Bill to Modernize, Improve Higher Education Funding Formula Passes Committee Unanimously

HB26-1345 would make updates to the performance model funding to capture Colorado’s entire student body, including part-time and transfer students

DENVER, CO – The Senate Education Committee yesterday unanimously passed 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. 

HB26-1345, sponsored by Senate President James Coleman, D-Denver, would 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. 

“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 Coleman. “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.” 

Also sponsored by Senate Minority Leader Cleave Simpson, R-Alamosa, the 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. 

One component of higher education funding uses 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 would 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 would 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 bill would 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 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. 

Streamlining formula definitions and data sources: The bill would 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 would make formula “levers” consistent, predictable, and focused on student-centered performance. Additionally, this bill would 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 bill would also change the definition of “Pell-eligible” student to “Pell-recipient” to ensure that this metric remains consistent.

HB26-1345 now heads to the Senate floor for further consideration. Track its progress HERE.