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DENVER, CO — Governor Jared Polis yesterday signed bipartisan legislation to modernize Colorado’s higher education funding model to meet the needs of Colorado students, including those from diverse and underserved backgrounds and non-traditional students.
“Higher education is foundational in Colorado, and I dream of a day when we can drive more dollars to Colorado’s colleges and universities. However, until that day, we must distribute the funds we have in a way that best meets the needs of Colorado students and our workforce,” said Speaker Julie McCluskie, D-Dillon. “Based on recommendations by the Colorado Commission on Higher Education working group, our law modernizes the funding formula to foster high-quality education. Whether they’re part-time or transfer students, we’re making sure the modern-day student has the tools they need to succeed in the classroom and beyond.”
“Higher education looks different today than it has in years past, with more students taking a nontraditional path, transferring between schools, and going to school part-time,” said Senate President James Coleman, D-Denver. “Schools are adapting to this new reality and our funding model should adapt too. Coloradans of all ages and backgrounds deserve a higher education system that works for them, and that includes part time and transfer students.”
“Part-time students make up 55 percent of Colorado’s higher education student body, but they’re not accurately accounted for in the current funding formula,” said Rep. Eliza Hamrick, D-Centennial. “This law lays the groundwork for a modernized and improved higher education funding formula that will better meet the needs of Colorado students, including transfer and part-time students. We’ve taken bold steps to reimagine education funding in Colorado, and this law is another step toward our shared mission to drive funding to the students who need it the most.”
HB26-1345 will implement changes to higher education funding as recommended by the Colorado Commission on Higher Education’s 2025 Report on the Higher Education Funding Allocation Formula. Also sponsored by Senate Minority Leader Cleave Simpson, R-Alamosa, the law 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.
One component of higher education funding uses a results-informed funding model, and beginning in fiscal year 2027-2028, HB26-1345 will 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 law will expand qualifying transfers to include those from four-year institutions who 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 will be counted in the credential completion weights.
Prioritizing part-time students: 55 percent of Colorado’s higher education students attend classes part-time, but they are not included in any outcome measurements. This law will create an inclusive retention rate that measures 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 law will 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.
Streamlining formula definitions and data sources: The law will clean up language and definitions in the current formula to make it more streamlined and clear for higher education institutions and policymakers. Specifically, HB26-1345 will make formula “levers” consistent, predictable, and focused on student-centered performance. Additionally, this law will standardize 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 law will also change the definition of “Pell-eligible” student to “Pell-recipient” to ensure that this metric remains consistent.