This amendment would require any leftover money from a specific fund to be moved into the Kids Matter Account instead of allowing it to stay where it is.
Colorado2026Passed Legislature
SB26-135
State Public K-12 Education Funding and Ballot Question
Last scannedOct 2, 2026, 2:31 AM
In one sentence
This law requires the Secretary of State to place a question on the November 2026 ballot asking voters if they want to allow the state to keep extra revenue for schools and increase funding by up to 2% each year for ten years.
What it does
- Requires the Secretary of State to put an education funding issue on the November 2026 general election ballot.
- Creates a 'positive factor' that increases state K-12 education funding, starting with 2% in fiscal year 2026-27 and compounding annually for ten years if voters approve it.
- Calculates each school district's share of the new money based on its total program size compared to the statewide total under a specific formula.
- Limits how districts can spend this funding to increasing teacher pay, improving teacher retention, lowering class sizes, and increasing access to career and technical courses.
- Establishes a 'children's account' where funds remaining after paying school districts are used for disability services, school contact hours, child care, and preschool programs.
- Requires the state auditor to publish an annual report on how much extra revenue was kept and spent for education.
- Requires local schools to post their actual spending of this funding online starting August 1, 2027.
Who it affects
- Colorado voters who will decide if the state can keep extra revenue for schools in November 2026
- Public K-12 school districts and charter schools that may receive new funding based on their program size
- Teachers, counselors, bus drivers, and support staff whose pay or working conditions could change through this funding
- The Secretary of State, Legislative Council staff, Department of Education, state auditor, and local education providers
Limits and unknowns
- The funding increase only happens if voters approve the ballot question in November 2026.
- School districts cannot use this specific money for purposes other than teacher pay, retention, class size reduction, or career technical courses.
- The exact dollar amounts depend on future state revenue and voter approval.
Plain language
Terms to know
- Positive Factor
- A specific amount added to school funding that starts at 2% in the first year and grows by adding another 2% each year for ten years.
- Program Foundation
- The base calculation used to determine the total state share of money available for schools, which is used to calculate the positive factor amount.
- Children's Account
- A fund that holds extra revenue after school districts are paid their share, which is then spent on disability services, contact hours, child care, and preschool.
Official record
Sources
Read the official summary
The act requires the secretary of state to refer a ballot issue at the November 2026 general election to seek voter approval for the state, beginning in the 2026-27 state fiscal year, to retain and spend an amount of state revenue equal to the amount of state public K-12 education funding in excess of the limitation on state fiscal year spending and to increase state public K-12 education funding by up to 2% per year for 10 years. The act directs legislative council staff to determine the amount of state public K-12 education funding and describes how legislative council staff will make that determination. The act creates a positive factor to increase state public K-12 education funding. The amount of the positive factor compounds annually for 10 years. The positive factor for the 2026-27 budget year is 2% of the program foundation calculated for the 2025-26 budget year. For the 2027-28 through 2034-35 budget years, it is the sum of 2% of the prior year's program foundation plus the prior year's positive factor. For the 2035-36 budget year and beyond, it is the sum of 2% of the 2034-35 program foundation plus the 2034-35 positive factor. A district's share of the positive factor is calculated proportionally based on the district's total program under the new school finance formula relative to the statewide total program. A district may only use its positive factor funding for increasing teacher pay, improving teacher retention, lowering class sizes, and increasing access to career and technical courses. For the 2026-27 state fiscal year, the children's account consists of an amount of money equal to the amount of state revenues that the state retains for a given fiscal year pursuant to voter approval of the act. For state fiscal years commencing on or after July 1, 2027, the account consists of that same amount minus an amount equal to the total dollar amount of warrants issued by the state treasurer to reimburse local governments for property tax exemptions. Money in the account must first be spent to pay districts their positive factor, then any remaining funds are appropriated for disability services and school services and to increase annual contact hours, and finally to programs prioritizing child care and full-day preschool. The act directs the state auditor to conduct and publish a report on excess state revenues for each state fiscal year that the state retains and spends state revenues in excess of the limitation on state fiscal year spending. That report must include descriptions of: The amount of state revenues that the state retained and spent that would otherwise have been in excess of the limitation on state fiscal year spending; and How the state expended the state revenues that the state retained and spent that would otherwise have been in excess of the limitation on state fiscal year spending. Beginning August 1, 2027, the act requires each local education provider to post, online for free public access in a format that can be downloaded and sorted, its actual expenditures of any positive factor received. Lastly, the act updates provisions regarding the expanded earned income tax credit, the family affordability tax credit, and the affordable housing financing fund to ensure that voter approval of the act does not adversely impact those programs. (Note: This summary applies to this bill as enacted.)
Official activity
Bill history
- Signed by the Speaker of the HouseHouse
- Signed by the President of the SenateSenate
- Senate Considered House Amendments - Result was to Concur - RepassSenate
- House Third Reading Passed with Amendments - FloorHouse
- House Second Reading Special Order - Passed with Amendments - Committee, FloorHouse
- House Second Reading Laid Over Daily - No AmendmentsHouse
- House Committee on Appropriations Refer Amended to House Committee of the WholeHouse
- Introduced In House - Assigned to AppropriationsHouse
- Senate Third Reading Passed - No AmendmentsSenate
- Senate Second Reading Passed with Amendments - Committee, FloorSenate
- Senate Second Reading Laid Over Daily - No AmendmentsSenate
- Senate Committee on Appropriations Refer Amended to Senate Committee of the WholeSenate
- Senate Committee on Finance Refer Amended to AppropriationsSenate
- Introduced In Senate - Assigned to FinanceSenate
Changes
Amendments
27 stored
This amendment would have changed a proposed ballot question to ask voters if the state should keep and spend about $4.6 billion in extra money each year starting in fiscal year 2026-27, with most of it going toward any purpose chosen by lawmakers.
This amendment changes how voters would decide a question about keeping and spending state education money by adding specific details to the ballot title.
This amendment removes the original plan to ask voters for approval of a new education funding increase and replaces it with rules that automatically direct half of any surplus in a specific state account toward K-12 public schools.
This amendment requires Colorado schools to publicly post online reports showing how they spend specific types of extra funding starting in July 2027.
This amendment changes how school funding is calculated by adding a new 'acceleration' amount that districts can use for specific goals like teacher pay, while also defining terms to track any unpaid funds.
This amendment changes the rules for a report on extra state money by updating how it is labeled, what details must be included about spending from Part 3 accounts, and when the report must be finished.
This amendment fixes a misspelled name, corrects the title of an election issue to be shorter, and clarifies how extra education funding must be shared with local schools.
This amendment changes how the bill calculates funding by subtracting money issued through specific state treasurer warrants from the total amount.
This amendment removes a specific requirement that increased school funding must come from the District School Financing Factor Fund.
This amendment would force the state to move any leftover money from a specific report into an account called 'Kids Matter' instead of allowing it to stay where it is.
This amendment would stop state agencies from raising any fees or fines to collect extra money that can only be kept and spent if voters approve a specific ballot measure in November 2026.
This amendment changes the name of a proposed ballot issue from 'Excess State Revenues' to 'Children's'.
This amendment changes the phrase 'excess state revenues' to 'government waste' in specific parts of a bill and its committee report.
This amendment changes how a proposed ballot question would be worded to ask voters if the state should keep and spend one year of K-12 education funding, with some money used for schools over ten years and the rest available for any purpose.
This amendment changes how money is calculated for a new children's education account and adjusts specific dates and funding formulas in the bill.
This amendment changes the rules for spending money on a ballot issue to ensure funds are used only by specific groups and allows those groups to mix different types of allowed uses.
This amendment changes how voters would decide on a plan to keep and spend extra state money for schools by adding specific details about using some funds for education increases over ten years.
This amendment changes the bill to set a specific $500 million amount that the state keeps, which would increase each year based on inflation rates.
This amendment would limit the proposed education funding plan to last only until July or August 2036 instead of continuing forever.
This amendment would change the bill to require that any money left over in a specific account after other required payments must be used for K-12 public education.
This amendment changes the wording of a proposed ballot question to ask voters if they approve spending about $4.6 billion extra in state money, with most of it going toward general government use instead of being strictly limited to K-12 education.
This amendment changes the bill to set a specific $1 billion funding target for education and child care instead of using general state revenue definitions.
This amendment changes how voters would decide on a plan to keep and spend extra state money for schools by adding specific details about using some funds for education increases over ten years.
This amendment adds new statements about the benefits of early childhood education, changes when funding rules start, and specifies that leftover money must be used for child care and preschool programs.
This amendment changes a proposed ballot question to ask voters if they want to use Taxpayer's Bill of Rights refunds for ten years to increase K-12 education funding by two percent annually.
This amendment fixes specific legal references in the bill to ensure it correctly cites state laws and sets an earlier end date for a funding program.