Proposition NN Asks Grand Valley Voters to Shift Tax Refunds to School Funding

Coloradans will vote in November on Proposition NN, a ballot measure proposing to redirect state tax refunds to improve K-12 education funding. The measure, referred to the ballot by Democrats through Senate Bill 26-135, asks voters whether the state can retain and spend up to $4.6 billion more in tax money annually than the existing Taxpayer’s Bill of Rights (TABOR) cap allows.

Over the next decade, revenue from Proposition NN would increase state K-12 education funding by 2% annually. Proponents say this will allow school districts to raise teacher salaries, reduce class sizes, and expand career and technical education programs. The campaign supporting Proposition NN, Yes for Colorado Kids, projects the measure could increase state K-12 funding by up to 50% over ten years, citing years of “chronic underfunding” for public schools. After ten years, however, specific restrictions for education funding would phase out, leading opponents to argue it leaves a “blank check” for lawmakers.

TABOR, approved by voters in 1992, limits the amount of money lawmakers can spend each year based on population growth plus inflation. Proposition NN would permanently raise the state’s spending limit under TABOR, thereby reducing or eliminating tax refunds for Coloradans. A fiscal impact statement released by the Colorado Legislative Council Staff in September estimates Proposition NN would reduce TABOR refunds by $329.9 million in fiscal year 2026-27 and $521 million in FY 2027-28. For a single filer earning $100,000, this would mean a refund reduction of $28 in 2027 and $68 in 2028. Joint filers could see reductions of $56 in 2027 and $96 in 2028.

Supporters of Proposition NN argue the TABOR cap has hindered the state’s ability to adequately fund education. Colorado Education Association President Kevin Vick stated the current funding inadequacy means the state “simply cannot keep educators” due to poor pay, benefit erosion, and staffing shortages. Vick noted Proposition NN includes transparency requirements, compelling the state government and individual school districts to publish how they spend retained funds each fiscal year, which he believes will win over voters. He also added that improving student learning depends on stable teams of educators.

Data published by the Colorado Education Association ranks Colorado 50th in the nation for teacher pay competitiveness and retention. A 2024 study commissioned by the Colorado Department of Education found a gap of $4,600 per student between the funding needed for an “adequate education” and existing spending levels, estimating Colorado schools are underfunded by $4.1 billion annually.

Educator Michael Agostinho, president of the Eagle County Education Association, described how his district has cut full-time positions and implemented a pay freeze due to declining enrollment and budget constraints. This has led to the loss of mental health resources, interventionists, and specialist educators like music teachers, with Agostinho observing that “kids are struggling.”

Opponents, however, contend Proposition NN bypasses the voter protections central to TABOR. Kristi Burton Brown, executive vice president for the Advance Colorado Institute and a Colorado State Board of Education board member, asserted the measure “directly attacks the Taxpayer Bill of Rights.” She believes it would permanently take taxpayer refunds, amounting to $4.6 billion a year, and give them to the state government. Burton Brown cited that voters have rejected three other ballot measures in the last seven years that sought to retain more revenue under or above the TABOR cap, including one for public and higher education.

Advance Colorado Institute members argue the government should be more responsible with existing funds rather than asking for more from working families. Penn Pfiffner, chair of The TABOR Committee, countered claims of “starving education” in Colorado as “fallacious.” Other groups opposing Proposition NN question the effectiveness of increased spending, noting that middle school literacy scores and some grade-level cohorts still lag behind pre-pandemic benchmarks. Burton Brown also pointed out that while Colorado education funding has recently increased, achievement scores remain similar, suggesting issues with the formula for money allocated to classrooms versus administration.

Data from the National Center for Education Statistics for the 2022-23 school year shows Colorado allocated 53% of its K-12 expenditures to instruction, which is 6 percentage points below the national average of 59%. The state also spent a larger portion of its budget on administration expenses in 2022-23, about 11% compared to the national average of 8%. The U.S. Census Bureau’s 2024 survey ranked Colorado 27th nationally for public education spending per pupil, roughly $1,700 below the national average, though it also ranks among the lowest states for federal funding received per student.