On Nov. 3, Colorado voters will choose whether or not to increase funding for K-12 public schools through a change to the way the state handles its surplus tax income.
Proposition NN would allow Colorado to retain and spend additional tax revenue that otherwise would be subject to refund requirements under Colorado’s Taxpayer’s Bill of Rights. While the measure does not raise state taxes for voters, it would lower TABOR refund amounts for Colorado taxpayers. The measure was legislatively referred by Senate Bill 26-135, meaning the Colorado Legislature voted to place it on the ballot, as any changes to TABOR refunds require voter approval in Colorado.
The passage of the measure would create a new funding stream called the “positive factor,” providing an additional amount of funding equal to 2% of the prior year’s funding under Colorado’s school finance formula, which Colorado uses to calculate each district’s yearly funding with regular adjustments. Notably, the measure would only take effect for the next 10 years.
After the additional revenue created by Prop NN is retained, it would be deposited into a “Children’s Account” to then be distributed by the legislature among school districts proportionally based on their current share of the statewide school finance formula. The positive factor distribution for Larimer County schools in fiscal year 2026-27 is estimated in SB 26-135’s fiscal note.
- Poudre School District: $3,659,541
- Estes Park School District: $124,355
- Thompson School District: $1,659,436
Proponents for the measure, including the Yes on NN For Colorado Kids campaign, argue Prop NN will give Colorado schools the “resources they need to make sure Colorado students can succeed” after TABOR and past legislative actions have shorted Colorado schools by billions of dollars.
“The state’s TABOR revenue cap, first set in 1992, is holding Colorado back from investing needed resources into classrooms — even when it has already collected the tax revenue to do so,” the campaign’s website reads. “Meanwhile, the state’s population, economy and student needs continue to grow, leaving our schools unable to keep up.”
According to the Colorado Education Association, Colorado ranked 21st in the nation for per-pupil funding in 2024, 46th for starting teacher salary and last in the nation for teacher wage competitiveness when compared to their similarly educated peers in other industries.
Opponents of the measure argue the changes Prop NN would make to TABOR are fiscally irresponsible, and additional funding for public schools should be found by “cutting and limiting growth in state programs,” according to Chalkbeat Colorado. Your Family’s Future Alliance, a political issue committee, argues the measure bypasses voter protections.
“TABOR exists precisely to prevent the legislature from taking more of your money without your consent,” the committee’s website reads. “Proposition NN is an end-run around that protection — asking voters to permanently waive their own rights.”
YFFA also argues the money the legislature would receive as a result would expand the state budget with no accountability to monitor spending.
“The money redirected by Prop NN doesn’t disappear — it flows directly into expanded state spending programs with no sunset, no accountability mechanism and no path back to taxpayers,” the committee’s website reads.
According to SB 26-135, Prop NN would require an annual public, independent audit to show how funding is spent.
The additional funding Prop NN would create for K-12 education is intended to specifically address staffing and instructional capacity, requiring districts to only use the funding generated by the positive factor for increasing teacher pay, improving teacher retention, lowering class sizes and increasing access to career and technical education.
Kelsie Burnett, an assistant professor of elementary education in the Colorado State University School of Education, who previously worked as a third-grade teacher, said increasing teacher pay is crucial to improving retention.
“There are teacher shortages in many states around the country and those shortages are linked to the fact that the demands of the profession seem to be increasing and the pay is not,” Burnett said. “If you have quality people, you need to keep them, and pay is the best way to do that.”
Burnett also said smaller class sizes have enabled her to connect with students on a deeper level.
“I’ve taught 19 kids, and I’ve taught 30 kids,” Burnett said. “The reality is, when I had 19 kids, I was able to conference with every student more. I was able to connect with parents more.”
Under Prop. NN, any additional funding remaining after allocating the initial positive factor funding would be allocated to childcare, full-day preschool and other programs that support children. Burnett emphasized access to these services are another significant element of a child’s experience in public education.
“Schools are also so much more than just lessons and teaching,” Burnett said. “There are a lot of social resources that schools offer students and special ed resources and resources for multilingual students, and (other) things that we really take for granted. Unfortunately, some of the most memorable parts of school that we all think about from when we were in elementary school are the first things to get cut when the budget is the issue.”
Reach Claire VanDeventer at news@collegian.com or on social media @RMCollegian.
