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How the 6% Arveschoug-Bird Directive Works

The 6 percent Arveschoug Bird General Fund Appropriations provision dictates how Colorado can appropriate General Fund dollars. In 1991, the legislature lowered a cap on annual growth in General Fund appropriations to operating budgets from 7 percent to 6 percent. This provision, named for its legislative sponsors, is usually referred to as a spending limit, but it is actually a provision on appropriations, not spending. It is better understood as a spending formula because it directs where money can be spent rather than limiting how much can be spent. General Fund revenues collected above the 6 percent are still spent by the state –just not for operating expenses, such as educating students or paying for medical care. Currently, revenues that top the 6 percent limit are largely used to fund transportation and capital construction needs.

Released Feb. 3, 2009

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