2026 Voter Guide: This article is part of Johnstown Republic’s guide to the Nov. 3 ballot.
Colorado voters will decide Proposition NN, a legislatively referred measure that would allow the state to keep more revenue that would otherwise be returned to taxpayers through TABOR refunds and direct the money primarily toward K-12 education and programs serving children.
The measure would not change tax rates, but it could reduce or eliminate TABOR refunds in years when state revenue exceeds the existing constitutional limit. Proposition NN requires a simple majority to pass, according to the official 2026 Colorado Blue Book.
What would Proposition NN do?
Colorado’s Taxpayer’s Bill of Rights, or TABOR, limits how much revenue the state may keep and spend each year. Revenue collected above that limit generally must be returned to taxpayers unless voters authorize the state to retain it.
Proposition NN would create a higher revenue limit that continues indefinitely. The amount the state could retain would be tied to state spending on K-12 public education.
The measure would also increase state investment in K-12 education by 2% each year for 10 years, provided enough revenue is available. That additional school funding would be used for teacher pay and retention, smaller class sizes, and greater access to career and technical education.
In the first year, the new limit would technically allow Colorado to retain as much as $4.6 billion above the existing TABOR limit. However, the Blue Book estimates the state would actually retain about $500 million, because that is approximately how much revenue is currently expected to exceed the existing limit.
Any revenue collected above the new Proposition NN limit would still have to be refunded to taxpayers.
How would the money be spent?
Revenue retained under Proposition NN would first reimburse local governments for property-tax revenue lost through existing exemptions for qualifying seniors, veterans with disabilities and Gold Star surviving spouses.
Remaining money would go into a new Children’s Account.
For the first 10 years, money in that account would first support:
- Increased teacher pay and teacher retention;
- Smaller class sizes; and
- Greater access to career and technical education.
If that spending accounts for less than half of the Children’s Account, additional money would have to go toward disability services, other school services and increased instructional hours until at least half of the account is used for K-12 education.
Any money remaining during those first 10 years would support programs for children, with priority given to full-day preschool, child care and other programs intended to help children succeed in school.
After 10 years, a set amount would continue going toward teacher pay and retention, smaller class sizes, and career and technical education. Any remaining money in the account could then be used for other purposes determined by the General Assembly.
The measure also requires an annual independent audit, made available to the public, showing how the new education funding is spent.
What does a YES vote mean?
A YES vote would allow Colorado to keep some or all revenue that otherwise would be returned to taxpayers under the existing TABOR limit.
The retained revenue would be spent according to Proposition NN’s requirements, including increased K-12 funding and programs supporting children during the first 10 years.
What does a NO vote mean?
A NO vote would keep the current TABOR revenue limit and existing K-12 funding requirements in place.
Revenue collected above the existing limit would continue to be returned to taxpayers through TABOR refund mechanisms under current law.
What would it cost taxpayers?
Proposition NN would not increase tax rates. Its direct effect on taxpayers would come through smaller or eliminated TABOR refunds when the state collects enough revenue above the existing limit.
The official fiscal analysis estimates the measure would reduce taxpayer refunds by $329.9 million in budget year 2026-27 and $521 million in 2027-28.
Under current revenue forecasts, Proposition NN would eliminate TABOR refunds entirely in those two budget years.
For example, the Blue Book estimates that under current law a single filer with $100,000 in adjusted gross income would receive a $28 TABOR refund in 2027 and $68 in 2028. Under Proposition NN, those estimated refunds would be $0.
Future effects could vary significantly. In years when state revenue remains below the existing TABOR limit, Proposition NN would have no effect on refunds. In years with larger revenue surpluses, the reduction could be substantially greater.
State spending is expected to increase by a net $329.9 million in 2026-27 and $521 million in 2027-28, with the amount varying in future years.
Arguments for and against
Supporters argue that Proposition NN would direct revenue Colorado already collects toward teacher pay, smaller class sizes, career and technical education, child care and preschool without increasing tax rates. They also point to the measure’s spending requirements and annual independent audit as accountability measures.
Opponents argue that allowing the state to retain money that otherwise would be returned through TABOR refunds effectively increases the amount taxpayers pay to government. They also argue that school funding has already increased and that the state should look for efficiencies in existing spending before permanently increasing the revenue limit.
Those arguments are summarized from the official Colorado Blue Book analysis.
What does this mean for Johnstown?
Proposition NN would apply statewide, including to taxpayers and public schools in the Johnstown area.
Weld RE-5J and other school districts serving Johnstown could receive additional state funding. Funding for teacher pay and retention, class sizes, and career and technical education would be distributed to school districts based on their share of statewide school-finance funding.
For individual taxpayers, the most immediate effect would be a potential reduction or elimination of TABOR refunds rather than an increase in tax rates.
What if Proposition 137 also passes?
Colorado voters will also consider Proposition 137, which would redirect certain state sales-tax revenue from sporting goods toward conservation, wildfire prevention and related purposes.
Proposition 137 would not change the higher revenue limit created by Proposition NN. However, because it would reduce the amount of revenue counted toward the TABOR limit, the Blue Book says it could reduce or potentially eliminate the amount of money actually retained and spent under Proposition NN.
Official information
The complete ballot analysis, fiscal information and measure text are available through the Colorado General Assembly’s official Proposition NN page.