El Paso County, Colorado, July 21, 2026 – The El Paso County Board of County Commissioners today approved a resolution authorizing the temporary use of the County’s Self-Insurance Fund to resolve disputed grant audit costs on behalf of the Pikes Peak Workforce Center after actions by the Colorado Department of Labor and Employment (CDLE) began affecting unrelated County funding.
In late 2024, CDLE completed a compliance audit of workforce grants administered by the Pikes Peak Workforce Center. The audit identified grant compliance deficiencies and disallowed costs related to certain workforce grant expenditures. In 2025, CDLE demanded repayment, which prompted the Pikes Peak Workforce Center to file a lawsuit. In July 2026, the CDLE began withholding unrelated El Paso County grant funding through its vendor offset process. According to the Board’s resolution, those offsets included funding supporting the El Paso County Department of Human Services, placing essential public health, safety and human services at risk.
“Our first responsibility is to protect the services that residents rely on every day,” said Board Chair Carrie Geitner. “The State’s actions placed unrelated County programs at risk, leaving us with a difficult decision. This resolution allows us to protect essential services while preserving the County’s legal rights and continuing to pursue appropriate remedies.”
At the time the audit issues occurred, the Pikes Peak Workforce Center managed its own financial operations and grant compliance responsibilities. Although El Paso County served as the Workforce Center’s fiscal agent, County Administration did not have direct supervisory authority over the Workforce Center Director or responsibility for day-to-day grant compliance. In May 2026, the Consortium Executive Board unanimously expanded County Administration’s authority over the Workforce Center to strengthen oversight and accountability.
The Board’s resolution further states that El Paso County disputes CDLE’s use of vendor offsets against unrelated County funding and questions the State’s authority to intercept those funds. However, faced with the prospect of continued funding interruptions while litigation remains pending, the Board determined it could not allow essential County services to continue being affected. Today’s action protects those services while preserving the County’s ability to pursue reimbursement through insurance and other available legal remedies.
“Taxpayers expect us to be responsible stewards of public resources,” said Commissioner Cory Applegate, who serves as the Chair of the Pikes Peak Workforce Consortium Executive Board. “While this situation is both complex and unfortunate, our responsibility is clear: protect essential County services, strengthen oversight, and take every appropriate step to recover public funds wherever possible. This resolution reflects our commitment to accountability and to the residents we serve.”
The resolution also directs staff to continue implementing stronger financial controls and oversight measures for the Pikes Peak Workforce Center.
The Pikes Peak Workforce Center will continue providing workforce services to employers and job seekers throughout El Paso and Teller counties without interruption.
To see the agenda items, click here.
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