DOLA s Five Divisions

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1 Colorado Department of Local Affairs (DOLA) Strengthening communities and enhancing livability 1 DOLA s Five Divisions Board of Assessment Appeals (BAA) A low-cost method of resolving taxpayer disputes that might otherwise overwhelm the state judicial system. Division of Property Taxation (DPT) Ensures the fair, accurate and consistent application of property tax law for the benefit of all residents and property owners of the state. Division of Emergency Management (DEM) Leads, manages and coordinates state level actions in support of local governments for mitigating natural hazards, preparing for all hazards, responding to, and recovering from, disasters. Division of Housing (DOH) Ensures that Coloradans live in safe, decent and affordable housing by helping communities meet their housing goals. Division of Local Government (DLG) Delivers technical and financial assistance and demographic analysis to local governments and communities to provide access to a variety of resources to achieve sustainable community development. 2 Local Government Technical Assistance Categories 1. Budget/Financial Management 2. Land Use/Environmental Planning 3. General Administration 4. Personnel 5. Capital Improvements/Infrastructure Planning 6. Strategic Planning 7. Economic Development 8. Elections 3 Energy Impact Funds What up? 4 Energy Impact Fund 101 The Energy & Mineral Impact Assistance Fund (EIAF) is intended to assist political subdivisions that are socially and/or economically impacted by the development, processing, or energy conversion of minerals and mineral fuels. The Fund is collected from two sources: Severance Taxes and Federal Mineral Lease Revenues

2 More Drilling Activity = More Energy Production Drilling Activity is Influenced by Price 7 8 Recent Colorado Oil & Gas Well Permits (9/7/11)

3 How Energy Impact Funds are distributed: SEVERANCE TAXES State Trust Fund (Department of Natural Resources) Perpetual Base Account for CWCB loans (Capped at $50m; remainder flows to CDPHE s Small Communities Water and Wastewater Grant Fund.) Total State Severance Taxes Collected DNR Operational Account Local Impact Fund (Department of Local Affairs) 30% DIRECT Distribution to Local Govts 70% COMPETITIVE GRANTS to Local Govts 13 49% Bonus Receipts Local Govt Perm Fund How Energy Impact Funds are distributed: FEDERAL MINERAL LEASE Total Federal Mineral Lease Collections Higher Educ Reserv Fund Non-Bonus 49% Receipts Non-Bonus Receipts 48.3% State Public School Fund 10% Colorado Water Conserv Board 1.7% Local School Dist Direct Distrib (spillover) (spillover) (spillover) 51% U.S. Treasury 40% Local Impact Distrib Program Local Gov Local Gov DIRECT GRANTS 14 Dist Recent History of Energy Impact Revenues State Budget (est) Revenue $236,687,000 $94,760,000 $135,180,000 $141,080,000 Direct Distribution* $80,344,000 $37,381,000 $54,655,000 New Grants $44,991,000 $1,656,000 $498,000 Transfers to General Fund $1,007,500 $72,900,000 $85,000,000 $71,000,000 * Direct Distributions are made in the year AFTER the revenue is received. Listed figures 15 are specific to that year s revenues, but were actually distributed in the following year. Amendments to the state s constitution over the last 25 years have created a structural deficit that prevents the state from being able to meet spending needs to meet the citizens expectations. Because our constitution requires us to balance our budget every year (that s a GOOD thing!), the state must make significant cuts in discretionary program spending and transfer other cash funds such as Energy Impact funds - to the General Fund. 16 $8.0 General Fund Revenue, FY to FY Actual and Adjusted for Population and Inflation K -12 Shift from Local to State Funding $7.5 70% $7.0 65% $ in billions $6.5 $6.0 $5.5 $2.4 billion (33%) reduction in real dollars 60% 55% 1987: Local-State share of K-12 funding = 60: : Local-State share of K-12 funding = 37:63 $5.0 $4.5 $4.0 45% 40% 35% 30% Fiscal Year Adjusted for Population and Inflation (Using CY 2000 as Base Year) Source: Office of State Planning and Budgeting, June 2011 Forecast Actual 17 State Share Local Share Office of State Planning and Budgeting

4 Medicaid Enrollment Growing 650, , , ,000 Enrollment 450, , , ,000 Since 2001: Colorado population growth = 17% Medicaid population growth = 121% 250,000 Fiscal Year Office of State Planning and Budgeting Office of State Planning and Budgeting 20 Economic Development DOLA / OEDIT Partnership Colorado Blueprint A bottom up approach to economic development I. Build a Business Friendly Environment II. Retain, Grow and Recruit Companies III. Increase Access to Capital IV. Create and Market a Stronger Colorado Brand V. Educate and Train the Workforce of the Future VI. Cultivate Innovation and Technology Executive Order 05 Establishing a Policy to Enhance the Relationship between State and Local Government GOAL: Establish Colorado as THE model nationally for how state governments can most effectively interact with local governments. Special THANKS to: Special Districts Association Colorado Counties Inc Colorado Municipal League

5 Basis for EO5 No Unfunded Mandates Local governments should have more flexibility to design solutions to problems without excessive interference or oversight, or unnecessary regulation, from state government. In addition, local governments should not be expected to implement laws and regulations without the funding necessary to To the extent authorized by law, no state agency shall promulgate any regulation creating a mandate on local governments unless: 1. The mandate is specifically required by federal or state law; 2. The agency consults with local governments prior to promulgation of the regulation; and 3. The state government provides the funding necessary to pay for the direct costs incurred by local governments in complying with the do so mandate. Consultation with Local Governments Each agency, prior to the formal promulgation of regulations, shall provide a description of the nature and extent of the agency s consultation with representatives of the local governments that would be affected, the nature of their concerns, any written communications or comments submitted to the agency by such units of local government, and the agency s reasoning supporting the need to issue the regulation containing the mandate. 27 What s different about EO5? The EO5 Implementation Plan will utilize a phased process to communicate with local governments and document their feedback. Online access will allow for prompt and simple feedback. The Governor s Office of State Planning and Budget is specifically directed to ensure compliance with the Implementation Plan 28 for EO5. The dialogue with local governments starts with the CONCEPT of a proposed rule, NOT the draft. Is the rule necessary? Are there better alternatives? 29 If alternative methods are not an option, then State Agencies will partner with local governments in the development of the most appropriate regulation. State agencies will request that local governments identify and document potential fiscal impacts if the regulation is implemented. 30 5

6 Next Steps Develop online forms to enable local governments to communicate their concerns. Test process and communication tools with local government focus group. Train agency heads and local government constituents in the communication/ documentation process. 31 DOLA Strengthening Communities and Enhancing Livability Contact: Reeves Brown, Executive Director