What is SB228?

Senate Bill 228, if enacted, would eliminate the limit on the growth of the state’s General Fund appropriations. This cap—sometimes called Arveschoug-Bird or the 6 Percent Limit—was passed in 1991 as a self-control measure by legislators over government spending.

The limit allows the General Fund to grow by only 6 percent from the previous year’s amount. The General Fund is the part of the state budget that funds most services like K-12 schools, colleges and universities, the judiciary and prisons, state Medicaid and other social spending. When able, the legislature typically spends right up to the 6 percent limit in order to maximize budget growth from year to year.

In the current budget shortfall, legislators cannot spend up to the 6 percent threshold, which will prevent growth of the budget in subsequent years. By passing SB228, legislators will no longer be constrained on General Fund spending and will be able to grow government for years to come.

SB228 impacts much more than growth of the General Fund. SB228 eliminates transfers through SB1/HB1310, two statutory provisions that provide funding for construction and maintenance of state highways, bridges and buildings. According to estimates from the legislature’s nonpartisan research staff, SB228’s passage could result in a loss of nearly $450 million in highway funding and another $46 million in building funds by 2012. The staff also concluded that if the cap was removed five years ago, it would have cost Colorado $1.6 billion in funding for highways at a time when nearly 200 bridges in our state were below safety standards.