STATE OF COLORADO DEPARTMENT OF THE TREASURY
Dave Young Eric Rothaus
State Treasurer Deputy Treasurer
Department of the Treasury
Long Range Financial Plan FY 23-24
November 1, 2023
MISSION STATEMENT
The Colorado State Treasury is the constitutional custodian of the public’s funds. It is the Treasury’s duty to
manage and account for taxpayer dollars from the time they are received until the time they are disbursed.
The Treasury’s staff is committed to safeguarding and managing the people’s money with the same
diligence and care as they do their own.
VISION STATEMENT
The Colorado State Treasury staff will continually strive to better serve the taxpayers of Colorado. Central
to this goal is the continued introduction and use of new technologies to provide improved access to
services for both taxpayers and other governmental agencies.
MAJOR FUNCTIONS OF THE TREASURY DEPARTMENT
The Colorado Department of the Treasury’s (the “Department” or “Treasury”) budget is organized in five
distinct sections: Administration, CLIMBER, SecureSavings, Unclaimed Property, and Special Purpose.
The Department currently provides a myriad of services to Colorado’s citizens including:
● Overseeing and directing State banking services, with an eye towards efficiency and
technological innovation
● On a daily basis, recording and reconciling all funds that flow through the State’s operating
account
● Safely and thoughtfully investing $19 billion, on average, in State funds to augment State
revenue and decrease tax burdens
● Providing debt management services to State departments and agencies, including
structuring financial obligations and refinancing prior obligations when appropriate
● Working with the CLIMBER Board to provide Colorado small businesses affected by the
pandemic access to a $250 million loan program
● Working with the SecureSavings Board to direct a transferable retirement program for
small business employees, which will positively impact close to one million Coloradans
1
ADMINISTRATION
The Department’s Administrative Unit provides banking and investment services for all funds deposited
with the state treasury, as well as advising and overseeing on short- and long-term financial obligations.
Funds deposited in State accounts are invested in statutorily-authorized investments. Simultaneously, the
Treasury ensures that sufficient funds are maintained in cash accounts to meet the State’s daily cash
needs. Income earned on investments augments the State's revenues from taxes and fees and decreases
the tax burden on Colorado’s taxpayers.
Accounting
On a daily basis, the accounting unit records and reconciles all the cash that flows into and out of the
State’s operating account. The accounting unit also manages the disbursement of flow-through funds such
as the Highway User's Tax Apportionment, Minerals Management Funds, and miscellaneous federal funds.
Within the Treasury, the accounting staff has significant additional responsibilities. These include:
● Calculation and allocation of monthly investment earnings to those funds eligible to receive
interest;
● Daily reconciliation of the State’s cash and investments;
● Accounting for and distributing the payments the State receives under the Master Tobacco
Settlement Agreement and the Tobacco Tax moneys collected under Amendment 35 and
Proposition EE;
● Management of the Property Tax Deferral Program for Seniors and Active Military Personnel;
● Verifying and disbursing payments for the Senior Citizen and Disabled Veteran Property Tax
Exemption Program;
● Issuing cash flow notes on behalf of school districts participating in the State’s interest-free
school loan program, including ongoing monitoring of actual verses. projected cash flow
information;
● Administering the K-12 school district intercept program and the higher education intercept
program;
● Administering the Char ter School Intercept and Moral Obligation Credit Enhancement
Program; and
● Accounting for the investment of custodial funds from state-issued Cer tificates of
Participation and Enterprise Revenue Bonds deposited with the Treasury.
The Accounting Unit also provides cashier services for the State. Cashiers are responsible for daily
tracking of all cash receipts, monitoring deposits made by other agencies into the State’s operating
account, updating the State’s bank balances throughout the course of each day, and initiating electronic
transfers from the State to recipients of state and fiduciary funds.
Finally, the Accounting section handles the department’s internal administrative functions such as
budgeting, payroll, accounts payable, and purchasing. Treasury recently added an IT Professional to the
department; however, it also has an agreement with the Governor’s Office of Information Technology which
hosts Treasury’s server and provides IT support.
Cash Management
Treasury’s Banking Relationship Manager manages the State’s banking service agreements. The State
currently maintains agreements with five primary banks: 1) KeyBank provides lockbox services for various
State agencies including Colorado Parks and Wildlife, the Department of Labor and Employment, the
Colorado Department of the Treasury // Long Range Financial Plan // November 2023
2
Department of Health Care Policy and Financing, the Department of Regulatory Agencies (Division of
Insurance), History Colorado, and the Office of Information Technology; 2) Wells Fargo maintains the
State’s operating and payables accounts, as well as transactional accounts in remote areas of the State
from which deposits are regularly swept to the main operating account; 3) US Bank provides debit card and
direct deposit services to the State’s unemployed citizens through the Department of Labor and
Employment; 4) JPMorgan Chase provides online payment services for the Department of Revenue for tax
payments; in addition to some payments for the Department of Labor and Employment; 5) Principal Bank
provides custody and safekeeping services. On-going banking efforts include ensuring effective bank
services and controls for State agencies, evaluation of technological changes to reduce costs and increase
efficiency, closing unused or redundant bank accounts, opening new accounts or cash management
services for State agencies, and assisting with the resolution of any concerns or problems between State
agencies and the banks.
The Banking Relationship Manager is the State’s administrator for the Cash Management Improvement Act
(CMIA) agreement with the federal government. CMIA regulates the transfer of federal grant funds among
federal and State agencies. CMI A regulations require State agencies to request reimbursement from
federal agencies for grant disbursements following a process that minimizes bank balances, avoids
negative balances, and eliminates interest earnings. Excess or deficit interest earnings, if any, are
calculated each year and paid by the entity with the liability. The Banking Relationship Manager manages
the CMIA on behalf of State agencies and is the primary contact for the Federal Management Service.
Pursuant to federal regulations, Treasury identifies grants to be included in the agreement (those in excess
of $120.6 million) and calculates State disbursement patterns that are the basis of the reimbursement
schedules. The Treasury negotiates the annual agreement and prepares the annual report of excess or
deficit interest earnings.
Debt Management
The Treasury's debt management division’s mission is to ensure the state’s ability to meet its financial
obligations considering costs, objectives, and statutory and regulatory parameters regarding division
policies, rules, and guidelines. Part of this function is to consolidate and manage the state’s public
financing needs to ensure that those payment obligations under the division’s purview are fulfilled. Senate
Bill 12-150, codified at §24-36-121, C.R.S., et seq., consolidated the State’s debt management activities and
assigned them to the Treasury Department.
In this role, Treasury coordinates and oversees all aspects of debt management offering its subject matter
expertise related to the structuring of financial obligations on behalf of state departments, agencies, and
other state entities seeking assistance both in process and effort while reducing risk. Additionally, the
division regularly reviews the state’s outstanding financial obligations to identify refunding or refinancing
opportunities in order to produce both present value and future cash flow savings for the state.
As part of this work, Treasury works in conjunction with the State Attorney General to ensure post-issuance
compliance required by both the Securities Exchange Commission (SEC) and the Internal Revenue Service
(IRS).
Short-term Note Issuance
Treasury directs the regular issuance of two short-term note programs on behalf of the state in addition to
the oversight of the longer-term financial obligations. Most notably the short-term programs are the
General Tax and Revenue Anticipation Notes (GTRANs). The Treasury does similar work on behalf of the
Colorado Department of the Treasury // Long Range Financial Plan // November 2023
3
Colorado school districts – Education Tax and Revenue Anticipation Notes (ETRANs). Repayment of these
short-term program issuances are completed within the same fiscal year they are issued.
GTRANs - Treasury issues these notes to meet liquidity needs throughout the year due to the irregular
inflows of revenues to the State. GTRANs financing provides funds in months when the State’s General
Fund is expected to experience a deficit. Proceeds from investment earnings and offering premium
supports the payment of interest on the notes including costs of issuance. GTRANs were not issued in FY
2022-23 due to the State’s positive cash position with no anticipation of need in FY 2023-24.
1
ETRANs - Treasury issues these notes twice in the fiscal year on behalf of the participating Colorado
school districts to make interest-free loans to alleviate temporary cash flow deficits. In July 2022, the
Treasury issued $350 million in ETRANs (Series 2022A). In January 2023, the Department issued an
additional $425 million (Series 2022B). Both sets of notes matured in June 2023. The General Fund pays
the interest due on the notes but principal repayment comes from the property tax collections of the local
school districts participating in the program. In July 2023, the Treasury issued $500 million in ETRANs
(Series 2023A) to fund the 24 participating school districts for the FY 2023-24 school year. An additional
anticipated issuance of Series B notes will occur in early 2024. As with past issuances, both note series
will mature at the end of the fiscal year, in June.
____________________
1
The State last issued GTRANs in FY 2020-21
Colorado Department of the Treasury // Long Range Financial Plan // November 2023
4
Higher Education Revenue Bond Intercept Program
The State Higher Education Intercept Program provides a credit enhancement tool for all qualifying state
public universities/colleges giving them the opportunity, through use of the state’s strong credit rating, to
obtain the best potential financing rates available for their capital construction or capital renewal projects.
Pursuant to Section §23-5-139, C.R.S. projects that are to be constructed or acquired in whole or in part are
subject to review by the State Treasurer. Senate Bill 22-121 permitted all public higher education
institutions governing boards to pledge up to 100% of their tuition revenue giving them more flexibility to
access lower capital costs.
Refunding bonds that were previously financed under the Intercept Program must result in a lower ultimate
cost to the institution, and must not extend the term of the debt or increase the debt servicing. Such bonds
must be approved by the Department. The Department takes into consideration a higher education
institution’s pledged revenues; General Fund appropriations (limited to the appropriation for stipends and
fee-for-service contracts), debt obligations and debt service coverage ratio in its review. Three public
institutions have refunded various program obligations since February 2022. Colorado Mesa University
2
,
Metropolitan State University of Denver and Colorado State University
4
each refunded bonds creating a net
present value savings of $4.35 million, $1.56 million and $3.59 million ($9.5 million total) savings
respectively.
_________________
2
Colorado Mesa University refunded 2012A, 2012B, 2013, 2016 and 2019B Series Bonds.
3
Metropolitan State University of Denver refunded 2016 Series Bonds.
4
Colorado State University refunded 2015C, 2017A, 2017C, 2017E, 2019A and 2019B Series Bonds; all
university applicants meeting the requirements outlined §23-5-139(1)(b)(II), C.R.S. (2022
Colorado Department of the Treasury // Long Range Financial Plan // November 2023
5
Colorado Operations Resource Engine (CORE) Upgrade Project
Section §24-30-202 (12), C.R.S. authorizes the Department of Personnel and Administration to operate a
statewide accounting, procurement, and budget enterprise resource planning (ERP) system, which allows
the state to manage and integrate the financial operational and reporting functions of the state
government. CORE has been operational for more than 10 years and needed to be expanded and updated
to meet the needs of the state while maintaining the security of the financial data stored within.
In August 2022, the state secured the $9.78 million in COPs for the required upgrade to CORE.
Unemployment Insurance Trust Fund Financing
Prior to the pandemic, the state had accumulated a significant fund balance in the Unemployment
Insurance (UI) fund. However, the balance was quickly exhausted during the pandemic when requests for
unemployment benefits spiked in 2020.
When a state’s UI trust fund balance is depleted, the state may obtain federal assistance by requesting an
advance from the Federal Unemployment Account, which is authorized by Title XII of the Social Security
Act of 1935. After receiving this assistance, states must reestablish a positive cash fund balance in their UI
fund within two years of receiving an advance. Failure to do so can result in Federal Unemployment Tax Act
(FUTA) tax credit reductions, which would adversely affect employers throughout the state.
During the 2022 legislative session, the General Assembly passed Senate Bill 22-234, which resolved this
issue. The bill created a fund at the Colorado Department of Labor and Employment and transferred $600
million into the newly created fund to be used to repay any future FUTA advances, and other measures to
secure the future liquidity of the UI fund.
Investments
The Investment Division actively manages distinct investment portfolios (discussed below) with the
primary objectives of, in order of importance, legality, safety, liquidity and yield. For each of the portfolios it
manages, the Department, in addition to constitutional and statutory guidance, has developed a written
investment policy explicitly stating the appropriate goals, investment standards, level of liquidity, degree of
credit risk, duration or average life, and other performance measures.
A critical aspect of the implementation of these policies and the daily functioning of the Investment
Division is the use of an online data and analytical system (Bloomberg). The Bloomberg system assists
the investment managers in identifying and analyzing specific investments for either purchase or sales.
Absent access to the Bloomberg system and subscriptions to independent, third-party credit research
services and an electronic trading system, the Investment Division’s capacity to meet its constitutional,
statutory and policy objectives would be virtually impossible.
The Treasurer's Pooled Funds (TPOOL) provide state agencies with the liquidity of a money market fund
while normally generating a higher yield than a typical money market fund. Most state funds, including the
General Fund, are held in the TPOOL.
Ongoing statutory changes oblige many organizations to remit their tax remittances to the Department of
Revenue electronically. With electronic remittance, funds are processed more quickly, providing
investment officers with more accurate and timely cash balance information. This improved information
allows the investment division to better invest the money on deposit with the Treasury while still
maintaining sufficient liquidity to meet the State’s obligations
Colorado Department of the Treasury // Long Range Financial Plan // November 2023
6
The Public School Permanent Fund (PSPF) is a constitutionally mandated permanent trust. The principal of
the Fund is made up of money earned from the sale or rental of lands and mineral royalties held in the
school land trust (public schools land income). Both the principal and interest on this fund are exempt
from the requirements of section 20 article X of the state constitution. A unique feature of this fund is that
the General Assembly must make the Fund whole for any realized losses the Fund incurs. To minimize the
likelihood of such an event, the portfolio is managed to preserve principal, maximize income, and optimize
total return relative to the investment policy benchmark.
Several changes were made to the distribution of public school lands income during the 2009 legislative
session. Beginning in August 2009, 50% of the gross public school lands income is credited to the Public
School Capital Construction Assistance Fund created in §22-43.7-104, C.R.S. (part of the Building Excellent
Schools Today or BEST Act). In addition, for a portion of FY 2008-09 and through FY 2010-11, all public
school lands income that was not transferred to the Public School Capital Assistance Fund or used for the
administration of the State Land Board plus all of the fund’s investment earnings, were transferred to the
State Public School Fund, which provides moneys for the School Finance Act. Therefore, no deposits were
being made into the PSPF.
In the 2011 legislative session, Senate Bill 11-230 continued this distribution through the end of FY
2012-13; however, in the 2012 legislative session, SB 12-145 capped the amount of moneys to be
transferred to the State Public School Fund for FY 2011-12 only. As a result, $38.3 million was deposited
into the PSPF. In the 2013 legislative session, SB 13-112 capped the amount of moneys to be transferred
to the State Public School Fund for FY 2012-13. $20.8 million was deposited into the PSPF. Per SB 13-260,
for FY 2013-14 and FY 2014-15, the State Public School Fund received the first $16 million of the Fund’s
investment earnings. Beginning in FY 2015-16, per SB 15-267, the first $21 million of the fund’s investment
earnings was to be transferred to the State Public School Fund. The balance of the public school lands
income not transferred to the Public School Capital Construction Assistance Fund or used for the
administration of the State Land Board was to be deposited into the PSPF.
House Bill 15-1367 amended the language in §39-28.8-305, C.R.S. directing the retail marijuana excise tax
collected over $40 million to be transferred to the PSPF.
5
As of July 1, 2018, HB 18-1070 amended the
amount of retail marijuana excise tax revenue credited to the Public School Capital Construction
Assistance Fund from the first $40 million, with the remainder credited to the PSPF, to the greater of 90% of
the revenue annually collected or the first $40 million of such revenue, with the remainder to the PSPF.
6
As
of July 1, 2019, HB 19-1055 required all retail marijuana excise tax revenue to be credited to the Public
School Capital Construction Assistance Fund, eliminating any credits to the PSPF.
7
During the 2020
legislative session, HB 20-1418 changed the distribution of State Land Board rents and royalties revenue
for FY 2020-21 so that revenue that would normally be credited to the Permanent Fund would be credited
instead to the State Public School Fund. The bill also redirected a portion of the marijuana retail sales tax
to the State Public School Fund. Therefore, in FY 2020-21, the PSPF received only $7.9 million of revenue,
with the majority being from realized capital gains. Then, again in FY 2021-22, $97.6 million of revenue
was deposited into the PSPF; and, in FY 2022-23, $118.2 million of revenue was deposited.
____________________
5
The first such transfer occurred in FY 2015-16 in the amount of $2.45 million; in FY 2016-17, $31.56
million was deposited; and, in FY 2017-18, $27.75 million was deposited.
6
In FY 2018-19, $5.85 million of retail marijuana excise tax revenue was deposited into the PSPF.
7
In FY 2015-16, total revenue of $68.5 million was deposited into the Permanent Fund; in FY 2016-17,
$85.9 million was deposited, including $4.2 million in realized capital gains; in FY 2017-18, $83.4 million
was deposited; in FY 2018-19, $72.0 million was deposited; and in FY 2019-20, $70.6 million was
deposited, including $8.9 million in realized capital gains.
Colorado Department of the Treasury // Long Range Financial Plan // November 2023
7
In the 2016 legislative session, SB 16-035 created the Public School Fund Investment Board (PSFIB). The
Board is made up of the Treasurer (Chair of the Board), three appointees by the Treasurer, and a final seat
held by one of the Commissioners of the Colorado State Land Board. The bill was designed to enable the
Public School Permanent Fund to be invested in assets in addition to fixed income. Allowed investments
include equity mutual funds, equity-indexed funds, and other equity investments that do not represent an
investment in an individual corporation. Pursuant to the Board’s investment policy, Treasury manages a
portion of the Fund’s investments, the Market Duration Bond Portfolio. The bill also changed the
distribution of income beginning in FY 2017-18. For FY 2017-18 and FY 2018-19, the first $21 million after
the PSFIB’s expenses are paid continues to be transferred to the State Public School Fund; however, any
amount in excess of $21 million, capped at $10 million, was to be paid to the Public School Capital
Construction Assistance Fund; and any amount in excess of $31 million was to be paid to the Public
School Permanent Fund. The actual amount of the FY 2017-18 transfer to the Public School Capital
Construction Assistance Fund was $4.3 million; and the FY 2018-19 transfer was $8.2 million. For FY
2019-20, and each fiscal year thereafter, any amount in excess of $21 million, capped at $20 million, is to
be paid to the Public School Capital Construction Assistance Fund; and any amount in excess of $41
million is to be paid to the Public School Permanent Fund. The actual amount of the FY 2019-20 transfer
to the Public School Capital Construction Assistance Fund was $9.4 million; in FY 2020-21, it was $9.3
million; in FY 2021-22, it was $10.3 million; and, in FY 2022-23, it was $17.8 million.
The Unclaimed Property Tourism Promotion Trust Fund (UPTPTF) was created by §38-13-801.5, C.R.S. The
fund consists of all proceeds collected through the sale of securities in the custody of the State Treasurer
as the administrator of Unclaimed Property. The principal of this fund is only expended to pay claims.
Interest earned from the deposit and investment of the moneys is credited to the Colorado State Fair
Authority Cash Fund, the Agriculture Management Fund, and the Colorado Travel and Tourism Promotion
Fund.
8
$5.0 million of the UPTPTF is currently designated as a component of the State’s Emergency
Reserve. See additional information regarding this fund in the Unclaimed Property section, which begins
below.
____________________
8
Twenty-five percent of the interest earned goes to the State Fair Authority, sixty-five percent to the
Agriculture Management fund, and the remaining ten percent is dedicated to the Travel and Tourism
Promotion Fund. See §38-13-801.5(3)(I-III), C.R.S.
Colorado Department of the Treasury // Long Range Financial Plan // November 2023
8
CLIMBER Small Business Recovery Loan Program
The Colorado Loans for Increasing Main Street Business Economic Recovery Act, or CLIMBER Loan
Program, leveraging up to $250 million for loans for small businesses over the next four years is designed
to preserve at-risk jobs across the State. CLIMBER was created by HB 20-1413, codified at §24-36-201,
C.R.S., et seq. While federal resources have provided a much-needed lifeline for many Colorado
businesses, the State anticipated that additional support continues to be necessary for small businesses
that have less capacity and fewer borrowing opportunities to weather the long-term effects of the
economic downturn than medium to large sized businesses.
The CLIMBER fund provides low interest working capital loans – ranging in size from $10,000 to $500,000
– to Colorado small businesses with up to 99 employees that had a record of accomplishment of success
prior to the pandemic. A five-member oversight board chaired by the State Treasurer manages the
CLIMBER loan fund. The Director of the Minority Business Office in OEDIT is a Board member specified in
statute. The three other members of the Board are appointees of the Governor, the Senate President and
the Speaker of the House, respectively. The CLIMBER oversight board has created policies and procedures
to enable the program to operate within its legislative mandate continuing to promote economic recovery
for small businesses in the State. The goal is to save Colorado jobs and provide low interest and equitable
access to capital across all 64 counties, recognizing that certain businesses and communities historically
underserved were disproportionately impacted by the COVID-19 pandemic.
State funding portion came from the sale of insurance premium tax credits. The first tranche of fundraising
included five contributory institutions providing $22.5 million, reflecting a “4 to 1” contribution. With the
inclusion of the State’s first loss capital of $5.625 million, a total of $28.125 million was made available for
the loan participation and direct lending capital tools. A Credit Enhancement mechanism provides 15-20%
credit enhancement in the form of a loss reserve or cash collateral for CLIMBER loans that lenders across
the state offer. The state provided $3 million for the Credit Enhancement tool which leverages an additional
potential of $12 million from the various lenders borrowers can use, and brings a total first tranche of
loanable funds to $43.125 million. Presently, 13 lenders participate in the program; with $7.635 million of
Direct Lender Capital (DLC) loans deployed to these institutions with an additional $3.812 million lent
directly to businesses.
Colorado SecureSavings Program
In 2019, Senate Bill 19-173 created the Colorado SecureSavings Board in the Department of Treasury to
study the costs to the state of insufficient retirement savings and to consider three approaches to
increasing retirement savings in Colorado. The Board found that over 40 percent of Coloradans do not
have access to retirement savings at work, and that a state-facilitated automatic enrollment individual
retirement account program would be the best option for Colorado. The Board recommended the
establishment of such a program, coupled with the greater use of financial education tools. These
recommendations were implemented in 2020 with the passage of SB 20-200 which renamed the board the
Colorado SecureSavings Program Board and directed the Board to create and implement the Colorado
SecureSavings Program.
The Colorado SecureSavings Program (CSSP), codified at §24-54.3-101, C.R.S., et seq., is designed to
close the retirement savings gap for private sector workers, and ensure all Colorado residents have access
to the wealth building tools necessary for strong financial health.
The law requires the Department to design, implement, and administer the SecureSavings Program for
enrolled employers and their employees, as well as ensure businesses electing to use private plans are in
compliance with state statute. In all, the two compliance options (enrollment in SecureSavings or
Colorado Department of the Treasury // Long Range Financial Plan // November 2023
9
purchasing a qualified retirement plan) will increase retirement savings access for an estimated one
million Colorado workers.
Implementation and design included hiring program staff, procuring a consulting team, as well as
investment managers and a program administrator, developing an investment policy statement, and
marketing the program to employers across the state. Ongoing administration includes continuous
marketing and outreach functions for Department staff, data management and analysis, strategy
development and implementation, and directing annual enrollment and enforcement periods.
In FY 2022-23, the Program’s professional staff oversaw the achievement of several critical milestones:
● The full Program began implementation in January 2023, and has continued throughout the course
of the year.
● The first interstate partnership for a state facilitated retirement program, the Partnership for a
Dignified Retirement, was approved by the Colorado SecureSavings Program Board with the State
of Maine, and launched the first partner program in October.
To date in FY 2023-24, the following milestones have been reached:
● All enrollment notice waves have been completed by employers receiving at least three notices
(contact information provided by the Colorado Department of Labor and Employment).
● As of September 29, 2023, the Program has enrolled over 100,000 savers, has nearly 13,000
participating employers, and has confirmed existing plans for 21,000 additional employers.
● As of September 29, 2023, assets under management in saver accounts totaled nearly $17 million.
● One additional state (Delaware) has initiated negotiations to join the Partnership for a Dignified
Retirement.
● Program staff are currently reviewing compliance data to ensure enforcement begins, as
scheduled, and all impacted employers have received direct communications.
In the remainder of FY 2023-24, and in FY 2024-25, CSSP expects to accomplish the following goals:
● Officially begin enforcement for non-compliant employers in partnership with the Colorado
Department of Labor and Employment.
● Begin enrollment for newly eligible businesses as detailed in §24-54.3-101, C.R.S., et seq.
● Finalize partnership negotiations with the State of Delaware, and continue conversations with
Minnesota, Nevada, and Vermont.
● Review and amend CSSP’s marketing and outreach strategy using enrollment data to continue to
better identify participation gaps.
● Review and amend CSSP’s Investment Policy Statement (if required) with the support of the
Colorado SecureSavings Program Board.
● Provide robust oversight over the Partnership for a Dignified Retirement Advisory Committee,
ensuring all partners maintain high quality governance controls.
● Refine internal processes, policies, and web platform features to ensure CSSP is accessible to all
employers and savers.
● Continue performing stakeholder outreach and education to ensure all impacted businesses and
individuals understand the Program requirements, and make informed decisions regarding their
benefit plans and retirement options.
Colorado Department of the Treasury // Long Range Financial Plan // November 2023
10
In addition to the program implementation work, program staff continue to conduct outreach to key
stakeholders, employer groups, and community organizations highlighting progress and communicating
timelines and program opportunities and expectations. Further, program staff will utilize existing
enrollment data to revise the Program’s outreach and marketing strategy to better target unenrolled
populations and more efficiently utilize public resources.
Program staff has worked strategically to accelerate the timeline for the program to reach self-sufficiency.
A pilot version of the program launched in October 2022, and formal enrollment began in January 2023.
Utilizing a compressed timeline as compared to other states with similar auto IRA programs, the
SecureSavings Program has been able to reduce the time needed for implementation by 60% without
sacrificing the quality of customer service for employers. This compressed timeline has the benefit of
reducing complexity for impacted employers, scaling the Program faster, and reducing costs to the State.
Consequently, State funding needs for CSSP are anticipated to decline sooner as a result. The timeline to
self-sufficiency projected in 2020 was based on the assumption of enrollment taking four years from the
start of the first enrollment wave. Early data confirm that a shorter implementation timeline has proven
more beneficial in communicating statutory requirements to impacted employers, and increasing the
number of savers and assets under management relative to other states with similar programs.
As part of the effort to shorten the timeline to self-sufficiency, CSSP has officially entered into a
partnership with the State of Maine. This partnership (the Partnership for a Dignified Retirement) is
expected to support the 200,000 private employees without access to a retirement plan in Maine. CSSP
also anticipates partnering with additional states which will increase assets under management for the
program, reducing fees for participants and, as a result, help shorten the timeline needed for CSSP to reach
self-sufficiency. To date, CSSP has begun negotiations with the State of Delaware, and has advanced
conversations with Minnesota, Nevada, and Vermont. Combined, the total population supported by this
partnership could reach an additional 1.5 million workers without access to a retirement plan in addition to
the savers in Colorado and Maine. This partnership is the first of its kind nationally for auto enroll IRA
programs and has established Colorado as a leader in closing the retirement savings gap. Pursuit of this
partnership opportunity will materially impact the design or structure of the program, and a formal
governance arrangement was approved by the CSSP Board during its September 2022 meeting.
Unclaimed Property
The Unclaimed Property program was established in 1987, codified at §38-13-801, C.R.S., et seq., to locate
owners of dormant or abandoned property and return their property to them. The law was expanded
subsequently to include all types of companies and business entities, with limited exceptions. The law
also covers public institutions, including courts, municipalities, most governmental subdivisions/agencies,
public corporations or authorities, non-profit entities, hospitals, utilities, estates, trusts, or any other legal or
commercial entity.
The General Assembly enacted the Revised Uniform Unclaimed Property Act (RUUPA) in 2019; and it
became effective on July 1, 2020. The new Act modernizes the way the division and holders communicate
information about lost property to owners. It expands the types of properties to be reported, while
clarifying new exempt properties. The Act sets clear boundaries for third par ty auditors, providing holders
an appeal process and requiring more transparency.
Since the program’s inception the Treasury has returned more than $650 million to owners and heirs.
Colorado businesses identify millions of dollars of unclaimed property during the reporting process. In
Colorado Department of the Treasury // Long Range Financial Plan // November 2023
11
many cases these businesses contact the property owners and return the money directly to them rather
than transferring it to the Treasury. The remainder, per statute, must be transferred to the Division.
In FY 2022-23, the Unclaimed Property Division returned approximately $54.31 million to 58,100 claimants.
The Division continues to leverage the Unclaimed Property software program to electronically approve
certain payments.
The Unclaimed Property Division includes a small internal audit team that is charged with ensuring holder
compliance with the reporting requirement. This team provides webinars to educate citizens and
businesses about the Unclaimed Property Act and the related compliance responsibilities. In FY 2022-23,
the division held seven webinars/outreach programs. The webinars reached 390 people, from industries
such as auto dealers, CPA firms, banks and credit unions, retail businesses, restaurants, medical/dental
clinics, school systems, hospitals, and municipal governments. In addition to field audits where the
auditors conduct onsite audits, the audit team conducts “Desk Audits”. The Desk Audit Program is
designed to improve unclaimed property compliance by contacting non-compliant companies and
providing them with information about the Colorado Unclaimed Property Program. Businesses are
contacted by email, telephone, letter, and questionnaire and are encouraged to review their records for
potential unclaimed proper ty. The auditors then assist the business with reporting their unclaimed
property.
The Division did not initiate any field audits during FY 2022-23. The Desk Audit Program focused on
mortgage, distribution, logistics, medical, and the construction industr y. Desk audit collections in FY
2022-23 totaled approximately $475,000. In addition to the audits performed, the audit team processed
business claims because many businesses have complex ownership. This can include mergers and
acquisitions and require background research. The Division also uses seven outside auditing companies
to conduct examinations of large national businesses. In FY 2022-23, the Division authorized these
companies to begin 59 general ledger audits.
An enhanced website brings in more inquiries and allows the Division to manage more claims, lessening
the handling of paper requests. The site allows claimants to easily submit their claims online, uploading
documentation easily from their smartphones. If additional documentation is requested by the Division,
the workflow allows a claimant to contacted by email. This reduces mailing and postage costs and
speeds up the processing time to pay a claimant. If additional paperwork is needed, the claimant can
easily add documentation via the same website upload process. The website also provides a status on the
claim so that claimants can review when their claim has been paid.
The claims team continues to do proactive outreach to potential owners. Notifications can be in the form
of email, letters or postcards. During FY 2022-23 165,719 notifications were sent to potential owners via
letter, postcard or email. This was over double the number done in the previous fiscal year. These
mailings as well as numerous media events have increased the awareness of the program. National
Unclaimed Property Day was February 1
st
.
The 2023 Denver Home & Garden show in March was the Division’s first in person event since COVID. It
was a 9-day event where staff assisted citizens in starting claims through the use of secure iPads. There
was a positive response from individuals visiting the booth about the program, many noted that they heard
of someone receiving funds from the program.
Denver’s Juneteenth Festival was the second in person event. It was two days (June 17-18, 2023) and
allowed the division to educate many on potential unclaimed funds. The division looks forward to doing
more in person outreach in FY 2023-24.
Colorado Department of the Treasury // Long Range Financial Plan // November 2023
12
The Division currently maintains about 12.7 million properties, including $1.47 billion in assets.
The Colorado Unclaimed Property website allows holders to report holdings electronically. In the past, only
the larger holders reporting could utilize the website, but now manual reporting for smaller repor ts typically
consisting of 20 items or fewer allows smaller reports to be filed efficiently. In order to streamline
processing and add security, the Division no longer allows reports to be submitted via CD, paper reports,
diskettes or emailed submissions. Only checks should be received via mail, and the Division continues to
encourage ACH transfers as the safest and most efficient form of payment, which results in a much faster
processing time while eliminating checks being delayed or lost in the mail. 3,373 checks were scanned
and deposited for reporting year 2022, totaling $55.4 million. 3,115 wire transactions were received
totaling $133.2 million.
Until June 30, 2020, statute required the Treasurer to sell unclaimed securities held by a third party. In FY
2004-05, Treasury began a liquidation process of unclaimed securities as required. That year, more than
$51 million from the first two sales of securities was deposited into the newly created Unclaimed Property
Tourism Promotion Trust Fund. Additional funds totaling approximately $8 million were deposited in
September 2005 and approximately another $5 million was deposited in September 2006. Sales were
suspended due to turbulent fiscal conditions and resumed in FY 2009-10 when the sale of securities
resulted in collections of nearly $39 million. In FY 2011-12, the sale was completed in September 2011;
and the sales from one year of security holdings totaled $6.8 million. In September 2012, the sales of
securities totaled $9.0 million; in September 2013, the sales totaled $13.9 million; and in October 2014, the
sales totaled $17.0 million.
In October 2015, the sales totaled $12.2 million; in October 2016, the sales totaled $12.6 million. In both
October 2017 and October 2018, security sales totaled $17.0 million. In October 2018, approximately $15
million in securities were sold with October 2019 security sales totaling $14.9 million. Beginning on July 1,
2020, RUUPA (§38-13-701, C.R.S.) requires securities be sold after being held for three years by the
Division. This is a significant change as the previous act required securities to be sold after one year.
Security sales resumed in October of 2022 resulting in a total of $11.1 million in securities sold.
The Department’s Investment Division manages the Unclaimed Property Tourism Promotion Trust Fund as
a separate account. Section 38-13-801.5, C.R.S. continues the previous act’s creation and division of funds
for this trust fund. The allocation of the interest earned is as follows: 1) 25% to the Colorado State Fair
Authority Cash Fund; 2) 65% to the Agriculture Management Fund; and 3) 10% to the Colorado Travel and
Tourism Promotion Fund.
RUUPA provisions (§38-13-902.1 – 902.3, C.R.S.) direct the Treasury to review all approved claims that
exceed $600 for possible interception to satisfy obligations due to the Department of Human Ser vices
(DHS), the Department of the Judiciary (JUD), and the Department of Revenue (DOR). The total dollar
amount of “Intercepted” claims by depar tment in FY 2022-23 was as follows: JUD $0; DHS $38,175; and
DOR $435,172.
Throughout the year, the Unclaimed Property Division also receives and processes unclaimed safe deposit
boxes. In FY 2022-23, the total number of safe deposit boxes reported was 466. Other FY 2022-23 safe
deposit box statistics: 6,196 items inventoried and 3,365 items returned via claims. The Division
maintains an active effort to contact and request outstanding safe deposit boxes’ contents from financial
institutions.
The Division continues to work from home, which began on March 17, 2020. Mail is gathered and scanned
on a weekly basis and claims are remotely processed. The claims team communicates with claimants via
email or phone. Appointments are scheduled for claimants who wish to speak to someone in person.
Colorado Department of the Treasury // Long Range Financial Plan // November 2023
13
The compliance team processes holder reports and reconciles deposits. They are in the office to ensure
checks are deposited and to scan holder paperwork as needed. The team also receives and inventories
safe deposit items in the office. The audit team works audits remotely, as well.
Special Purpose
The special purpose programs include the Property Tax Deferral Program for Seniors and Active Military
Personnel, the Senior Citizen and Disabled Veteran Property Tax Exemption Program, the Property Tax
Reimbursement for Proper ty Destroyed by Nature, and Highway Users Tax Funds.
Property Tax Deferral Program for Seniors, Active Military Personnel, and Tax Growth Cap Participants
This program provides loans to pay the property taxes for qualified Colorado citizens who make
applications. During the 2002 legislative session, sections 39-3.5-105.5 and 105.7, C.R.S. were revised,
changing the funding of this program from a General Fund appropriation to an investment (as a simple
interest loan to the property owner). Liens are placed on the property, and interest is calculated annually.
The interest rate floats with the 10-year Treasury note, changing each year in February as statute requires.
The current rate is set at 4.125%. There are no limits to the number of applications the Department may
receive; and there are limited eligibility requirements. As of June 30, 2023, Treasury had more than 1,000
participants in the program. The Treasury uses an Access database to manage this program. Additionally,
the Treasury uses an annual self-verification process to monitor existing participants thus ensuring their
continued eligibility for the program.
Senate Bill 21-293 expanded the program to all Coloradans who meet certain qualifications. Senate Bill
22-220 detailed the expansion of the program. The Treasury issued a request for proposal in May 2022
and has contracted with a third party administrator, CoreLogic, who worked with the Treasury to create and
manage the program, which includes centralizing applicant data and building an online application and
portal. The Treasury hired one full-time employee to manage the program oversight. The application will
be live January 2023.
Senior Citizen and Disabled Veteran Property Tax Exemption
Created by the passage of Referendum A, which voters approved by the voters in November of 2000
(codified at §39-3-201, C.R.S., et seq.), this program originally exempted one-half of the first $200,000 of a
home’s value from property taxation for citizens over the age of 65 who have lived in their current homes
for at least 10 years. It also applies to surviving spouses of qualified taxpayers. The first payment was
made to counties in April 2003. The Treasury, in conjunction with the Department of Local Affairs has
developed and maintains an extensive database for the program to ensure that distributions are correctly
calculated and disbursed.
9
Referendum E, approved during the 2006 general election, allows the senior homestead exemption to be
extended to veterans who have a service-connected disability that has been rated as 100% permanent, as
well as to their surviving spouses. See §39-3-202, C.R.S.
____________________
9
Due to the State budget shortfall, §39-3-203, C.R.S. was revised to decrease the amount of assessed
residential property that may be exempted from taxes to zero for tax years after December 31, 2002 but
before January 1, 2006. Consequently, no payments were made for FY 2003-04 - FY 2005-06. The
exemption was reinstated to one-half of the first $200,000 beginning with FY 2006-07. Treasury made
$79.8 million in payments to counties in FY 2007-08; and $85.6 million in FY 2008-09. However, again due
to a State budget shortfall, §39-3-203 was revised for the 2009 property tax year, reducing the amount of
assessed residential property that could be exempted from taxes by a qualifying senior from $200,000 to
Colorado Department of the Treasury // Long Range Financial Plan // November 2023
14
$0, leaving the exemption for qualified disabled veterans, intact. SB 10-190 continued the 2009 reduction
through the 2011 property tax year. The assessed residential property that may be exempted from taxes
by a qualifying senior returned to one-half of the first $200,000 beginning in the 2012 property tax year.
Treasury made $127.1 million in payments in FY 2015-16; $136.4 million in FY 2016-17; $132.2 million in
FY 2017-18; $145.9 million in FY 2018-19; $151.2 million in FY 2019-20; $157.9 million in FY 2020-21;
$162.1 million in FY 2021-22; and $163.7 million in FY 2022-23.
Property Tax Reimbursement for Proper ty Destroyed by Nature
House Bill 14-1001 created this program by adding §39-1-123, C.R.S. The statute establishes a state
reimbursement for certain property taxes owed or paid for real property and business personal property
that has been destroyed in a natural disaster or by another cause beyond the control of the property owner.
The program applies to tax years starting on or after January 1, 2013; and the appropriation through FY
2019-20 was $2,221,828; however, in FY 2020-21, the appropriation was reduced to $725,000. In FY
2021-22, the initial appropriation was $1 million; however, due to the nature and severity of numerous
wildfires, a $3.7 million supplemental request was granted in early 2022, bringing the full appropriated
amount to $4.7 million. Treasury anticipates that the demand on this program will continue. The current
FY 2023-24 appropriation is $1 million.
Highway User Tax Funds (HUTF)
The annual calculation, allocation and distribution of HUTF to Colorado counties and municipalities, and to
the Department of Transportation are Treasury responsibilities. Estimates for future HUTF disbursements
are based on projections from the Governor’s Office of State Planning and Budgeting.
On March 2, 2009, the Funding Advancements for Surface Transportation and Economic Recovery
(FASTER) bill was signed into law. See §43-4-801, C.R.S., et seq. FASTER generates additional revenues for
statewide transportation improvements. Revenues generated from the Road Safety Surcharge,
Oversize/Overweight Surcharge, Rental Car Surcharges, and late vehicle registration fees are credited to
the HUTF and distributed per statute to the Department of Transpor tation, counties, and municipalities.
Other Programs
Charter School Intercept and Moral Obligation Program
Section 22-30.5-406, C.R.S. allows a charter school entitled to receive moneys from the State to request
that the State Treasurer make direct payments of principal and interest on capital construction bonds on
its behalf. This program enhances the charter school’s ability to obtain favorable financing terms on its
bonds. The Treasury withholds the moneys needed to make these payments from the monthly equalization
payments to the Charter Authorizer (the school district in which the charter school is located or the State
Charter School Institute). The Treasurer will only perform an intercept for a charter school that receives
sufficient state equalization money to cover the entire annual amount of the principal and interest
payments. As of June 30, 2023, Treasury had 102 participants in the intercept program.
In addition to this intercept program the Treasury oversees a subprogram: the “Moral Obligation Program.”
This program enhances the credit of a “qualified charter school.” A qualified charter school is one that has
obtained an investment grade credit assessment on a “stand alone” basis. The enhancement enables
these qualified schools to obtain more favorable financing terms on their capital construction bonds. The
program is funded from a separate source of moneys from which the Treasury would make bond
payments in the case of a default by a charter school. Section 22-30.5-407, C.R.S. created the State
Charter School Interest Savings Account within the State Charter School Debt Reserve Fund. Each
qualified charter school allowed into this program annually pays ten basis points of the principal amount of
bonds outstanding into this account. At June 30, 2023, the account had a balance of $8.4 million. In the
event that a default occurs that exhausts the balance in the fund, as well as the $7.5 million appropriated
in FY 2002-03 and FY 2014-15 from the State Education Fund, the statute directs the Governor to notify the
Colorado Department of the Treasury // Long Range Financial Plan // November 2023
15
General Assembly so that it may consider whether to appropriate funds to pay off the bonds. This last
element is the “moral obligation” aspect of the program. Failure by the State to make such an
appropriation could have a substantial negative effect on the State’s credit and almost cer tainly interfere
with its ability to issue certificates of participation. The statutory cap of the outstanding par value of the
bonds issued by charter schools under this program is currently $750 million.
10
K-12 School District Intercept Program
The program created by §22-41-110, C.R.S. requires the Treasurer to make timely payments of principal
and interest on school district bonds if the district is unable to do so. In such an instance, the State
recovers the amount by withholding the State’s share of the district’s total program funding and/or from
school district property tax and specific ownership tax revenues. This program has resulted in school
districts across the State receiving greatly enhanced bond ratings. The program, created in 1991,
automatically covers all school districts except those that have expressly opted out of the program. Since
the program’s inception, no school district bonds have been opted out; and Treasury has never needed to
make a bond payment on behalf of a school district. As of June 30, 2023 the outstanding par value of the
bonds issued under the school district intercept program was approximately $11.2 billion.
____________________
10
The cap was legislatively increased from $200 million to $400 million in 2006, and to $500 million in
2014. The cap was raised to $750 million in 2021 as a result of SB 21-157. As of December 31, 2022, the
outstanding par value of the bonds issued under the moral obligation program was $593.7 million.
Colorado Department of the Treasury // Long Range Financial Plan // November 2023
16
Higher Education Intercept Program
Based on the success of the State’s school district intercept program (explained above), in 2008 the
legislature created a parallel program for Colorado state-supported institutions of higher education
revenue bonds, enacted as §23-5-139, C.R.S. In this program, the Treasurer is required to make timely
payments of principal and interest on revenue bonds issued by qualified state-supported institutions of
higher education if the institution is unable to do so. If such a payment is made, it is recovered by
withholding equivalent amounts from the institution’s payments of the State’s fee-for-service contract with
the institution, from any other State support for the institution, and from any unpledged tuition monies
collected by the institution. Senate Bill 22-121 increased the amount of tuition money that can be
considered as pledged revenues from 10% to 100%. See §23-5-139 (1)(b)(III)(B), C.R.S. With this security
in place, the State’s public institutions of higher education receive greatly enhanced ratings on their bond
issues. Unlike the school district program, institution bonds must meet certain qualifications to be
covered by the program as specified in §23-5-139 (1)(b), C.R.S. As of June 30, 2023, there were nine
institutions of higher education participating and the outstanding par value of the bonds issued under the
higher education intercept program was approximately $1.4 billion.
DEPARTMENT OF THE TREASURY PERFORM ANCE GOALS
Accounting Division
Performance Goal: Mitigate risk of losing institutional knowledge by creating a knowledge base of
procedure documents and establishing a succession planning framework by the end of 2024.
Performance Indicators:
Identify key positions and processes.
Update, revise, or create technical procedures.
Create succession planning action plans.
Align training and development opportunities to operational goals.
Drive efficiencies through continuous process improvement.
CLIMBER Loan Program
Performance Goal: Keep CLIMBER operational beyond 2024 as a regular state program, in partnership with
OEDIT.
Performance Indicators:
Identify continued sources of funding.
Identify continued banking suppor t.
Modify legislation or adopt a new policy to continue strengthening the Colorado small business
environment.
Colorado Department of the Treasury // Long Range Financial Plan // November 2023
17
Debt Management
Performance Goal: Include more smart investing disclosure and reporting as it relates to public financing
as part of department policy and procedures.
Performance Indicators:
Research smart investing frameworks.
Modify official statements.
Calculate what is impacted by each financing.
Investment Division
Performance Goal: Develop and propose an equitable compensation plan to continue to attract and retain
qualified investment professionals to work for the Colorado Department of the Treasury.
Performance Indicators:
Identify and survey 10-15 top state treasuries managing more than $10 billion in fixed income
assets.
Develop data and complete the survey by working with National Association of State Treasurers
(NAST), Sovereign Wealth Funds (SWF), and Colorado State Treasury Human Resources (CST HR).
Summarize pay plans for CIO, research analysts, traders, operations analysts.
Propose recommendations to the CST presenting competitive, equitable compensation plans for
investment professionals based on peer review.
Property Tax Deferral Programs
Performance Goal: Based upon the successes and lessons learned in the initial rollout, continue to develop
and create a more efficient, user-friendly, and well-run operating program.
Performance Indicators:
Develop new outreach and marketing strategies to those who are in need of property tax deferral
given recent property tax increases.
Update and streamline the current online website portal user application process, as well as the
manual paper application process for those without computer access.
Implement a cost effective electronic recording system for the PTD Program, to maximize
efficiency at the State level and minimize recording and re-recording problems and timelines at the
county level.
Work on statutory amendments to update how recording fees are currently interpreted, handled,
and charged between the Treasury and Colorado county clerks and recorders.
Consider additional internal staff support to help with the internal administrative and accounting
support functions of the DPT Program with anticipated increases in the volume of applicants for
the coming years.
SecureSavings Program
Colorado Department of the Treasury // Long Range Financial Plan // November 2023
18
Performance Goal: Build the Colorado SecureSavings Program into one of the most successful retirement
systems in the United States.
Performance Indicators:
Regular tracking of the number of enrollees in funded accounts.
Outreach for additional state partnerships.
Marketing and Outreach Strategy implementation.
Direct engagement with 1099 and self-employed populations.
Enforcement with Colorado Department of Labor and Employment (CDLE).
Unclaimed Property
Performance Goal: To return 70,000 claimants’ funds representing $90 million over the next two fiscal
years.
Performance Indicators:
Review all claims within the 90-day statute requirement, processing a monthly average of 85% (or
greater) of calls that come into the division’s claim hotline.
Deposit unclaimed proper ty holder checks within 2 weeks of receipt
Reconcile at least 50% of new holder reports within 3 months of receipt.
Send out documentation for 40 desk audits (not all will result in onsite audits). Complete the
review of reporting for these holders to confirm compliance of unclaimed property.
Authorize 40 third party audits.
Manage and collaborate with contractors for successful reporting, maintenance and return of
Unclaimed Property.
Colorado Department of the Treasury // Long Range Financial Plan // November 2023
19
