Bloomberg, Colorado Voters Will Consider Higher Tax Caps to Fund Education:
Colorado voters will be asked to decide whether the state should break through constitutionally required caps on the use of tax revenue in a bid to provide more funding for education.
Lawmakers approved a measure (SB26-135) that will set a referendum allowing voters to determine whether the state should have authority to retain and spend tax revenue beyond limits established under the Taxpayer Bill of Rights, also known as TABOR. If approved in November, the state could also boost its support for K-12 education by up to 2% annually for 10 years.
The bill was fully enacted Monday, without the endorsement of Gov. Jared Polis (D). A spokesperson for the House Democratic caucus said legislation referring ballot measures, without other legislative features, doesn’t require gubernatorial approval.
The measure passed the state Senate 23-12 on May 12. The House May 9 approved the bill 42-21.
TABOR was added to the Colorado Constitution in 1992 and generally requires voters to approve most tax increases. TABOR also imposes caps on state spending and specifies tax revenue collected beyond certain limits must be refunded to taxpayers—a structure that has frustrated some policymakers and constituent groups demanding dollars to expand state services.
“Colorado Democrats have worked tirelessly to increase funding to our K-12 schools, but TABOR forces us to ration spending on core priorities,” House Assistant Majority Leader Jennifer Bacon (D) said in a statement. “This bill allows Coloradans to weigh in and decide if they want to drive more funding to their local schools.”
The bill enjoyed support from teachers unions and education groups, including the Colorado Education Association and the Colorado Rural Schools Alliance.
“For decades, Colorado’s outdated revenue cap has prevented our state from fully investing in the kids and classrooms that make our communities strong,” Education Association President Kevin Vick said.
Previous ballot initiatives attacking TABOR limits have failed.
Voters in 2019 rejected Proposition CC, which sought flexibility to retain revenue for additional spending on education and transportation. And in 2023, they voted down Proposition HH, which sought TABOR refund dollars to blunt rising property taxes.
