FundingFiscal estimate
The question: Could Proposition 137 affect health care and education funding?
In lean budget years, the legislature can reduce this measure’s funding instead of cutting health care and education.
Below the TABOR limit, the Blue Book says the measure reduces state money available for other uses, whose three largest categories are health care, education, and human services. That is flexibility, not a mandate: as with other statutory measures, the legislature can reduce this measure’s wildfire and conservation funding as needed to meet core state needs, so the exact effect of the measure on other programs will depend on the legislature’s budget decisions. Above the limit, it says the measure has no impact on other state spending, but reduces taxpayer refunds.
Our explanation · Sources checked October 6, 2026
The evidence
2 excerpts“In years where state revenue collections are below the TABOR limit, the measure will reduce state money available for other uses (the three largest of which are health care, education, and human services); however, the exact effect of the measure on other programs will depend on budgeting decisions by the state legislature.”
Page 68, State Spending, years below the TABOR limit
Colorado Legislative Council Staff
2026 Blue Book: Proposition 137“In years where state revenue collections are above the TABOR limit, the measure has no impact on other state spending, but has impacts to taxpayers as described below.”
Page 68, State Spending, years above the TABOR limit
Colorado Legislative Council Staff
2026 Blue Book: Proposition 137How to read this
Proposition 137 dedicates revenue that would otherwise be subject to TABOR. When the state is above that limit, the tradeoff is revenue that would otherwise be refunded. Below it, the tradeoff is money available for other state priorities. An unchanged sales-tax rate does not eliminate either tradeoff.
What to keep in mind
The Blue Book describes statewide budget effects, not a specified cut to a particular school or health care program. It also does not promise that every program’s funding will remain untouched in every year. The actual program-level effects depend on state revenue and legislative budgeting decisions.