Colorado Code § 24-38-103

Agency authority and incentives for budget savings
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(1) Beginning with
the 1998-99 fiscal year, any agency may implement measures that reduce the costs of delivering
the agency's services and products below the amount of the agency's appropriations for a given
fiscal year. Any agency that achieves cost savings under this subsection (1) may transfer twenty
percent of the amount of the cost savings from one item of appropriation made to the agency in
the general appropriation act or any supplemental appropriation act to another item of
appropriation made to the same agency in said act. The following limitations shall apply only to
transfers made pursuant to this subsection (1):
(a) In no case shall an agency use any of the amount transferred as a result of cost
savings to add employment positions or for personal services.
(b) All transfers made pursuant to this subsection (1) shall be between items of
appropriations made for the fiscal year in which the cost savings were achieved.
(c) Prior to expending any moneys so transferred, the agency that achieved the cost
savings shall enter into a memorandum of understanding with the joint budget committee that
details how the agency will spend the transferred moneys.
(d) Any moneys transferred to an agency as the result of cost savings may be spent only
for reinvestment in technology or other capital projects related to the item of appropriation to
which the moneys were transferred.
(1.5) Repealed.
(2) The general assembly may reduce an agency's appropriations for the fiscal year
following the fiscal year in which the agency achieved the cost savings by the amount of such
cost savings if the general assembly determines that the agency is no longer maintaining the
measures the agency used to achieve the cost savings or that such cost savings is sustainable for
more than one fiscal year. Except as otherwise provided in this subsection (2), the general
assembly shall not use a one-time cost savings an agency achieves in a given fiscal year to
justify reducing any item of appropriation or the total amount of appropriations the agency may
receive in the fiscal year following the fiscal year in which the agency achieved the cost savings.
However, nothing in this subsection (2) shall affect the general assembly's authority to reduce an
agency's appropriations for any reason other than cost savings.
(3) Nothing in this section shall be construed to allow an agency to avoid any power or
duty required by law that otherwise applies to the agency's actions.

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