C.R.S. § 24-77-302: Retention of excess state revenues - children's account - definitions.

(1) For state fiscal years commencing on or after July 1, 2026, the state may retain and spend state revenues that the state otherwise would have been required to refund under section 20 (7)(d) of article X of the state constitution in an amount equal to the state public education funding for the state fiscal year.

(2) (a) There is hereby created in the general fund the children's account, which consists of:

(I) For state fiscal year 2026-27, an amount of money equal to the amount that the state retains for state fiscal year 2026-27 pursuant to subsection (1) of this section; and

(II) For state fiscal years commencing on or after July 1, 2027, an amount of money equal to the amount that the state retains for the state fiscal year pursuant to subsection (1) of this section minus an amount equal to the total dollar amount of warrants issued by the state treasurer pursuant to section 39-3-207 (4) in the same state fiscal year.

(b) For each state fiscal year beginning on or after July 1, 2026, but before July 1, 2036, the general assembly:

(I) Shall transfer or appropriate to the department of education an amount equal to the two percent K-12 public education increase for the state fiscal year and the department of education shall distribute that amount in accordance with section 22-54-103.7;

(II) Shall appropriate or transfer an amount for investment in K-12 public education, to be used for school services, disability services to students with disabilities, and increasing annual contact hours, equal to the amount, if any, by which one half of the amount credited to the account for the state fiscal year exceeds the amount appropriated or transferred pursuant to subsection (2)(b)(I) of this section for the state fiscal year; and

(III) After making the appropriations or transfers required by subsections (2)(b)(I) and (2)(b)(II) of this section for the state fiscal year, shall appropriate or transfer the remaining money in the account to programs that support Colorado's children, prioritizing child care, full-day preschool, and other programs that prepare children to be successful in school.

(3) The approval of the ballot measure including this section by a majority of the electors voting on the ballot measure constitutes a voter-approved revenue change to allow the retention and expenditure of the additional state revenues that the state is authorized to retain and spend pursuant to subsection (1) of this section.

(4) This section does not affect the amount that the state is permitted to retain and spend under the excess state revenues cap, as defined in section 24-77-103.6 (6)(b)(I).

(5) The money that the general assembly appropriates or transfers pursuant to subsection (2)(b)(I) of this section shall supplement and not supplant total program, as defined in section 22-55-102 (18).