Colorados Investment In Higher Education

Containing costs for students in higher education is paramount to the Colorado Department of Higher Education (CDHE) and the State of Colorado. Although data suggest that earning a postsecondary credential improves individual earning potential and offers robust return on investment, the cost of college or technical school remains a barrier for many Coloradans. To this end, CDHE is building capacity for wide-scale implementation of open educational resources (OER), free or very low-cost teaching and learning materials that live in the open domain.

The Commission initiated a funding to review national funding models for higher education led by the National Center for Higher Education Management Systems (NCHEMS). Each institution contributed to the cost of the study and participated in the effort. NCHEMS' key recommendation is to move the funding discussions for higher education away from a cost model to a revenue-driven model. The fundamental question NCHEMS posed was how to determine whether institutions were adequately and equitably funded: i.e., each institution has adequate resources for the unique missions and resulting program offerings that affect cost. NCHEMS identified two sets of national models: one that uses costs, formulas and pieces of the structure of higher education to negotiate funding and the other that uses benchmarks developed through comparative institution analysis taking into consideration revenue in addition to costs. Based on NCHEMS' recommendation to utilize a model that benchmarks data and revenues, comparable institutional benchmarks were developed for each public higher education institution in Colorado. Using a revenue-driven model calculates the total of general tax funds and tuition and fees provided for operation of higher education. This model is not intended to be based on actual costs and does not take into account relative tax bases, governance structures, or history of funding. This model is not intended to serve as a distribution/allocation model. Further work must be conducted collaboratively with all stakeholders before decisions are made on proper allocation models. The following information is attached: (1) Criteria used by NCHEMS to select the benchmark institutions and to show each institution's benchmark/peer groups; (2) Percent of funding Colorado institutions receive compared to their benchmark institutions; (3) Series of charts showing the proportion of revenues as percent of funding by type of institution; (4) Each institution as a percent of their peer/benchmark institutions; and (5) Resident and Non-resident tuition and fee rates. (Contains 30 figures and 28 tables.).

The Colorado Commission on Higher Education presents its master plan as an urgent call to action. If the state of Colorado is to prepare its students for changing workforce demands and maintain its high quality of life and vibrant economy, it must invest more in the educational attainment of all its citizens. Today Colorado faces a critical decision: Invest in expanded access in order to mitigate affordability and equity gap challenges or bear the weight and financial burden of an undereducated citizenry. In this plan, the CCHE reaffirms a statewide credential attainment goal of 66 percent by 2025 for our adult population. Our economy demands it.

The primary performance goal established by this Master Plan is to increase the number of Coloradans aged 25-34 who hold high-quality postsecondary credentials -- certificates and degrees -- to 66 percent by 2025. In addition to this principal performance goal, the Commission identified three complementary goals that address areas of critical concern to the postsecondary system: Improving student progress and momentum; diminishing historical disparities among students from certain populations; and demonstrating the need and justification for improved investments in the postsecondary sector.

This report assesses the impact of Northern Colorado Public Colleges and Universities (NoCoPCU) on the regional economy and the benefits on the regional economy and the benefits generated by the institutions for students, taxpayers, and society. The results of this study show that NoCoPCU creates a positive net impact on the regional economy and generates a positive return on investment for students, taxpayers, and society.

Today more than ever, our Colorado economy demands an educated workforce. Estimates suggest that nearly three in four jobs in Colorado and as many as 97 percent of top jobs—in-demand jobs that pay a living wage—require a postsecondary credential, whether a certificate, two-year, or four-year degree. Yet 43 percent of Colorado's adult population currently lacks education beyond high school. The costs of college also continue to rise: Over the last ten years tuition at public colleges and universities in Colorado has increased more than 65 percent. As the need for postsecondary credentials increases, the growing costs of higher education hinder access for too many Coloradans and threaten the state’s economic vitality.