Colorado Brand Division faces $2.8 million deficit, proposes increases and cuts
DENVER, May 9, 2025 – Colorado Brand Commissioner Todd Inglee announced May 7 the intention of the Colorado State Board of Stock Inspection Commissioners to make changes to the fees charged to resolve a budget shortfall, projected to deplete the cash fund by September 2025.
“We need to do something, and by the end of this fiscal year, if we don’t do anything, we’ll have a deficit of $2.8 million,” Inglee said.
The Brand Board is a state enterprise agency, the only within the Department of Agriculture, meaning they receive no state funding and are funded by user fees. Since FY22, the Brand Division’s annual expenses have increased from $6 million to a projected $7.6 million. The Division’s total expenses of $34.8 million since FY22 will outpace total projected revenue of $32 million in FY26. Inglee said this is due to significant increases in vehicle expenses, personnel costs, and operational overhead outside the control of the program.
The proposed fee and assessment increase, the first since 2016, necessitates the Board to go through the rulemaking process to ensure opportunity for public comment.
Inglee said proposed fee increases are not the only budget changes on the table.
“We can’t make up the gap we’re facing financially just by raising fees, and I’m not a believer in just raising fees,” he said. “We have an obligation to our customers to look at how we’re operating. Even through these fees increases, we won’t be operating in the black. To get to the next assessment period, which is 2032, we’re going to have to cut out $3 million of our expenses. We’re taking a hard look at what we’re doing operationally and how we can realize that $3 million cut by 2032.”
Meeting that goal, he said, will require cost cutting, increased efficiency, and utilization of technology.
“We’re trying to achieve that goal and get the Brand Board back in a healthy financial situation by raising fees and cutting costs,” he said.
The assessments are paid every five years and will increase from $300 to $500 every five years; a new brand application will increase from $200 to $300, a transfer will increase from $100 to $150, country cow inspections will increase from .65 per head to $1 per head, feedlot inspection fees, which are based on the country cow inspection fees, will also increase. Feedlot direct to slaughter, less than 500 head, will increase to .98 to remain .02 below the country cow inspection per statute. Feedlot direct to slaughter, over 500 head, will increase to .95, remaining at the statutory limit; certified feedlot to slaughter will increase to .83 to remain statutorily .15 below the country cow inspection rate. Certified feedlot license fees will increase from $1,000 to $1,200 annually.
Inglee said per stop inspection fees will increase from $20 per stop to $40.
“We’ve done the math to try and see exactly what it costs us to do a stop to pay for the vehicle, the fuel, mileage, the inspector’s time and even at $40, we’re still below what it costs us, but we need to try to pay for that as much as we can,” he said.
There will be an industry informational meeting at 11 a.m. on May 27 accessible online by visiting the website. Online comments will be accepted. Following that meeting, the Board will set fees and files a notice with the Secretary of State so the proposed increases may be published on the federal Register. On July 15, the Board will host a meeting and consider the feedback provided by stakeholders. The Board will make any changes then and vote whether to pass the proposed fee increases. The effective date will be September 14 and the Board will begin collecting the new fees Oct. 1.
Inglee said the Board’s bottom line has been affected by inflation and rising costs of business, just as all businesses have, and has been affected by unfunded mandates from the state legislature. The step pay system, a negotiated effort between the state employees union and the legislature, sought to achieve parity in the salaries paid to long term and newer state employees. Though he said the changes were positive, it accelerated the financial shortfall of the Board, increasing payroll expenses annually of $570,000.
To provide feedback, see a list of proposed fee increases, to learn more about the rulemaking process, or to register for the virtual stakeholder meeting, visit ag.colorado.gov/brands or contact Brand Commissioner Todd Inglee at (303) 869-9165 or todd.inglee@state.co.us.
Source: Rachel Gabel
