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Bill Detail: HB20-1366

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Title Higher Education Funding Allocation Model
Status Governor Signed (06/29/2020)
Bill Subjects
  • Higher Education
House Sponsors D. Esgar (D)
J. McCluskie (D)
Senate Sponsors B. Rankin (R)
R. Zenzinger (D)
House Committee Education
Senate Committee Appropriations
Date Introduced 05/26/2020
Description

Joint Budget Committee. The bill makes revisions to the higher
education funding provisions set forth in part 3 of article 18 of title 23,
Colorado Revised Statutes, creating a new higher education funding
allocation model (new funding model).
Under current law, state funding for state institutions of higher
education (institutions) is provided through appropriations for
fee-for-service contracts and student stipends through the college
opportunity fund program. In addition, state funding to support specialty

education programs, such as the health sciences center at the university
of Colorado and the veterinary medicine program at Colorado state
university, and area technical colleges and local district colleges, is
provided through specialty education fee-for-service contracts and grants.
The bill creates a new funding model beginning with the 2021-22
state fiscal year that includes new provisions for calculating
fee-for-service contracts for institutions and makes related changes to the
calculation of state funding to support specialty education programs, area
technical colleges, and local district colleges.
Under the new funding model, fee-for-service contracts for
institutions are based on 3 components: Ongoing additional funding,
performance funding, and temporary additional funding. The Colorado
commission on higher education (commission), in conjunction with the
department of higher education (department) and in collaboration with the
institutions, shall calculate and make funding recommendations to the
joint budget committee for these components as part of the annual budget
request process.
Ongoing additional funding is base building and may be awarded
to an institution to make progress toward the commission's master plan
goals, which may include addressing base funding disparities or funding
priorities not addressed through performance funding metrics. An
institution may also receive ongoing additional funding through a formula
set forth in the bill to recognize an institution's additional costs associated
with educating and providing services to first-generation undergraduate
students.
Performance funding is calculated based on an institution's change
over time in performance on each performance funding metric compared
to other institutions' change in performance and adjusted based on each
institution's share of funding in the previous state fiscal year. The
performance funding metrics include:
  • Resident student full-time equivalent enrollment;
  • Credential completion;
  • Resident Pell-eligible student population share;
  • Resident underrepresented minority student population
share;
  • Retention rate;
  • One-hundred-percent-of-time graduation rate;
  • One-hundred-fifty-percent-of-time graduation rate; and
  • Resident first-generation undergraduate student population
share.
The joint budget committee determines the amount of funding
allocated to each performance funding metric for a fiscal year after
considering recommendations from the commission and department that
are developed in collaboration with the institutions.
Finally, temporary additional funding, which is not base building,
may be awarded to an institution for a specified period of time to address
commission master plan goals or other areas the commission identifies.
Under current law and the new model, minimum funding for
specialty education programs, local district colleges, and area technical
colleges provided pursuant to section 23-18-304, Colorado Revised
Statutes, is based on their previous year's funding, increased or decreased
by the average percentage change in state funding for all institutions
(percentage change). However, the bill modifies how the percentage
change is calculated so that it does not include amounts awarded to
institutions for ongoing additional funding or temporary additional
funding in the applicable state fiscal year.
The bill requires the annual budget request that the commission
and the department submit relating to the new funding model to include
detailed information and funding recommendations.
The bill also requires the commission, in conjunction with the
department and in collaboration with the institutions, to identify and make
recommendations to the joint budget committee by July 1, 2022,
concerning ways to better measure success for students who are not
first-time, full-time students. This may include a recommendation for a
statutory change to the calculation of one of the graduation rate
performance funding metrics.
The bill repeals fiscal limits, reporting requirements, and budget
provisions that do not apply to the new funding model.
The bill makes conforming amendments in statute to reflect the
creation of a new higher education funding model.

Committee Reports
with Amendments
Full Text
Full Text of Bill (pdf) (most recent)
Fiscal Notes Fiscal Notes (07/24/2020) (most recent)  
Additional Bill Documents Bill Documents
Including:
  • Past bill versions
  • Past fiscal notes
  • Committee activity and documents
  • Bill History
 
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