AGO 86-5.

Case Date:March 27, 1986
Colorado Attorney General Opinions 1986. AGO 86-5. March 27, 1986Department of Law Attorney General Opinion FORMAL OPINION of DUANE WOODARD Attorney General Opinion No. 86-5 AG Alpha No. EX PL AGAPC Tom Hadden Budget Execution Office of State Planning and Budgeting 102 State Capitol Building Denver, CO 80203 RE: Fiscal Year 1985-86 Long Bill provisions restricting agencies with related general fund and cash fund spending authorityDear Mr. Hadden: I am writing in response to your letter of September 13, 1985 in which you ask for legal advice concerning how certain restrictions in the 1985 Long Bill affect related appropriations of general and cash funds. The restrictions provide that in the case of related appropriations of general fund dollars and cash fund dollars to a state agency, the agency may expend additional cash funds only if it reduces its general fund appropriation by a corresponding amount. You ask whether those 1985 Long Bill restrictions on cash spending apply to a situation where one state agency contracts to provide goods or services to another state agency pursuant to statute. QUESTION PRESENTED AND CONCLUSION Whether executive agencies which exceed their cash funds appropriation in order to provide goods or services to other state agencies must reduce a related general fund appropriation by a corresponding amount. Yes. The reduction must be made pursuant to cash spending restrictions in the 1985 Long Bill. That restriction does not apply, however, to federal funds, custodial funds or to funds which are subject to agency expenditure pursuant to statute. ANALYSIS The 1985-86 Long Bill makes appropriations to state agencies from both the general fund and "cash funds." The latter term is defined in the Long Bill to include all revenues to the state from nongeneral fund sources except federal funds and other moneys not subject to legislative appropriation. That definition further provides that the amount set out in a cash fund appropriation is the maximum that may be spent for that purpose except for the circumstances discussed below. See 1985 Colo. Sess. Laws 1394. In many instances a state agency generates cash funds by charging statutorily authorized fees for various activities. You are concerned with the restriction which appears in a headnote to the Long Bill and provides as follows: When a cash...

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