CO Code § 23-18-303.5 (2021)
2021 Colorado Code|Title 23 - Postsecondary Education|Article 18 - College Opportunity Fund and Higher Education Funding|Part 3 - Higher Education Funding|§ 23-18-303.5. Fee-for-Service Contracts - Authorization - Performance Funding - Repeal

     For the 2021-22 state fiscal year and each state fiscal year thereafter, the governing board of a state institution of higher education may annually negotiate a fee-for-service contract with the department pursuant to this section for the delivery of higher education services by the institution for the benefit of the state and its residents. Specialty education programs, area technical colleges, and local district colleges are funded pursuant to the provisions of section 23-18-304.    Each governing board's annual fee-for-service contract includes the amount of funding appropriated to the governing board pursuant to this section, plus any amount appropriated to the governing board pursuant to sections 23-18-304 and 23-18-308, minus the amount of funding appropriated to the governing board for college opportunity fund stipends pursuant to section 23-18-202.       Ongoing additional funding. Prior to calculating performance funding recommendations pursuant to subsection (4) of this section, the commission, in conjunction with the department and in collaboration with the governing boards, may recommend an additional amount of funding pursuant to this subsection (2) for an institution, which amount is ongoing base funding for the receiving institution and is included in the calculation of funding pursuant to this part 3 in subsequent state fiscal years. The commission may recommend an additional amount of funding for the following purposes:   To increase appropriations over the previous state fiscal year in order to make progress toward master plan goals, which may include addressing base funding disparities or funding priorities not addressed through the performance funding metrics. The commission shall focus its recommendations on broad institutional, systemwide, or state policy goals.      To recognize an institution's additional costs related to or associated with educating and providing services to resident first-generation undergraduate students. (b) (I) To recognize an institution's additional costs related to or associated with educating and providing services to resident first-generation undergraduate students.    If the commission recommends additional funding for an institution or institutions pursuant to this subsection (2)(b), funding is calculated for an institution by dividing the institution's resident first-generation undergraduate student head count, based on the most recent census data collected by the department pursuant to section 23-18-302 (12)(b), by the institution's overall resident undergraduate student population head count from the fall census, and then multiplying the quotient by the institution's resident first-generation undergraduate student head count, resulting in the institution's “calibrated first-generation undergraduate student head count”. An institution's percentage share of additional funding pursuant to this subsection (2)(b) is then determined by dividing the institution's calibrated first-generation undergraduate student head count by the sum of the calibrated first-generation undergraduate student head counts for all institutions that receive additional funding pursuant to this subsection (2)(b).          Temporary additional funding. After calculating funding recommendations pursuant to subsections (2) and (4) of this section, the commission, in conjunction with the department and in collaboration with the governing boards, may recommend an additional amount of temporary funding pursuant to this subsection (3) for an institution for purposes of making progress toward goals identified in the systemwide master planning process set forth in section 23-1-108 or other areas as identified by the commission. Additional funding received pursuant to this subsection (3) must be allocated for a specific period of time, is not ongoing base funding, and is not included in the calculation of funding pursuant to this part 3 in subsequent state fiscal years or in the calculation of the total state appropriation made pursuant to this part 3.    Performance funding metrics.   After calculating funding recommendations pursuant to subsection (2) of this section, the commission, in conjunction with the department and in collaboration with the governing boards, shall calculate performance funding for each governing board based on the rate of change over time in the performance of the institutions overseen by the governing board on the performance funding metrics specified in subsection (4)(b) of this section. The recommendation for performance funding may reflect a change in the total state appropriation, less the amount appropriated pursuant to subsection (3) of this section, from the preceding state fiscal year.    The performance funding metrics include:   Resident student full-time equivalent enrollment;    Credential completion;    Resident Pell-eligible student population share;    Resident underrepresented minority student population share;    Retention rate;    One-hundred-percent-of-time graduation rate;    One-hundred-fifty-percent-of-time graduation rate; and    Resident first-generation undergraduate student population share.         Beginning with the 2021-22 state fiscal year, in preparing budget recommendations, the commission, in conjunction with the department and in collaboration with the governing boards, may annually identify the portion of total performance funding that is allocated to each performance funding metric specified in subsection (4)(b) of this section. (c) (I) Beginning with the 2021-22 state fiscal year, in preparing budget recommendations, the commission, in conjunction with the department and in collaboration with the governing boards, may annually identify the portion of total performance funding that is allocated to each performance funding metric specified in subsection (4)(b) of this section.    For the 2021-22 state fiscal year and each state fiscal year thereafter, the joint budget committee, after considering the commission's budget recommendations, shall determine the portion of total performance funding for the applicable state fiscal year that is allocated to each performance funding metric specified in subsection (4)(b) of this section. Each governing board's share of the funding allocated for each performance funding metric is determined using the calculation set forth in subsection (5) of this section.          Performance funding calculation.   The amount of performance funding that a governing board receives for each performance funding metric specified in subsection (4)(b) of this section is based on the rate of change over time in the performance of the institutions overseen by the governing board on the performance funding metric. The rate of change for each performance funding metric is calculated annually for a governing board by dividing the average of the four most recent years of actual data reported by the governing board for the metric by the average of the three oldest of the four years of actual data reported by the governing board for the metric. The rate of change for the performance funding metric is then multiplied by each governing board's role and mission share, resulting in the “governing board role and mission adjusted share” for the performance funding metric. The total of the governing board role and mission adjusted shares for all governing boards is the “total role and mission adjusted share” for the performance funding metric. Each governing board's allocation for the performance funding metric is then determined by dividing the governing board's role and mission adjusted share for the performance funding metric by the total role and mission adjusted share for the performance funding metric, ensuring that the total amount of funding distributed through the performance funding metric does not exceed the amount of funding allocated for the performance funding metric.      Notwithstanding the provisions of subsection (5)(a) of this section to the contrary, for purposes of appropriations for the 2021-22 through 2024-25 state fiscal years, an institution's rate of change in performance for purposes of the performance funding metric specified in subsection (4)(b)(VIII) of this section is based on the percentage change in the first-generation student head count from one year to the next using the institution's definition of a first-generation student, so long as the definition is consistent for both state fiscal years used in the calculation. The department shall calculate each institution's rate of change in performance for the performance funding metric specified in subsection (4)(b)(VIII) of this section using: (b) (I) Notwithstanding the provisions of subsection (5)(a) of this section to the contrary, for purposes of appropriations for the 2021-22 through 2024-25 state fiscal years, an institution's rate of change in performance for purposes of the performance funding metric specified in subsection (4)(b)(VIII) of this section is based on the percentage change in the first-generation student head count from one year to the next using the institution's definition of a first-generation student, so long as the definition is consistent for both state fiscal years used in the calculation. The department shall calculate each institution's rate of change in performance for the performance funding metric specified in subsection (4)(b)(VIII) of this section using:   The most recent two years of available, actual end-of-fall-term enrollment data reported by the governing board to the department; and    The lesser of the actual year-to-year percentage change in the first-generation student head count or two and one-half percent.       For each of the state fiscal years 2021-22 through 2024-25, the commission may recommend, and the joint budget committee may adopt, a change to the two and one-half percent limitation on the rate of change specified in subsection (5)(b)(I)(B) of this section.    This subsection (5)(b) is repealed, effective July 1, 2025.          The amount of any change in funding appropriated to a governing board for the state fiscal year pursuant to subsection (2) or (3) of this section is not included in calculating the percentage change in the total state appropriation for the applicable state fiscal year for purposes of section 23-18-304.    When requesting or determining a change in performance funding pursuant to subsection (4) of this section and tuition spending authority for governing boards, the department and the joint budget committee shall consider, at a minimum, cost increases to base funding at all institutions, including those related to common policies annually submitted in the governor's November 1 budget request and adopted by the joint budget committee, and the commission's master plan goals.    The board of trustees of the Colorado school of mines may study and recommend to the general assembly a different funding structure, including but not limited to a special purpose authority as defined in section 24-77-102 (15), that strengthens the institution and its specialized educational programs while ensuring academic quality and continued opportunities for resident students who meet the admissions criteria of the institution.    Nothing in this part 3 precludes a governing board, local district college, or area technical college from making a funding request to the commission.     History. Source: L. 2020: Entire section added, (HB 20-1366), ch. 181, p. 827, § 4, effective June 29.