Amendment 78 - Initiative #19 - Requirements for Spending Custodial Money

Summary

Shall there be an amendment to the Colorado Constitution and a change to the Colorado Revised Statutes concerning money that the state receives, and, in connection therewith, requiring all money received by the state, including money provided to the state for a particular purpose, known as custodial money, to be subject to appropriation by the general assembly after a public hearing; repealing the authority to disburse money from the state treasury by any other means; requiring all custodial money to be deposited into the newly created custodial funds transparency fund and the earnings on those deposits to be transferred to the general fund; and allowing the state to retain and spend all custodial money and earnings and revenue on that custodial money as a voter-approved revenue change? The measure requires all state spending to be directly allocated, or "appropriated," by the state legislature. In state government, an appropriation is the primary way the legislature directly allocates money to be spent for state programs. By requiring appropriations for all spending, the measure disallows other currently legal ways for state agencies, public colleges and universities, and elected officials, such as the Governor or the Attorney General, to spend money without a direct allocation by the state legislature. In addition, the measure deposits custodial money in a new fund, called the Custodial Funds Transparency Fund. It defines custodial money as money received by the state that must be used for a particular purpose. This includes money received from the federal government, as a legal settlement from a lawsuit, or as a donation from a private individual or organization. The word "custodial" is used to refer to the money because the state acts as the custodian of the money to ensure that it is spent on the intended purpose. Each year, the legislature must allocate spending from the new fund and hold a public hearing with an opportunity for public comment. Any interest earned on money in the new fund is placed in the state's General Fund, where it may be used for any purpose.

A "yes" vote on Amendment 78 requires that all state spending be allocated by the state legislature and that custodial money be deposited in and spent from a new fund.

A "no" vote on Amendment 78 allows state agencies to continue spending custodial money and certain other money without appropriation by the state legislature.

Arguments

The measure increases transparency and accountability in state government. The Governor, the Attorney General, and unelected administrators in state agencies currently spend large amounts of custodial money, often without public input or accessible public records. By requiring that all state spending be directly allocated by the state legislature, the measure allows for public participation and provides transparency in how funds are spent., in support of Amendment 78 (Learn more)

The measure adds unnecessary and expensive bureaucracy and risks significant unintended consequences. A longer allocation process could delay or interrupt state services, including emergency responses to public health or wildfire disasters. Further, making grant funding subject to additional steps could jeopardize Colorado’s competitiveness for grant awards, resulting in the state receiving less money. Finally, the measure shifts decision-making from program experts and independent commissions to a political process in the state legislature., in opposition to Amendment 78 (Learn more)

Measure Details