Skip to main content
Colorado General AssemblyToggle Main Menu
Agency NameToggle Agency Menu

23A95C69C85A435D8725843F0058EEA2 Hearing Summary




PUBLIC
BILL SUMMARY For HIGHER EDUCATION FUNDING AND THE ALLOCATION FORMULA

INTERIM COMMITTEE  MAKING HIGHER EDUCATION ATTAINABLE INTERIM STUDY COMMITTEE
Date Jul 22, 2019      
Location SCR 352



Higher Education Funding and the Allocation Formula - Committee Discussion Only


10:11:25 AM  

Jason Schrock, Chief Financial Officer, CDHE, and Emily Burns, Lead Finance Analyst, CDHE, introduced themselves to the committee and began their presentation on higher education funding and the higher education allocation formula. Their presentation can be found on the committee's website here: http://leg.colorado.gov/sites/default/files/images/committees/2017/dhefinance_interim_committee_slides-final_use_7_22_2019.pdf.

Mr. Schrock discussed higher education funding generally, and noted that since 2000, higher education funding from the general fund has declined significantly. Factors leading to this decline include expenditure pressures from other programs, conflicting constitutional fiscal policies, such as the Gallagher Amendment and Taxpayers Bill of Rights (TABOR), and the fact that higher education funding is discretionary, unlike funding K-12 education. He also discussed the decline in state funding per student, which was a result of the legislature balancing the budget in a time of declining revenue, causing student shares of higher education costs increase. Currently, students pay approximately two-thirds of the cost of higher education.

10:20:07 AM  

Mr. Schrock discussed how Colorado compares to other states in funding higher education. Currently, Colorado ranks 48th in funding higher education. Conversely, tuition is among the highest in Colorado compared to other states. Mr. Schrock discussed the difference between published tuition and the cost of attendance for students. Mr. Schrock responded questions from the committee regarding the quality of faculty at higher education institutions and using cost per student as a way to measure expenditures amongst institutions. He also answered questions from the committee about the discrepancies in revenues that institutions receive.

10:29:31 AM  

Mr. Schrock further discussed higher education costs and answered questions from the committee.

10:38:02 AM  

Emily Burns discussed the state's role in higher education funding and gave a brief overview of the budget request process for the department. Ms. Burns discussed the funding allocation formula.  Per Senate Bill 19-095, the the Colorado Commission on Higher Education (commission) is directed to evaluate the formula and submit a report on recommended changes by November 1, 2019.  Ms. Burns stated that through the review of the formula, the commission heard that the formula should have a better recognition of equity goals, increased alignment with the goals outlined in the CDHE master plan, and more predictability and transparency. She explained the framework of the current funding allocation model as outlined in House Bill 14-1319. There are three major components of the allocation model: the Colorado Opportunity Fund (COF) stipend; role and mission; and outcomes.  COF stipend funding makes up 52.5 percent of the appropriations flowing through the formula.  Role and mission funds are flat amounts by institutional class, and include money for the number of Pell Grant recipients at a particular school and individual institution adjustments.  Money appropriated for outcomes takes into account completion of degree or certificates, retention, and institutional productivity.  This component of the formula is volume-driven, forcing institutions to compete with each other.

10:49:28 AM  

Ms. Burns discussed the draft of the newly developed allocation formula. All new investment made would be subject to performance metrics with emphasis on Pell Grant students, under-represented minority students, and existing completions metrics, such as degree level weight. Mr. Schrock answered questions about the draft of the allocation formula. The department is presenting this draft to the commission at the end of July 2019. Ms. Burns clarified that the new draft of the formula is in the very early stages of development. Ms. Burns discussed the department's development of an accountability dashboard as a part of the draft of the allocation formula and the development of a grant fund administered by the commission to measure key goals outlined by the legislature. Ms. Burns discussed state funded financial aid, which is decentralized in Colorado, meaning that institutions package state aid for individual students. Ms. Burns answered questions from the committee.

10:57:34 AM  

Kim Poast, CDHE, came to the table and discussed the department's master plan, which can be accessed here: https://highered.colorado.gov/Publications/CDHE-Master-Plan-2017.pdf.  Ms. Poast responded to committee questions.






Colorado legislature email addresses ending in @state.co.us are no longer active. Please replace @state.co.us with @coleg.gov for Colorado legislature email addresses.  Details