Colorado officials thought they had 3 more years to spend $1.5B in federal COVID aid. They have 11 months.
By Brian Eason | SOURCE: THE COLORADO SUN
Colorado state budget writers are in a race against the clock to spend $1.5 billion in leftover federal pandemic aid before the end of 2024 thanks to new guidance from the U.S. Treasury Department.
The deadline is two full years sooner than state lawmakers and Polis administration officials had expected. That has set off a mad scramble to rewrite the budget for the current fiscal year, which ends June 30, to allow the state to spend federal American Rescue Plan Act dollars faster than lawmakers intended.
The time crunch arose from shifting guidance from federal officials on how they define “obligated,” a term that doesn’t exist in state law.
Federal law has long required ARPA recipients to “obligate” all of their funding by th...