Prop NN is referred to the ballot by the Colorado State Legislature. Approval of Prop NN would basically reroute our TABOR refunds to PBIs (Politicians, Bureaucrats, and Interested Parties) forever. The actual text of the measure is 12 pages long.
Prop NN is disingenuous and dishonest. Under the guise of “for the children” Prop NN is a greedy grab of money that should be returned to “we the people.” The most tried and true way to make life more “affordable” for individuals is through lower taxes, lower fees, fewer rules, fewer regulations, and returning excess taxes collected back to the individuals who worked hard to earn those dollars.
Prop NN is disingenuous and dishonest. Prop NN states that K-12 funding would increase by 2% for ten years and that excess taxes collected above the 2% would be spent on “the children.” This language implies that spending is focused on kids, however, after ten years the excess taxes collected could be spent on anything the state assembly decides. This is a ten year bait and switch.
Prop NN is disingenuous and dishonest. The text states “without raising taxes.” If it is a tax question on the ballot, it is raising taxes. It states “without raising taxes” however if the state is keeping tax money that should be returned to the people, that is a tax increase. The fiscal note estimates that in 2027-28 alone, $521,000,000 that should be returned to Colorado taxpayers would greedily be retained by the state of Colorado. The fiscal note makes no predictions regarding state retention of our TABOR refunds after 2028, however an average of $521 million per year adds up to $5,200,000,000 over ten years that should be returned to the people.
In Chalkbeat’s report on Colorado’s 2026 CMAS results, only 42.2% of Colorado 8th graders are proficient in English Language Arts (ELA) and only 37.8% of Colorado 8th graders are proficient in Math. That means that Colorado’s public education system is letting 57.8% of kids down in ELA learning and failing 62.2% of our children in Math skills.
We as parents, grandparents, and community members care deeply about the education of our children. Most Coloradans think that our kids are learning how to read, write, and do arithmetic so that children can pursue their hopes and dreams, flourish, and be productive citizens in our society. Overall, that is not the case. In Chalkbeat’s report on Colorado’s 2025 CMAS results, only 44.8% of Colorado kids are proficient in English Language Arts (ELA) and only 35.9% of Colorado children are proficient in Math. That means that Colorado’s public education system is letting 55.2% of kids down in ELA learning and failing 64.1% of our children in Math skills.
One has to ask, “What is going on with classroom time if the majority of kids can not read, write, and do math proficiently?” Perhaps in many classrooms, teaching time is spent, both overtly and subtly, on ideological agendas that separate and divide children into groups such as DEI (Diversity, Equity, and Inclusion), encourage victimhood through CRT (Critical Race Theory), and negatively affect children’s mental health through SEL (Social Emotional Learning). This spring I personally witnessed a Colorado high school classroom that had no American flag in the classroom but had a large Pride flag with “Ally” printed on it to affirm the Pride agenda and encourage straight students to “ally” with the agenda. Instead of focusing on hedonism when kids walk into a classroom every day, our students should focus daily on reading, writing, math, history, civics, liberty, skills, and personal responsibility so that our kids have the tools to go after their hopes and dreams.
Most Coloradans support great teachers and want them to be paid accordingly. A report by USAFacts reported that in the 2022-2023 school year, $15,700,000,000 in funding went to Colorado schools with an average of $18,000 spent on each student. That extrapolates to $360,000 for a class of 20 students. That’s a lot of money. We currently have the resources to pay good teachers well.
Instead of focusing on the pursuit of hedonism when kids walk into a classroom every day, our students should focus daily on reading, writing, math, history, civics, liberty, skills, and personal responsibility so that our kids have the tools to pursue their happiness and go after their hopes and dreams.
Before we vote for any new education funding, we must understand where all this money is going, have a clear record of bloated administrative costs and spending, and demand educational results for each and every child. VOTE NO ON PROP NN.
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?
Colorado can retain revenue above the current TABOR limit, up to that limit plus the highest prior annual K-12 spending from the funding sources specified in the measure. The final fiscal note estimates TABOR refunds $329.9 million lower in fiscal year 2026–27 and $521.0 million lower in 2027–28. Homestead property-tax reimbursements for local governments are paid first starting in 2027–28. Remaining retained revenue funds K-12 education and children’s programs for ten years, through 2035–36. Beginning in 2036–37, the required K-12 allocation continues, and the legislature can use the remaining money for other purposes. The K-12 increase follows the measure’s cumulative 2-percent foundation-funding formula and is limited by the retained revenue available after applicable homestead reimbursements. If Proposition 137 also passes, the amount retained and spent under Proposition NN may be reduced or eliminated.
Colorado continues to refund revenue above the Referendum C cap, its current revenue limit, under existing law.
The state’s permission to keep additional revenue has no end date. The required division of the Children’s Account between K-12 education and other children’s programs ends after fiscal year 2035-36.
Voter approval would raise the amount Colorado may keep above the Referendum C cap.
$329.9 million in fiscal year 2026-27; $521.0 million in 2027-28.
Proposition NN would allow Colorado to keep revenue it would otherwise refund under the Taxpayer’s Bill of Rights, or TABOR. The measure would raise the state’s current revenue limit, known as the Referendum C cap, by an amount tied to state public education funding.
Approval would constitute a voter-approved revenue change: voters would authorize the state to retain and spend that additional revenue.
The General Assembly placed Proposition NN on the ballot through Senate Bill 26-135. Senators Jeff Bridges and Cathy Kipp and Representatives Jennifer Bacon and Meghan Lukens, all Democrats, were its prime sponsors. NN would let the state keep money otherwise due as TABOR refunds, making the sponsors’ record on taxpayer protections relevant to their request. The Colorado Union of Taxpayers (CUT) rates how often legislators vote with its positions on taxes, spending, TABOR and other issues, including property and parental rights. These consistently low percentages show that the sponsors usually voted against CUT’s positions across the years shown. The ratings cover more than TABOR alone. Kim Monson is CUT’s president.
The Legislative Council Staff fiscal note estimates that Proposition NN would eliminate the TABOR refunds otherwise expected for fiscal years 2026-27 and 2027-28: $329.9 million and $521.0 million. The measure would not change tax rates.
The estimate covers three ways Colorado returns excess revenue: property tax reimbursements, a temporary income tax rate reduction and the six-tier sales tax refund. The fiscal note projects the changes shown below.
The fiscal note estimates that the new limit would allow Colorado to keep up to $4.6 billion above the Referendum C cap in fiscal year 2026-27 and $4.8 billion in 2027-28. Those figures are limits, not forecasts of collections. The amount kept would depend on actual revenue.
The note gives two different estimates for education funding in 2026-27: $4.7 billion in its Assumptions section and $4.8 billion in its TABOR Refunds section. The $4.8 billion retention limit above follows the latter section.
The fiscal note’s revenue forecast covers only the first two years. It provides no estimate of later TABOR refund reductions.
Table 2 of the fiscal note shows general government purposes falling by $153.1 million in each of FY 2026-27 and FY 2027-28. Table 1B shows the same amount leaving the General Fund and entering the Children's Account, a net change of zero. The fiscal note attributes the shift to the measure's interaction with House Bill 26-1419: "Because voter approval of SB 26-135 would cause HB 26-1419 not to take effect in FY 2026-27 and FY 2027-28, SB 26-135 reduces the amount available to spend or save from the General Fund by $153.1 million in FY 2026-27 and FY 2027-28."
How the retained revenue would be spent
For fiscal years 2026-27 through 2035-36, at least half the money deposited in the Children’s Account would go to K-12 education. The remainder would fund programs supporting children, with priority for child care, full-day preschool and school readiness. Some seniors, veterans with a disability and Gold Star spouses receive a property tax exemption, and the state must repay local governments the property tax they lose because of it. Under current law, in a year after the state collected more than its Referendum C cap, that repayment counts as a way of refunding the surplus; otherwise it is paid from other state money. Under Proposition NN, starting in 2027-28, the repayment would come first out of the revenue the state keeps, an estimated $206.1 million that year, and only what remains would go to the Children's Account.
The fiscal note estimates $483.0 million in retained revenue in 2026-27 and $674.1 million in 2027-28. Those amounts exceed the projected refund reductions by $153.1 million each year. Under House Bill 26-1419, that $153.1 million would otherwise be available for general government purposes. Proposition NN would direct it to the Children’s Account instead.
The expenditure table shows the resulting increases and decreases in spending. Its net totals are $329.9 million and $521.0 million; they are not the total revenue retained.
Table title: Estimated changes in state spending Total row: Net increase in state spending
How the additional school payments are calculated
The measure creates an additional school payment called the positive factor. Districts could use it only to increase teacher pay, improve teacher retention, reduce class sizes and expand access to career and technical courses. The payment must add to existing school funding rather than replace it.
For 2026-27, the statewide positive factor equals 2% of the previous year’s program foundation. Each year through 2035-36 adds 2% of the preceding year’s foundation to the previous positive factor. The formula stops increasing after 2035-36.
Program foundation initially means the state share of school funding. Once the new school-finance formula is fully implemented, it means statewide total program funding under that formula.
A district’s share is its proportion of statewide funding under the fully implemented new formula, multiplied by the statewide amount available for this increase. That amount is capped at the positive factor or the revenue available after the applicable homestead reimbursements, whichever is less. Homestead reimbursements are deducted starting in 2027-28.
The fiscal note estimates positive-factor payments of $107.4 million in 2026-27 and $218.8 million in 2027-28. Appendix A gives district estimates.
A district’s positive-factor payment is separate from its total program funding and is distributed in the same form and manner as total program payments. These payments must supplement and not supplant total program: they add to existing funding rather than replace it.
Beginning August 1, 2027, local education providers must publish their actual positive-factor spending online for free public access in a downloadable and sortable format.
| Income tier (modified adjusted gross income) | Single filer | Joint filers |
|---|---|---|
| $52,000 or less | $19 | $38 |
| $52,001 – $105,000 | $25 | $50 |
| $105,001 – $168,000 | $29 | $58 |
| $168,001 – $233,000 | $35 | $70 |
| $233,001 – $299,000 | $37 | $74 |
| $299,001 or more | $59 | $118 |
| Income tier (modified adjusted gross income) | Single filer | Joint filers |
|---|---|---|
| $53,000 or less | $177 | $354 |
| $53,001 – $105,000 | $240 | $480 |
| $105,001 – $166,000 | $277 | $554 |
| $166,001 – $233,000 | $323 | $646 |
| $233,001 – $302,000 | $350 | $700 |
| $302,001 or more | $565 | $1,130 |
The question voters will read requires "an annual publicly released, independent audit to show how the new investments are spent". The act's audit section is headed "Excess state revenues expenditure independent audit" and says "THE STATE AUDITOR SHALL REPORT ON EXCESS STATE REVENUES", including the amount the state retained and spent above the limit and a description of how it spent that money. The words "publicly released" appear in the act only inside the ballot title printed in its final section. The act separately requires each local education provider to post its positive factor spending online from August 1, 2027. The fiscal note estimates $20,000 a year in the Office of the State Auditor beginning in FY 2027-28 for a contractor to prepare the report.
Proposition NN sets no end date for the state’s permission to keep additional revenue, called its retention authority.
The required division of the Children’s Account between K-12 education and other children’s programs ends after fiscal year 2035-36. The fiscal note says the state would continue paying homestead property tax reimbursements first. School districts would continue receiving positive-factor payments if the account has sufficient revenue. The legislature would decide how to spend the remaining money.
The positive factor reaches its final scheduled increase in 2035-36. Its formula remains at that amount in later years, although payments still depend on available revenue.
The State Auditor would report how the money was spent
The ballot question calls for “an annual publicly released, independent audit to show how the new investments are spent”. Section 24-77-304, titled “Excess state revenues expenditure independent audit”, requires the State Auditor to report the amount retained and how it was spent. The fiscal note budgets $20,000 a year from 2027-28 for a contractor to prepare that report.
The phrase “publicly released” appears in the enrolled act only in the ballot question. Separately, the act requires local education providers to publish their positive-factor spending online, in a downloadable and sortable format, beginning August 1, 2027.
Because Brighter Colorado’s registration covers eight measures, the six it supports and the two it opposes, its totals cannot be attributed to Proposition NN alone.
The state’s permission to keep additional revenue has no end date. The required division between K-12 education and other children’s programs ends after fiscal year 2035-36. Homestead property tax reimbursements continue, and the fiscal note says school payments continue if the Children’s Account has sufficient revenue.
MAY RETAIN AND SPEND STATE REVENUES THAT THE STATE OTHERWISE WOULD HAVE BEEN REQUIRED TO REFUNDSenate Bill 26-135, section 24-77-302 (1)
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.Senate Bill 26-135, section 22-54-103.7 (6)
| FY 2026-27 | FY 2027-28 | |
|---|---|---|
| General government purposes | -$153.1 million | -$153.1 million |
| Property tax reimbursements | $0 | $206.1 million |
| K-12 education, positive factor | $107.4 million | $218.8 million |
| K-12 education, other | $134.1 million | $15.2 million |
| Programs that support children | $241.5 million | $234.0 million |
| Office of the State Auditor | $0 | $20,000 |
| Net increase in state spending | $329.9 million | $521.0 million |
Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Legislative declaration. (1) The general assembly finds and declares that: ________ Capital letters or bold & italic numbers indicate new material added to existing law; dashes through words or numbers indicate deletions from existing law and such material is not part of the act. (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. ____________________________ James Rashad Coleman, Sr. PRESIDENT OF THE SENATE ____________________________ Julie McCluskie SPEAKER OF THE HOUSE OF REPRESENTATIVES ____________________________ Esther van Mourik SECRETARY OF THE SENATE ____________________________ Vanessa Reilly CHIEF CLERK OF THE HOUSE OF REPRESENTATIVES
Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Legislative declaration.
(1) The general assembly finds and declares that: ________ Capital letters or bold & italic numbers indicate new material added to existing law; dashes through words or numbers indicate deletions from existing law and such material is not part of the act.
(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. ____________________________ James Rashad Coleman, Sr.
PRESIDENT OF THE SENATE ____________________________ Julie McCluskie SPEAKER OF THE HOUSE OF REPRESENTATIVES ____________________________ Esther van Mourik SECRETARY OF THE SENATE ____________________________ Vanessa Reilly CHIEF CLERK OF THE HOUSE OF REPRESENTATIVES
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