Colorado law caps unreserved disaster funds and sets closure deadlines

The Office of State Planning and Budgeting transfers unreserved disaster fund money above $200 million to the General Fund. The $200 million cap applies to the disaster emergency fund's annual unreserved balance. Only money not reserved for a specific disaster through a governor's executive order counts as unreserved. The first transfer is due after August 12, 2026, and later transfers are due each June 30. The law takes effect August 13, 2026, unless a referendum petition is filed; if filed, it takes effect only if voters approve it, on the governor's official declaration of the vote.

The Department of Public Safety closes out each disaster emergency, and the Office of State Planning and Budgeting removes its subaccount and returns any remaining balance to the original source of the money. The deadlines apply to federally declared disasters and state-only disasters, with different time limits for each. Closeout includes a report that all required response work and administrative actions are complete. Each deadline runs from the last date that revenue or spending for that disaster is recorded. The law takes effect August 13, 2026, unless a referendum petition is filed; if filed, it takes effect only if voters approve it, on the governor's official declaration of the vote.

The Office of State Planning and Budgeting reports which disasters have been closed out and how much unreserved money it transferred back to the original source. The reports cover disaster fund spending and identify each disaster when more than one is included. Reports are due by the twentieth day of every third month. The law takes effect August 13, 2026, unless a referendum petition is filed; if filed, it takes effect only if voters approve it, on the governor's official declaration of the vote.