SB 135

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.
     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:
     ________
     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, 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:
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      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
PAGE 4-SENATE BILL 26-135
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
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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).
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     (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
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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
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) 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
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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:
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