Colorado voters approve Proposition NN, sending TABOR refunds to schools, according to Associated Press

Colorado voters approved Proposition NN in November's general election, according to the Associated Press. Proposition NN would eliminate refunds under the Taxpayer's Bill of Rights, or TABOR, for the foreseeable future and allow the state to keep and spend billions of dollars more each year.

TABOR limits state spending to the growth of inflation plus population. This year, spending is capped at about $20 billion. Next year, it's expected to climb to $21 billion.

Proposition NN would raise the spending cap by another $4.6 billion in the first year alone. Any money above the current cap must be refunded to taxpayers.

Since the measure passed, lawmakers could keep all money up to the new Proposition NN cap, which would reach about $25 billion next year. Initially, lawmakers would be limited in how they could spend the money.

For 10 years, the first $200 million would go to reimburse local governments for property tax breaks for seniors.

Half of what's left would go to K-12 education. Schools would receive at least a 2% increase in funding. The other half would go to children's programs to be determined by state lawmakers.

Analysts say schools would receive about $241 million next year if the ballot measure passes — money that otherwise would be refunded to taxpayers.

Schools would have to spend the money on teacher pay and retention, smaller class sizes, career and technical education, or a combination of the three. They would also have to post online how the money was spent.

After 10 years, schools would still receive a 2% increase, but state lawmakers could spend the rest of the money however they want.

The biggest proponent of Proposition NN is the Colorado Education Association, the state's largest teachers' union. It says the TABOR spending cap has resulted in Colorado underfunding schools, even when the state has plenty of tax revenue.

Opponents say there's no guarantee teacher pay will increase, noting that it's just one of the spending options available to school districts. They say Colorado needs to prioritize the money it already has.

Proposition NN is statutory, so it needed a simple majority to pass and, once it becomes law, could be amended by the State Legislature.