1. (1)

   1. (a) If, during any fiscal year, the governor determines that there are not, or will not be, sufficient revenues available for expenditure during the fiscal year to carry on the functions of the state government and to support its agencies and institutions, the governor may, in the exercise of the governor's discretion, by executive order, suspend or discontinue, in whole or in part, the functions or services of any department, board, bureau, or agency of the state government; except that the authority of the governor to restrict the expenditure of money appropriated from the capital construction fund must be determined in accordance with the requirements in subsection (4) of this section.

   2. (b)

      1. (I) The governor shall promptly notify the joint budget committee of an executive order issued by the governor pursuant to this subsection (1), including an executive order issued pursuant to subsection (1)(c) of this section that extends the operation of a prior executive order. As soon as practicable after receiving the notification, and except as provided in subsection (1)(b)(II) of this section, the joint budget committee shall hold a meeting to discuss the governor's plans for suspending or discontinuing any functions or services of any department, board, bureau, or agency of the state government pursuant to this subsection (1). The joint budget committee shall make all reasonable efforts to hold the meeting before the first day of the calendar month following the entry of the executive order. At the joint budget committee's meeting, the governor or the office of state planning and budgeting, or both, shall present the executive order to the committee, and the committee may provide advice at the meeting regarding the suspension or discontinuation of any functions or services.
      2. (II) The joint budget committee is not required to hold a meeting described in subsection (1)(b)(I) of this section if the executive order issued pursuant to this subsection (1) is to implement a plan described in subsection (2) of this section and the joint budget committee held a meeting in accordance with subsection (2)(b) of this section. This subsection (1)(b)(II) does not prohibit the joint budget committee from holding a meeting and requesting the governor or the office of state planning and budgeting, or both, to attend the meeting.
   3. (c) A discontinuance or suspension made pursuant to this subsection (1) becomes effective upon the first day of the calendar month following the entry of the executive order and may continue for a period of time, not to exceed three months, as set forth in the executive order. If, during the period of time, the governor determines that the deficiency of revenues persists, the governor may extend the operation of the executive order for a period of time not to exceed three months.
   4. (d) The state is not liable for the payment of any claim for salaries or expenses subject to a suspension or discontinuation pursuant to this subsection (1) purporting to have accrued against any department, board, bureau, or agency during any period of the suspension or discontinuation, and the controller shall not issue and the state treasurer shall not honor any warrant therefor.

2. (2)

   1. (a) Whenever the revenue estimate for the current fiscal year prepared by the governor in accordance with section 24-75-201.3 (2), or an interim revenue estimate prepared by the governor, indicates that general fund expenditures for that fiscal year based on appropriations then in effect will result in using an amount of the reserve described in section 24-75-201.1 (1)(d) that is equal to the lesser of three percent of general fund appropriations for the fiscal year or one-half or more of the reserve required by section 24-75-201.1 (1)(d), the governor shall formulate a plan for reducing general fund expenditures so that the reserve, as of the close of the fiscal year, will be below the amount required in section 24-75-201.1 (1)(d) by no more than an amount equal to three percent of general fund appropriations for the fiscal year or one-half or more of the amount required by section 24-75-201.1 (1)(d), as applicable. If the governor is implementing a plan pursuant to subsection (2)(d) of this section, the governor is not required to formulate and implement a plan pursuant to this subsection (2)(a).
   2. (b) The governor shall promptly notify the general assembly of a plan created by the governor pursuant to this subsection (2). The joint budget committee shall hold a meeting as soon as practicable after the general assembly is notified of the plan. At the joint budget committee's meeting, the governor or the office of state planning and budgeting, or both, shall present the plan to the committee, and the committee may provide advice at the meeting regarding the plan.
   3. (c) The governor shall promptly implement a plan created by the governor pursuant to this subsection (2) using the procedures set forth in subsection (1) of this section or section 24-50-109.5 or any other lawful means.
   4. (d) Whenever the revenue estimate for the current fiscal year, prepared by the governor in accordance with section 24-75-201.3 (2), or an interim revenue estimate prepared by the governor, indicates that general fund expenditures for that fiscal year based on appropriations then in effect will result in the use of an amount of the reserve required by section 24-75-201.1 (1)(d) that would result in that reserve equaling less than one billion dollars, the governor shall formulate a plan for reducing general fund expenditures so that the reserve, as of the close of the fiscal year, will be at least one billion dollars. The procedures and requirements in subsections (2)(b) and (2)(c) of this section apply to a plan formulated pursuant to this subsection (2)(d). If the governor is implementing a plan pursuant to subsection (2)(a) of this section, the governor is not required to formulate and implement a plan pursuant to this subsection (2)(d).
   5. (e) As used in this subsection (2), interim revenue estimate prepared by the governor means an updated revenue estimate in the time between two estimates made by the governor pursuant to section 24-75-201.3 (2), which interim estimate is prepared by the governor, designated by the governor as an interim revenue estimate that is an update to the most recent prior revenue estimate, transmitted to the general assembly, and presented at a meeting of the joint budget committee as an interim revenue estimate that is an update to the most recent prior revenue estimate.
3. (3) In formulating a plan for the reduction of general fund expenditures as required by subsection (2) of this section, the governor may consider any recommendations for reducing general fund expenditures of the institutions of higher education submitted by the Colorado commission on higher education, after consultation with the governing boards of the institutions.
4. (4) Whenever the governor has formulated and implemented a plan to reduce general fund expenditures in accordance with subsection (2) of this section, and the plan reduces general fund expenditures in an amount equal to or greater than one percent of all general fund appropriations for the fiscal year, the governor, after consultation with the capital development committee and the joint budget committee, may transfer general fund money from the capital construction fund into the general fund. Pursuant to this subsection (4), the governor may only restrict the capital construction projects in the reverse order of the priorities as established by the capital development committee unless approved by the capital development committee and the joint budget committee.
5. (5) Notwithstanding the authority in this section to formulate and implement a plan to reduce general fund expenditures, the governor shall not reduce general fund expenditures by the judicial department, the legislative department, or elective officers other than the governor pursuant to this section.

Source: L. 88: Entire section added, p. 913, § 5, effective June 21; (3) added, p. 982, § 2, effective June 21. L. 90: (1) amended, p. 1270, § 4, effective June 8. L. 91: (1)(b) amended, p. 835, § 2, effective April 9; (4) added, p. 805, § 3, effective July 1. L. 92: (1)(b) amended, p. 1074, § 2, effective February 25. L. 94: (3) amended, p. 823, § 50, effective April 27. L. 97: (1) amended, p. 1094, § 5, effective May 27; (1)(a) amended, p. 377, § 11, effective August 6. L. 2002: (1)(a) amended and (1)(c) and (1)(d) added, p. 387, § 2, effective April 30; (1)(c)(I) and (1)(c)(II) amended and (1)(d)(II)(D) added, pp. 681, 682, §§ 2, 3, effective May 28; (1)(b) and (3) repealed, p. 1006, § 2, effective August 7. L. 2003: (1)(d)(III) added, p. 2438, § 3, effective June 5. L. 2004: (1)(e) added, p. 959, § 2, effective May 21. L. 2005: (1)(f) added, p. 1336, § 1, effective June 3. L. 2009: (1)(g) added, (SB 09-279), ch. 367, p. 1934, § 28, effective June 1. L. 2013: (1)(g)(II)(F) and (1)(g)(II)(G) amended, (SB 13-181), ch. 209, p. 872, § 19, effective May 13. L. 2016: (1)(a) amended and (1)(c) to (1)(g) repealed, (HB 16-1408), ch. 153, pp. 466, 472, §§ 11, 26, effective July 1. L. 2025: (1)(h) added, (SB 25-310), ch. 359, p. 1957, § 7, effective June 2. L. 2025, 1st Ex. Sess.: Entire section amended with relocations, (SB 25B-001), ch. 11, p. 66, § 1, effective August 28.

Editor's note: (1) Subsection (1) is similar to former § 24-2-102 (4) as it existed prior to 2025.

(2) Section 4 of chapter 11 (SB 25B-001), Session Laws of Colorado 2025, First Extraordinary Session, provides that the act changing this section applies to revenue estimates and interim revenue estimates presented, and executive orders issued, on or after August 28, 2025.

Cross references: For the legislative declaration contained in the act amending subsection (1), see section 1 of chapter 188, Session Laws of Colorado 1990.