Joint Budget Committee

Tuesday, January 20, 2026·6h 16m·▶ Watch / Listen

The Joint Budget Committee advanced several budget adjustments for OIT and statewide compensation while spending the majority of the hearing examining the sweeping consequences of federal HR1 legislation on Colorado's Medicaid program — including a $1.8 billion hospital provider fee, work requirements affecting roughly 300,000 expansion members, and a disputed departmental move to reinstate prior authorizations for outpatient psychotherapy without a statutory change.

Key Actions

·OIT S1 – Real Time Billing Mid-Year AdjustmentPassed

+ 14 more actions

Controversies

Whether the children's behavioral health settlement agreement obligates the state regardless of legislative appropriation

Jeff Bridges pressed that the settlement language appeared to be 'subject to the legislature's decision,' meaning if the legislature funds nothing, the state remains in compliance by doing its best with zero dollars. Director Bates directly rejected that reading, stating 'No, no, Senator, we would be unable to meet our obligations under the settlement agreement,' and warned that if obligations cannot be met, 'the plaintiffs might change their expectations and strategy.'

Notable Quotes

“When you look at the Congressional budget offices savings, 75% and more of the savings to provide a tax break are because people lose coverage. And that is horrifying.”
Director Bimsteffer, HCPF Director — Director Bimsteffer was explaining the overall impact of HR1 on Medicaid, responding to committee questions about whether the federal legislation would produce meaningful savings for Colorado's general fund.

+ 4 more quotes

Votes

Staff recommendation for OIT S1 (real time billing mid-year adjustment: $11.4M reduction in reappropriated funds, $1.8M increase in cash funds)Passed

Absent (1)Kirkmeyer

Staff recommendation for OIT S2 ($10M transfer from Technology Risk Prevention and Response Fund to general fund)Passed

Absent (1)Kirkmeyer

DPA S4 staff recommendation — both parts (employee benefit fund adjustment and para direct distribution refinance)Passed

Absent (1)Kirkmeyer

Eliminate the step of tracking down a member to authorize JBC staff to request technical amendment drafting from Legislative Legal ServicesPassed

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TranscriptPreview

Order. We have a number of supplemental considerations before us today. We are starting with Mr. McClear, Office of the Governor and compensation policies with Mr. Ken. After you. Okay, Mr. McClure, thank you. Madam Chair. Andrew McClear, JBC staff I am here to speak with you all today on the supplemental request for the Office of Information Technology within the Office of the Governor. The office has two requests. One is the real time billing mid year adjustment. And the second request is a transfer from the Technology Risk Prevention and Response Fund. So if you turn to page two, this just shows a summary of the staff recommendation. The table has the two highlighted items that I will be speaking with you about today. The total fund reduction of this is $9.6 million in 11.4 of which is reappropriated funds and then an increase of 1.8 million in cash funds, which I will discuss in the S1 request from the department. So getting right into this first supplemental request for the real time billing, true, the department, as you can see in this top table, requests $14.6 million reduction in reappropriated funds. Staff is only recommending an $11.4…

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