Back to Colorado

SB26-135 • 2026

State Public K-12 Education Funding

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 sp

Budget Children Education Elections Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Sen. J. Bridges, Sen. C. Kipp, Rep. J. Bacon, Rep. M. Lukens, Sen. J. Amabile, Sen. A. Benavidez, Sen. J. Coleman, Sen. L. Cutter, Sen. J. Danielson, Sen. L. Daugherty, Sen. T. Exum, Sen. J. Gonzales, Sen. N. Hinrichsen, Sen. I. Jodeh, Sen. C. Kolker, Sen. W. Lindstedt, Sen. J. Marchman, Sen. K. Mullica, Sen. R. Rodriguez, Sen. M. Snyder, Sen. T. Sullivan, Sen. M. Weissman, Rep. A. Boesenecker, Rep. S. Camacho, Rep. M. Carter, Rep. M. Duran, Rep. L. Goldstein, Rep. E. Hamrick, Rep. J. Joseph, Rep. S. Lieder, Rep. M. Lindsay, Rep. M. Martinez, Rep. K. McCormick, Rep. K. Nguyen, Rep. A. Paschal, Rep. J. Phillips, Rep. G. Rydin, Rep. L. Smith, Rep. R. Stewart, Rep. B. Titone, Rep. E. Velasco, Rep. J. Willford, Sen. K. Wallace, Rep. C. Clifford, Rep. R. English, Rep. C. Espenoza, Rep. M. Froelich, Rep. L. Gilchrist, Rep. J. Jackson, Rep. T. Mauro, Rep. J. McCluskie, Rep. N. Ricks, Rep. M. Rutinel, Rep. K. Stewart, Rep. T. Story
Last action
2026-05-20
Official status
Signed by the Speaker of the House
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

State Public K-12 Education Funding

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.

What This Bill Does

  • 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.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

S.001

Committee of the Whole

Lost

Plain English: AMENDMENT TO REPORT OF THE COMMITTEE OF THE WHOLE SB135_S.001 DATE 4/24/2026 Senator Pelton B.

  • AMENDMENT TO REPORT OF THE COMMITTEE OF THE WHOLE SB135_S.001 DATE 4/24/2026 Senator Pelton B.
  • moved to amend the Report of the Committee of the Whole to show that the following Pelton B.
  • floor amendment, (L.012) to SB26-135, did pass.
  • Amend the Senate Appropriations Committee Report, dated April 17, 2026, page 6, line 3, strike "MAY" and substitute "SHALL TRANSFER THE REMAINDER TO THE KIDS MATTER ACCOUNT CREATED IN SECTION 22-55-103 (6)(b).".".
H.001

Committee of the Whole

Lost

Plain English: AMENDMENT TO REPORT OF THE COMMITTEE OF THE WHOLE SB135_H.001 DATE 5/8/2026 Representative Richardson moved to amend the Report of the Committee of the Whole to reverse the action taken by the Committee in not adopting the following Richardson amendment, (L.031) to SB26-135, to show that said amendment passed and that SB26-135, as amended, passed.

  • AMENDMENT TO REPORT OF THE COMMITTEE OF THE WHOLE SB135_H.001 DATE 5/8/2026 Representative Richardson moved to amend the Report of the Committee of the Whole to reverse the action taken by the Committee in not adopting the following Richardson amendment, (L.031) to SB26-135, to show that said amendment passed and that SB26-135, as amended, passed.
  • Amend reengrossed bill, page 18, line 27, strike ""Shall state" and substitute ""Shall the state keep and spend up to approximately $4,600,000,000 in excess of the annual limit on state fiscal year spending in state fiscal year 2026-27, with that amount growing each year, to fund a $107,400,000 increase in public education K-12 funding and allowing up to $4,492,600,000 of that amount to be expended for any purpose determined by the state legislature beginning in state fiscal year 2026-27, and an increasing amount every year thereafter?"".
  • Page 19, strike lines 1 through 7.
  • Page 19, line 8, strike "investments are spent?"".
H.002

Committee of the Whole

Lost

Plain English: AMENDMENT TO REPORT OF THE COMMITTEE OF THE WHOLE SB135_H.002 DATE 5/8/2026 Representative Luck moved to amend the Report of the Committee of the Whole to reverse the action taken by the Committee in not adopting the following Luck amendment, (L.034) to SB26-135, to show that said amendment passed and that SB26-135, as amended, passed.

  • AMENDMENT TO REPORT OF THE COMMITTEE OF THE WHOLE SB135_H.002 DATE 5/8/2026 Representative Luck moved to amend the Report of the Committee of the Whole to reverse the action taken by the Committee in not adopting the following Luck amendment, (L.034) to SB26-135, to show that said amendment passed and that SB26-135, as amended, passed.
  • Amend reengrossed bill, page 18, strike line 27 and substitute "either "Yes/For" or "No/Against" on the following ballot title: "Shall there be a change to the Colorado Revised Statutes allowing the state to keep and spend an amount of state revenue equal to one year of state public K-12 education funding as a voter-approved revenue change under the Taxpayer's Bill of Rights, and, in connection therewith, requiring the state to use a portion of the money to increase state funding for public K-12 education for ten years; and allowing the state to use the rest of the money for any purpose determined by the state legislature?" 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.".
  • Strike page 19.
  • ** *** ** *** **
L.022

HOU Appropriations

Passed [*]

Plain English: SB135_L.022 HOUSE COMMITTEE OF REFERENCE AMENDMENT Committee on Appropriations.

  • SB135_L.022 HOUSE COMMITTEE OF REFERENCE AMENDMENT Committee on Appropriations.
  • SB26-135 be amended as follows: 1 Amend reengrossed bill, page 5, strike lines 3 through 27.
  • 2 Strike page 6.
  • 3 Page 7, strike lines 1 through 23.
L.006

SEN Appropriations

Passed [*]

Plain English: SB135_L.006 SENATE COMMITTEE OF REFERENCE AMENDMENT Committee on Appropriations.

  • SB135_L.006 SENATE COMMITTEE OF REFERENCE AMENDMENT Committee on Appropriations.
  • SB26-135 be amended as follows: 1 Amend printed bill, page 11, after line 13 insert: 2 "SECTION 4.
  • In Colorado Revised Statutes, 22-44-304, add 3 (1)(g) as follows: 4 22-44-304.
  • Financial reporting - online access to information 5 - definitions.
L.008

SEN Appropriations

Passed [*]

Plain English: SB135_L.008 SENATE COMMITTEE OF REFERENCE AMENDMENT Committee on Appropriations.

  • SB135_L.008 SENATE COMMITTEE OF REFERENCE AMENDMENT Committee on Appropriations.
  • SB26-135 be amended as follows: 1 Amend printed bill, page 5, after line 4 insert: 2 "SECTION 2.
  • In Colorado Revised Statutes, 22-54-103.3, amend 3 (3)(c); and add (3)(d), (3)(e), and (3)(f) as follows: 4 22-54-103.3.
  • District total program - 2025-26 through 2030-31 5 budget years - definitions - repeal.
L.001

SEN Finance

Passed [*]

Plain English: SB135_L.001 SENATE COMMITTEE OF REFERENCE AMENDMENT Committee on Finance.

  • SB135_L.001 SENATE COMMITTEE OF REFERENCE AMENDMENT Committee on Finance.
  • SB26-135 be amended as follows: 1 Amend printed bill, page 10, line 22, strike "(a)".
  • 2 Page 10, strike lines 25 and 26 and substitute "SHALL REPORT ON EXCESS 3 STATE REVENUES INCLUDING THE FOLLOWING INFORMATION:".
  • 4 Page 10, line 27, strike "(I)" and substitute "(a)".
L.002

SEN Finance

Passed [*]

Plain English: SB135_L.002 SENATE COMMITTEE OF REFERENCE AMENDMENT Committee on Finance.

  • SB135_L.002 SENATE COMMITTEE OF REFERENCE AMENDMENT Committee on Finance.
  • SB26-135 be amended as follows: 1 Amend page 4, line 12, strike "Pailaich" and substitute "Palaich".
  • 2 Page 6, line 2, strike "THE VOTER'S" and substitute "VOTER".
  • 3 Page 6, line 25, strike "THE DEPARTMENT SHALL" and substitute "THE 4 POSITIVE FACTOR MUST BE DISTRIBUTED TO LOCAL EDUCATION 5 PROVIDERS, AS DEFINED PURSUANT TO SECTION 22-54-202, IN THE SAME 6 FORM AND MANNER AS THE PAYMENTS FOR TOTAL PROGRAM ARE 7 DISTRIBUTED TO ALL PUBLIC SCHOOLS UNDER COLORADO LAW.".
L.003

SEN Finance

Passed [*]

Plain English: SB135_L.003 SENATE COMMITTEE OF REFERENCE AMENDMENT Committee on Finance.

  • SB135_L.003 SENATE COMMITTEE OF REFERENCE AMENDMENT Committee on Finance.
  • SB26-135 be amended as follows: 1 Amend printed bill, page 6, line 4, strike "YEAR." and substitute "YEAR 2 MINUS AN AMOUNT EQUAL TO THE TOTAL DOLLAR AMOUNTS OF 3 WARRANTS ISSUED BY THE STATE TREASURER PURSUANT TO SECTION 4 39-3-207 (4) IN THE SAME FISCAL YEAR.".
  • 5 Page 8, line 13, strike "SECTION," and substitute "SECTION MINUS AN 6 AMOUNT EQUAL TO THE TOTAL DOLLAR AMOUNTS OF WARRANTS ISSUED 7 BY THE STATE TREASURER PURSUANT TO SECTION 39-3-207 (4) IN THE 8 SAME FISCAL YEAR,".
  • 9 Page 9, line 17, strike "YEAR." and substitute "YEAR MINUS AN AMOUNT 10 EQUAL TO THE TOTAL DOLLAR AMOUNTS OF WARRANTS ISSUED BY THE 11 STATE TREASURER PURSUANT TO SECTION 39-3-207 (4) IN THE SAME 12 FISCAL YEAR.".
L.010

Second Reading

Passed [**]

Plain English: SB135_L.010 Amendment No.

  • SB135_L.010 Amendment No.
  • ___________ SB26-135 SENATE FLOOR AMENDMENT Second Reading BY SENATOR Bridges 1 Amend printed bill, page 6, line 21, after "MAINTAIN" insert "THE".
  • 2 Page 1 of the bill, lines 104 and 105, strike "USING THE INCREASED 3 APPROPRIATIONS FOR DISTRICT SCHOOL FINANCING FACTOR 4 FUNDING,".
  • 5 Amend the Senate Appropriations Committee Report, dated April 17, 6 2026, page 6, strike lines 7 and 8.
L.012

Second Reading

Lost [**]

Plain English: SB135_L.012 Amendment No.

  • SB135_L.012 Amendment No.
  • ___________ SB26-135 SENATE FLOOR AMENDMENT Second Reading BY SENATOR Pelton B.
  • 1 Amend the Senate Appropriations Committee Report, dated April 17, 2 2026, page 6, line 3, strike "MAY" and substitute "SHALL TRANSFER THE 3 REMAINDER TO THE KIDS MATTER ACCOUNT CREATED IN SECTION 22-55- 4 103 (6)(b).".".
  • 5 Page 6, strike line 4.
L.013

Second Reading

Lost [**]

Plain English: SB135_L.013 Amendment No.

  • SB135_L.013 Amendment No.
  • ___________ SB26-135 SENATE FLOOR AMENDMENT Second Reading BY SENATOR Pelton B.
  • 1 Amend printed bill, page 11, after line 13 insert: 2 "24-77-305.
  • Surcharge adjustments - definitions.
L.014

Second Reading

Passed [**]

Plain English: SB135_L.014 Amendment No.

  • SB135_L.014 Amendment No.
  • ___________ SB26-135 SENATE FLOOR AMENDMENT Second Reading BY SENATOR Bridges 1 Amend printed bill, page 7, line 19, strike ""EXCESS STATE REVENUES" 2 and substitute ""CHILDREN'S".
  • 3 Page 7 of the bill, line 20, strike "EXCESS STATE REVENUES" and substitute 4 "CHILDREN'S".
  • 5 Page 8 of the bill, lines 2 and 3, strike the second "excess state revenues" 6 and substitute "children's".
L.015

Second Reading

Lost [**]

Plain English: SB135_L.015 Amendment No.

  • SB135_L.015 Amendment No.
  • ___________ SB26-135 SENATE FLOOR AMENDMENT Second Reading BY SENATOR Pelton B.
  • 1 Amend printed bill, page 7, line 19, strike ""EXCESS STATE REVENUES" 2 and substitute ""GOVERNMENT WASTE".
  • 3 Page 7 of the bill, line 20, strike "EXCESS STATE REVENUES" and substitute 4 "GOVERNMENT WASTE".
L.017

Second Reading

Lost [**]

Plain English: SB135_L.017 Amendment No.

  • SB135_L.017 Amendment No.
  • ___________ SB26-135 SENATE FLOOR AMENDMENT Second Reading BY SENATOR Kirkmeyer 1 Amend the Senate Appropriations Committee Report, dated April 17, 2 2026, page 7 strike line 7 and substitute: 3 "Page 13 of the bill, line 15, strike "state" and substitute "there be a 4 change to the Colorado Revised Statutes allowing the state to keep and 5 spend an amount of state revenue equal to one year of state public K-12 6 education funding as a voter-approved revenue change under the 7 Taxpayer's Bill of Rights, and, in connection therewith, requiring the state 8 to use a portion of the money to increase state funding for public K-12 9 education for ten years; and allowing the state to use the rest of the money 10 for any purpose determined by the state legislature?"".
  • 11 Page 13 of the bill, strike lines 16 through 22.
  • 12 Page 13 of the bill, line 23, strike "the new investments are spent?"".".
L.019

Second Reading

Passed [**]

Plain English: SB135_L.019 Amendment No.

  • SB135_L.019 Amendment No.
  • ___________ SB26-135 SENATE FLOOR AMENDMENT Second Reading BY SENATOR Bridges 1 Amend printed bill, page 7 of the bill, strike lines 17 and 18.
  • 2 Renumber succeeding subsections accordingly.
  • 3 Page 8 of the bill, strikes lines 11 through 14 and substitute "CHILDREN'S 4 ACCOUNT, WHICH CONSISTS OF: 5 (I) FOR STATE FISCAL YEAR 2026-27, AN AMOUNT OF MONEY 6 EQUAL TO THE AMOUNT THAT THE STATE RETAINS FOR STATE FISCAL YEAR 7 2026-27 PURSUANT TO SUBSECTION (1) OF THIS SECTION; AND 8 (II) FOR STATE FISCAL YEARS COMMENCING ON OR AFTER JULY 1, 9 2027, AN AMOUNT OF MONEY EQUAL TO THE AMOUNT THAT THE STATE 10 RETAINS FOR A GIVEN FISCAL YEAR PURSUANT TO SUBSECTION (1) OF THIS 11 SECTION MINUS AN AMOUNT EQUAL TO THE TOTAL DOLLAR AMOUNT OF 12 WARRANTS ISSUED BY THE STATE TREASURER PURSUANT TO SECTION 13 39-3-207 (4) IN THE SAME FISCAL YEAR.".
L.021

Second Reading

Passed [**]

Plain English: SB135_L.021 Amendment No.

  • SB135_L.021 Amendment No.
  • ___________ SB26-135 SENATE FLOOR AMENDMENT Second Reading BY SENATOR Bridges 1 Amend the Senate Appropriations Committee Report, dated April 17, 2 2026, page 2, line 29 strike "IS" and substitute "SHALL ONLY BE EXPENDED 3 BY".
  • 4 Page 2 of the report, line 30, strike "AVAILABLE TO".
  • 5 Page 2 of the report, line 33, strike "AND" and substitute "OR".
L.024

Second Reading

Lost [**]

Plain English: SB135_L.024 Amendment No.

  • SB135_L.024 Amendment No.
  • ___________ SB26-135 HOUSE FLOOR AMENDMENT Second Reading BY REPRESENTATIVE Richardson 1 Amend reengrossed bill, page 18, strike line 27 and substitute "either 2 "Yes/For" or "No/Against" on the following ballot title: "Shall there be 3 a change to the Colorado Revised Statutes allowing the state to keep and 4 spend an amount of state revenue equal to one year of state public K-12 5 education funding as a voter-approved revenue change under the 6 Taxpayer's Bill of Rights, and, in connection therewith, requiring the state 7 to use a portion of the money to increase state funding for public K-12 8 education for ten years; and allowing the state to use the rest of the money 9 for any purpose determined by the state legislature?" Except as otherwise 10 provided in section 1-40-123, Colorado Revised Statutes, if a majority of 11 the electors voting on the ballot title vote "Yes/For", then the act will 12 become part of the Colorado Revised Statutes.".
  • 13 Strike page 19.
  • ** *** ** *** ** LLS: Pierce Lively x2059
L.025

Second Reading

Lost [**]

Plain English: SB135_L.025 Amendment No.

  • SB135_L.025 Amendment No.
  • ___________ SB26-135 HOUSE FLOOR AMENDMENT Second Reading BY REPRESENTATIVE Richardson 1 Amend the Appropriations Committee Report, dated May 5, 2026, page 2 2, after line 18 insert: 3 "Page 12 of the bill, strike lines 17 through 19.
  • 4 Renumber succeeding subsections accordingly.".
  • 5 Page 2 of the report, after line 20 insert: 6 "Page 12 of the bill, line 26, after "(1)" insert "(a)".
L.026

Second Reading

Lost [**]

Plain English: SB135_L.026 Amendment No.

  • SB135_L.026 Amendment No.
  • ___________ SB26-135 HOUSE FLOOR AMENDMENT Second Reading BY REPRESENTATIVE Richardson 1 Amend the Appropriations Committee Report, dated May 5, 2026, page 2 1, after line 10 insert: 3 "Page 9 of the bill, lines 13 and 14, strike "YEAR AND EACH BUDGET YEAR 4 THEREAFTER;" and substitute "YEAR;".".
  • 5 Page 2 of the report, after line 1 insert: 6 "Page 10 of the bill, line 21 and 22, strike "AND EACH BUDGET YEAR 7 THEREAFTER," and substitute "THROUGH THE 2035-36 BUDGET YEAR,".".
  • 8 Page 2 of the report strike lines 6 and 7 and substitute: 9 "Page 11 of the bill, lines 1 and 2, strike "AND EVERY BUDGET YEAR 10 THEREAFTER," and substitute "THROUGH THE 2035-36 BUDGET YEAR,".
L.027

Second Reading

Lost [**]

Plain English: SB135_L.027 Amendment No.

  • SB135_L.027 Amendment No.
  • ___________ SB26-135 HOUSE FLOOR AMENDMENT Second Reading BY REPRESENTATIVE Richardson 1 Amend the Appropriations Committee Report, dated May 5, 2026, page 2 3, line 2, strike "22-54-103.7;"." and substitute "22-54-103.7; AND".".
  • 3 Page 3 of the report, strike lines 3 through 13 and substitute: 4 "Page 13 of the bill, strike lines 23 through 25 and substitute: 5 "(II) SHALL, AFTER MAKING THE APPROPRIATIONS OR TRANSFERS 6 REQUIRED BY SUBSECTION (2)(b)(I) OF THIS SECTION, APPROPRIATE OR 7 TRANSFER THE REMAINING BALANCE OF THE ACCOUNT FOR INVESTMENT 8 IN K-12 PUBLIC EDUCATION.".".
  • ** *** ** *** ** LLS: Pierce Lively x2059
L.031

Second Reading

Lost [**]

Plain English: SB135_L.031 Amendment No.

  • SB135_L.031 Amendment No.
  • ___________ SB26-135 HOUSE FLOOR AMENDMENT Second Reading BY REPRESENTATIVE Richardson 1 Amend reengrossed bill, page 18, line 27, strike ""Shall state" and 2 substitute ""Shall the state keep and spend up to approximately 3 $4,600,000,000 in excess of the annual limit on state fiscal year spending 4 in state fiscal year 2026-27, with that amount growing each year, to fund 5 a $107,400,000 increase in public education K-12 funding and allowing 6 up to $4,492,600,000 of that amount to be expended for any purpose 7 determined by the state legislature beginning in state fiscal year 2026-27, 8 and an increasing amount every year thereafter?"".
  • 9 Page 19, strike lines 1 through 7.
  • 10 Page 19, line 8, strike "investments are spent?"".
L.033

Second Reading

Lost [**]

Plain English: SB135_L.033 Amendment No.

  • SB135_L.033 Amendment No.
  • ___________ SB26-135 HOUSE FLOOR AMENDMENT Second Reading BY REPRESENTATIVE Taggart 1 Amend the Appropriations Committee Report, dated May 5, 2026, page 2 2, after line 18 insert: 3 "Page 12 of the bill, strike lines 17 through 19.
  • 4 Renumber succeeding subsections accordingly.".
  • 5 Page 2 of the report, after line 20 insert: 6 "Page 12 of the bill, line 26, after "(1)" insert "(a)".
L.034

Second Reading

Lost [**]

Plain English: SB135_L.034 Amendment No.

  • SB135_L.034 Amendment No.
  • ___________ SB26-135 HOUSE FLOOR AMENDMENT Second Reading BY REPRESENTATIVE Luck 1 Amend reengrossed bill, page 18, strike line 27 and substitute "either 2 "Yes/For" or "No/Against" on the following ballot title: "Shall there be 3 a change to the Colorado Revised Statutes allowing the state to keep and 4 spend an amount of state revenue equal to one year of state public K-12 5 education funding as a voter-approved revenue change under the 6 Taxpayer's Bill of Rights, and, in connection therewith, requiring the state 7 to use a portion of the money to increase state funding for public K-12 8 education for ten years; and allowing the state to use the rest of the money 9 for any purpose determined by the state legislature?" Except as otherwise 10 provided in section 1-40-123, Colorado Revised Statutes, if a majority of 11 the electors voting on the ballot title vote "Yes/For", then the act will 12 become part of the Colorado Revised Statutes.".
  • 13 Strike page 19.
  • ** *** ** *** ** LLS: Pierce Lively x2059
L.035

Second Reading

Passed [**]

Plain English: SB135_L.035 Amendment No.

  • SB135_L.035 Amendment No.
  • ___________ SB26-135 HOUSE FLOOR AMENDMENT Second Reading BY REPRESENTATIVE Lukens 1 Amend the Appropriations Committee Report, dated May 5, 2026, page 2 1, strike line 1 and substitute: 3 "Amend reengrossed bill, page 3, line 26, strike "haven't" and substitute 4 "have not".
  • 5 Page 4, line 23, strike "and".
  • 6 Page 4 of the bill, after line 23 insert: 7 "(m) Research demonstrates that high-quality early childhood 8 education, including child care and preschool, produces significant 9 long-term benefits, including improved school readiness, higher 10 graduation rates, and greater lifetime earnings, and that every dollar 11 invested in high-quality childhood education yields substantial returns to 12 the state and its communities; 13 (n) Children who participate in high-quality, preschool and child 14 care programs arrive in kindergarten better prepared to learn across 15 language, math, and social-emotional domains, with the greatest benefits 16 accruing to children from working families, rural communities, and 17 multilingual households; and".
L.036

Second Reading

Lost [**]

Plain English: SB135_L.036 Amendment No.

  • SB135_L.036 Amendment No.
  • ___________ SB26-135 HOUSE FLOOR AMENDMENT Second Reading BY REPRESENTATIVE Keltie 1 Amend reengrossed bill, page 18, line 27, strike ""Shall state" and 2 substitute ""Shall the state take the entirety of the taxpayers' the 3 Taxpayer's Bill of Rights refunds for increasing investment in K-12 4 public education by two percent each year for the next ten years, with 5 investments used to increase teacher pay, improve teacher retention, 6 lower class sizes, and increase access to career and technical courses, 7 funded by raising the annual limit on state fiscal year spending only by 8 the amount spent on public K-12 education as a voter-approved revenue 9 change, and requiring an annual publicly related, independent audit to 10 show how the new investments are spent?" Except as otherwise provided 11 in section 1-40-123, Colorado Revised Statutes, if a majority of the 12 electors voting on the ballot title vote "Yes/For", then the act will become 13 part of the Colorado Revised Statutes.".
  • 14 Strike page 19.
  • ** *** ** *** ** LLS: Pierce Lively x2059
L.037

Third Reading

Passed

Plain English: SB135_L.037 Amendment No.

  • SB135_L.037 Amendment No.
  • ___________ SB26-135 HOUSE FLOOR AMENDMENT Third Reading BY REPRESENTATIVE Lukens 1 Amend revised bill, page 7, lines 11 and 12, strike "VOTER APPROVAL OF 2 THE BALLOT MEASURE INCLUDED IN SECTION 24-77-302" and substitute 3 "SECTION 24-77-302 (1)".
  • 4 Page 7 line 18, after "DISTRICT'S" insert "SHARE OF".
  • 5 Page 9, line 13, strike "22-54-104.7 (1)(f)." and substitute "22-54-103.7 6 (1)(f).".

Bill History

  1. 2026-05-20 House

    Signed by the Speaker of the House

  2. 2026-05-20 Senate

    Signed by the President of the Senate

  3. 2026-05-12 Senate

    Senate Considered House Amendments - Result was to Concur - Repass

  4. 2026-05-09 House

    House Third Reading Passed with Amendments - Floor

  5. 2026-05-08 House

    House Second Reading Special Order - Passed with Amendments - Committee, Floor

  6. 2026-05-07 House

    House Second Reading Laid Over Daily - No Amendments

  7. 2026-05-05 House

    House Committee on Appropriations Refer Amended to House Committee of the Whole

  8. 2026-04-28 House

    Introduced In House - Assigned to Appropriations

  9. 2026-04-27 Senate

    Senate Third Reading Passed - No Amendments

  10. 2026-04-22 Senate

    Senate Second Reading Passed with Amendments - Committee, Floor

  11. 2026-04-21 Senate

    Senate Second Reading Laid Over Daily - No Amendments

  12. 2026-04-17 Senate

    Senate Committee on Appropriations Refer Amended to Senate Committee of the Whole

  13. 2026-03-12 Senate

    Senate Committee on Finance Refer Amended to Appropriations

  14. 2026-03-05 Senate

    Introduced In Senate - Assigned to Finance

Official Summary Text

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.)

Current Bill Text

Read the full stored bill text
SENATE BILL 26-135
BY SENATOR(S) Bridges and Kipp, Amabile, Benavidez, Coleman,
Cutter, Danielson, Daugherty, Exum, Gonzales J., Hinrichsen, Jodeh,
Kolker, Lindstedt, Marchman, Mullica, Rodriguez, Snyder, Sullivan,
Weissman, Wallace;
also REPRESENTATIVE(S) Bacon and Lukens, Boesenecker, Camacho,
Carter, Duran, Goldstein, Hamrick, Joseph, Lieder, Lindsay, Martinez,
McCormick, Nguyen, Paschal, Phillips, Rydin, Smith, Stewart R., Titone,
Velasco, Willford, Clifford, English, Espenoza, Froelich, Gilchrist, Jackson,
Mauro, Ricks, Rutinel, Stewart K., Story, McCluskie.
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 STATE FISCAL YEAR SPENDING EQUAL TO STATE
PUBLIC K-12 EDUCATION FUNDING , AND SUBMITTING A BALLOT
QUESTION TO THE REGISTERED ELECTORS OF THE STATE.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1) The general assembly
finds and declares that:
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
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
PAGE 2-SENATE BILL 26-135
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, incl uding 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:
PAGE 3-SENATE BILL 26-135
22-54-103.7. Positive factor - definitions.
(1) A S USED IN THIS SECTION , UNLESS THE CONTEXT OTHERWISE
REQUIRES:
(a) "N EW 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) "N EW 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) F OR 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) T HE POSITIVE FACTOR FOR THE IMMEDIATELY PRECEDING
BUDGET YEAR; AND
(III) F OR THE 2035-36 BUDGET YEAR AND EACH BUDGET YEAR
THEREAFTER:
(A) T WO PERCENT OF PROGRAM FOUNDATION FOR THE 2034-35
PAGE 4-SENATE BILL 26-135
BUDGET YEAR; AND
(B) THE POSITIVE FACTOR FOR THE 2034-35 BUDGET YEAR.
(d) "PROGRAM FOUNDATION" MEANS:
(I) F OR 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) F OR 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) F OR 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) F OR 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
PAGE 5-SENATE BILL 26-135
CALCULATION AND THE NEW FORMULA STATEWIDE TOTAL PROGRAM
CALCULATION.
(4) F OR 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).
PAGE 6-SENATE BILL 26-135
(2) "S TATE PUBLIC EDUCATION FUNDING " MEANS THE AMOUNT
DETERMINED BY LEGISLATIVE COUNCIL STAFF PURSUANT TO SECTION
24-77-303 (1).
(3) "S TATE REVENUES" MEANS STATE FISCAL YEAR SPENDING , AS
DEFINED IN SECTION 24-77-102 (17).
(4) "T WO 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) T HERE 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) S HALL TRANSFER OR APPROPRIATE TO THE DEPARTMENT OF
EDUCATION AN AMOUNT E QUAL 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
PAGE 7-SENATE BILL 26-135
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) T HE 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
PAGE 8-SENATE BILL 26-135
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) A S USED IN THIS SECTION , UNLESS THE CONTEXT OTHERWISE
REQUIRES:
(a) "C ATEGORICAL 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) F OR 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
PAGE 9-SENATE BILL 26-135
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) A S 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:
PAGE 10-SENATE BILL 26-135
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
PAGE 11-SENATE BILL 26-135
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. Julie McCluskie
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Esther van Mourik Vanessa Reilly
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
PAGE 12-SENATE BILL 26-135