Overview
- Voters approved Proposition NN on Tuesday, Nov. 3, and the Associated Press confirmed the measure will lift TABOR’s automatic refunds when revenue exceeds the state cap.
- The change takes effect in the 2026–27 budget year with analysts estimating about $500 million retained in year one and up to $4.6 billion over 10 years.
- For the first decade the law requires the first $200 million be used to reimburse local governments for senior property tax breaks, then splits remaining new revenue roughly half to K–12 education and half to children’s programs.
- Schools are guaranteed at least a 2% annual funding increase and must post how they spend the money, with options that include teacher pay, smaller classes, and career and technical education.
- The measure was backed by a coalition of more than 70 education and advocacy groups and opposed by conservative TABOR groups, and because it is statutory rather than constitutional the state legislature can amend its provisions going forward.