Colorado Democrats are rolling out a high-stakes ballot plan that would let the state hang on to money normally returned to taxpayers under TABOR and pour it into public K-12 schools for the next decade. Sponsors insist it would boost teacher pay and classroom resources without raising taxes, while Republicans are already treating it like a raid on refund checks.
The proposal, filed as SB26-135, would allow the state to retain an amount equal to total K-12 spending and set up a “positive factor” that could increase school funding by up to 2% annually for ten years, according to the bill text at the Colorado General Assembly. The measure would create an excess-revenue account and restrict positive-factor dollars to specific uses such as teacher pay, retention, class-size reduction and career-technical courses. It also orders the state auditor to publish annual reports breaking down exactly how the retained revenue is spent.
Backers say they are not proposing a tax hike but a reshuffling of money that is already being collected, shrinking TABOR refunds and freeing roughly $200 million a year for classrooms, or about $2 billion over ten years, according to Chalkbeat. The amount the state could keep would be tied to K-12 spending, which is expected to reach roughly $4.7 billion in general funds in 2025-26. Supporters, led at the unveiling by Colorado Education Association President Kevin Vick, say the money would go directly into teacher pay, counselors and other classroom needs, as reported by the Denver Gazette.
Critics and history
Republicans and conservative advocates are blasting the idea as an “end-run” around the Taxpayer’s Bill of Rights, arguing that it snatches refunds from taxpayers instead of tackling the state’s long-term spending habits. “This is just another example of misplaced priorities at the Capitol,” Sen. Barbara Kirkmeyer said, while Jon Caldara of the Independence Institute accused supporters of “hiding behind children” to raise taxes, comments reported by the Denver Gazette.
Opponents are also leaning on recent history. A 2025 report from the Legislative Council Staff found that Referendum C’s five-year “timeout” from TABOR limits effectively lasted only about three years once the Great Recession hit, a cautionary tale for anyone betting on long-range revenue projections.
What happens next
SB26-135 was introduced on March 5 and assigned to the Senate Finance Committee. If the legislature signs off on the referral, the secretary of state would place the measure on the November 2026 statewide ballot, according to Chalkbeat. The debate lands as lawmakers stare down roughly an $850 million general-fund shortfall for 2026-27, a squeeze that supporters say leaves the state unable to afford full TABOR refunds and that critics say should trigger tighter budgeting instead of smaller checks.
If voters approve, the measure would redirect billions of dollars to K-12 schools over the coming decade and fundamentally change how Coloradans experience their TABOR refunds. Expect a long, loud campaign through the summer and fall as unions, school advocates and conservative groups all try to convince voters what matters more: bigger refund checks or fatter school budgets.
