Concerning state public education K-12 funding, and, in connection therewith, increasing appropriations for state public education K-12 for ten years, allowing the state to retain an amount of state revenue in excess of the limitation on sta...
SB26-135 proposes a voter-approved revenue change to increase Colorado state investment in K-12 public education for ten years. It would refer a ballot question to the November 2026 general election asking voters to allow the state to retain and spend revenue that would otherwise be refunded under TABOR, in an amount tied to state public education funding, and to use that authority to increase K-12 funding by up to 2% annually. The bill’s stated purpose is to direct additional money into public schools while creating a dedicated mechanism for tracking and reporting how those funds are used.
The bill creates a new framework for a “positive factor” funding stream for school districts. Districts would receive additional funding outside their regular total program amounts, with the money restricted to increasing teacher pay, improving teacher retention, lowering class sizes, and expanding access to career and technical education. The bill also establishes an excess state revenues account in the general fund, requires legislative council staff to calculate the relevant funding amounts each year, and directs the state auditor to publish annual reports on retained and spent excess revenues. Local education providers would also have to post their actual expenditures of these funds online in a downloadable format.
In addition to the education funding changes, the bill makes conforming amendments to state tax and budget statutes so that the new education funding is treated as a voter-approved revenue change and does not interfere with existing credits and funds, including the expanded earned income tax credit, the family affordability tax credit, and the affordable housing financing fund. It also amends reporting and certification provisions related to excess state revenues and adjusts a housing-program budget provision to account for the new definition of state public education funding.
The general sentiment reflected in the bill text is strongly supportive of increased public education investment. The legislative declaration emphasizes underfunding, teacher pay, class sizes, staffing shortages, and the importance of schools to Colorado’s economy and communities. The bill is framed as a response to adequacy studies and fiscal pressures, and its ballot language is written to highlight that the proposal would increase school investment “without raising taxes” by changing how excess revenue is retained and spent.
Because no committee transcripts or recorded votes were provided, there is no direct evidence of opposition or negotiated compromise in the available context. The main points of potential contention inherent in the bill are the use of TABOR excess revenue for a dedicated education purpose, the effect on the state’s refund obligations, and the extent to which the new funding authority should be locked into school spending versus available for other state priorities. The bill attempts to address accountability concerns through annual audits and public expenditure reporting.
If enacted and approved by voters, the bill would alter Colorado budget and education funding law by authorizing the state to retain and spend revenue above the constitutional spending limit in an amount tied to K-12 public education funding. It would create new statutory definitions and annual calculations for a positive factor education investment, require school districts to use those funds only for specified education purposes, and establish new reporting and audit obligations for state and local agencies. It would also modify related tax and budget statutes to ensure the new revenue treatment does not disrupt existing credits and funds.
The bill is presented in strongly favorable terms toward public education funding, with a clear pro-investment message from its legislative declaration and ballot title. The available materials show broad sponsorship and no recorded committee testimony or votes indicating organized opposition in the provided record. Overall, the sentiment is supportive of increasing school funding, teacher compensation, and classroom resources, while emphasizing transparency and voter approval.
The principal areas of contention are likely to be fiscal and constitutional rather than programmatic: whether Colorado should retain excess revenues instead of refunding them under TABOR, whether dedicating those revenues to K-12 education is the best use of state funds, and whether the state can sustain the commitment over ten years. Another likely point of debate is the bill’s earmarking of funds for specific uses, which limits district flexibility but is intended to ensure the money reaches teachers, staffing, class size reduction, and career and technical education. The bill’s audit and public reporting requirements appear designed to address concerns about accountability and transparency.