Joint Budget Committee

Tuesday, January 13, 2026·8h 5m·▶ Watch / Listen

The Colorado Joint Budget Committee convened for a full-day session dominated by a contentious Department of Early Childhood budget hearing, in which lawmakers sharply criticized CDEC for maintaining CCAP wait lists and freezes while carrying tens of millions in federal fund balances and presenting inaccurate financial charts. The afternoon shifted to a structural deficit briefing revealing Colorado faces roughly $744 million in excess obligations over revenues for FY25-26, relying on approximately $1.1 billion in one-time money across two years, followed by approval of multiple routine supplemental requests from CDPHE, DPA, and DORA.

Key Actions

·CDEC FY25-26/26-27 Budget – CCAP Wait Lists, Freezes, and Federal Funding FreezeNo Vote

+ 13 more actions

Controversies

CCAP wait lists and freezes while carrying large federal fund balances

Representative Kate Brown argued the department is sitting on a roll-forward CCDF balance of $51 million in the current fiscal year and $34 million in the next while maintaining wait lists and freezes affecting nearly 13,000 children, stating he was not convinced the department has any plan to end the CCAP freeze. CFO Jeannie Stefanik responded that year over year appropriations exceed the federal grant award and the fund balance is relied upon for long-term sustainability, pointing to a projected CCDF deficit of $16.8 million beginning in FY29-30.

+ 4 more controversies

Notable Quotes

“Madam Chair. I'm sorry, Senator Kirkmark, can you repeat the first part of your question? Sure. Senator Kirkmaier. And the second part of your question, were you referring to the big swap or something else? Yes. Okay. The second part referred to the big swap. I want to know if any of the funds were part of the big swap and I want to know if the funds are already pulled down, that they're available for us to use now. Thank you, Representative Sirota. Thank you, Senator Kirkmeier, for repeating your question. So in relation to being pulled down, this is a reimbursement expenditure, so meaning that the state actually has to expend the charge and then”
Representative Kyle Brown — Representative Brown questioning CDEC's rationale for maintaining CCAP wait lists and county freezes affecting nearly 13,000 children while carrying significant CCDF fund balances projected at $51 million for the current fiscal year.

+ 4 more quotes

Votes

Authorize omnibus cash fund transfer bill for supplementals (amended to require no objection rather than affirmative approval)Passed

Staff recommendation on CDPHE S1 — cash fund transfers to general fund ($12.2 million total)Passed

Staff recommendation on CDPHE S4 — closed landfill remediation grants ($1.1 million)Passed

Staff recommendation on CDPHE S5BA2 — deny utility shortfall appropriation, use existing transfer authorityPassed

Staff recommendation on CDPHE staff-initiated technical correction (information funds)Passed

Staff recommendation on DPA S1 — Central Printing Services true-up ($1.7 million total funds)Passed

Department request on DPA S2 — Annual Fleet Supplemental reduction ($4.1 million total funds), approved over staff recommendation to denyPassed

Staff recommendation on DPA S3 — OAC Medicaid appeals staffing ($463,927 reappropriated funds and 4.6 term-limited FTE)Passed

Absent (1)Senator Barbara Kirkmeyer

Staff recommendation on DORA S1 — HUD workshare funding for Colorado Civil Rights Division ($630,000 general fund)Passed

Staff-initiated technical adjustment — DORA letter note transposition correctionPassed

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TranscriptPreview

To order. Welcome back, everyone. We will start our day with a hearing with the Department of early childhood. Dr. Roy, would you like to begin? Yes. Good morning, Madam Chair. Good morning. Good morning to the committee. Members of the committee, I'm Dr. Lisa Roy. I'm the Executive director for the Colorado Department of Early Childhood. And I'm fortunate to have with me Deputy Executive Director Stephanie Beasley, Chief Program Officer Mary Alice Cohen and Chief Financial Officer Jeannie Stefanik. Later in the presentation, we'll also be joined by Sarah Dawson, the CCAP Division Director, Child Care Assistance Program, Dr. Floyd Cobb, the Division Director for Community Family Services, and Don o', Dean, the universal preschool delivery Director. We're grateful for the committee's unwavering commitment to early childhood in the state of Colorado. Thank you so much. The department is focused on the sustainability of the following high priority programs and needs to continue serving serving children enrolled in the Colorado Childcare Assistance Program, Early Intervention and the Colorado Universal Preschool Program. The department wants to preserve as much funding to ensure families, children and providers continue to be supported. The department is actively doing its part to stabilize…

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