The Colorado General Assembly referred a state statute to the Nov. 3, 2026, ballot that would allow the state to retain and spend revenue collected above constitutional limits to fund K-12 education programs and operating costs. Legislators passed the statute on May 12, 2026.
Senate Bill 135
Introduced as Senate Bill 135 (SB 135) on March 5, 2026, the measure would allow the state to retain excess tax revenue equal to its fiscal year spending on public K-12 education, thereby effectively increasing the cap set by the Colorado Taxpayers' Bill of Rights (TABOR). SB 135 would also dedicate at least half of the total surplus, in addition to 2% of the state's K-12 education expenditures for that fiscal year, to K-12 schools. The remaining surplus funds would be allocated to a children's account in the general fund, which can be used for programs "that prepare children to be successful in school," such as full-day preschool and child care.
The bill initially passed the Colorado State Senate by a 23-12 vote on April 27, 2026, with 23 Democrats voting in favor and 12 Republicans voting against it. The Colorado House of Representatives approved an amended version of SB 135 by a vote of 42-21 on May 9, 2026, thereby sending it back to the state Senate for final approval, with 42 Democrats voting in support and one Democrat and 20 Republicans voting against it. The state Senate approved the amended version of SB 135 on May 12, 2026, by a vote of 23-12, with 23 Democrats voting in support and 12 Republicans voting against it.
Speaking in support of SB 135, state Sen. Jeff Bridges (D-26), one of the bill's sponsors, said it "guarantees that K-12 is the primary beneficiary of this" and that it "[has] the potential to be one of the most transformative measures for K-12 funding." Ken Vick, president of the Colorado Education Association, which is a union supporting SB 135, stated that it "[gives] voters the opportunity to decide whether Colorado should invest the revenue it already collects in public education without raising taxes or asking Coloradans to pay a dollar more.”
Speaking against SB 135, state Rep. Rebecca Keltie (R-16) said, "[SB 135 is a] multi-billion dollar spending spree built on assumptions, continuous failed budgeting, and blind faith in those that have shown time and time again that they cannot handle money of any amount.”
What is TABOR?
The Colorado Taxpayer's Bill of Rights (TABOR) is a provision of the Colorado state constitution that limits the growth of state and local government revenue and requires voter approval for certain tax and revenue changes, including:
- requiring state and local governments to receive voter approval before adopting new taxes, increasing tax rates, renewing expiring taxes, or making tax changes that produce a net increase in revenue;
- limiting annual increase in state and local government spending and tax revenue based on inflation and growth, with excess revenue refunded unless voters approve otherwise; and
- allowing local governments to reduce or eliminate funding for state-mandated programs, except those related to public education or federal requirements.
In 2025, Colorado voters decided on a ballot measure related to revenue allocation from excess taxes and TABOR. The measure — Proposition LL — allowed the state to retain excess revenue and interest from state income tax deductions for taxpayers earning $300,000 or more, to fund the state's Healthy School Meals for All Program, which reimburses public schools for providing free breakfast and lunch to students. Proposition LL was approved by voters, with 66.2% voting in favor.
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