HB 20-1366: Higher Education Funding Allocation Model

• Replaces the prior fee-for-service contract system with a new performance-based funding model beginning July 1, 2021, allocating state funding based on eight performance metrics including enrollment, credential completion, retention rates, and graduation rates.

• Establishes eight performance funding metrics: resident student full-time equivalent enrollment, credential completion, resident Pell-eligible student population share, resident underrepresented minority student population share, retention rate, 100% and 150% graduation rates, and resident first-generation undergraduate student population share.

• Allows the Colorado Commission on Higher Education to recommend ongoing additional funding for institutions to address master plan goals, base funding disparities, and support for resident first-generation undergraduate students.

• Requires the Department of Higher Education and Commission to submit annual budget requests by November 1 including detailed funding calculations and recommendations for performance funding allocation percentages and tuition spending authority.

• Mandates a comprehensive review of the funding formula beginning in 2026 and every five years thereafter, with results reported to the Governor and legislative education committees.