In its simplest form, on Colorado’s November ballot asks voters a straightforward question: Do you value state education or your TABOR refunds more?
The measure, which was referred to the ballot by the state legislature, is complex in how it would work but essentially would exempt education spending from the cap set by the Taxpayer’s Bill of Rights, or TABOR, which has limited the growth of state government. In effect, it would allow the state to keep and spend some $500 million next year that would otherwise be refunded to taxpayers, according to nonpartisan analysts.
Proposition NN has many more provisions about how the extra money could be spent, and it’s also fueled concerns from opponents about its consequences.
Because it would change state law, rather than amending the constitution, Prop NN needs only a simple majority to pass.
What would Prop NN do if passed?
If passed, Proposition NN would exempt state education spending from the TABOR cap, freeing up potentially billions of dollars to be used for specific purposes.
TABOR now limits state spending increases to a formula based on population growth and inflation. This measure would have the effect of letting the state keep money that would otherwise be returned to taxpayers.
Under NN, an estimated $241.5 million more would go to K-12 education this fiscal year, which runs through June 30, and the same amount would also go to programs that support children, such as childcare and full-day preschool. It would also zero out projected taxpayer refunds under the six-tier system of sending money back based on their income levels.
NN would continue in perpetuity. Analysts expect the state budget would be well below the new higher limit for the next several years. State revenue collections may again catch up to the new limit, but it’s unlikely for at least the next five to 10 years.
How would the state use the extra money?
Proposition NN would create a new “children’s account” in the state budget, and it would lay out requirements for how the retained money must be spent for the first decade of its existence.
The account’s primary purpose would be to increase teacher pay, hire more teachers to reduce classroom sizes, and increase the number of career and technical courses available to students. The state would be required to spend $110 million on those purposes in the first year and $220 million in the second year. That amount would increase annually — and could grow to be as much as $2 billion.
The state would distribute the money directly to school districts and charter schools, which would then decide how best to spend the money. They would be required to make online data available showing how that money was spent.
Prop NN would require money collected above its baseline to go to other school services, disability services and increased instructional hours. After a decade, the state legislature would have more leeway in how the extra money is spent, though NN would still require flat increases in K-12 education each year.
While focused on education, the proposal also comes as the state is grappling with ongoing budget woes. For a third year, lawmakers are looking at a $1 billion-plus budget shortfall as they grapple with rocketing costs, primarily in Medicaid. Medicaid is the health insurance for low-income Coloradans. Rising costs in one area of government can eat into spending in other areas as officials try to minimize disruption to services.
TABOR’s rules can exacerbate those budget constraints. For more than a decade, the state relied on a so-called “negative factor” for education — where the state spent less than constitutionally mandated — to balance its books. It only broke through that negative factor in 2024.
Even so, a pair of studies commissioned by lawmakers and released in 2025 showed the state was still billions of dollars short of funding education at an “adequate” level. Proposition NN would help dedicate more money for education, despite ongoing budget problems elsewhere.
What about TABOR refunds?
Some of the money the state could keep under NN would still be earmarked for property tax exemptions for seniors, disabled veterans and spouses of veterans who died from their military service, a common TABOR refund mechanism.
But money that would otherwise be returned to taxpayers through the state’s refund system, which distributes amounts based on income levels, won’t go out.
Without Prop NN, that refund includes projections of $21 for single filers with incomes of $50,000 or less and up to $65 for taxpayers with incomes of $500,000 or more.
The refunds may return if state revenues grow faster than the new Prop NN cap. That would be years in the future, however, and beyond current forecasts. That scenario does become more likely as time goes on, according to analysts.
What do supporters say?
Proponents of NN point out that the cost to educate students has long outpaced the growth in spending allowed by TABOR, resulting in Colorado schools being $3.5 billion short of adequate funding, according to a study commissioned by the state.
Prop NN would help eat into that shortfall by allowing the state to steer money it already collects directly into classrooms and toward experienced teachers, expanded class options and student support. Further, supporters say, it would help parents cope with the rising cost of childcare and help with access to universal preschool — all with accountability measures to ensure the legislature follows voters’ intent.
What do opponents say?
Proposition NN would take away any chance of tax refunds for the next decade — effectively serving as a tax increase, opponents say, since it would keep money out of taxpayers’ pockets. The ballot measure would also lock in billions of dollars for public education, on top of recent increases in school funding — even as enrollment declines.
Opponents say the government can’t be trusted with that influx of money if it hasn’t demonstrated it has already tried every other way to reduce wasteful spending, eliminate redundant programs and improve efficiency.
