Colo. Rev. Stat. § 22-55-102, Definitions

As used in this article 55, unless the context otherwise requires:

(1) Accountability reporting means any requirement established in law that mandates school districts to report or provide information relative to school improvement to the state board or the department, including, but not limited to:

(a) Data collection and reporting requirements that are required pursuant to part 5 of article 11 of this title in connection with school performance reports;

(b) Reporting requirements in connection with the administration of state assessments pursuant to section 22-7-1006.3; or

(2) (a) Accountable education reform means any program or plan for reforming preschool through twelfth-grade education in the state that complies with accountability standards imposed by law on school districts in the state, including, but not limited to, the requirements set forth in:

(I) Part 5 of article 11 of this title relating to school performance reports; and

(II) Part 10 of article 7 of this title.

(b) Accountable education reform includes any program or plan for improving teacher quality.

(c) Accountable education reform includes any program for improving student academic achievement that conforms with the requirements of federal programs related to student achievement.

(3) Accountable programs to meet state academic standards include, but are not limited to, programs designed to assist students in demonstrating improved academic achievement on state assessments administered pursuant to section 22-7-1006.3. Accountable programs to meet state academic standards include, but are not limited to, programs:

(a) For the purchase of additional or improved textbooks;

(b) To provide incentives to increase parental involvement;

(d) To provide assistance with English language proficiency beyond what is currently provided pursuant to the English language proficiency program established pursuant to section 22-24-104.

(4) Categorical programs includes only the following programs:

(a) Public school transportation as described in article 51 of this title;

(b) The English language proficiency program created in section 22-24-104;

(d) Special education programs for children with disabilities as described in article 20 of this title;

(e) Special education programs for gifted children as described in article 20 of this title;

(f) The grant program for in-school or in-home suspension described in article 37 of this title;

(g) Career and technical education as described in part 1 of article 8 of title 23;

(h) Small attendance centers for which state aid is available pursuant to section 22-54-122;

(i) The comprehensive health education program created in section 22-25-104; and

(j) Other current and future accountable programs specifically identified in statute as a categorical program.

(5) Department means the department of education created and existing pursuant to section 24-1-115, C.R.S.

(6) Federal taxable income, as modified by law means federal taxable income as modified by sections 39-22-104, 39-22-304, 39-22-509, and 39-22-518, and as apportioned and allocated under section 39-22-303.5, 39-22-303.6, or 39-22-303.7 to the extent federal taxable income is not being modified to effectuate a refund of excess state revenues required pursuant to section 20 of article X of the state constitution, earned on or after December 28, 2000.

(7) Inflation means the percentage change in the consumer price index for the Denver-Boulder consolidated metropolitan statistical area for all urban consumers, all goods, as published by the United States department of labor, bureau of labor statistics, or its successor index.

(8) (Deleted by amendment, L. 2009, (SB 09-292), ch. 369, p. 1965, � 67, effective August 5, 2009.)

(9) Performance incentives for teachers include, but are not limited to, programs that:

(a) Promote teacher retention;

(b) Promote teacher recruitment;

(d) Provide salary incentives based in whole or in part on student performance.

(10) Preschool programs includes, but is not limited to, the Colorado preschool program created pursuant to section 22-28-104, as it exists prior to July 1, 2023, and the Colorado universal preschool program created in part 2 of article 4 of title 26.5.

(11) State board means the state board of education created and existing pursuant to section 1 (1) of article IX of the state constitution.

(12) State education fund means the state education fund created pursuant to section 17 (4) of article IX of the state constitution and section 22-55-103.

(13) State education fund revenues means revenues collected from a tax of one-third of one percent on federal taxable income, as modified by law, of every individual, estate, trust, and corporation, as defined in law, that are required to be transferred to the state education fund pursuant to section 17 (4)(a) of article IX of the state constitution.

(14) Statewide base per pupil funding means the amount specified for each budget year in article 54 of this title 22.

(15) Statutory limitation on general fund appropriations means the limitation on annual general fund appropriations set forth in section 24-75-201.1, C.R.S.

(16) Student safety includes, but is not limited to, any plan, program, or project designed to improve the safety of the physical environment of preschool through twelfth-grade students while on property owned or under the control of the school district.

(17) Technology education includes, but is not limited to, any plan, program, or project designed to enhance the computer and telecommunication skills of preschool through twelfth-grade students and teachers or improve instruction through technology application.

(18) Total program or total program education funding means a district's total program as determined pursuant to article 54 of this title 22.

(19) Total state funding for all categorical programs means the aggregate amount of state funding for all categorical programs in any given fiscal year, including any adjustments made to said funding through the enactment of a supplemental appropriation bill or bills for that fiscal year.

Source: L. 2001: Entire article added, p. 675, � 1, effective May 30; entire article added, p. 573, � 1, effective May 30; entire article added, p. 992, � 1, effective June 5. L. 2003: (8) amended, p. 2138, � 38, effective May 22. L. 2006: (8) and (10) amended, p. 699, � 45, effective April 28. L. 2008: (6) amended, p. 953, � 1, effective January 1, 2009. L. 2009: (1), IP(2)(a), and (2)(a)(I) amended, (SB 09-163), ch. 293, p. 1545, � 52, effective May 21; (15) amended, (SB 09-228), ch. 410, p. 2256, � 3, effective July 1; (8) and (10) amended, (SB 09-292), ch. 369, p. 1965, � 67, effective August 5. L. 2010: (4)(g) amended, (SB 10-062), ch. 168, p. 591, � 1, effective April 29. L. 2015: (1)(b), (2)(a)(II), and IP(3) amended, (HB 15-1323), ch. 204, p. 726, � 38, effective May 20. L. 2019: (6) amended, (SB 19-241), ch. 390, p. 3467, � 20, effective August 2. L. 2021: IP and (4)(g) amended, (HB 21-1264), ch. 308, p. 1875, � 10, effective June 23. L. 2022: (10) amended, (HB 22-1295), ch. 123, p. 783, � 15, effective July 1. L. 2024: (14) and (18) amended, (HB 24-1448), ch. 236, p. 1536, � 56, effective May 23.

Editor's note: Provisions of this section, as enacted by Senate Bill 01-082, Senate Bill 01-204, and House Bill 01-1262, have been renumbered and harmonized.

Cross references: For the legislative declaration in HB 21-1264, see section 2 of chapter 308, Session Laws of Colorado 2021.

22-55-103. State education fund - creation - transfers to fund - use of money in fund - permitted investments - exempt from spending limitations - kids matter account - definition - repeal. (1) In accordance with section 17 (4) of article IX of the state constitution, there is hereby created in the state treasury the state education fund. The fund shall consist of state education fund revenues, all interest and income earned on the deposit and investment of moneys in the fund, and any gifts or other moneys that are exempt from the limitation on state fiscal year spending set forth in section 20 (7)(a) of article X of the state constitution and section 24-77-103, C.R.S., that may be credited to the fund. All interest and income derived from the deposit and investment of moneys in the fund shall be credited to the fund. At the end of any state fiscal year, all unexpended and unencumbered moneys in the fund shall remain in the fund and shall not revert to the general fund or any other fund.

(2) (a) The legislative council, in consultation with the office of state planning and budgeting, shall calculate the amount of state education fund revenues for the period commencing December 28, 2000, and ending June 30, 2001, and the amount of state education fund revenues for each state fiscal year commencing on or after July 1, 2001. The legislative council and the office of state planning and budgeting shall rely upon the quarterly state revenue estimates issued by the legislative council in calculating such amounts and shall update its calculations no later than five days following the issuance of each quarterly state revenue estimate.

(b) To ensure that all state education fund revenues are transferred to the state education fund and that other state revenues are not erroneously transferred to the fund:

(I) No later than two days after calculating or recalculating the amount of state education fund revenues for the period commencing December 28, 2000, and ending June 30, 2001, or for any state fiscal year commencing on or after July 1, 2001, the legislative council, in consultation with the office of state planning and budgeting, shall certify to the department of revenue the amount of state education fund revenues that the department shall transfer to the state treasurer for deposit into the state education fund on the first day of each of the three succeeding calendar months as required by paragraph (c) of this subsection (2);

(II) Notwithstanding the provisions of subparagraph (I) of this paragraph (b), no later than May 25 of any state fiscal year commencing on or after July 1, 2000, the legislative council, in consultation with the office of state planning and budgeting, may certify to the department of revenue an adjusted amount for any transfer to be made on the first business day of the immediately succeeding June; and

(III) Subject to review by the state auditor, the legislative council, in consultation with the office of state planning and budgeting, may correct any error in the total amount of state education fund revenues transferred during any state fiscal year by adjusting the amount of any transfer to be made during the next state fiscal year.

(c) On the first business day of each calendar month that commences after June 5, 2001, the department of revenue shall transfer to the state treasurer for deposit into the state education fund state education fund revenues in an amount certified to the department by the legislative council, in consultation with the office of state planning and budgeting, pursuant to paragraph (b) of this subsection (2).

(3) (a) Except as provided by law, all moneys in the state education fund are subject to annual appropriation by the general assembly to the department of education for the purposes set forth in this subsection (3). The department shall expend all interest derived from the deposit and investment of moneys in the fund prior to expending any of the principal in the fund. The moneys in the fund shall only be used to comply with the requirements of section 17 (1) of article (IX) of the state constitution and for such purposes as may be authorized by law and that are consistent with section 17 (4)(b) of article IX of the state constitution.

(b) Nothing in this subsection (3) shall be construed to require additional or future appropriations from the state education fund for any program for which an appropriation from the fund has previously been authorized for any given fiscal year in accordance with the provisions of paragraph (a) of this subsection (3).

(4) Moneys in the state education fund may be invested in the types of investments authorized in sections 24-36-109, 24-36-112, and 24-36-113, C.R.S.

(5) Pursuant to section 17 (3) of article IX of the state constitution, all moneys credited to the fund, appropriated by the general assembly out of the fund, or distributed from the fund and expended by any school district shall be exempt from:

(a) The limitation on state fiscal year spending set forth in section 20 (7)(a) of article X of the state constitution and section 24-77-103, C.R.S.;

(b) The limitation on local government fiscal year spending set forth in section 20 (7)(b) of article X of the state constitution; and

(6) (a) As used in this subsection (6), unless the context otherwise requires, account means the kids matter account created in subsection (6)(b) of this section.

(b) (I) The kids matter account is created in the state education fund. Beginning July 1, 2026, state fiscal year, the state treasurer must deposit in the account all state revenues collected from an existing tax on sixty-five percent of one-tenth of one percent on federal taxable income, as modified by law, of every individual, estate, trust, and corporation, as defined in law.

(II) The account consists of money deposited into the account pursuant to subsection (6)(b)(I) of this section; any money transferred to the account by the general assembly; and any gifts, grants, or donations from any public or private sources that the department of education is authorized to seek and accept. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the account to the account.

(III) The money in the account is subject to annual appropriation by the general assembly to the department of education only for the purpose of funding:

(A) District total program funding; and

(B) Total state funding for all categorical programs.

(IV) Any money not expended or encumbered, and all interest earned on the investment or deposit of money in the account, remains in the account at the end of any state fiscal year.

(c) (I) Beginning July 1, 2026, the legislative council staff, in consultation with the office of state planning and budgeting, shall calculate the amount of revenue to be deposited in the account pursuant to this section. The legislative council staff and the office of state planning and budgeting shall use the quarterly state revenue estimates issued by the legislative council staff in calculating the amount and update the calculation not later than five days after the issuance of each quarterly state revenue estimate.

(II) To ensure that the correct amount of revenue is deposited in the account:

(A) No later than two days after calculating or updating the calculation, the legislative council staff, in consultation with the office of state planning and budgeting, shall certify to the department of revenue the amount of revenue that the department shall transfer to the state treasurer for deposit into the account on the first business day of each of the next three calendar months;

(B) Notwithstanding subsection (6)(c)(II)(A) of this section, no later than May 25, 2027, and no later than May 25 of each state fiscal year thereafter, the legislative council staff, in consultation with the office of state planning and budgeting, may certify to the department of revenue an adjusted amount for any deposit to be made on the first business day of June; and

(C) Subject to review by the state auditor, the legislative council staff, in consultation with the office of state planning and budgeting, may correct an error in the amount of revenue transferred during any state fiscal year by adjusting the amount of any transfer to be made during the next state fiscal year.

(III) Beginning July 1, 2026, and on the first business day of each calendar month thereafter, the department of revenue shall transfer to the state treasurer for deposit into the account revenue in an amount certified to the department of revenue by the legislative council staff, in consultation with the office of state planning and budgeting, pursuant to subsections (6)(c)(II)(A) and (6)(c)(II)(B) of this section.

Source: L. 2001: Entire article added, p. 993, � 1, effective June 5. L. 2009: (5)(c) amended, (SB 09-228), ch. 410, p. 2256, � 4, effective July 1. L. 2025: (6) added, (HB 25-1320), ch. 236, p. 1173, � 21, effective May 23.

Cross references: For the legislative declaration in HB 25-1320, see section 1 of chapter 236, Session Laws of Colorado 2025.

22-55-104. Procedures relating to state education fund revenue estimates - legislative declaration. (1) The general assembly finds and declares that:

(a) Section 17 (4)(a) of article IX of the state constitution requires that a portion of state income tax revenues be deposited in the newly created state education fund;

(b) Section 17 (4)(b) of article IX of the state constitution authorizes the general assembly to annually appropriate moneys from the state education fund to comply with the required increase in funding for preschool through twelfth grade public education and for categorical programs;

(c) In order to ensure the availability of moneys in the state education fund to comply with the increase in funding for preschool through twelfth grade public education and for categorical programs, the general assembly must preserve the fund, foster its growth, and protect its solvency;

(d) To preserve the fund, foster its growth, and protect its solvency, the general assembly must restrict appropriations from the fund and make an annual determination of the maximum amount that may be appropriated from the fund based on analyses prepared on a regular basis.

(2) Repealed.

(3) On or before each February 1, the legislative council staff of the general assembly, in consultation with the state auditor, the office of state planning and budgeting, the state treasurer, the department of education, and the joint budget committee, shall cause to be conducted a review of the model used to forecast revenues in and expenditures from the fund and the spending requirements of the Public School Finance Act of 2025, article 54 of this title 22. Copies of the review must promptly be transmitted to the joint budget committee, and the office of state planning and budgeting, and the education committees of the senate and the house of representatives. The review must include, but need not be limited to, the following:

(a) A determination of the reasonableness of the assumptions used to forecast the revenues and expenditures;

(b) A revision of the assumptions as necessary;

(d) Projections of the amount of total state moneys required to meet the funding requirements of sections 22-55-106 and 22-55-107 for the next state fiscal year;

(e) Projections of the amount of state moneys available from funds other than the general fund and the state education fund to meet the funding requirements of sections 22-55-106 and 22-55-107 for the next state fiscal year;

(f) Revenue projections for the state education fund;

(g) An estimate of the maximum amount of moneys that can be appropriated from the state education fund and the minimum amount of moneys that can be appropriated from the general fund to meet the funding requirements of sections 22-55-106 and 22-55-107 for the next state fiscal year without adversely impacting the solvency of the state education fund or the ability of the general assembly to comply with said funding requirements in future years; and

(h) Estimates of the impact of various levels of general fund appropriations above the minimum level identified pursuant to paragraph (g) of this subsection (3) on the amount of moneys available in the state education fund to provide funding in the next state fiscal year for programs that may be authorized by law and that are consistent with section 17 (4)(b) of article IX of the state constitution.

Source: L. 2001: Entire article added, p. 574, � 1, effective May 30. L. 2003: (3)(h) amended, p. 2138, � 39, effective May 22. L. 2009: (2) repealed, (SB 09-181), ch. 147, p. 614, � 1, effective April 20. L. 2024: IP(3) amended, (HB 24-1448), ch. 236, p. 1536, � 57, effective May 23.

Editor's note: This section was enacted as section 22-55-103 in Senate Bill 01-204 but has been renumbered for ease of location and harmonized with Senate Bill 01-082 and House Bill 01-1262.

22-55-105. General fund appropriations requirements - maintenance of effort base - definition. (1) (a) In accordance with section 17 (5) of article IX of the state constitution, for state fiscal years 2001-02 through 2010-11, the general assembly shall annually appropriate from the general fund for total program under the Public School Finance Act of 1994, article 54 of this title, an amount equal to the maintenance of effort base plus an amount as determined annually by the general assembly that is equal to at least five percent of the maintenance of effort base, unless Colorado personal income grows less than four and one-half percent between the two calendar years preceding the state fiscal year in which an appropriation is made.

(b) (I) The general assembly shall determine whether the requirements of this subsection (1) apply in the next state fiscal year based on Colorado personal income growth estimates or data made available by the bureau of economic analysis in the United States department of commerce at the time the general assembly enacts the annual general appropriation act for that state fiscal year.

(II) The general assembly shall increase the general fund appropriation for total program funding when it considers supplemental appropriation bills during the state fiscal year for which a determination has been made pursuant to subparagraph (I) of this paragraph (b) if:

(A) The general assembly had initially determined that the requirements of this subsection (1) do not apply in that state fiscal year and had not increased the general fund appropriation for total program funding for that state fiscal year by the minimum amount specified in paragraph (a) of this subsection (1); and

(B) The bureau of economic analysis in the United States department of commerce releases, adjusts, or updates Colorado personal income data during that state fiscal year, as reported to the general assembly in the December revenue forecast by the staff of the legislative council, and the released, adjusted, or updated data indicates that Colorado personal income grew by at least four and one-half percent between the two calendar years preceding that state fiscal year.

(III) The general assembly may reduce the general fund appropriation for total program funding when it considers supplemental appropriation bills during the state fiscal year for which a determination has been made pursuant to subparagraph (I) of this paragraph (b) if:

(A) The general assembly had initially determined that the requirements of this subsection (1) do apply in that state fiscal year and had increased the general fund appropriation for total program funding for that state fiscal year by the minimum amount specified in paragraph (a) of this subsection (1); and

(B) The bureau of economic analysis in the United States department of commerce releases, adjusts, or updates Colorado personal income data during that state fiscal year, as reported to the general assembly in the December revenue forecast by the staff of the legislative council, and the released, adjusted, or updated data indicates that Colorado personal income grew by less than four and one-half percent between the two calendar years preceding that state fiscal year.

(IV) The determination and general fund appropriation for total program funding made pursuant to this paragraph (b) shall not be subject to modification in state fiscal years following the state fiscal year for which the determination and appropriation were made based on any Colorado personal income growth data released, adjusted, or updated by the bureau of economic analysis in the United States department of commerce on or after January 1 of the state fiscal year for which the determination and appropriation were made.

(2) For purposes of this section, maintenance of effort base means the aggregate amount of general fund appropriations for total program pursuant to the Public School Finance Act of 1994, article 54 of this title, for the immediately preceding state fiscal year, including any increases or decreases made to said appropriations through the enactment of a supplemental appropriation bill or bills for that state fiscal year.

Source: L. 2001: Entire article added, p. 576, � 1, effective May 30. L. 2005: (1) amended, p. 1349, � 1, effective June 3. L. 2010: (2) amended, (HB 10-1013), ch. 399, p. 1906, � 18, effective June 10.

Editor's note: This section was enacted as section 22-55-104 in Senate Bill 01-204 but has been renumbered for ease of location and harmonized with Senate Bill 01-082 and House Bill 01-1262.