Colorado

In this report, we examined five kinds of equity-focused metrics in state OBF policies to determine the extent to which states prioritize the enrollment and success of students of color and students from low-income backgrounds:

  1. Enrollment metrics for students of color
  2. Success metrics for students of color
  3. Enrollment metrics for students from low-income backgrounds
  4. Success metrics for students from low-income backgrounds
  5. Metrics related to campus racial climate

While the inclusion of these metrics in policies is essential, how they are deployed is equally as important. Therefore, we also considered whether the metrics were mandatory, optional, or weighted. Weighted metrics are the most ideal. These are mandatory and are given additional value, so strong institutional performance on a weighted metric would garner greater advantage or funding.

Two-and Four-Year Institutions

In Colorado, two-year and four-year institutions use the same funding formulas, OBF policy included. Colorado adopted outcomes-based funding in 2014. It is allocated as base funding annually.

HB 14-11319, which was signed into law in May 2014, required the Colorado Commission on Higher Education (CCHE) to develop a new base funding formula to allocate state general fund dollars among the state’s public higher education institutions. The legislation charged the CCHE with engaging in a facilitated process with “interested parties” and ultimately adopting funding factors for a new base-funding formula that considers both role and mission, as well as performance. This act emphasizes transparency in higher education funding and key outcomes, such as timely graduation rates, and reflects a strong desire to make this formula understandable to Colorado taxpayers, students and families.

The metrics include:

  • College Opportunity Fund Stipend
    • Stipend rate per resident undergraduate credit hour
  • Role and Mission
    • Student credit hours weighted by discipline clusters
    • Support services for Pell-eligible students
    • Underrepresented minority students
    • Tuition stability factor
  • Performance
    • Completion and Transfers
      • Weights are based on academic award level, and subjects such as STEM and health care receive a higher weight
      • The number of credentials awarded and students transferred, with specific weights varying by academic award level and subject
      • Nonresident students weighted at 30% of resident students
      • Additional bonuses are provided for completions awarded to and transfers of Pell-eligible (required by statute) and underrepresented minority students
    • Academic Progress/Retention
      • Number of students who make academic progress of 25%, 50%, and 75% in their respective two-year or four-year program (Nonresident students weighted at 30% of resident students)
    • Volume Adjusted Awards
      • Rewards performance in a manner that recognizes institutional performance in relation to its size and capacity

The policy does not include a campus climate metric. The policy is overseen by the Colorado Commission on Higher Education, which is appointed by the governor. To learn more, visit https://leg.colorado.gov/sites/default/files/fy2019-20_hedbrf.pdf.

In the 2021-2022 academic year, the state of Colorado will be shifting to a “student-focused” funding formula.

The new metrics reportedly include:

  • 20% for underrepresented minority students
  • 20% for students from low-income families
  • 20% for retention rate
  • 20% for graduation rate
  • 10% for Colorado resident enrollment
  • 5% for credentials awarded
  • 5% for students who are first in their families to attend college

The policy is overseen by the Colorado Commission on Higher Education, which is appointed by the governor. To learn more, visit https://leg.colorado.gov/sites/default/files/fy2019-20_hedbrf.pdf and https://highered.colorado.gov/educators/how-do-i/hb-14-1319-a-new-funding-model-for-higher-education.

Two-Year Institutions
Enrollment of Students of Color None
Success of Students of Color Weight
Enrollment of Students From Low-Income Backgrounds None
Success of Low-Income Students From Low-Income Backgrounds Weight
Measure Related to Campus Climate None

Four-Year Institutions
Enrollment of Students of Color None
Success of Students of Color Weight
Enrollment of Students From Low-Income Backgrounds None
Success of Low-Income Students From Low-Income Backgrounds Weight
Measure Related to Campus Climate None

Outcomes-Based Funding Map Placeholder
Outcomes-Based Funding Map

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