, the controller's spending restriction will be fully released, and the agency's authority to overexpend will terminate. This change impacts how state agencies manage their budgets in response to unexpected funding shortfalls or changes in federal grants.

What to do next

Review HB26-1178 for potential impact on agency budget management and expenditure controls.
Monitor legislative progress and enactment of HB26-1178.
Update internal policies and procedures related to expenditure approvals if the bill is enacted.

Source document (simplified)

HB26-1178

Expenditures in Excess of Appropriations

| Type | Bill |
| --- | --- |
| Session | 2026 Regular Session |
| Subjects | State Revenue & Budget |
Concerning the controller's allowance of expenditures in excess of appropriations.

Recent Bill (PDF) Recent Fiscal Note (PDF) Bill Summary:

Joint Budget Committee. Under current law, the controller may allow any department, institution, or agency of the state, including any institution of higher education, to make an expenditure in excess of the amount authorized by an item of appropriation for the fiscal year if certain conditions are satisfied. One of those conditions is that the overexpenditure is necessary due to unforeseen circumstances arising while the general assembly is not meeting in a regular or special session. The bill modifies that condition to also include when an overexpenditure is necessary due to a lapse in a federal appropriation that the joint budget committee determines is reasonably likely to occur while the general assembly is not meeting in regular or special session during which such overexpenditure can be legislatively addressed.

The bill also makes a conforming amendment to the process by which the general assembly can remove the spending restriction that the controller attaches to an overexpenditure. If a supplemental appropriation is enacted for the overexpenditure or a portion of it, the bill requires that:

The controller's spending restriction is released in full; and
The department, institution, or agency of the state's overexpenditure authority ends. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Prime Sponsors

Representative

Kyle Brown
Representative

Emily Sirota
Senator

Judy Amabile
Senator

Barbara Kirkmeyer

Committees

House

Appropriations

Senate

Appropriations

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Status

Passed

Introduced

Passed

Related Documents & Information

| Date | Version | Documents |
| --- | --- | --- |
| 03/12/2026 | Final Act | PDF |
| 02/20/2026 | Rerevised | PDF |
| 02/19/2026 | Revised | PDF |
| 02/12/2026 | Reengrossed | PDF |
| 02/11/2026 | Engrossed | PDF |
| 02/06/2026 | Introduced | PDF |

| Date | Version | Documents |
| --- | --- | --- |
| 02/06/2026 | Initial Fiscal Note | PDF |

| Date | Version | Documents |
| --- | --- | --- |
| 02/17/2026 | SA1 | PDF |

| Activity | Vote | Documents |
| --- | --- | --- |
| Refer House Bill 26-1178 to the Committee of the Whole and with a recommendation that it be placed on the consent calendar. | The motion passed on a vote of 7-0. | Vote summary |
Hearing Summary | Committee Report: PDF
| Activity | Vote | Documents |
| --- | --- | --- |
| Refer House Bill 26-1178 to the Committee of the Whole. | The motion passed on a vote of 11-0. | Vote summary |
Hearing Summary | Committee Report: PDF
| Date | Calendar | Motion | Vote | Vote Document |
| --- | --- | --- | --- | --- |
| 02/20/2026 | Third Reading | BILL | 32 AYE 1 NO 1 OTHER | Vote record |

| Date | Calendar | Motion | Vote | Vote Document |
| --- | --- | --- | --- | --- |
| 02/12/2026 | Third Reading | BILL | 44 AYE 19 NO 2 OTHER | Vote record |

| Date | Location | Action |
| --- | --- | --- |
| 03/17/2026 | Governor | Sent to the Governor |
| 03/17/2026 | Senate | Signed by the President of the Senate |
| 03/16/2026 | House | Signed by the Speaker of the House |
| 02/20/2026 | Senate | Senate Third Reading Passed - No Amendments |
| 02/19/2026 | Senate | Senate Second Reading Special Order - Passed - No Amendments |
| 02/18/2026 | Senate | Senate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the Whole |
| 02/17/2026 | Senate | Introduced In Senate - Assigned to Appropriations |
| 02/12/2026 | House | House Third Reading Passed - No Amendments |
| 02/11/2026 | House | House Second Reading Special Order - Passed - No Amendments |
| 02/10/2026 | House | House Committee on Appropriations Refer Unamended to House Committee of the Whole |
| 02/06/2026 | House | Introduced In House - Assigned to Appropriations |
Prime Sponsor

Rep. K. Brown | Rep. E. Sirota

Sen. J. Amabile | Sen. B. Kirkmeyer

Sponsor

Rep. R. Taggart

Sen. J. Bridges

Co-Sponsor

Rep. M. Duran | Rep. J. McCluskie