Proposition NNKeep and Spend Money for Education and Other Purposes
Read the full text of the measure: on this page or in the Blue Book (PDF, page 84)
The ballot choice
What your vote means
Proposition NN: a plain-language overview
The state constitution limits how much tax money Colorado can keep each year. Money collected above the TABOR limit is generally returned to taxpayers.
The state keeps money it would have refunded under TABOR, up to a new limit, and spends it on K-12 schools, children's programs, and, after 10 years, other purposes the legislature chooses.
TABOR refunds continue as they are now, and funding for K-12 schools and children's programs stays at current levels.
Our plain-words summary. Source: Colorado Blue Book, p. 41
The Blue Book's official wording of YES and NO (tap to open)
YES: A “yes” vote on Proposition NN allows the state to keep some or all of the revenue that otherwise would be refunded to taxpayers under TABOR. The retained revenue must be spent on K-12 education, programs that support children, and any other purposes.
NO: A “no” vote on Proposition NN maintains current TABOR refunds and funding levels for K-12 education, programs that support children, and other state purposes.
In plain words
The state constitution limits how much tax money Colorado can keep each year. This limit is called TABOR (the Taxpayer's Bill of Rights). Money collected above it goes back to taxpayers as TABOR refunds. Proposition NN would let the state keep that money, up to a new, higher limit, and spend it on K-12 schools and programs for children. Regular tax refunds, for paying too much tax, are not affected. source: Blue Book, p. 41
Before and after
| Question | Today | If Proposition NN passes |
|---|---|---|
| Most the state can keep each year | The TABOR limit: last year's limit, raised for inflation and population growth | The TABOR limit plus the most the state has spent on K-12 schools from certain sources in past years (up to $4.6 billion more in the first year) |
| Total TABOR refunds | $329.9 million in budget year 2026-27 and $521.0 million in 2027-28 | None in either year |
| 2028 TABOR refund, single filer with $50,000 income | $39 | $0 |
| 2028 TABOR refund, joint filers with $500,000 income | $352 | $0 |
| Where money above the TABOR limit goes | Back to taxpayers | First, paying back local governments for property tax breaks for seniors, veterans with a disability, and Gold Star surviving spouses (as today); the rest to K-12 schools and children's programs for 10 years, then K-12 and anything the legislature picks |
From the official analysis source: Blue Book, p. 41
Example
Illustration only: Under current law, a married couple filing together with $100,000 of income would get a $56 TABOR refund in 2027 and $96 in 2028. Under Proposition NN, they would get $0 in both years. The Blue Book says that in later years the loss could be nothing in some years and more than $1,000 per taxpayer in others. source: Blue Book, p. 41
Biggest change
- TABOR refunds would end for budget years 2026-27 and 2027-28, according to the Blue Book's estimates. The new limit has no end date, and any money above it would still be refunded. source: Blue Book, p. 41
- Schools and charter schools get new money for teacher pay and keeping teachers, smaller classes, and career and technical courses: about $110 million in the first year and $220 million in the second, possibly growing to $1 billion to $2 billion a year by year ten if enough money is kept. Schools must post online how they spent it. source: Blue Book, p. 41
Who it affects most: Taxpayers who would get TABOR refunds, and the K-12 schools and children's programs that would get that money instead.
Cost to the state: No new tax. The state would keep and spend about $329.9 million more in budget year 2026-27 and $521.0 million more in 2027-28 (a budget year runs July 1 to June 30), money that would otherwise be refunded. Of that, $153.1 million a year that would go to the general state budget goes to the new Children's Account instead in those two years. The state auditor's reports cost $20,000 in 2027-28. Amounts after that are unknown; there is no forecast past 2027-28.
Our plain-words summary at an 8th-grade reading level. Every line points to its source.
Pull a Thread. Find its Way. Explore where this rule came from and what the evidence shows.
Related case study: TABOR: voter control, public revenue, and Colorado's ballot choices (initial draft, not independently reviewed).
Why people want it, and why others object
Why this is on the ballot
- The state legislature put this on the ballot. Under the state constitution, the state needs voters' permission to keep and spend money above the TABOR limit. Because it is a change to state law (a statute) and not to the constitution, the legislature could change it later. source: Blue Book, p. 41
- Proposition 137, also on this ballot, would lower the amount of revenue that counts toward the TABOR limit. If it passes, the money the state actually keeps under Proposition NN may be smaller or zero. source: Blue Book, p. 41
Why supporters want it
- Proposition NN raises teacher pay, reduces class sizes, and improves career and technical education, benefitting every school district in the state. A state study found that Colorado’s schools face a funding shortfall of $3.5 billion, or about $4,000 per pupil. Proposition NN redirects money the state already collects to Colorado’s kids and classrooms, keeping experienced teachers in the classroom and expanding course options and support. The measure pairs the investment schools need with the accountability taxpayers deserve. source: Blue Book, p. 41
- Proposition NN frees up funds that should already be supporting Colorado’s children. The price of educating and caring for a child grows year after year, and the current revenue limit does not keep pace. As a result, the state is falling behind on the services that families depend on most. Permanent relief from this limit is long overdue. Proposition NN uses existing revenue to address the real and rising costs of child care, universal preschool, and other early childhood needs. source: Blue Book, p. 41
Why opponents object
- Proposition NN is essentially a tax increase, permanently eliminating or reducing TABOR refunds. TABOR refunds are a taxpayer right. Eliminating or sharply reducing those refunds means that government will keep more of the money that families earn. For households already stretched thin, losing TABOR refunds is a significant financial hit. TABOR was enshrined in the state constitution to protect taxpayers against unchecked government growth. source: Blue Book, p. 41
- Proposition NN eventually hands the state over $5 billion per year at the expense of Colorado families. Funding for Colorado schools has increased 25 percent over the last five years, while enrollment continues to decline. Before reaching deeper into taxpayers' pockets, the government should demonstrate it has exhausted every avenue to reduce wasteful spending, eliminate redundant programs, and deliver existing services more efficiently. source: Blue Book, p. 41
Who backs each side
Most totals are through October 4, 2026 (Rocky Mountain Voice, Oct 6); some are as of September 21 (Colorado Politics). Spending grows until Election Day. These figures come from news reports of state campaign finance filings and were not checked line by line against the filings.
- For: Yes for Colorado Kids reported about $2.06 million through Oct 4, including Gary Advocacy LLC ($1 million) and Colorado Fund for Children and Public Education ($950,000), plus the Colorado Education Association and local teachers' unions.
- Against: five committees are registered, but no money specific to Proposition NN was reported.
Sources: Rocky Mountain Voice, Oct 6, 2026 · Colorado Politics, Sept 25, 2026 · Colorado Secretary of State: committees for and against 2026 measures · TRACER campaign finance search
Supporter and opponent arguments are the official ones printed in the Blue Book, written by the Legislative Council's nonpartisan staff after hearing from both sides. Who is registered for and against (Secretary of State) . We don't endorse either side.
At a glance
Our plain-words summary of the official Blue Book analysis. Every line points to its source.
Who it affects
- Taxpayers who would get TABOR refunds under current law. The Blue Book expects refunds to be eliminated in budget years 2026-27 and 2027-28. Regular tax refunds from overpaying are not affected. (Blue Book, p. 41 )
- School districts and charter schools, which get new money for teacher pay and retention, smaller class sizes, and career and technical courses. They must post online how they spent it. (Blue Book, p. 41 )
- Programs that support children, with priority for full-day preschool and child care. The legislature decides how this money is spent. (Blue Book, p. 41 )
- Local governments, which are paid back for property tax breaks for seniors, veterans with a disability, and Gold Star surviving spouses. Current law already requires this. (Blue Book, p. 41 )
- The general state budget, which loses $153.1 million in each of the first two years because that money goes to the new Children's Account instead. (Blue Book, p. 41 )
How many: The Blue Book does not count how many taxpayers would lose refunds. It estimates refunds would shrink by $329.9 million in budget year 2026-27 and $521.0 million in budget year 2027-28. In 2027, for example, a single filer with $50,000 of income would lose a $21 refund and a joint filer with $500,000 would lose $130. In 2028, those amounts are $39 and $352.
Money: economic and budget impact
- TABOR refunds: the Blue Book estimates a cut of $329.9 million in budget year 2026-27 and $521.0 million in budget year 2027-28, which eliminates refunds in both years. In later years the effect could range from none to more than $1,000 per taxpayer, depending on how much the state collects. (Blue Book, p. 41 )
- State spending goes up by the same amounts on net. In 2027-28 that includes $234.0 million for K-12 education, $234.0 million for children's programs, and $206.1 million for property tax reimbursements, minus $153.1 million for general state purposes. (Blue Book, p. 41 )
- School districts: the Blue Book estimates $241.5 million more in budget year 2026-27 and $234.0 million in 2027-28. Teacher pay, class size and career course money is split by each district's share of school finance funding. (Blue Book, p. 41 )
- The new limit on what the state can keep is up to $4.6 billion above the current TABOR limit in the first year. The state is expected to actually keep about $500 million, the amount it is expected to collect above the current limit. (Blue Book, p. 41 )
- Required teacher pay, class size and career course spending is about $110 million in year one and $220 million in year two. It may grow to between $1 billion and $2 billion a year by year ten, if enough money is kept. (Blue Book, p. 41 )
- No new tax or change in tax rates. No state revenue forecast is available after budget year 2027-28. (Blue Book, p. 41 )
The state may keep revenue above the current TABOR limit, up to a new, higher limit tied to past K-12 spending. That money first pays back local governments for property tax breaks. The rest goes to a new Children's Account for K-12 education and children's programs for ten years. Starting in budget year 2036-37, a flat amount still goes to K-12, and the legislature may spend the rest on any purpose. This is a change to state law (a statute), so the legislature can amend it.
The current TABOR limit stays. Revenue above it is still refunded to taxpayers, and funding for K-12 education, children's programs and other state purposes stays at current levels.
Not yet known
- How many taxpayers would lose refunds. The Blue Book gives dollar totals and examples, but no count.
- How large refunds would have been after budget year 2027-28. The Blue Book (September 10, 2026) says no forecast is available. A newer Legislative Council current-law baseline forecast (September 2026) runs through 2028-29; it is not a re-estimate of this measure, so it does not replace the Blue Book numbers. See the TABOR case study.
- What the money would be spent on after ten years, when the legislature may use the rest for any purpose.
- How much each school district would get in dollars.
- How much less the state would keep if Proposition 137 also passes.
Can it actually be enforced?
Short answer: Yes, voters can approve this under TABOR. But it is a statute, so the legislature could change parts of it later, and Proposition 137 could shrink how much it keeps.
- It is a change to state statutes, not the constitution. A later legislature could amend it. The Blue Book notes the legislature already decides how much of the money goes to many programs, and after ten years it decides how most of it is spent. (Blue Book, p. 41 )
- TABOR itself allows it: the Colorado Constitution lets voters give the state permission to keep and spend revenue above the TABOR limit. The legislature referred this measure so voters could give that permission. (Blue Book, p. 41 )
- Conflict with Proposition 137: 137 would take some sales tax revenue out of the amount counted against the TABOR limit. If both pass, the money the state actually keeps under NN may be reduced or eliminated. 137 does not change the NN limit itself. (Blue Book, p. 41 )
- Practical limits: how much the state keeps depends on how much it collects. In a recession it may keep nothing. The state auditor and school districts must report how the money is spent. (Blue Book, p. 41 )
- No federal issue: this concerns how Colorado keeps and spends its own tax revenue. We found no federal law that bears on it. (Blue Book, p. 41 )
Not yet known
- Whether a future legislature would change the spending categories, and how revenue will compare with the NN limit after the next five to ten years. The Blue Book says long-term projections are uncertain.
This is our reading of the cited law, not legal advice. Court outcomes are uncertain.
Official ballot wording
Official ballot wording, word for word (tap to open)
The ballot title, word for word from the 2026 Blue Book.
Shall state investment in K-12 public education increase two percent each year for the next ten years, with investments used to increase teacher pay, improve teacher retention, lower class sizes, and increase access to career and technical courses, without raising taxes but instead funded by raising the annual limit on state fiscal year spending only by the amount spent on public K-12 education as a voter-approved revenue change, and requiring an annual publicly released, independent audit to show how the new investments are spent?
The official analysis
The full Blue Book analysis, word for word (tap to open)
Everything in this section is quoted from the nonpartisan Legislative Council's 2026 State Ballot Information Booklet (the Blue Book). Charts are described in words. Read the full Blue Book (PDF)
Proposition NN proposes amending the Colorado statutes to
- allow the state to keep some or all of the revenue that the state's constitutional revenue limit, also known as the Taxpayer's Bill of Rights (TABOR), would otherwise require to be refunded to taxpayers, up to the amount the state spends on public education; and
- spend the retained revenue to increase funding for K-12 education and programs that support children, and, after ten years, K-12 education and any other purposes to be determined by the state legislature.
Summary and Analysis of Proposition NN
What does Proposition NN do?
Proposition NN allows the state to keep and spend revenue that would otherwise be refunded to taxpayers under TABOR, up to a newly established limit. The new limit is higher than the current limit and is based on the amount the state government spends on public education.
In the first ten years, this revenue must be spent on K-12 education and programs that support children. After ten years, the retained revenue must be spent on K-12 education and other purposes to be determined by the state legislature. The measure dedicates the K-12 education spending to teacher pay and retention, smaller class sizes, career and technical courses, school services, disability services, and more instructional hours, as described below. The retained revenue also must be spent to reimburse local governments for property tax exemptions, as required under current law.
The measure includes requirements for the state auditor and school districts to report on how the retained money is spent.
What is the TABOR limit and what are TABOR refunds?
The Colorado Constitution limits the amount of revenue the state government can collect each year. The limit is equal to the prior year’s limit, adjusted for inflation plus population growth. This is known as the TABOR limit. Voters may give the state permission to keep and spend additional revenue above the TABOR limit.
If the amount of revenue the state collects in any year is above the TABOR limit, the excess amount must be refunded to taxpayers. These are called TABOR refunds, and they are distributed to taxpayers in several ways. For more information, see the Legislative Council Staff memorandum titled, “A Brief Overview of the TABOR Revenue Limit.”1
TABOR refunds are often distributed when people file their taxes, but they are different from tax refunds that are owed when people overpay their taxes. Tax refunds are not affected by this measure.
How much revenue will the state keep and spend under Proposition NN?
Under Proposition NN, the maximum amount the state may keep is equal to the current TABOR limit, plus the highest amount the state has spent on K-12 education from certain funding sources in previous years. This is referred to as the Proposition NN limit in this analysis.
The actual amount the state will keep depends on how much revenue it collects. For example, in the first year, the measure allows the state to keep up to $4.6 billion above the current TABOR limit. However, the state is estimated to actually keep about $500 million, which is the amount of revenue the state is expected to collect above the TABOR limit. This is shown in Figure 1 below.
Figure 1: State Revenue Limits Under Proposition NN, Budget Years 2026-27 and 2027-28. This chart is in the printed Blue Book on page 42.
The Proposition NN limit continues indefinitely. Any revenue above the new Proposition NN limit must be refunded to taxpayers.
In later years, the Proposition NN limit is expected to grow faster than the current TABOR limit based on the amount the state legislature allocates for K-12 education. State revenue is expected to continue to be well below the Proposition NN limit in the next several years, and is not expected to exceed the Proposition NN limit for at least the next five to ten years. Long-term projections beyond that period are uncertain.
How does Proposition NN impact TABOR refunds?
Proposition NN’s impact on TABOR refunds depends on how much money the state collects above the current TABOR limit in a given year, and how much the state spent on public education in prior years. Figure 2 shows the range of possible TABOR refund impacts, which will vary from year to year. Under current estimates, revenue in the next several years is expected to exceed the current TABOR limit but not the new Proposition NN limit, which would eliminate TABOR refunds in these years, as described in Scenario 2 in the figure below.
Figure 2: Scenarios for TABOR Refund Changes (Blue Book p. 43; chart text shown here)
- Scenario 1 – Revenue exceeds the Prop. NN limit. In years when state revenue exceeds the new Prop. NN limit, Prop. NN reduces TABOR refunds. Revenue is not likely to exceed the Prop. NN limit in the first several years, but this scenario becomes more likely over time.
- Scenario 2 – Revenue exceeds the TABOR limit, but not the Prop. NN limit. In years when state revenue exceeds the current TABOR limit and is less than the new Prop. NN limit, Prop. NN eliminates TABOR refunds. This is the most likely scenario for the next several years, unless there is a recession.
- Scenario 3 – Revenue falls below the TABOR limit. In years when state revenue falls below the current TABOR limit, which may happen during a recession, Prop. NN has no impact on TABOR refunds, as refunds would not be made under current law.
How will the retained revenue be spent?
Proposition NN specifies how revenue retained above the current TABOR limit must be spent. The revenue must first be used to reimburse local governments for the lost tax revenue from property tax exemptions for seniors, veterans with a disability, and Gold Star surviving spouses, as is already required as a TABOR refund mechanism under current law. All remaining revenue is deposited into the newly created Children’s Account. Figure 3 shows new spending requirements under Proposition NN.
Figure 3: New Spending Requirements Under Proposition NN. This chart is in the printed Blue Book on page 44.
How will the K‑12 funding be used?
Money in the Children’s Account must first be used for increased teacher pay and retention, access to career and technical courses, and smaller class sizes. This money will be distributed to school districts and charter schools that then decide how to spend this money within allowable uses. They must post downloadable, sortable information online about how they spent the money.
The amount required to be spent for these purposes will grow each year for ten years, and then remain flat in later years. The amount is expected to be about $110 million in the first year, $220 million in the second year, and may grow to between $1 billion and $2 billion per year by the end of ten years. These amounts are only paid if enough revenue is retained.
For the first ten years, if the amount spent on teacher pay and retention, career and technical courses, and smaller class sizes is less than half the amount in the account, then the measure requires additional spending on disability services, school services, and increasing instructional hours, such that at least half the amount in the account is spent on K-12 education overall. Funding for disability services, school services, and increasing instructional hours is estimated at about $130 million in the first year and $20 million in the second year. The state legislature will determine how to allocate these funds to schools and districts.
How will the money for children’s programs be used?
In the first ten years, any money remaining in the account after K-12 spending must be spent on programs that support children, prioritizing full-day preschool, child care, and other programs that help
children be successful in school. The state legislature will determine how to spend this money, which is estimated to be about $240 million in the first year and $230 million in the second year.
How will funding allocations change after the first ten years?
After ten years, the measure requires that a flat amount be dedicated to K-12 education each year for increased teacher pay and retention, access to career and technical education, and smaller class sizes. Any remaining money in the Children’s Account may be spent on any purpose as determined by the state legislature.
How does Proposition NN interact with other measures?
Proposition 137 reduces the amount of revenue the state collects that is subject to the TABOR limit. This measure will not affect the Proposition NN limit. However, if the measure passes, the amount of money the state will actually keep and spend under Proposition NN may be reduced or eliminated.
Arguments For Proposition NN
1) Proposition NN raises teacher pay, reduces class sizes, and improves career and technical education, benefitting every school district in the state. A state study found that Colorado’s schools face a funding shortfall of $3.5 billion, or about $4,000 per pupil. Proposition NN redirects money the state already collects to Colorado’s kids and classrooms, keeping experienced teachers in the classroom and expanding course options and support. The measure pairs the investment schools need with the accountability taxpayers deserve.
2) Proposition NN frees up funds that should already be supporting Colorado’s children. The price of educating and caring for a child grows year after year, and the current revenue limit does not keep pace. As a result, the state is falling behind on the services that families depend on most. Permanent relief from this limit is long overdue. Proposition NN uses existing revenue to address the real and rising costs of child care, universal preschool, and other early childhood needs.
Arguments Against Proposition NN
1) Proposition NN is essentially a tax increase, permanently eliminating or reducing TABOR refunds. TABOR refunds are a taxpayer right. Eliminating or sharply reducing those refunds means that government will keep more of the money that families earn. For households already stretched thin, losing TABOR refunds is a significant financial hit. TABOR was enshrined in the state constitution to protect taxpayers against unchecked government growth.
2) Proposition NN eventually hands the state over $5 billion per year at the expense of Colorado families. Funding for Colorado schools has increased 25 percent over the last five years, while enrollment continues to decline. Before reaching deeper into taxpayers' pockets, the government should demonstrate it has exhausted every avenue to reduce wasteful spending, eliminate redundant programs, and deliver existing services more efficiently.
Information about the organizations supporting and opposing this measure is available on the Colorado Secretary of State's website:
www.coloradosos.gov/pubs/elections/Initiatives/ballot/contacts/2026.html
Fiscal Impact of Proposition NN
Taxpayer Impacts
Proposition NN is expected to reduce the amount refunded to taxpayers by $329.9 million in the current 2026-27 budget year, $521.0 million in the 2027-28 budget year, and by varying amounts in future years. This eliminates TABOR refunds for budget years 2026-27 and 2027-28. Table 1 shows estimated TABOR refunds under Proposition NN for certain income levels.
Table 1: Estimated TABOR Refunds for Certain Income Levels (Blue Book p. 46)
| Adjusted Gross Income | 2027 Current Law: Single Filers | 2027 Current Law: Joint Filers | 2027 Prop. NN: All Filers | 2028 Current Law: Single Filers | 2028 Current Law: Joint Filers | 2028 Prop. NN: All Filers |
|---|---|---|---|---|---|---|
| $50,000 | $21 | $42 | $0 | $39 | $58 | $0 |
| $75,000 | $28 | $56 | $0 | $58 | $86 | $0 |
| $100,000 | $28 | $56 | $0 | $68 | $96 | $0 |
| $200,000 | $38 | $76 | $0 | $121 | $162 | $0 |
| $500,000 | $65 | $130 | $0 | $276 | $352 | $0 |
Note: This table assumes that taxpayers claim the standard deduction and no other deductions. This table shows TABOR refunds for individual taxpayers, not corporations. Corporations are not expected to receive TABOR refunds in 2027, and are expected to receive smaller TABOR refunds than individuals at the same income level in 2028.
A forecast of state revenue subject to TABOR is not available beyond budget year 2027-28. The impact of Proposition NN on TABOR refunds will vary significantly across different years, such that it could have no impact on TABOR refunds in some years and reduce them by over $1,000 per taxpayer in other years. The actual amount that the measure reduces TABOR refunds will depend on how much money the state collects above the current TABOR limit in future years.
State Spending
The measure increases state spending by an estimated $329.9 million in budget year 2026-27 and $521.0 million in budget year 2027-28 on net, and by varying amounts in future years. Changes in state spending are shown in Table 2.
Table 2: Changes in State Spending Under Proposition NN (Blue Book p. 47)
| Use | Current Year 2026‑27 | Budget Year 2027‑28 |
|---|---|---|
| Property Tax Reimbursements | $0 | $206.1 million |
| K-12 Education | $241.5 million | $234.0 million |
| Programs That Support Children | $241.5 million | $234.0 million |
| General Government Purposes | -$153.1 million | -$153.1 million |
| Office of State Auditor | $0 | $20,000 |
| Total Change in Spending | $329.9 million | $521.0 million |
As shown in Table 2, $153.1 million that would be available for the general state budget under current law is instead deposited in the Children’s Account for budget years 2026-27 and 2027-28 only. This reduces General Fund spending in each of these two years.
Long‑term spending. After ten years, there is no longer a requirement for half of the money in the account to be spent on K-12 education and half on children’s programs. Beginning in the 2036-37 budget year, the measure increases state spending for property tax reimbursements and funding for teacher pay and retention, smaller class sizes, and career and technical education. Any remaining funds may be used for any purposes as determined by the state legislature.
School Districts
Proposition NN increases state funding for school districts by an estimated $241.5 million in budget year 2026-27 and $234.0 million in budget year 2027-28. Funding for teacher pay and retention, smaller class sizes, and career and technical education will be distributed based on each school district’s percentage of statewide school finance funding under the state’s new school finance formula. Funding for school services, disability services, and increasing annual instructional hours will be distributed in a manner determined by the state legislature.
Latest news
Recent reporting from a range of outlets, newest first. We link to it; we don't endorse it.
- 2026-10-03 The Colorado Sun: Proposition NN: Colorado TABOR refunds would be diverted to K-12 education
- 2026-09-28 Colorado Newsline: Cap on state revenue collection would rise under Colorado ballot measure
- 2026-09-25 CPR News: Proposition NN: TABOR Revenue Cap Increase for K-12 Education Measure
- 2026-09-22 Colorado Politics (guest column): Ballot questions 87, NN play Colorado voters for suckers
Coverage of all the statewide measures
- 2026-10-06 Rocky Mountain Voice: What's on your 2026 Colorado ballot: all 14 statewide measures
- 2026-09-25 Colorado Politics: Major donors fuel Colorado ballot measure fights across the state
- 2026-09-25 CPR News: 2026 Colorado state ballot measures voter guide
Full text of the measure
Word for word from the Blue Book, pages 84 to 88 (PDF ). Where the measure changes existing statutes, new wording is in CAPITAL LETTERS, as in the printed booklet.
Show the full text
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1) The general assembly finds and declares that:
(a) Public education is the bedrock of Colorado's democracy, fundamental to individual opportunity, the underpinning of thriving communities, and the key to Colorado's economic prosperity and future;
(b) Wise and adequate investment in Colorado's schools is essential to maintaining and improving the competitiveness of Colorado and its students;
(c) The money invested in Colorado's public schools has a return on investment that has long been recognized as among the nation's highest;
(d) An increase in the rates of K-12 graduation, the earning of industry certifications, and the earning of associates degrees demonstrate the effectiveness of Colorado's investment in public schools;
(e) Research demonstrates that increasing school funding results in long-term increases in graduation rates and lifetime wages, prevents crime, and lowers incarceration rates;
(f) Educators and support staff in every school district and charter school across Colorado make invaluable contributions to their schools, districts, and communities by dedicating their time, talents, and out-of-pocket money to their students, despite Colorado ranking near the bottom of starting teacher pay and having the largest teacher pay penalty in the nation;
(g) Teachers, counselors, para professionals, bus drivers, and essential support staff are leaving their professions because salaries have not kept up with housing, healthcare, and cost of living;
(h) Students are learning in overcrowded classrooms and in schools with fewer mental health counselors, opportunities for special education support, and programs that support their ability to develop into healthy, productive adults;
(i) Working class, multilingual, and rural communities are hit hardest by chronic school underfunding;
(j) In January 2025, the legislature received the reports and recommendation of the two commissioned adequacy studies: "Equity and Adequacy of Colorado School Funding - A Cost-Modeling Approach", by the American institutes for research, and "Colorado Input-Based Financial Adequacy Study Report", by Augenblick, Palaich and Associates, Inc;
(k) The adequacy studies found that, were Colorado schools funded fully and fairly, every student would have the individual attention they need from teachers, counselors, health professionals, tutors, and support staff to succeed and thrive; every teacher would have a reasonable workload, professional development and coaching, and a salary that would allow them to live where they work; and every community would enjoy the benefit of vibrant public schools, a high-quality workforce, and an engaged citizenry;
(l) Colorado's fiscal constraints and potential of federal funding cuts to education, medicaid, nutrition, human services, and other critical programs threaten the sustainability and adequacy of school funding in Colorado and to deplete the state education fund;
(m) Research demonstrates that high-quality early childhood education, including child care and preschool, produces significant long-term benefits, including improved school readiness, higher graduation rates, and greater lifetime earnings, and that every dollar invested in high-quality childhood education yields substantial returns to the state and its communities;
(n) Children who participate in high-quality preschool and child care programs arrive in kindergarten better prepared to learn across language, math, and social-emotional domains, with the greatest benefits accruing to children from working families, rural communities, and multilingual households; and
(o) Therefore, it is in the best interest of educators, students, and their families to allow voters to invest further in
public education by modernizing the state's ability to retain and spend revenue to meet the needs of Colorado communities and to ensure that state investment in K-12 public education is increased by two percent for at least ten years through the funding of a positive factor.
SECTION 2. In Colorado Revised Statutes, add 22-54-103.7 as follows: 22‑54‑103.7. Positive factor ‑ definitions.
(1) As used in this section, unless the context otherwise requires:
(a) "New formula district total program calculation" means a district's total program for the applicable budget year as calculated pursuant to the district total program formula in section 22-54-103.5. The term does not include any adjustments required pursuant to section 22-54-103.3 when determining a district's total program for the 2027-28 budget year through the 2030-31 budget year.
(b) "New formula statewide total program calculation" means the district total program for all districts for the applicable budget year as calculated pursuant to the district total program formula in section 22-54-103.5. The term does not include any adjustments required pursuant to section 22-54-103.3 when determining a district's total program for the 2027-28 budget year through the 2030-31 budget year.
(c) "Positive factor" means:
(I) For the 2026-27 budget year, two percent of program foundation calculated for the 2025-26 budget year;
(II) For the 2027-28 budget year through the 2034-35 budget year, the sum of:
(A) Two percent of program foundation for the immediately preceding budget year; and
(B) The positive factor for the immediately preceding budget year; and
(III) For the 2035-36 budget year and each budget year thereafter:
(A) Two percent of program foundation for the 2034-35 budget year; and
(B) The positive factor for the 2034-35 budget year.
(d) "Program foundation" means:
(I) For budget years before total program is determined pursuant to section 22-54-103.5, an amount equal to state share of total program; and
(II) For budget years when total program is determined pursuant to section 22-54-103.5, an amount equal to new formula statewide total program calculation.
(e) "State share of total program" means an amount equal to the total of the state's share of each school district's total program, as defined in section 22-55-102 (18).
(f) "Two percent K-12 public education increase" means an amount equal to the lesser of:
(I) The positive factor for the current budget year; or
(II) The amount that the state is authorized to retain and spend pursuant to section 24-77-302 (1) for the budget year minus, for the 2027-28 budget year and each budget year thereafter, an amount equal to the total dollar amounts of warrants issued by the state treasurer pursuant to section 39-3-207 (4) in the current budget year.
(2) For the 2026-27 budget year and each budget year thereafter, a district's share of positive factor is equal to: (New formula district total program calculation / New formula statewide total program calculation) x (Two percent K-12 public education increase).
(3) For the 2026-27 budget year and each budget year thereafter, the department of education shall annually calculate each district's new formula district total program calculation and the new formula statewide total program calculation.
(4) For the 2026-27 budget year and each budget year thereafter, the department of education and the staff of the legislative council shall annually determine each district's positive factor based on budget projections; except that the department of education and the staff of the legislative council shall make mid-year revisions to replace projections with actual figures to determine any necessary changes in the amount to maintain the positive factor for the applicable budget year.
(5) A district's positive factor is in addition to, but is not included in, the district's total program determined pursuant to this article 54. The positive factor must be distributed in the same form and manner in which payments of total program are distributed under law to all public schools.
(6) A district shall only expend its positive factor to:
(a) Increase teacher pay;
(b) Improve teacher retention;
(c) Lower class sizes; and
(d) Increase access to career and technical courses.
SECTION 3. In Colorado Revised Statutes, add part 3 to article 77 of title 24 as follows:
PART 3 SUBMISSION OF BALLOT ISSUE VOTER-APPROVED REVENUE CHANGE 24‑77‑301. Definitions. As used in this part 3, unless the context otherwise requires:
(1) "Children's account" or "account" means the children's account created in section 24-77-302 (2).
(2) "State public education funding" means the amount determined by legislative council staff pursuant to section 24-77-303 (1).
(3) "State revenues" means state fiscal year spending, as defined in section 24-77-102 (17).
(4) "Two percent K-12 public education increase" has the meaning set forth in section 22-54-103.7 (1)(f). 24‑77‑302. Retention of excess state revenues ‑ children's account ‑ definitions.
(1) For state fiscal years commencing on or after July 1, 2026, the state may retain and spend state revenues that the state otherwise would have been required to refund under section 20 (7)(d) of article X of the state constitution in an amount equal to the state public education funding for the state fiscal year.
(2) (a) There is hereby created in the general fund the children's account, which consists of:
(I) For state fiscal year 2026-27, an amount of money equal to the amount that the state retains for state fiscal year 2026-27 pursuant to subsection (1) of this section; and
(II) For state fiscal years commencing on or after July 1, 2027, an amount of money equal to the amount that the state retains for the state fiscal year pursuant to subsection (1) of this section minus an amount equal to the total dollar amount of warrants issued by the state treasurer pursuant to section 39-3-207 (4) in the same state fiscal year.
(b) For each state fiscal year beginning on or after July 1, 2026, but before July 1, 2036, the general assembly:
(I) Shall transfer or appropriate to the department of education an amount equal to the two percent K-12 public education increase for the state fiscal year and the department of education shall distribute that amount in accordance with section 22-54-103.7;
(II) Shall appropriate or transfer an amount for investment in K-12 public education, to be used for school services, disability services to students with disabilities, and increasing annual contact hours, equal to the amount, if any, by which one half of the amount credited to the account for the state fiscal year exceeds the amount appropriated or transferred pursuant to subsection (2)(b)(I) of this section for the state fiscal year; and
(III) After making the appropriations or transfers required by subsections (2)(b)(I) and (2)(b)(II) of this section for the state fiscal year, shall appropriate or transfer the remaining money in the account to programs that support Colorado's children, prioritizing child care, full-day preschool, and other programs that prepare children to be successful in school.
(3) The approval of the ballot measure including this section by a majority of the electors voting on the ballot measure constitutes a voter-approved revenue change to allow the retention and expenditure of the additional state revenues that the state is authorized to retain and spend pursuant to subsection (1) of this section.
(4) This section does not affect the amount that the state is permitted to retain and spend under the excess state revenues cap, as defined in section 24-77-103.6 (6)(b)(I).
(5) The money that the general assembly appropriates or transfers pursuant to subsection (2)(b)(I) of this section shall supplement and not supplant total program, as defined in section 22-55-102 (18). 24‑77‑303. Determination of state public education funding.
(1) On or before January 15, 2027, on or after July 1, 2027, but before August 1, 2027, and on or after each July 1 and before each August 1 thereafter, legislative council staff shall determine and report to the state controller, the office of state planning and budgeting, and the joint budget committee, the greatest total amount in a preceding state fiscal year that has been counted as state fiscal year spending and appropriated by the general assembly for a preceding state fiscal year for categorical programs and the state share of total program and the amount of the two percent K-12 public education increase for the same preceding state fiscal year. The amount determined and reported by legislative council staff pursuant to this subsection (1) is the state public education funding for that state fiscal year.
(2) As used in this section, unless the context otherwise requires:
(a) "Categorical programs" has the meaning set forth in section 22-55-102 (4).
(b) "State share of total program" means an amount equal to the total of the state's share of each school district's total program, as defined in section 22-55-102 (18).
24‑77‑304. Excess state revenues expenditure independent audit.
(1) For each state fiscal year that the state retains and spends state revenues in excess of the limitation on state fiscal year spending pursuant to this part 3, the state auditor shall report on excess state revenues, including the following information:
(a) The amount of state revenues that the state retained and spent in excess of the limitation on state fiscal year spending pursuant to this part 3; and
(b) A description of how the state expended from the account the state revenues that the state retained and spent in excess of the limitation on state fiscal year spending pursuant to this part 3.
(2) The state auditor shall complete the reporting required by subsection (1) of this section at the same time that the state auditor completes the report required pursuant to section 2-3-103 (2) following a fiscal year in which the state retains and spends state revenues in excess of the limitation on state fiscal year spending pursuant to this part 3 and may amend the report thereafter as necessary.
SECTION 4. In Colorado Revised Statutes, 22-44-304, add (1)(g) as follows: 22‑44‑304. Financial reporting ‑ online access to information ‑ definitions.
(1) (g) (I) Additionally, commencing on August 1, 2027, each local education provider, as defined in section 22-54-202, shall post in a format that can be downloaded and sorted, for free public access, the local education provider's actual expenditures of any positive factor received pursuant to section 22-54-103.7.
(II) As used in this subsection (1)(g), unless the context otherwise requires, "positive factor" has the meaning set forth in section 22-54-103.7 (1)(c).
SECTION 5. In Colorado Revised Statutes, 24-77-106.5, amend (1)(b) as follows: 24‑77‑106.5. Annual financial report ‑ certification of excess state revenues.
(1) (b) Notwithstanding section 24-1-136 (11)(a)(I), based upon the financial report prepared in accordance with subsection (1)(a) of this section for any given fiscal year, the controller shall certify to the governor, the general assembly, and the executive director of the department of revenue no later than September 1 following the end of a fiscal year the amount of state revenues in excess of the limitation on state fiscal year spending imposed by section 20 (7)(a) of article X of the state constitution, if any, for such fiscal year and the state revenues in excess of such limitation that the state is authorized to retain and spend pursuant to voter approval of section 24-77-103.6 and part 3 of this article 77.
SECTION 6. In Colorado Revised Statutes, 29-32-104, amend (5) as follows: 29‑32‑104. Permissible expenditures ‑ affordable housing programs ‑ report ‑ definitions.
(5) If the Legislative Council Staff's March Economic and Revenue Forecast in any given year projects revenue for the next state fiscal year will fall below the revenue limit imposed under section 20 of article X of the state constitution by an amount greater than the amount of state public education funding as defined in section 24-77-301 (2), the general assembly may reduce the funding allocated to the office required by this section for the next state fiscal year in order to balance the state budget for said state fiscal year.
SECTION 7. In Colorado Revised Statutes, 39-22-123.5, amend (3.5)(a)(VIII) as follows: 39‑22‑123.5. Earned income tax credit ‑ legislative declaration ‑ repeal. (3.5) (a) As used in this subsection (3.5), unless the context otherwise requires:
(VIII) "Nonexempt revenue" means, for the applicable state fiscal year, the revenues that are identified as nonexempt revenues in the annual comprehensive financial report published by the office of the state controller; except that, for state fiscal years commencing on or after July 1, 2026, nonexempt revenue includes state public education funding as defined in section 24-77-301 (2).
SECTION 8. In Colorado Revised Statutes, 39-22-130, amend (2)(b)(II)(G) as follows: 39‑22‑130. Family affordability tax credit ‑ tax preference performance statement ‑ legislative declaration ‑ definitions ‑ repeal.
(2) As used in this section, unless the context otherwise requires:
(b) (II) As used in this subsection (2)(b):
(G) "Nonexempt revenue" means, for the applicable state fiscal year, the revenue that is identified as nonexempt TABOR revenues in the annual comprehensive financial report published by the office of the state controller; except that, for state fiscal years commencing on or after July 1, 2026, nonexempt revenue includes state public education funding as defined in section 24-77-301 (2).
SECTION 9. Refer to people under referendum. At the election held on November 3, 2026, the secretary of state shall submit this act by its ballot title to the registered electors of the state for their approval or rejection. Each elector voting at the election may cast a vote either "Yes/For" or "No/Against" on the following ballot title: "Shall state investment in K-12 public education increase two percent each year for the next ten years, with investments used to increase teacher pay, improve teacher retention, lower class sizes, and increase access to career and
technical courses, without raising taxes but instead funded by raising the annual limit on state fiscal year spending only by the amount spent on public K-12 education as a voter-approved revenue change, and requiring an annual publicly released, independent audit to show how the new investments are spent?" Except as otherwise provided in section 1-40-123, Colorado Revised Statutes, if a majority of the electors voting on the ballot title vote "Yes/ For", then the act will become part of the Colorado Revised Statutes.
Read more
- 2026 Blue Book (PDF) , including the full legal text of the measure
- Colorado Secretary of State: who is registered for and against
- TRACER: Colorado campaign finance filings
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