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DENVER, CO — The House Education Committee today passed legislation modernizing Colorado’s higher education funding model to meet the needs of Colorado students, especially those from diverse and underserved backgrounds and non-traditional students.
“When we equip our students with the tools and resources they need to succeed, they can land good-paying jobs after graduation,” said Speaker Julie McCluskie, D-Dillon. “ This bill modernizes the higher education funding formula so it better meets the needs of diverse, underserved and non-traditional students based on the recommendations from the Colorado Commission on Higher Education working group. Additionally, our legislation would expand qualified transfers to include more students and prioritize part-time students to better represent Colorado’s entire student body.”
“Updating the higher education funding formula shows our commitment to improving student success, especially as their needs evolve,” said Rep. Eliza Hamrick, D-Centennial. “Part-time students account for more than half of the students enrolled in higher education institutions, but they’re not accurately accounted for in the funding model. This bill modernizes and improves Colorado’s higher education funding model to better represent Colorado’s student body and drive funding to the students who need it the most.”
HB26-1345 implements changes and modifications to higher education funding as recommended by the Colorado Commission on Higher Education’s 2025 Report on the Higher Education Funding Allocation Formula. This bill aims to streamline and modernize higher education data systems and definitions to better meet the needs of Colorado’s student body, including part-time and transfer students. HB26-1345 passed committee by a vote of 13-0.
One component of higher education funding relies on a results-informed funding model, and beginning in fiscal year 2027-2028, HB26-1345 would make modifications to this model by:
Expanding qualified transfers: The current formula does not recognize four-year transfers as a successful touchpoint, despite 45-percent of Colorado students transferring between schools at least one time. This bill expands qualifying transfers to include those from four-year institutions who immediately transfer to another higher education institution with at least 18-credits earned at the previous institution. Without this modification, only students who earn 18-credits and transfer out of a community college would be counted in the credential completion weights.
Prioritizing part-time students: 55-percent of Colorado’s higher education students attend part-time, but they are not included in any outcome measure rate. This bill would create an inclusive retention rate that measures the year-to-year prevalence of both part-time and full-time students.
Modernizing graduation calculations: Collaborative programs, including the Bridge and Partnership programs, allow students to complete their degree in a field of study that is not offered by their home institution. However, this can skew the graduation calculations at their home campus. This bill would exclude students who are enrolled in a co-located degree partnership to ensure this population does not negatively impact the graduation calculations of their home campus.
Streamlines formula definitions and data sources: This bill cleans up language and definitions in the current formula to make it more streamlined and clear for higher education institutions and policymakers. Specifically, HB26-1345 would make formula “levers” consistent, predictable, and focused on student-centered performance. Additionally, this bill standardizes data sources by transitioning the calculation of retention and graduation rates to the Department of Higher Education’s data system. To respond to shifts at the federal level, this bill also changes the definition of “Pell-eligible” student to “Pell-recipient” to ensure that this metric remains consistent.