Colorado 2026 Regular Session Status: Enacted 20 D cosponsors

SB 135 — State Public K-12 Education Funding

Last action — Signed by the President of the Senate

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 05, 2026. Enacted.

Signed by Governor Jared Polis (Democratic) on May 20, 2026.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 66% · moderate confidence

  • Enacted

    Current position in the legislative process.

  • 55 sponsors

    42 primary, 13 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (20 D).

  • Mixed recorded votes

    12 passed, 1 failed in recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

In plain language

The bill seeks voter approval to increase K-12 education funding in Colorado for the next ten years.

This legislation requires a ballot issue in November 2026 to allow the state to retain additional revenue to fund K-12 education. It plans to increase education funding by up to 2% per year for the next decade.

What this means for you
  • Workers: This bill may lead to increased teacher pay and better working conditions in schools.

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; andHow 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.)

Bill Text

What changed in the latest version

375 added · 466 removed

Plain-language change summary

The recent changes to SB 135 include a new note indicating that the bill is ready for the signatures of legislative officers and the Governor, and that the public can check the legislative status for updates on the bill's progress. This addition is important because it clarifies the next steps in the legislative process, ensuring transparency about whether the Governor has signed the bill or taken other actions. Overall, these modifications help readers understand the current status and significance of the bill concerning K-12 education funding in Colorado.

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Second Regular Session Seventy-fifth General Assembly STATE OF COLORADO REREVISED This Version Includes All Amendments Adopted in the Second House LLS NO.
NOTE:
26-0140.05 Pierce Lively x2059 SENATE BILL 26-135 SENATE SPONSORSHIP Bridges and Kipp, Amabile, Benavidez, Coleman, Cutter, Danielson, Daugherty, Exum, Gonzales J., Hinrichsen, Jodeh, Kolker, Lindstedt, Marchman, Mullica, Rodriguez, Snyder, Sullivan, Weissman, Wallace HOUSE SPONSORSHIP Bacon and Lukens, Boesenecker, Camacho, Carter, Duran, Goldstein, Hamrick, Joseph, Lieder,Lindsay,Martinez,McCormick,Nguyen,Paschal,Phillips,Rydin,Smith,StewartR., Titone,Velasco,Willford,Clifford,English,Espenoza,Froelich,Gilchrist,Jackson,Mauro, McCluskie, Ricks, Rutinel, Stewart K., Story i a 6 E R 0 S r , O 3 9 H e a Senate Committees House Committees n M Finance Appropriations e Appropriations A g A BILL FOR AN ACT d 6 E e 0 C ONCERNING STATE PUBLIC EDUCATION K-12 FUNDING , AND , IN U R ,2 O n y8 CONNECTION THEREWITH , INCREASING APPROPRIATIONS FOR H 2 a e M STATE PUBLIC EDUCATION K-12 FOR TEN YEARS , n m ALLOWING THE STATE TO RETAIN AN AMOUNT OF STATE A REVENUEINEXCESSOFTHELIMITATIONONSTATEFISCALYEAR SPENDING EQUAL TO STATE PUBLIC K-12 EDUCATION FUNDING , e n AND SUBMITTING A BALLOT QUESTION TO THE REGISTERED m 2 T n 2 ELECTORS OF THE STATE .
This bill has been prepared for the signatures of the appropriate legislative officers and the Governor.
N g 7 E d i S e p R A Bill Summary 3 (Note:
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.
This summary applies to this bill as introduced and does notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill g passes third reading in the house of introduction, a bill summary that d e 6 applies to the reengrossed version of this bill will be available at E R 0 A n , N 2 2 Shading denotes HOUSE amendment.
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;
Double underlining denotes SENATE amendment.
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.
S e r Capital letters or bold & italic numbers indicate new material to be added to existing law.n Ap Dashes through the words or numbers indicate deletions from existing law.
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 .
m A http://leg.colorado.gov.) The bill requires the secretaryof state to refer a ballot issue at the November 2026 general election to seek voter approval for the state 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 byup to 2% for 10 years.
The bill 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 bill creates a positive factor to provide additional funding for each district.
A positive factor is equal to the lesser of 2% of statewide total program funding for the 2026-27 budget year multiplied by a district's total program as a percentage of the statewide total program or the amount that the state is authorized to retain and spend that would otherwise have been in excess of the limitation on state fiscal year spending multiplied by a district's total program as a percentage of the statewide total program.
A district may only use its positive factor fundingforincreasingteacherpay,improvingteacherretention,lowering class sizes, and increasing access to career and technical courses.
Thebillcreatestheexcessstaterevenuesaccount(account)within the general fund.
The account consists of an amount of money equal to the amount of state revenues in excess of the excess state revenues cap that the state retains for a given fiscal year pursuant to voter approval of thebill.Moneyintheaccountmustfirstbespentforpayingdistrictstheir positive factor and only after that may be spent for any other purpose.
The bill directs the state auditor to conduct and publish, for each state fiscal year that the state retains and spends state revenues in excess of the limitation on state fiscal year spending, a legislative report.
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 ! Howthestaterevenuesthatthestateretainedandspentthat would otherwise have been in excess of the limitation on state fiscal year spending were expended.
Lastly,thebillmakesconformingamendmentstoensurethatvoter approval of the bill does not impact the expanded earned income tax credit, the family affordability tax credit, or the affordable housing financing fund.
-2- 135 SECTION1.
SECTION 1.
Legislativedeclaration.(1) Thegeneralassembly finds and declares that:
Legislative declaration.
(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 prosperityand future;
(1) The general assembly finds and declares that:
(b) Wise and adequate investment in Colorado's schools is essential to maintaining and improving the competitiveness of Colorado and its students;
________ Capital letters or bold & italic numbers indicate new material added to existing law;
(c) The moneyinvested in Colorado's public schools has a return on investment that has long been recognized as among the nation's highest;
dashes through words or numbers indicate deletions from existing law and such material is not part of the act.
(d) An increase in the rates of K-12 graduation, the earning of industrycertifications,andtheearningofassociatesdegreesdemonstrate the effectiveness of Colorado's investment in public schools;
(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;
(e) Research demonstrates that increasing school funding results in long-term increases in graduation rates and lifetime wages, prevents crime, and lowers incarceration rates;
(b) WiseandadequateinvestmentinColorado'sschoolsisessential to maintaining and improving the competitiveness of Colorado and its students;
(f) Educatorsandsupportstaffineveryschooldistrictandcharter school across Colorado make invaluable contributions to their schools, districts, and communities by dedicating their time, talents, and out-of-pocket moneytotheirstudents,despiteColoradoranking near the bottom of starting teacher payand having the largest teacher paypenalty in the nation;
(c) ThemoneyinvestedinColorado'spublicschoolshasareturnon investment that has long been recognized as among the nation's highest;
(g) Teachers, counselors, para professionals, bus drivers, and essentialsupportstaff areleavingtheirprofessionsbecausesalaries not kept up with housing, healthcare, and cost of living;
(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;
(h) Students are learning in overcrowded classrooms and in -3- 135 schools with fewer mental health counselors, opportunities for special educationsupport,andprogramsthatsupporttheirabilitytodevelopinto healthy, productive adults;
(e) Research demonstrates that increasing school funding results in long-termincreasesingraduationratesandlifetimewages,preventscrime, 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 bottomof starting teacher payand havingthelargestteacher paypenaltyin 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) Studentsarelearninginovercrowdedclassroomsandinschools with fewer mental health counselors, opportunities for special education support, and programs that support their ability to develop into healthy, productive adults;
(j) In January 2025, the legislature received the reports and recommendationofthetwocommissionedadequacystudies:"Equityand 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;
(j) In January 2025, the legislature received the reports and PAGE 2-SENATE BILL 26-135 recommendation of the two commissioned adequacy studies:
(k) The adequacy studies found that, were Colorado schools fundedfullyandfairly,everystudentwouldhavetheindividualattention they need from teachers, counselors, health professionals, tutors, and support staff to succeed and thrive;
"Equity and Adequacyof 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;
every teacher would have a reasonable workload, professional development and coaching, and a salary that would allow them to live where they work;
(k) Theadequacystudiesfoundthat,wereColoradoschoolsfunded fullyandfairly,everystudentwouldhavetheindividualattentiontheyneed from teachers, counselors, health professionals, tutors, and support staff to succeed and thrive;
and every community would enjoy the benefit of vibrant public schools, a high-quality workforce, and an engaged citizenry;
every teacher would have a reasonable workload, professionaldevelopmentandcoaching,andasalarythatwouldallowthem to live where they work;
(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;
and every community would enjoy the benefit of vibrantpublicschools,ahigh-qualityworkforce,andanengagedcitizenry;
(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 -4- 135 investedinhigh-qualitychildhoodeducationyieldssubstantialreturnsto the state and its communities;
(l) Colorado'sfiscalconstraintsandpotentialoffederalfundingcuts 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;
(n) Children who participate in high-quality, preschool and child care programs arrive in kindergarten better prepared to learn across language,math,andsocial-emotionaldomains,withthegreatestbenefits accruing to children from working families, rural communities, and multilingual households;
(m) Research demonstrates that high-quality early childhood education, including child care and preschool, produces significant long-termbenefits,includingimprovedschoolreadiness,highergraduation rates, and greater lifetime earnings, and that every dollar invested in high-qualitychildhood education yields substantial returns to the state and its communities;
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.
(n) Childrenwhoparticipateinhigh-qualitypreschoolandchildcare 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 modernizingthestate'sabilitytoretainandspendrevenuetomeettheneeds ofColoradocommunitiesandtoensurethatstateinvestmentinK-12public education is increased by two percent for at least ten years through the funding of a positive factor.
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22-54-103.7.
PAGE 3-SENATE BILL 26-135 22-54-103.7.
Positive factor -definitions.
Positive factor - definitions.
(1) AS USED IN THIS SECTI,UNLESS THE CONTEXT OTHERWISE REQUIRES:
(1) A S USED IN THIS SECTIO,UNLESS THE CONTEXT OTHERWISE REQUIRES:
(a) "NEW FORMULA DISTRICT TOTAL PROGRAM CALCULATION " MEANSADISTRICT 'STOTALPROGRAMFORTHEAPPLICABLEBUDGETYEAR AS CALCULATED PURSUANT TO THE DISTRICT TOTAL PROGRAM FORMULA INSECTION22-54-103.5.THETERMDOESNOTINCLUDEANYADJUSTMENTS REQUIRED PURSUANT TO SECTION 22-54-103.3WHEN DETERMINING A DISTRICTS TOTAL PROGRAM FOR THE 2027-28 BUDGET YEAR THROUGH THE 2030-31BUDGET YEAR .
(a) "N EW FORMULA DISTRICT TOTAL PROGRAM CALCULATION " MEANSADISTRICT 'STOTALPROGRAMFORTHEAPPLICABLEBUDGETYEARAS CALCULATED PURSUANT TO THE DISTRICT TOTAL PROGRAM FORMULA IN SECTION 22-54-103.5.
-5- 135 (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 TOTALPROGRAMFORMULAINSECTION 22-54-103.5.THETERMDOESNOT INCLUDE ANY ADJUSTMENTS REQUIRED PURSUANT TO SECTION 22-54-103.3WHEN DETERMINING A DISTRIC'S TOTAL PROGRAM FOR THE 2027-28 BUDGET YEAR THROUGH THE 2030-31BUDGET YEAR .
HE TERM DOES NOT INCLUDE ANY ADJUSTMENTS REQUIRED PURSUANT TO SECTION 22-54-103.3 WHEN DETERMINING A DISTRICTS TOTALPROGRAMFORTHE 2027-28BUDGET YEAR THROUGH THE 2030-31 BUDGET YEAR .
(c) "OSITIVE FACTOR"MEANS :
(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.
(I) FR THE 2026-27BUDGET YEAR ,TWO PERCENT OF PROGRAM FOUNDATION CALCULATED FOR THE 2025-26 BUDGET YEAR;
HE TERM DOES NOT INCLUDEANYADJUSTMENTSREQUIREDPURSUANTTOSECTION 22-54-103.3 WHEN DETERMINING A DISTRICT 'S TOTAL PROGRAM FOR THE 2027-28 BUDGET YEAR THROUGH THE 2030-31 BUDGET YEAR .
(II) FOR THE 2027-28 BUDGET YEAR THROUGH THE 2034-35 BUDGET YEAR ,THE SUM OF:
(c) "POSITIVE FACTO" MEANS :
(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) FR THE 2035-36BUDGET YEAR AND EACH BUDGET YEAR THEREAFTER :
(I) FOR THE 2026-27 BUDGET YEAR ,TWO PERCENT OF PROGRAM FOUNDATION CALCULATED FOR THE 2025-26 BUDGET YEAR ;
(A) TWO PERCENT OF PROGRAM FOUNDATION FOR THE 2034-35 BUDGET YEAR ;AND (B) THE POSITIVE FACTOR FOR TH2034-35BUDGET YEAR .
(II) FRTHE 2027-28 BUDGETYEARTHROUGHTHE 2034-35 BUDGET YEAR ,THE SUM OF:
(d) "PROGRAM FOUNDATION "MEANS :
(A) TWOPERCENTOFPROGRAMFOUNDATIONFORTHEIMMEDIATELY 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 :
(I) FR BUDGET YEARS BEFORE TOTAL PROGRAM IS DETERMINED PURSUANTTOSECTION 22-54-103.5ANAMOUNTEQUALTOSTATESHARE OF TOTAL PROGRAM ;AND (II) FR BUDGET YEARS WHEN TOTAL PROGRAM IS DETERMINED -6- 135 PURSUANTTOSECTION 22-54-103.5ANAMOUNTEQUALTONEWFORMULA STATEWIDE TOTAL PROGRAM CALCULATION .
(A) T WO PERCENT OF PROGRAM FOUNDATION FOR THE 2034-35 PAGE 4-SENATE BILL 26-135 BUDGET YEAR ;AND (B) T HE POSITIVE FACTOR FOR THE2034-35BUDGET YEAR .
(e) "TATESHAREOFTOTALPROGRAM "MEANSANAMOUNTEQUAL TO THE TOTAL OF THE STATS SHARE OF EACH SCHOOL DISTRIS TOTAL PROGRAM ,AS DEFINED IN SECTIO22-55-102 (18).
(d) "PROGRAM FOUNDATION " MEANS :
(f) "WOPERCENT K-12PUBLICEDUCATIONINCREASE "MEANSAN AMOUNT EQUAL TO THE LESSER O:
(I) FOR BUDGET YEARS BEFORE TOTAL PROGRAM IS DETERMINED PURSUANTTOSECTION 22-54-103.5ANAMOUNTEQUALTOSTATESHAREOF 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 .
(I) THE POSITIVE FACTORFORTHE CURRENT BUDGET YEAR;OR (II) TEAMOUNTTHATTHESTATEISAUTHORIZEDTORETAINAND 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.
(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 SECTIO22-55-102 (18).
(2) FOR THE 2026-27 BUDGET YEAR AND EACH BUDGET YEAR THEREAFTER ,A DISTRICS SHARE OF POSITIVE FACTOR IS EQUAL TO:
(f) "TWO PERCENT K-12 PUBLIC EDUCATION INCREASE " MEANS AN AMOUNT EQUAL TO THE LESSER OF :
(NEWFORMULADISTRICT TOTALPROGRAMCALCULATION / N EW FORMULASTATEWIDETOTALPROGRAMCALCULATION ) X (TWOPERCENT K-12 PUBLIC EDUCATION INCREASE).
(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 2027-28BUDGET YEAR AND EACH BUDGET YEAR THEREAFTER ,AN AMOUNTEQUALTOTHE TOTALDOLLARAMOUNTSOFWARRANTSISSUEDBY THESTATETREASURERPURSUANTTOSECTION 39-3-207(4)INTHECURRENT BUDGET YEAR .
(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 .
(2) F OR THE 2026-27 BUDGET YEAR AND EACH BUDGET YEAR THEREAFTER ,A DISTRICTS SHARE OF POSITIVE FACTOR IS EQUAL T:
(4) FOR THE 2026-27 BUDGET YEAR AND EACH BUDGET YEAR THEREAFTER ,THE DEPARTMENT OF EDUCATION AND THE STAFF OF THE -7- 135 LEGISLATIVE COUNCIL SHALL ANNUALLY DETERMINE EACH DISTRICT 'S POSITIVE FACTOR BASED ON BUDGET PROJECTIONS ;EXCEPT THAT THE DEPARTMENTOFEDUCATIONANDTHESTAFFOFTHELEGISLATIVECOUNCIL 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 .
(NEW FORMULA DISTRICT TOTAL PROGRAM CALCULATION / N EW FORMULA STATEWIDE TOTAL PROGRAM CALCULATION ) X (TWO PERCENT K-12 PUBLIC EDUCATION INCREASE ).
(5) A DISTRICTS POSITIVE FACTOR IS IN ADDITION ,BUT IS NOT INCLUDED IN , THE DISTRICTS TOTAL PROGRAM DETERMINED PURSUANT TO THIS ARTICLE 54.
(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 .
THE POSITIVE FACTOR MUST BE DISTRIBUTED IN THE SAME FORM AND MANNER IN WHICH PAYMENTS OF TOTALPROGRAM ARE DISTRIBUTED UNDER LAWTO ALLPUBLIC SCHOOLS .
(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 ;
(6) A DISTRICT SHALL ONLY EXPEND ITS POSITIVE FACTOR T:
EXCEPT THAT THE DEPARTMENT OF EDUCATION AND THE STAFF OF THE LEGISLATIVE COUNCIL SHALLMAKE MID -YEARREVISIONS TO REPLACE PROJECTIONSWITHACTUAL FIGURES TO DETERMINE ANY NECESSARY CHANGES IN THE AMOUNT TO MAINTAIN THE POSITIVE FACTOR FOR THE APPLICABLE BUDGET YEAR .
(5) A DISTRICTS POSITIVE FACTOR IS IN ADDITION T, BUT IS NOT INCLUDED IN, THE DISTRICTS TOTAL PROGRAM DETERMINED PURSUANT TO THISARTICLE 54.T HEPOSITIVEFACTORMUSTBE DISTRIBUTEDINTHESAME 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 :
(c) LOWER CLASS SIZES;AND (d) INCREASE ACCESS TO CAREER AND TECHNICAL COURSES .
(c) LOWER CLASS SIZES ;AND (d) INCREASE ACCESS TO CAREER AND TECHNICAL COURSES .
SECTION 3.
SECTION3.
In Colorado Revised Statutes, add part 3 to article 77 of title 24 as follows:
InColoradoRevisedStatutes,addpart3toarticle77 of title 24 as follows:
A S USED IN THIS PART 3, UNLESS THE CONTEXT OTHERWISE -8- 135 REQUIRES :
A SUSEDINTHISPART 3,UNLESSTHECONTEXTOTHERWISEREQUIRES :
3 (1) "C HILDREN'S ACCOUNT " OR "ACCOUNT " MEANS THE CHILDREN 'S ACCOUNT CREATED IN SECTION24-77-302 (2).
(1) "CHILDREN 'SACCOUNT "OR "ACCOUNT " MEANS THE CHILDREN 'S ACCOUNT CREATED IN SECTION 24-77-302 (2).
6 (2) "S TATE PUBLIC EDUCATION FUNDING "MEANS THE AMOUNT DETERMINED BY LEGISLATIVE COUNCIL STAFF PURSUANT TO SECTION 24-77-303 (1).
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).
(4) "TWO PERCENT K-12 PUBLIC EDUCATION INCREASE" HAS THE MEANING SET FORTH IN SECTION 22-54-103.7 (1)(f).
(4) "T WO PERCENT K-12 PUBLIC EDUCATION INCREASE " HAS THE MEANING SET FORTH IN SECTION 22-54-103.7 (1)(f).
(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.
(1) FOR STATE FISCAL YEARS COMMENCING ON OR AFTER JULY 1, 2026,THESTATEMAYRETAINANDSPENDSTATEREVENUESTHATTHESTATE OTHERWISE WOULD HAVE BEEN REQUIRED TO REFUND UNDER SECTION 20 (7)(d)OFARTICLE X OFTHE STATE CONSTITUTIONINANAMOUNT EQUALTO 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:
(2) (a) THERE IS HEREBY CREATED IN THE GENERAL FUND THE CHILDREN S ACCOUNT ,WHICH CONSISTS OF :
(I) F OR STATE FISCAL YEAR 2026-27, AN AMOUNT OF MONEY EQUALTOTHEAMOUNTTHATTHESTATERETAINSFORSTATEFISCALYEAR 2026-27 PURSUANT TO SUBSECTION (1)OF THIS SECTIO;AND (II) FOR STATE FISCALYEARS COMMENCING ON OR AFTER JULY 1, 2027, AN AMOUNT OF MONEY EQUAL TO THE AMOUNT THAT THE STATE -9- 135 RETAINS FOR THE STATE FISCAL YEAR PURSUANT TO SUBSECTIO(1)OF THIS SECTION MINUS AN AMOUNT EQUALTO THE TOTALDOLLAR AMOUNT OF WARRANTS ISSUED BY THE STATE TREASURER PURSUANT TO SECTION 39-3-207(4)IN THE SAME STATE FISCAL YE.R (b) FOR EACH STATE FISCAL YEAR BEGINNING ON OR AFTJULY 1, 2026BUT BEFORE JULY 1, 2036THE GENERAL ASSEMBLY :
(I) FORSTATE FISCALYEAR 2026-27,ANAMOUNT OFMONEYEQUAL TOTHEAMOUNTTHATTHESTATERETAINSFORSTATEFISCALYEAR 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 RETAINSFORTHESTATEFISCALYEARPURSUANTTOSUBSECTION (1)OFTHIS 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.
(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;
(b) FOR EACH STATE FISCAL YEAR BEGINNING ON OR AFTER JULY 1, 2026,BUT BEFORE JULY 1, 2036THE GENERAL ASSEMBLY :
(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 DISABILIT,EAND INCREASINGANNUALCONTACTHOURS ,EQUALTOTHEAMOUNT ,IFANY,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)(IOF THIS SECTION FOR THE STATE FISCAL YEA;AND (III) A FTER MAKING THE APPROPRIATIONS OR TRANSFERS REQUIRED BY SUBSECTIONS(2)(b)(IAND (2)(b)(IOF THIS SECTION FOR THE STATE FISCAL YEAR ,SHALL APPROPRIATE OR TRANSFER THE REMAINING MONEY IN THE ACCOUNT TO PROGRAMS THAT SUPPORT C OLORADO SCHILDREN PRIORITIZINGCHILDCARE,FULLDAYPRESCHOOL , AND OTHER PROGRAMS THAT PREPARE CHILDREN TO BE SUCCESSFUL IN SCHOOL .
(I) S HALL 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 PAGE 7-SENATE BILL 26-135 SECTION 22-54-103.7;
-10- 135 2 (3) THE APPROVAL OF THE BALLOT MEASURE INCLUDING THIS SECTION BY A MAJORITY OF THE ELECTORS VOTING ON THE BALLOT MEASURECONSTITUTESAVOTER -APPROVEDREVENUECHANGETOALLOW THERETENTIONANDEXPENDITURE OFTHEADDITIONALSTATEREVENUES THAT THE STATE IS AUTHORIZED TO RETAIN AND SPEND PURSUANT TO SUBSECTION (1)OF THIS SECTI.N (4)THISSECTIONDOESNOTAFFECTTHEAMOUNTTHATTHESTATE ISPERMITTEDTORETAINANDSPENDUNDERTHEEXCESSSTATEREVENUES CAP,AS DEFINED IN SECTIO24-77-103.6 (6)(b)(I).
(II) SALLAPPROPRIATEORTRANSFERANAMOUNTFORINVESTMENT INK-12 PUBLICEDUCATION ,TOBE USEDFORSCHOOLSERVICES ,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)(IOF THIS SECTION FOR THE STATE FISCAL YEAR;AND (III) FTERMAKINGTHEAPPROPRIATIONSORTRANSFERSREQUIRED BY SUBSECTIONS (2)(b)(I)AND (2)(b)(IIOF THIS SECTION FOR THE STATE FISCALYEAR ,SHALLAPPROPRIATE ORTRANSFERTHE REMAININGMONEYIN THE ACCOUNT TO PROGRAMS THAT SUPPORT C OLORADO S CHILDREN , PRIORITIZING CHILD CARE,FULL-DAY PRESCHOOL ,AND OTHER PROGRAMS THAT PREPARE CHILDREN TO BE SUCCESSFUL IN SCHOOL .
(5) THE MONEY THAT THE GENERALASSEMBLY APPROPRIATES OR TRANSFERS PURSUANT TO SUBSECTION(2)(b)(OF THIS SECTION SHALL SUPPLEMENT AND NOT SUPPLANT TOTALPROGRAM AS DEFINED IN SECTION 22-55-102 (18).
(3) T HE APPROVAL OF THE BALLOT MEASURE INCLUDING THIS SECTIONBYAMAJORITYOFTHEELECTORSVOTINGONTHEBALLOTMEASURE CONSTITUTES A VOTER APPROVED REVENUE CHANGE TO ALLOW THE RETENTION AND EXPENDITURE OF THE ADDITIONAL STATE REVENUES THAT THESTATEISAUTHORIZEDTORETAINANDSPENDPURSUANTTOSUBSECTION (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)(IOF THIS SECTION SHALL SUPPLEMENT AND NOT SUPPLANT TOTALPROGRAM ,AS DEFINED IN SECTION 22-55-102 (18).
(1) ONORBEFORE JANUARY 15,2027,ONORAFTER JULY 1,2027, BUTBEFORE A UGUST 1,2027,ANDONORAFTEREACH JULY 1ANDBEFORE 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, THEGREATESTTOTALAMOUNT INAPRECEDINGSTATEFISCALYEARTHAT HASBEENCOUNTEDASSTATEFISCALYEARSPENDINGANDAPPROPRIATED BY THE GENERAL ASSEMBLY FOR A PRECEDING STATE FISCAL YEAR FOR CATEGORICALPROGRAMSANDTHESTATESHAREOFTOTALPROGRAMAND THE AMOUNT OF THE TWO PERCENT K-12 PUBLIC EDUCATION INCREASE FORTHESAMEPRECEDINGSTATEFISCALYEAR .T HEAMOUNTDETERMINED AND REPORTED BY LEGISLATIVE COUNCIL STAFF PURSUANT TO THIS -11- 135 SUBSECTION (1) IS THE STATE PUBLIC EDUCATION FUNDING FOR THAT STATE FISCAL YEAR.
(1) O N OR BEFORE ANUARY 15, 2027,ON OR AFTER JULY 1, 2027, BUT BEFORE A UGUST 1,2027, AND ON OR AFTER EACH JULY 1AND BEFORE EACH A UGUST 1 THEREAFTER , LEGISLATIVE COUNCIL STAFF SHALL DETERMINE AND REPORT TO THE STATE CONTROLLER ,THE OFFICE OFSTATE 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 BEENCOUNTEDASSTATEFISCALYEARSPENDINGANDAPPROPRIATEDBYTHE GENERAL ASSEMBLY FOR A PRECEDING STATE FISCAL YEAR FOR CATEGORICAL PROGRAMS AND THE STATE SHARE OF TOTAL PROGRAM AND THE AMOUNT OFTHE TWOPERCENT K-12 PUBLICEDUCATIONINCREASE FOR THE SAME PRECEDING STATE FISCAL YEAR .THE AMOUNT DETERMINED AND REPORTEDBYLEGISLATIVE COUNCILSTAFFPURSUANT TOTHISSUBSECTION (1)ISTHESTATEPUBLICEDUCATIONFUNDINGFORTHATSTATEFISCALYEAR .
(2) A S USED IN THIS SECTI,UNLESS THE CONTEXT OTHERWISE REQUIRES :
(2) A S USED IN THIS SECTION,UNLESS THE CONTEXT OTHERWISE REQUIRES :
(a) "C ATEGORICAL PROGRAMS " HAS THE MEANING SET FORTH IN SECTION22-55-102 (4).
(a) "C ATEGORICAL PROGRAMS "HAS THE MEANING SET FORTH IN SECTION 22-55-102 (4).
(b) "S TATE SHARE OF TOTAL PROGRAM "MEANS AN AMOUNT EQUAL TO THE TOTALOFTHE STATE S SHARE OF EACH SCHOOL DISTRICS TOTAL PROGRAM ,AS DEFINED IN SECTIO22-55-102 (18).
(b) "STATE SHARE OFTOTAL PROGRAM "MEANS AN AMOUNT EQUAL TO THE TOTAL OF THE STATE S SHARE OF EACH SCHOOL DISTRICT 'S TOTAL PROGRAM ,AS DEFINED IN SECTION22-55-102 (18).
Excess state revenues expenditure independent audit.
Excessstaterevenuesexpenditureindependentaudit.
(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 SHALLREPORT ON EXCESS STATE REVENUES INCLUDING THE FOLLOWING INFORMATION :
(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 OFSTATE REVENUESTHAT 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 ACCOUNTTHESTATEREVENUESTHATTHESTATERETAINEDANDSPENTIN EXCESS OF THE LIMITATION ON STATE FISCAL YEAR SPENDING PURSUANT TO THIS PART3.
(a) THE AMOUNT OF STATE REVENUES THAT THE STATE RETAINED ANDSPENT IN EXCESS OFTHE LIMITATION ON STATE FISCALYEARSPENDING 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 EXCESSOFTHE LIMITATIONONSTATEFISCALYEARSPENDINGPURSUANTTO THIS PART3.
(2) T HE 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 -12- 135 RETAINS AND SPENDS STATE REVENUES IN EXCESS OFTHE LIMITATION ON STATEFISCALYEARSPENDINGPURSUANTTOTHISPART 3ANDMAYAMEND THE REPORT THEREAFTER AS NECESSARY .
(2) THESTATEAUDITORSHALLCOMPLETETHEREPORTINGREQUIRED BY SUBSECTION (1)OF THIS SECTION AT THE SAME TIME THAT THE STATE AUDITORCOMPLETESTHEREPORTREQUIREDPURSUANTTOSECTION 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 .
5 SECTION 4.
SECTION 4.
(1) (g) (I) ADITIONALLY ,COMMENCING ON AUGUST 1, 2027, EACH LOCAL EDUCATION PROVIDER , AS DEFINED IN SECTIO22-54-202, SHALL POST IN A FORMAT THAT CAN BE DOWNLOADED AND SORTED ,FOR FREE PUBLIC ACCESS , THE LOCAL EDUCATION PROVIDER S ACTUAL EXPENDITURESOFANYPOSITIVE FACTOR RECEIVED PURSUANT TO SECTION 22-54-103.7.
(1) (g) (I) ADITIONALLY ,COMMENCINGON 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 PUBLICACCESS ,THELOCALEDUCATIONPROVIDER 'SACTUALEXPENDITURES OF ANY POSITIVE FACTOR RECEIVED PURSUANT TO SECTION 22-54-103.7.
(II) AS USED IN THIS SUBSECTIO(1)(g),UNLESS THE CONTEXT OTHERWISE REQUIRES ,"POSITIVE FACTO" HAS THE MEANING SET FORTH IN SECTION22-54-103.7 (1)(c).
(II) A S USED IN THIS SUBSECTION (1)(g),UNLESS THE CONTEXT OTHERWISE REQUIRES ,"POSITIVE FACTOR "HAS THE MEANINGSET FORTHIN SECTION 22-54-103.7 (1)(c).
InColoradoRevisedStatutes,24-77-106.5,amend (1)(b) as follows:
In Colorado Revised Statutes, 24-77-106.5, amend (1)(b) as follows:
(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 -13- 135 state fiscal year spending imposed bysection 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 24-77-103.6ART 3 OF THIS ARTICLE 77.
(1)(b) Notwithstandingsection24-1-136(11)(a)(I),baseduponthe financialreportpreparedinaccordancewithsubsection(1)(a)ofthissection 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 imposedbysection20(7)(a)ofarticleXofthestateconstitution,ifany,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 approvalof section 24-77-103.6 AND PART 3OF THIS ARTICLE 77.
SECTION 6.
SECTION6.
In Colorado Revised Statutes, 29-32-104, amend (5) as follows:
InColoradoRevisedStatutes,29-32-104,amend(5) as follows:
29-32-104.
PAGE 10-SENATE BILL 26-135 29-32-104.
(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 AMOUNT GREATER THAN THE AMOUNT OF STATE PUBLIC EDUCATION FUNDING AS DEFINED IN SECTION 24-77-301 (2), the general assemblymayreduce the funding allocated to the office required bythis section for the next state fiscal year in order to balance the state budget for said state fiscal year.
(5) IftheLegislativeCouncilStaff'sMarchEconomicandRevenue Forecastinanygivenyearprojectsrevenueforthenextstatefiscalyearwill fall below the revenue limit imposed under section 20 of article X of the state constitutionY AN AMOUNT GREATER THAN THE AMOUNT OF STATE PUBLIC EDUCATION FUNDING AS DEFINED IN SECTION 24-77-301 (2), the generalassemblymayreducethefundingallocatedtotheofficerequiredby this section for the next state fiscal year in order to balance thestate budget for said state fiscal year.
InColoradoRevisedStatutes,39-22-123.5,amend (3.5)(a)(VIII) as follows:
In Colorado Revised Statutes, 39-22-123.5, amend (3.5)(a)(VIII) as follows:
Earnedincometaxcredit-legislativedeclaration - repeal.
Earned income tax credit - legislative declaration - repeal.
(VIII) "Nonexemptrevenue"means,fortheapplicablestatefiscal year,therevenuesthatareidentifiedasnonexemptrevenuesintheannual comprehensive financial report published by the office of the state controller;XCEPT THAT,FOR STATE FISCAL YEARS COMMENCING ON OR -14- 135 AFTER JULY 1, 2026,NONEXEMPT REVENUE INCLUDES STATE PUBLIC EDUCATION FUNDING AS DEFINED IN SECTIO24-77-301 (2).
(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).
Family affordability tax credit - tax preference performancestatement-legislativedeclaration-definitions-repeal.
Family affordability tax credit - tax preference performance statement - legislative declaration - definitions - repeal.
(G) "Nonexempt revenue" means, for the applicable state fiscal year,therevenuethatisidentifiedasnonexemptTABORrevenuesinthe annualcomprehensivefinancialreportpublishedbytheofficeofthestate controller;CEPT THAT ,FOR STATE FISCAL YEARS COMMENCING ON OR AFTER JULY 1, 2026,NONEXEMPT REVENUE INCLUDES STATE PUBLIC EDUCATION FUNDING AS DEFINED IN SECTIO24-77-301 (2).
(G) "Nonexemptrevenue"means,fortheapplicablestatefiscalyear, therevenuethatisidentifiedas nonexempt TABOR revenuesintheannual 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).
At the electionheldonNovember3,2026,thesecretaryofstateshallsubmitthis act by its ballot title to the registered electors of the state for their approval or rejection.
At the election held on November 3, 2026, the secretaryof state shall submit this act byits 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"onthefollowingballottitle:"Shallstate investment in K-12 public education increase two percent each year for thenexttenyears,withinvestmentsusedtoincreaseteacherpay,improve teacher retention, lower class sizes, and increase access to career and technical courses, without raising taxes but instead funded byraising the annual limit on state fiscal year spending only by the amount spent publicK-12educationasavoter-approvedrevenuechange,andrequiring an annual publicly released, independent audit to show how the new investments are spent?" Except as otherwise provided in section -15- 135 1-40-123, Colorado Revised Statutes, if a majorityof the electors voting on the ballot title vote "Yes/For", then the act will become part of the Colorado Revised Statutes.
Each elector voting at the election may cast a vote either "Yes/For" or "No/Against" on the following ballot title:
-16- 135
"Shall state investmentin K-12 public education increase two percenteachyearforthe 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 majorityof the electorsvoting 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
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Action History

  1. Signed by the President of the Senate

  2. Signed by the Speaker of the House

  3. Senate Considered House Amendments - Result was to Concur - Repass

  4. House Third Reading Passed with Amendments - Floor

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

  6. House Second Reading Laid Over Daily - No Amendments

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

  8. Introduced In House - Assigned to Appropriations

  9. Senate Third Reading Passed - No Amendments

  10. Senate Second Reading Passed with Amendments - Committee, Floor

  11. Senate Second Reading Laid Over Daily - No Amendments

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

  13. Senate Committee on Finance Refer Amended to Appropriations

  14. Introduced In Senate - Assigned to Finance

Sponsors

Sponsorship breakdown

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42 sponsors · 13 co-sponsors · 46 not signed on · 15 voted No

Sponsors (42)

Co-sponsors (13)

  • T. Story
  • K. Stewart
  • M. Rutinel
  • N. Ricks
  • J. McCluskie
  • T. Mauro
  • J. Jackson
  • L. Gilchrist
  • M. Froelich
  • C. Espenoza
  • R. English
  • C. Clifford
  • Katie Wallace Democrat Voted No

Not signed on (46)

46 members have not signed on to this bill.

Show all 46 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

CONCUR

Passed 36 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democrat 21000
Republican 10000
Unaffiliated 5000
Total 36000
% of votes cast 100%0%0%0%
How each member voted (36)
Member Party Vote
Benavidez — Yea
Gonzales J. — Yea
Pelton B. — Yea
Pelton R. — Yea
President — Yea
Cathy Kipp Democrat Yea
Chris Kolker Democrat Yea
Dylan Roberts Democrat Yea
Iman Jodeh Democrat Yea
James Coleman Democrat Yea
Janice Marchman Democrat Yea
Jeff Bridges Democrat Yea
Jessie Danielson Democrat Yea
Judy Amabile Democrat Yea
Katie Wallace Democrat Yea
Kyle Mullica Democrat Yea
Lindsey Daugherty Democrat Yea
Lisa Cutter Democrat Yea
Marc Snyder Democrat Yea
Matt Ball Democrat Yea
Mike Weissman Democrat Yea
Nick Hinrichsen Democrat Yea
Robert Rodriguez Democrat Yea
Tom Sullivan Democrat Yea
Tony Exum Democrat Yea
William Lindstedt Democrat Yea
Barbara Kirkmeyer Republican Yea
Cleave Simpson Republican Yea
Janice Rich Republican Yea
John Carson Republican Yea
Larry Liston Republican Yea
Lisa Frizell Republican Yea
Lynda Zamora Wilson Republican Yea
Marc Catlin Republican Yea
Mark Baisley Republican Yea
Scott Bright Republican Yea

Official roll call →

REPASS

Passed 24 Yea · 12 Nay
Party YeaNayPresentNot Voting
Democrat 21000
Republican 01000
Unaffiliated 3200
Total 241200
% of votes cast 67%33%0%0%
How each member voted (36)
Member Party Vote
Gonzales J. — Yea
Pelton B. — Nay
Pelton R. — Nay
President — Yea
Adrienne Benavidez — Yea
Cathy Kipp Democrat Yea
Chris Kolker Democrat Yea
Dylan Roberts Democrat Yea
Iman Jodeh Democrat Yea
James Coleman Democrat Yea
Janice Marchman Democrat Yea
Jeff Bridges Democrat Yea
Jessie Danielson Democrat Yea
Judy Amabile Democrat Yea
Katie Wallace Democrat Yea
Kyle Mullica Democrat Yea
Lindsey Daugherty Democrat Yea
Lisa Cutter Democrat Yea
Marc Snyder Democrat Yea
Matt Ball Democrat Yea
Mike Weissman Democrat Yea
Nick Hinrichsen Democrat Yea
Robert Rodriguez Democrat Yea
Tom Sullivan Democrat Yea
Tony Exum Democrat Yea
William Lindstedt Democrat Yea
Barbara Kirkmeyer Republican Nay
Cleave Simpson Republican Nay
Janice Rich Republican Nay
John Carson Republican Nay
Larry Liston Republican Nay
Lisa Frizell Republican Nay
Lynda Zamora Wilson Republican Nay
Marc Catlin Republican Nay
Mark Baisley Republican Nay
Scott Bright Republican Nay

Official roll call →

Refer Senate Bill 26-135, as amended, to the Committee of the Whole.

Passed 9 Yea · 2 Nay
Party YeaNayPresentNot Voting
Democrat 8000
Republican 1200
Total 9200
% of votes cast 82%18%0%0%
How each member voted (11)
Member Party Vote
Andrew Boesenecker Democrat Yea
Brianna Titone Democrat Yea
Elizabeth Velasco Democrat Yea
Emily Sirota Democrat Yea
Junie Joseph Democrat Yea
Karen McCormick Democrat Yea
Kyle Brown Democrat Yea
Yara Zokaie Democrat Yea
Matt Soper Republican Nay
Rick Taggart Republican Yea
Scott Bottoms Republican Nay

Official roll call →

BILL

Passed 24 Yea · 12 Nay
Party YeaNayPresentNot Voting
Democrat 21000
Republican 01000
Unaffiliated 3200
Total 241200
% of votes cast 67%33%0%0%
How each member voted (36)
Member Party Vote
Gonzales J. — Yea
Pelton B. — Nay
Pelton R. — Nay
President — Yea
Adrienne Benavidez — Yea
Cathy Kipp Democrat Yea
Chris Kolker Democrat Yea
Dylan Roberts Democrat Yea
Iman Jodeh Democrat Yea
James Coleman Democrat Yea
Janice Marchman Democrat Yea
Jeff Bridges Democrat Yea
Jessie Danielson Democrat Yea
Judy Amabile Democrat Yea
Katie Wallace Democrat Yea
Kyle Mullica Democrat Yea
Lindsey Daugherty Democrat Yea
Lisa Cutter Democrat Yea
Marc Snyder Democrat Yea
Matt Ball Democrat Yea
Mike Weissman Democrat Yea
Nick Hinrichsen Democrat Yea
Robert Rodriguez Democrat Yea
Tom Sullivan Democrat Yea
Tony Exum Democrat Yea
William Lindstedt Democrat Yea
Barbara Kirkmeyer Republican Nay
Cleave Simpson Republican Nay
Janice Rich Republican Nay
John Carson Republican Nay
Larry Liston Republican Nay
Lisa Frizell Republican Nay
Lynda Zamora Wilson Republican Nay
Marc Catlin Republican Nay
Mark Baisley Republican Nay
Scott Bright Republican Nay

Official roll call →

COW * (S.001)

Failed 13 Yea · 21 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 2300
Democrat 11802
Republican 10000
Total 132102
% of votes cast 36%58%0%6%
How each member voted (36)
Member Party Vote
Gonzales J. — Nay
Pelton B. — Yea
Pelton R. — Yea
President — Nay
Adrienne Benavidez — Nay
Cathy Kipp Democrat Nay
Chris Kolker Democrat Yea
Dylan Roberts Democrat Nay
Iman Jodeh Democrat Nay
James Coleman Democrat Nay
Janice Marchman Democrat Nay
Jeff Bridges Democrat Nay
Jessie Danielson Democrat Not Voting
Judy Amabile Democrat Nay
Katie Wallace Democrat Nay
Kyle Mullica Democrat Nay
Lindsey Daugherty Democrat Nay
Lisa Cutter Democrat Nay
Marc Snyder Democrat Nay
Matt Ball Democrat Nay
Mike Weissman Democrat Nay
Nick Hinrichsen Democrat Nay
Robert Rodriguez Democrat Nay
Tom Sullivan Democrat Nay
Tony Exum Democrat Not Voting
William Lindstedt Democrat Nay
Barbara Kirkmeyer Republican Yea
Cleave Simpson Republican Yea
Janice Rich Republican Yea
John Carson Republican Yea
Larry Liston Republican Yea
Lisa Frizell Republican Yea
Lynda Zamora Wilson Republican Yea
Marc Catlin Republican Yea
Mark Baisley Republican Yea
Scott Bright Republican Yea

Official roll call →

Refer Senate Bill 26-135, as amended, to the Committee on Appropriations.

Passed 6 Yea · 3 Nay
Party YeaNayPresentNot Voting
Republican 0300
Democrat 6000
Total 6300
% of votes cast 67%33%0%0%
How each member voted (9)
Member Party Vote
Cathy Kipp Democrat Yea
Chris Kolker Democrat Yea
Janice Marchman Democrat Yea
Julie Gonzales Democrat Yea
Kyle Mullica Democrat Yea
Marc Snyder Democrat Yea
Cleave Simpson Republican Nay
Lisa Frizell Republican Nay
Scott Bright Republican Nay

Official roll call →

Subjects

taxation education
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 135 do?
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; andHow 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.)
Who sponsors SB 135?
SB 135 is sponsored by Adrienne Benavidez, T. Story, K. Stewart, M. Rutinel, N. Ricks, J. McCluskie, T. Mauro, J. Jackson, L. Gilchrist, M. Froelich, C. Espenoza, R. English, C. Clifford, J. Willford, E. Velasco, B. Titone, R. Stewart, L. Smith, G. Rydin, J. Phillips, A. Paschal, K. Nguyen, K. McCormick, M. Martinez, M. Lindsay, S. Lieder, J. Joseph, E. Hamrick, L. Goldstein, M. Duran, M. Carter, S. Camacho, A. Boesenecker, M. Lukens, J. Bacon, Lisa Cutter (Democrat), Jessie Danielson (Democrat), Tony Exum (Democrat), Julie Gonzales (Democrat), Nick Hinrichsen (Democrat), Iman Jodeh (Democrat), Chris Kolker (Democrat), Janice Marchman (Democrat), Robert Rodriguez (Democrat), Marc Snyder (Democrat), Tom Sullivan (Democrat), Mike Weissman (Democrat), Katie Wallace (Democrat), Jeff Bridges (Democrat), Cathy Kipp (Democrat), Judy Amabile (Democrat), Lindsey Daugherty (Democrat), William Lindstedt (Democrat), James Coleman (Democrat), and Kyle Mullica (Democrat).
What is the current status of SB 135?
This bill has been enacted into law. Introduced March 05, 2026. Enacted.
Where can I track SB 135?
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