Senate Committee of Reference Report
Committee on Education
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April 20, 2026
After consideration on the merits, the Committee recommends the following:
SB26-023 be amended as follows, and as so amended, be referred to the Committee on Appropriations with favorable recommendation:
Page 1, Line 1Amend printed bill, page 2, lines 8 and 9, strike "eight thousand nine
Page 1, Line 2hundred nine dollars and ten cents ($8,909.10)," and substitute
Page 1, Line 3"eight thousand nine hundred dollars and forty cents
Page 1, Line 4($8,900.40),".
Page 1, Line 5Page 2, lines 11 and 12, strike "two hundred seventeen dollars and
Page 1, Line 6thirty cents ($217.30)" and substitute "two hundred eight dollars
Page 1, Line 7and sixty cents ($208.60)".
Page 1, Line 8Page 2, lines 20 through 22, strike "ten billion two hundred nine
Page 1, Line 9million five hundred eighty-nine thousand eight hundred
Page 1, Line 10eighty-eight dollars ($10,209,589,888);" and substitute "ten billion
Page 1, Line 11one hundred eighty-nine million nine hundred eighteen thousand
Page 1, Line 12six hundred forty-two dollars ($10,189,918,642);".
Page 1, Line 13Page 3, after line 4 insert:
Page 1, Line 14"SECTION 2. In Colorado Revised Statutes, 22-13-103, amend
Page 1, Line 15(1)(c) introductory portion; and add (1)(c.5) as follows:
Page 1, Line 1622-13-103. School transformation grant program - created -
Page 1, Line 17rules - repeal.
Page 1, Line 18(1) There is created in the department the school transformation
Page 1, Line 19grant program to provide funding to:
Page 1, Line 20(c) For grants issued on or before June 30, 2026, assist
Page 1, Line 21school districts, the institute, and charter schools that are implementing
Page 1, Line 22priority improvement or turnaround plans in planning for and
Page 1, Line 23implementing one or more of the following rigorous school redesign
Page 1, Line 24strategies:
Page 1, Line 25(c.5) For grants issued on or after July 1, 2026, assist
Page 2, Line 1school districts, the institute, and charter schools that are
Page 2, Line 2implementing priority improvement or turnaround plans in
Page 2, Line 3planning for and implementing one or more of the rigorous
Page 2, Line 4redesign strategies described in section 22-11-209 (2)(a) or
Page 2, Line 5section 22-11-210 (5)(a);
Page 2, Line 6SECTION 3. In Colorado Revised Statutes, 22-13-105, amend
Page 2, Line 7(1) introductory portion and (6)(b); and add (1.5) as follows:
Page 2, Line 822-13-105. School transformation grants - application -
Page 2, Line 9awards - report.
Page 2, Line 10(1) For grants issued on or before June 30, 2026, the state
Page 2, Line 11board, subject to available appropriations, shall award school
Page 2, Line 12transformation grants to one or more school districts or charter schools or
Page 2, Line 13to the institute to use in:
Page 2, Line 14(1.5) For grants issued on or after July 1, 2026, the state
Page 2, Line 15board, subject to available appropriations, shall award school
Page 2, Line 16transformation grants to one or more school districts or
Page 2, Line 17charter schools or to the institute to use for the purposes
Page 2, Line 18described in section 22-13-103 (1).
Page 2, Line 19(6) (b) Of the money annually appropriated for school
Page 2, Line 20transformation grants, the department may expend an amount that is
Page 2, Line 21necessary to enter into one or more contracts with a public or private
Page 2, Line 22entity to provide the uses described in subsection (1) or (1.5) of this
Page 2, Line 23section to multiple school districts or charter schools that are eligible for
Page 2, Line 24a school transformation grant. The entity shall use research-based
Page 2, Line 25strategies and have a proven record of success working with schools
Page 2, Line 26under similar circumstances.
Page 2, Line 27SECTION 4. In Colorado Revised Statutes, 22-44-105, amend
Page 2, Line 28(6)(d)(II) as follows:
Page 2, Line 2922-44-105. Budget - contents - mandatory- repeal.
Page 2, Line 30(6) (d) (II) This subsection (6) is Subsections (6)(a), (6)(b), and
Page 2, Line 31(6)(d) of this section are repealed, effective July 1, 2026.
Page 2, Line 32SECTION 5. In Colorado Revised Statutes, 22-54-103.3, amend
Page 2, Line 33(3)(b) as follows:
Page 2, Line 3422-54-103.3. District total program - 2025-26 through 2030-31
Page 2, Line 35budget years - definitions - repeal.
Page 2, Line 36(3) (b) (I) For the 2026-27 budget year, a district's total program
Page 2, Line 37is the greater of the district's total program determination for the 2024-25
Page 2, Line 38budget year or the amount calculated pursuant to section 22-54-104 plus
Page 2, Line 39an amount equal to thirty percent of the difference between the district's
Page 2, Line 40total program calculation pursuant to section 22-54-103.5 and the
Page 2, Line 41district's total program calculation pursuant to section 22-54-104.
Page 2, Line 42(II) When determining a district's total program pursuant
Page 2, Line 43to subsection (3)(b)(I) of this section, if the district's total
Page 3, Line 1program calculation pursuant to section 22-54-103.5 is less than
Page 3, Line 2the district's total program calculation pursuant to section
Page 3, Line 322-54-104, then notwithstanding subsection (3)(b)(I) of this
Page 3, Line 4section, the district's total program is the greater of the
Page 3, Line 5district's total program determination for the 2024-25 budget
Page 3, Line 6year or the amount calculated pursuant to section 22-54-104.
Page 3, Line 7SECTION 6. In Colorado Revised Statutes, 22-54-117, amend
Page 3, Line 8(1)(a) introductory portion and (1)(a)(IX) as follows:
Page 3, Line 922-54-117. Contingency reserve - fund - repeal.
Page 3, Line 10(1) (a) For the 2007-08 fiscal year and fiscal years thereafter The
Page 3, Line 11general assembly shall annually determine the amount to appropriate to
Page 3, Line 12the contingency reserve fund, which is created in the state treasury. In
Page 3, Line 13deciding the amount to appropriate to the contingency reserve fund, the
Page 3, Line 14general assembly may take into consideration any recommendations made
Page 3, Line 15by the department of education, but nothing in this section obligates the
Page 3, Line 16general assembly to provide supplemental assistance to all districts that
Page 3, Line 17are found to be in need or to fully fund the total amount of such need. The
Page 3, Line 18state board may approve and order payments from the contingency
Page 3, Line 19reserve fund for supplemental assistance to districts determined to be in
Page 3, Line 20need as the result of any or all of the following circumstances:
Page 3, Line 21(IX) (A) For the 2021-22, 2022-23, and 2023-24 budget years
Page 3, Line 22Unusual financial burden caused by the withholding of local property
Page 3, Line 23taxes pursuant to section 29-1-606 (5) for a rural or small rural school
Page 3, Line 24district, as defined in section 22-7-1211 (4), because of a delay in filing
Page 3, Line 25the audit report due to extraordinary problems that could not have been
Page 3, Line 26reasonably foreseen or prevented by the rural or small rural school
Page 3, Line 27district.
Page 3, Line 28(B) This subsection (1)(a)(IX) is repealed, effective July 1, 2026.
Page 3, Line 29SECTION 7. In Colorado Revised Statutes, 22-54-205, amend
Page 3, Line 30(2)(a), (2)(b)(I), (2)(c)(I), (2)(c)(II), (4)(c), and (4)(d); as follows:
Page 3, Line 3122-54-205. Sustain funding - rules - repeal.
Page 3, Line 32(2) (a) A local education provider is eligible to receive
Page 3, Line 33reimbursement sustain funding for students who, in the preceding
Page 3, Line 34budget year, successfully satisfied postsecondary credit, received an
Page 3, Line 35industry-recognized credential, or satisfied work-based learning
Page 3, Line 36requirements as specified by state board rule. A local education provider
Page 3, Line 37is eligible to receive multiple reimbursements sustain funding
Page 3, Line 38distributions for one student. A local education provider is eligible for
Page 3, Line 39reimbursement to receive sustain funding for students who are
Page 3, Line 40enrolled in a p-tech school or participating in a TREP program.
Page 3, Line 41(b) (I) For the 2026-27 budget year, the department shall divide
Page 3, Line 42the total amount of sustain funding for reimbursement distribution into
Page 3, Line 43the following categories:
Page 4, Line 1(A) Twenty percent of the total amount of sustain funding for
Page 4, Line 2reimbursement distribution for postsecondary credit attainment;
Page 4, Line 3(B) Forty percent of the total amount of sustain funding for
Page 4, Line 4reimbursement distribution for industry-recognized credentials earned;
Page 4, Line 5(C) Thirty-five Thirty-seven percent of the total amount of
Page 4, Line 6sustain funding for reimbursement distribution for work-based
Page 4, Line 7learning; and
Page 4, Line 8(D) Five Three percent of the total amount of sustain funding to
Page 4, Line 9offset the direct and indirect costs incurred in administering the sustain
Page 4, Line 10funding.
Page 4, Line 11(c) (I) For the 2027-28 budget year, and each budget year
Page 4, Line 12thereafter, the state board shall determine the percentages of the total
Page 4, Line 13amount of sustain funding for reimbursement distribution assigned to
Page 4, Line 14the postsecondary credit attainment, industry-recognized credentials, and
Page 4, Line 15work-based learning categories; except that the five three percent of the
Page 4, Line 16total amount of sustain funding to offset the direct and indirect costs
Page 4, Line 17incurred in administering the sustain funding must not be changed. The
Page 4, Line 18percentages for each category are determined by state board rule.
Page 4, Line 19(II) In determining the percentages of the total amount of sustain
Page 4, Line 20funding for reimbursement distribution assigned to each category
Page 4, Line 21pursuant to subsection (2)(c)(I) of this section, the state board shall
Page 4, Line 22consider the availability of postsecondary and workforce readiness
Page 4, Line 23opportunities offered by local education providers, student participation,
Page 4, Line 24and evidence of student outcomes.
Page 4, Line 25(4) The state board shall adopt rules governing:
Page 4, Line 26(c) Reimbursement eligibility and rates, including limits on a local
Page 4, Line 27education provider's annual total reimbursement and annual
Page 4, Line 28reimbursement from one or multiple categories, based on
Page 4, Line 29local-education-provider-specific features or other features; Sustain
Page 4, Line 30funding eligibility requirements, including limits on the total
Page 4, Line 31amount of sustain funding received by a local education
Page 4, Line 32provider from one or multiple categories based on the local
Page 4, Line 33education provider's features.
Page 4, Line 34(d) Requirements of a local education provider that receives
Page 4, Line 35sustain funding pursuant to this section; and
Page 4, Line 36SECTION 8. In Colorado Revised Statutes, 24-51-1101, amend
Page 4, Line 37(1.9)(a)(I), (1.9)(a)(II)(B), (1.9)(a)(II)(C), and (1.9)(h) as follows:
Page 4, Line 3824-51-1101. Employment after service retirement - report -
Page 4, Line 39definitions - repeal.
Page 4, Line 40(1.9) (a) (I) Subject to subsection (1.9)(h) of this section, a service
Page 4, Line 41retiree who is a superintendent, an assistant superintendent, a
Page 4, Line 42principal, a vice principal or assistant principal, a teacher, a school
Page 4, Line 43bus driver, a school food services cook, a school nurse, or a
Page 5, Line 1paraprofessional, as defined in section 22-60.3-201, and is hired pursuant
Page 5, Line 2to subsection (1.9)(b) of this section by an employer in the school division
Page 5, Line 3of the association that satisfies the criteria specified in subsection
Page 5, Line 4(1.9)(a)(II) of this section may receive salary without reduction in benefits
Page 5, Line 5for any length of employment in a calendar year if the service retiree has
Page 5, Line 6not worked for an employer, as defined in section 24-51-101 (20), during
Page 5, Line 7the month of the effective date of retirement. A service retiree described
Page 5, Line 8in this subsection (1.9)(a) who works for an employer, as defined in
Page 5, Line 9section 24-51-101 (20), during the month of the effective date of
Page 5, Line 10retirement is subject to a reduction in benefits as provided in section
Page 5, Line 1124-51-1102 (2).
Page 5, Line 12(II) The provisions of this subsection (1.9) apply only if:
Page 5, Line 13(B) The school district, board of cooperative services, or charter
Page 5, Line 14school hires the service retiree for the purpose of providing classroom
Page 5, Line 15instruction or school bus transportation to students enrolled by the district,
Page 5, Line 16enrolled by one or more of the districts served by the board of cooperative
Page 5, Line 17services, or enrolled by the charter school, or for the purpose of being a
Page 5, Line 18superintendent, an assistant superintendent, a principal, a vice
Page 5, Line 19principal or assistant principal, a school food services cook, a school
Page 5, Line 20nurse, or a paraprofessional, as defined in section 22-60.3-201; and
Page 5, Line 21(C) The school district, board of cooperative services, or charter
Page 5, Line 22school determines that there is a critical shortage of qualified
Page 5, Line 23superintendents, assistant superintendents, principals, vice
Page 5, Line 24principals or assistant principals, teachers, school bus drivers,
Page 5, Line 25school food services cooks, school nurses, or paraprofessionals, as
Page 5, Line 26defined in section 22-60.3-201, as applicable, and that the service retiree
Page 5, Line 27has specific experience, skills, or qualifications that would benefit the
Page 5, Line 28district, board of cooperative services, or charter school.
Page 5, Line 29(h) A teacher, school bus driver, school food services cook, school
Page 5, Line 30nurse, superintendent, assistant superintendent, principal, vice
Page 5, Line 31principal or assistant principal, or qualified paraprofessional who
Page 5, Line 32retires before he or she has they have met the age and service credit
Page 5, Line 33requirements for full service retirement benefits pursuant to section
Page 5, Line 3424-51-602 shall not be employed after retirement pursuant to this
Page 5, Line 35subsection (1.9) by the employer in the school division that was the
Page 5, Line 36teacher's, school bus driver's, school food services cook's, school nurse's,
Page 5, Line 37superintendent's, assistant superintendent's, principal's, vice
Page 5, Line 38principal's or assistant principal's, or qualified paraprofessional's last
Page 5, Line 39employer until two years after the teacher's, school bus driver's, school
Page 5, Line 40food services cook's, school nurse's, superintendent's, assistant
Page 5, Line 41superintendent's, principal's, vice principal's or assistant
Page 5, Line 42principal's, or qualified paraprofessional's date of retirement.”.
Page 5, Line 43
Page 6, Line 1Renumber succeeding section accordingly.