Colorado Voters Approve Proposition NN to Redirect Revenue to K-12 Schools

Colorado Voters Approve Proposition NN to Redirect Revenue to K-12 Schools

by

Colorado voters have approved Proposition NN, a ballot measure that will redirect billions of dollars in state revenue from taxpayer refunds to K-12 education, CBS News reported.

The decision, which passed with 55% of the vote, fundamentally reshapes how Colorado manages its tax revenue under the Taxpayer’s Bill of Rights, or TABOR. For years, the state has been legally required to refund excess tax collections back to residents. Proposition NN ends that practice, allowing the state to keep an estimated $4.6 billion more each year above the spending cap.

A New Funding Stream for Schools

The immediate impact will be a significant boost for Colorado’s public schools. The retained revenue will be directed into a new, dedicated funding stream. For the next decade, the first $200 million annually will go to reimbursing local governments for property tax breaks for seniors. Half of the remaining funds will be earmarked for K-12 education, guaranteeing schools at least a 2% annual increase in funding.

According to a fiscal impact statement from the Colorado Legislative Council Staff, Proposition NN is expected to reduce TABOR refunds by $329.9 million in fiscal year 2026-27 and $521 million in 2027-28. For schools, that translates to an estimated $241 million next year alone—money that would have otherwise gone back to taxpayers. The fiscal impact statement details these figures, which were central to the debate over the measure.

School districts will have strict guidelines on how to use this new money. The funds must be spent on teacher pay and retention, smaller class sizes, or career and technical education. They will also be required to post online how the money was spent, ensuring a level of public accountability.

Colorado Voters Approve Proposition NN to Redirect Revenue to K-12 Schools
Photo: summitdaily.com

“We’re excited because we know it’s going to pass. It is in safe territory, and that is due to you. We feel optimistic that Colorado voters have listened to educators and chosen to invest in our kids’ futures.”

Kevin Vick, President of the Colorado Education Association

The Push for Change and the Backlash

The campaign for Proposition NN was led by the Colorado Education Association, the state’s largest teachers’ union. The union argued that TABOR’s strict spending limits had systematically underfunded schools, even as Colorado’s economy and population grew. They framed the measure as a necessary investment to address a long-standing crisis in teacher compensation and classroom resources.

The Yes for Colorado Kids campaign supporting the measure spent around $9.56 million to promote its passage. Their success marks the first time in seven years that a ballot measure allowing the state to retain more revenue under TABOR has been approved by voters. Three previous attempts, including one aimed at increasing funding for both K-12 and higher education, were rejected.

What Proposition NN means for Colorado schools and taxpayers

Opponents, however, raised serious concerns about the measure’s long-term implications. They argue that the specific restrictions for education spending phase out after 10 years, leaving behind what they call a “blank check” for state lawmakers. They contend there is no guarantee that teacher pay will increase, noting it is just one of several spending options available to districts. Opponents also maintained that Colorado needed to better prioritize the money it already has before seeking more.

The financial stakes were high on both sides. Opponents, part of a coalition of multi-issue committees, spent more than $13.2 million opposing various tax-related measures on this year’s ballot, according to the Colorado Secretary of State.

Colorado voters approve Proposition NN, sending TABOR refunds to schools, according to Associated Pr

What It Means for Taxpayers

For the average Colorado taxpayer, the change means smaller annual refunds. The fiscal impact statement provides a concrete example: a single filer making $100,000 would see their refund reduced by $28 in 2027 and $68 in 2028. For a joint filer at the same income, the reduction would be $56 in 2027 and $96 in 2028.

The legislative leaders who championed the measure see the trade-off as a clear win for the state’s future.

“For years, Colorado teachers and schools have been asked to do more with less. Voters agreed that school funding should grow alongside Colorado’s economy. … We applaud our teachers, education advocates and community members who worked tirelessly to get Proposition NN across the finish line. Coloradans stepped up to support teachers and students, and we couldn’t be more proud.”

Rep. Meghan Lukens and Assistant Majority Leader Jennifer Bacon in a joint statement

After the 10-year period, schools would still receive the mandated 2% increase, but state lawmakers would gain the authority to spend the rest of the retained revenue as they see fit. The passage of Proposition NN represents a pivotal moment in Colorado’s fiscal and educational policy, setting a new course for the state for the foreseeable future.

More on this

Read next