State Affairs – Water Funding Across the Aisle and the Divide

The Colorado General Assembly wrapped up their work for the year on the evening of Wednesday, May 8. Before they adjourned, however, legislators passed a handful of bills that will provide millions of dollars in new funding to provide water security for West Slope water users, continue implementing the Colorado Water Plan, and potentially even increase funding levels for water projects in future years if a majority of voters approve.

The River District’s policy team tracked more than 50 bills this session and actively engaged on more than a dozen bills. Several of those bills passed by the legislature will have an immediate impact on West Slope water interests according to Zane Kessler, the River District’s Director of Government Relations.

Kessler highlighted House Bill 1435, the Colorado Water Conservation Board Projects bill, also known as the “Projects Bill,” as a prime example of legislators working across political and geographic divides to steer funding towards water projects in the state.

“The Projects Bill rarely makes headlines,” said Kessler. “But it is one of if not the most impactful water bills considered by the General Assembly each year.”

This year, the Projects Bill included a historic commitment of $20 million to the West Slope’s effort to acquire and permanently protect the Shoshone Water Rights on the Colorado River. It also appropriated $23 million toward the continued implementation of Colorado’s Water Plan and an additional $4 million for drought planning and mitigation efforts in the state.

The Projects Bill passed the General Assembly with broad bipartisan support and was signed into law by Governor Jared Polis on May 28, 2024. In a press release following the bill signing ceremony, Governor Polis said “Water is life in Colorado and today I was proud to protect our water resources that are essential for our agriculture, our economy, and our way of life.”

A second important water funding bill was passed by the Colorado General Assembly in 2024. This bill, however, gives Colorado voters the final say on whether or not to direct more funding toward implementation of Colorado’s Water Plan in future years.

House Bill 1436 was also passed with broad bipartisan support from the General Assembly. The bill refers a measure to Colorado’s November statewide election ballot that, if approved, would remove the existing cap on sports betting revenue.

In 2019, Colorado voters passed Proposition DD, a tax on sports betting operators to help fund the implementation of Colorado’s Water Plan.

“At the time, we didn’t fully realize the true funding potential of sports betting,” said Kessler. “But five years later, Proposition DD has now generated over $65 million for Colorado’s water since 2019.”

The current cap on Proposition DD funds available for the water plan is set at $29 million, a limit that is likely to be exceeded this year.

“Without the proposed measure, any excess funds would need to be refunded to the casinos and licensed sports betting operators who paid the tax,” said Kessler. “By removing the cap, the state could use all the revenue generated to fund water conservation and protection initiatives.”

This River District’s Board unanimously supported HB1435 and HB1436.