Colorado Higher Education Funding Formula

The current funding formula uses three steps to distribute funding to institutions:  

• Step 1: The Commission may recommend additional funding in Step 1 to add to the base funding for progress toward strategic plan goals. This step is optional.  
• Step 2: The Commission shall calculate performance funding for each governing board based on the rate of change over time on each performance metric. This step is required.
• Step 3: The Commission may recommend additional temporary funding to make progress toward the strategic plan goals. This step is optional. No funding has been recommended through Step 3 since the implementation of the current allocation model.  

Most higher education funding flows through Step 2. Step 2 of the current performance funding model utilizes eight metrics aligned with the 2020 strategic plan. Each performance metric is weighted to determine the relative influence on the funding recommendations. To learn more about how each performance metric is calculated, click here.

Each performance metric measures improvement over time within each governing board by averaging the most recent four years of progress and dividing it by the average of the most recent three years of progress. This rate of change is then multiplied by the governing board’s role and mission share. The role and mission share are determined by the share of total appropriation in the previous fiscal year.  

To learn more, CDHE prepared this presentation about how the current formula operates. You can also access this video of the Commission Retreat from July 25, 2024, for a detailed description of how the formula works.

§ 23-18-307 (2)(a), C.R.S. directs the Colorado Commission on Higher Education (CCHE) to review the funding formula established in §23-18-303.5 every five years, with the first report to the governor, Joint Budget Committee and education committees of the Senate and House. This funding formula review is due by November 1, 2026. As part of this formula review process, statute allows the Commission to convene one or more meetings with interested parties to discuss the existing funding model and to learn of issues raised by interested parties. Additionally, statute directs the Commission to engage directly with the institutions of higher education as part of this review and analysis of the current performance funding model.  

At the September 5, 2024, CCHE meeting, the Commission voted to begin reviewing the current funding formula. 

Process for Review

CCHE voted to establish a Formula Review Working Group at the October 24, 2024, CCHE meeting. CCHE will convene the following 25 participants for the Formula Review Working Group:  

Institutional Representatives

• Adams State University – President David Tandberg, Ph.D.
• Colorado Mesa University – President John Marshall
• Colorado School of Mines – President Paul Johnson, Ph.D.
• Fort Lewis College – President Steven Schwartz
• Metropolitan State University of Denver– President Janine Davidson, Ph.D.
• University of Northern Colorado – President Andy Feinstein, Ph.D.
• Western Colorado University – President Brad Baca
• University of Colorado System – President Todd Saliman
• Colorado State University System – Chancellor Tony Frank, Ph.D.
• Colorado Community College System – Chancellor Joe Garcia, J.D.
• Aims Community College – Chuck Jensen (designee for President Leah Bornstein, Ph.D.)
• Colorado Mountain College – President Matt Gianneschi, Ph.D.
• Area Technical Colleges – Ed Bowditch (designee for ATCs)

Government Representatives

• Senate Education Committee – Senator Paul Lundeen, Senate Minority Leader
• House Education Committee – TBD
• Governor’s Policy Office – Jessica Kostelnik, Senior Policy Advisor
• Governor’s Office of State Planning and Budgeting (OSPB) – Rebecca Tyus, Senior Budget and Policy Analyst (designee for Mark Ferrandino, Director)
• President of the Senate – Senator James Coleman, Senate President
• Speaker of the House – Representative Julie McCluskie, Speaker of the House
• Government Technical Advisor
• Joint Budget Committee Staffer – Amanda Bickel, Chief Legislative Analyst

Agency Representatives

• CCHE Commissioner – Jennifer Walmer, Chair Colorado Commission on Higher Education
• CCHE Commissioner – Eric Tucker, Ph.D., Chair Finance, Performance, and Accountability Committee
• CDHE Representative – Angie Paccione, Ph.D., CDHE Executive Director

Agency Support Staff

• CDHE Chief Financial Officer: Crystal Collins
• CDHE Chief Policy and Research Officer: Sophia Laderman, Ph.D. 

The formula review committee working group will meet monthly from December 2024 through July 2025. Feedback from the working group will be shared with the Colorado Commission on Higher Education supporting the development of a report on the  

The funding formula will be discussed by CCHE at CCHE meetings; at the Finance, Performance, and Accountability Committee meetings; and at the Formula Review Working Group. Each of these meetings are subject to open meetings laws and will be posted on the CCHE website. 

Meeting Schedule 

• Colorado Higher Education Funding Modeler
• SHEEO Funding Formula Review Best Practices Document
• CDHE Funding Formula General Overview
• CDHE Funding Formula Video Overview (from CCHE July 25, 2024 retreat)
• Colorado Performance Funding Overview and Data Definitions 2025-26
• Meeting #1 Presentation