h_lg_2017a_2017-01-26t09:51:21z1 Hearing Summary

Date: 01/26/2017

Location: RM 271

10:02 AM -- Joint Rule 25 Briefing by Joint Budget Committee on Department of Local Affairs



Senator Lambert, Chair of the Joint Budget Committee (JBC), introduced the JBC members and staff.



10:06 AM



Representative Rankin, JBC member, discussed the Department of Local Affairs (DOLA) budget request for FY 2017-18 (Attachment B). He also highlighted decision items in this request. For example, the department is requesting an increase of $2,000,000 General Fund moneys for affordable housing grants and loans. By increasing state support from the current $8.2 million General Fund, the Department anticipates that it will support development of an additional 250 units. Representative Rankin responded to questions from the committee about the impact of marijuana legalization on affordable housing, housing for persons recovering from drug addiction, and other issues. He also discussed the allocation of marijuana tax revenue for school capital construction projects and other purposes.



170126 AttachB.pdf



10:16 AM



Representative Hamner, JBC member, discussed proposals to address homelessness and explained that the JBC could not agree on legislation to implement R2, R3, and R4 decision items. R2 is a request for $104,927 reappropriated funds from energy and mineral impact assistance funds (severance tax and federal mineral lease receipts) to hire 1.0 FTE to coordinate state resources in rural communities. R3 is a request for ongoing support of $4,000,000 per year from the Marijuana Tax Cash Fund and 1.0 FTE to support the development of permanent supportive housing units (housing with intensive support services) for behavioral health consumers. R4 is a request for $12,319,900 per year from the Marijuana Tax Cash Fund and 1.0 FTE to support permanent supportive housing and rapid rehousing initiatives.



10:24 AM



Representative Hamner responded to questions from the committee about the department's request for additional General Fund moneys for affordable housing grants and loans.. Representative Rankin discussed decision item R5 concerning mitigation of impacts related to the closure of the Kit Carson Correctional Center. Senator Lambert discussed prior appropriations to keep the prison open and to mitigate the impact of its closure. He also discussed the effect of declining severance tax revenue on local governments due to declines in the price of oil and gas and the implementation of Senate Bill 16-218. He also identified factors that enable grey markets in marijuana including high taxes and inability of operators of dispensaries and related facilities to use banks.



10:39 AM



Senator Lambert discussed the new Trump administration and how it may affect marijuana legalization and affordable housing in Colorado. Representative Hamner discussed the Gallagher Amendment and its effect on state funding obligations for local governments and schools. The Gallagher Amendment, passed in 1982, maintains a constant ratio between the property tax revenue that comes from residential property and from business property. The amendment reduces the assessment rate (the percent of property value that is subject to taxation) whenever statewide total residential property values increased faster than business property values. Representative Rankin discussed legislation proposed by the Governor to address a revenue shortfall, including legislation to reduce the senior property tax exemption.