This bill updates how Colorado state colleges and universities receive performance-based funding starting in the 2027-28 fiscal year. It renames "performance funding" to "results-informed funding" and modifies the metrics used to calculate these funds, including graduation rates, student retention, and Pell-eligible student enrollment. The legislation also introduces a new definition for "co-located degree partnerships" and excludes students in these programs from certain graduation rate calculations. Additionally, the bill changes how funding components are ordered and removes requirements for sequential calculation of funding amounts.
The act creates the cradle to career grant program (grant program) in the department of human services (CDHS) to provide grants to a local government, local education provider, state institution of higher education, Indian tribe or tribal organization, or community-based nonprofit or not-for-profit organization (eligible entity) to promote coordinated community-based supports and services that open opportunities for economic mobility from poverty. The grant program must connect children and youth with high-quality educational and extracurricular programming and families with key health and social services in order to improve prenatal and early childhood outcomes, student achievement, workforce readiness, and wealth-building opportunities. The act creates the cradle to career advisory council (council) to approve or disapprove CDHS's potential grant recipients and to collaborate with CDHS to develop grant program guidelines and criteria for awarding grants. Council members must be Colorado residents and must not provide financial support for the grant program. To receive a grant, an eligible entity must submit an application that includes an economic mobility needs assessment and a comprehensive proposal to address the needs within its designated service area. The application must identify prospective community partners and subcontractors. The act caps the amount that CDHS may award in connection with a single grant application at 49% of available grant program money. A grant recipient must comply with various health and safety, financial responsibility, and anti-discrimination safeguards. Each grant recipient must annually report to CDHS addressing the recipient's progress using a set of performance indicators to assess the economic mobility outcomes and impacts associated with the grant award. CDHS must make a related report to the health and human services committees of the general assembly and the governor each year. CDHS may seek, accept, and expend gifts, grants, and donations for grant-program-related purposes. If CDHS does not receive $900,000 for those purposes on or before December 31, 2028, the grant program is repealed. The general assembly shall not appropriate general fund dollars for grant program operations.(Note: This summary applies to this bill as enacted.)
The act requires the executive director of the Colorado department of early childhood (CDEC) to adopt rules concerning the requirements for licensed child care facilities to maintain up-to-date employee records in the professional development information system currently administered by CDEC. The act requires CDEC, on or before July 1, 2026, to begin phasing out its reliance on third parties to investigate and inspect facilities applying for certain types of child care licenses where feasible and to prioritize the use of CDEC personnel to conduct the investigations and inspections instead. The act exempts certain health and sanitation inspections from the phase-out. CDEC must establish standardized training, protocols, and supervision for CDEC personnel and authorized or contracted third parties. A local governing authority that imposes requirements related to the inspection, permitting, licensing, or approval of a child care center or family child care home beyond the state-level licensing standards (local approval process) shall limit associated fees and prioritize concluding a local approval process that has been delayed or disputed. The act creates the child care licensure task force (task force) to study and report on recommendations for a streamlined child care licensure system in the state. On or before January 1, 2027, the task force must report on its recommendations to the health and human services and education committees of the house of representatives and the senate, the governor, and CDEC. The performance of the task force's work is dependent upon the receipt of sufficient gifts, grants, and donations.(Note: This summary applies to this bill as enacted.)
The act extends the repeal date of the open educational resources grant program and the Colorado open educational resources council (council) to November 1, 2031. The act increases representation from public institutions of higher education on the council from 12 to 15 members. The act extends the requirement for the department of higher education (department) to prepare and submit an annual report regarding open educational resources to December 31, 2031. The act appropriates $275,000 to the department for use by the Colorado commission on higher education and higher education special purpose programs.(Note: This summary applies to this bill as enacted.)
This bill brings Denver School of Science and Technology charter schools into the Denver Public Schools division of the Public Employees' Retirement Association (PERA), allowing their employees to participate in the same retirement benefits as other Denver public school workers. The legislation also changes the PERA Board of Trustees by adding one voting member elected by Denver Public Schools employees and removing a non-voting ex officio member from that division. Additionally, the bill extends the deadline for charter school employees to purchase additional retirement service credit for years worked before affiliation, moving the cutoff date from November 1, 2006, to July 1, 2026. These changes affect Denver public school employees, retirees, and the governance structure of the state's public employee retirement system.
The act requires the secretary of state to refer a ballot issue at the November 2026 general election to seek voter approval for the state, beginning in the 2026-27 state fiscal year, to retain and spend an amount of state revenue equal to the amount of state public K-12 education funding in excess of the limitation on state fiscal year spending and to increase state public K-12 education funding by up to 2% per year for 10 years. The act directs legislative council staff to determine the amount of state public K-12 education funding and describes how legislative council staff will make that determination. The act creates a positive factor to increase state public K-12 education funding. The amount of the positive factor compounds annually for 10 years. The positive factor for the 2026-27 budget year is 2% of the program foundation calculated for the 2025-26 budget year. For the 2027-28 through 2034-35 budget years, it is the sum of 2% of the prior year's program foundation plus the prior year's positive factor. For the 2035-36 budget year and beyond, it is the sum of 2% of the 2034-35 program foundation plus the 2034-35 positive factor. A district's share of the positive factor is calculated proportionally based on the district's total program under the new school finance formula relative to the statewide total program. A district may only use its positive factor funding for increasing teacher pay, improving teacher retention, lowering class sizes, and increasing access to career and technical courses. For the 2026-27 state fiscal year, the children's account consists of an amount of money equal to the amount of state revenues that the state retains for a given fiscal year pursuant to voter approval of the act. For state fiscal years commencing on or after July 1, 2027, the account consists of that same amount minus an amount equal to the total dollar amount of warrants issued by the state treasurer to reimburse local governments for property tax exemptions. Money in the account must first be spent to pay districts their positive factor, then any remaining funds are appropriated for disability services and school services and to increase annual contact hours, and finally to programs prioritizing child care and full-day preschool. The act directs the state auditor to conduct and publish a report on excess state revenues for each state fiscal year that the state retains and spends state revenues in excess of the limitation on state fiscal year spending. That report must include descriptions of:The amount of state revenues that the state retained and spent that would otherwise have been in excess of the limitation on state fiscal year spending; andHow the state expended the state revenues that the state retained and spent that would otherwise have been in excess of the limitation on state fiscal year spending. Beginning August 1, 2027, the act requires each local education provider to post, online for free public access in a format that can be downloaded and sorted, its actual expenditures of any positive factor received. Lastly, the act updates provisions regarding the expanded earned income tax credit, the family affordability tax credit, and the affordable housing financing fund to ensure that voter approval of the act does not adversely impact those programs.(Note: This summary applies to this bill as enacted.)
The bill requires the state treasurer, on behalf of the state, to execute, no later than December 31, 2026, financed purchase of an asset or certificate of participation agreements (financing agreements) to finance a portion of the capital costs related to the capital renewal of a facility at the Colorado school of mines. The financing agreements are to be issued in an aggregate principal amount not to exceed $13 million plus reasonable and necessary administrative, monitoring, and closing costs and interest, including capitalized interest. The anticipated annual state-funded payments for the principal and interest components due under the financing agreements must not exceed the difference between $17.5 million and the amount of the annual state-funded payments for the agreements entered into pursuant to House Bill 24-1231, with principal amortization not occurring before July 1, 2027. The proceeds from the financing agreements will be used for the renewal of critical building systems of Guggenheim hall at the Colorado school of mines.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)
Section 4 of the bill creates the 'Building Excellent Teacher and Employee Residences Act' (BETER). BETER creates a new school district financing opportunity for the development of housing for teachers and other school district and public school staff (workforce housing). The bill creates an application process by which a school district (applicant) may apply to the workforce housing assistance board (board) for financial assistance in connection with developing a workforce housing project. The division of public school capital construction assistance within the department of education (division of public school capital construction assistance) and the division of housing within the department of local affairs (division of housing) shall assist applicants in identifying workforce housing needs and in submitting applications to the board. No later than June 1, the board, with the support of the division of housing and division of public school capital construction assistance, shall review these applications according to guidelines that the board establishes and creates an initial prioritized list of workforce housing projects to award financial assistance. The board shall submit this initial prioritized list to the state board of education and the state housing board for comment. No later than July 15, the board shall determine a final prioritized list of projects for which the board will provide financial assistance. The board may only award financial assistance to an applicant for a workforce housing project if:The board determines that the project complies with affordability, tenancy, and environmental and building requirements established by the board; andUnless the board grants an exemption, the applicant provides matching money in an amount at least equal to the portion of the total development cost of the workforce housing project that can be financed with and supported by net operating income generated from the project.The board may only provide an amount of financial assistance to an applicant for a workforce housing project that is equal to or less than the portion of the amount of the workforce housing project's total development cost that exceeds the amount that the applicant can finance and support with the workforce housing project's net operating income. The board may provide financial assistance to an applicant for a workforce housing project by awarding matching grants that are paid out of the workforce housing assistance fund (fund) or by instructing the state treasurer to enter into a financed purchase of an asset or certificate of participation agreement. In this context, the financed purchase of an asset or certificate of participation agreement means a lease-purchase agreement between the state treasurer and a trustee pursuant to which:The state makes rental payments that include principal and interest components; andThe trustee, pursuant to an indenture of trust, creates certificates of participation evidencing undivided interests in the payments made by the state under the lease-purchase agreement. Any payment obligation of the state as part of a financed purchase of an asset or certificate of participation agreement is subject to annual appropriation and does not create an indebtedness or multiple fiscal year financial obligation of the state within the meaning of any provision of the state constitution or state statute. If the state treasurer enters into a financed purchase of an asset or certificate of participation agreement, the board shall enter into a sub-financed purchase of an asset or certificate of participation agreement for the workforce housing project with the applicant that will use the workforce housing. The sub-financed purchase of an asset or certificate of participation agreement must:Require the applicant to perform for the state all duties of the state to maintain and operate the workforce housing project and to make periodic rental payments to the state or otherwise make a payment to the state in the amount of the matching money required for the award of financial assistance; andProvide for the transfer of ownership of the workforce housing from the state to the applicant upon the fulfillment of both the state's obligations under the financed purchase of an asset or certificate of participation agreement and the applicant's obligations under the sub-financed purchase of an asset or certificate of participation agreement. The board is required to present an annual written report to the education and finance committees of the house of representatives and the senate regarding the provision of financial assistance to applicants. The board is also required to post a similar report on the department of education's website. Sections 5, 6, 7, and 8 establish the funding mechanism for the fund. The state constitution restricts the use of the principal of the public school fund and only allows for the use of public school fund interest and income. Sections 6 and 7 clarify that public school fund interest and income includes realized and unrealized gains and directs the transfer of the lesser of an amount of interest and income equal to 2.5% of the total value of the public school fund after making currently required interest and income distributions from the public school fund or $40 million to the state public school fund. Section 5 creates the public school fund income stabilization account within the public school fund and directs the treasurer to credit the difference between the amount transferred from the public school fund to the state public school fund as described in section 6 and $40 million to the account. The uses of the account are limited to supplementing payment from or the principal of the public school fund. Section 8 directs the state treasurer to annually transfer an amount equal to the amount transferred from the public school fund to the state public school fund pursuant to section 6 from the state education fund to the fund. Section 1 expands school district powers concerning the development and financing of workforce housing. Specifically, section 1 allows for school districts to:Acquire, construct, improve, own, operate, lease, and lease-purchase workforce housing;Issue bonds to finance workforce housing;Enter into contracts with public entities and private parties to finance workforce housing; andCreate enterprises for the acquisition, construction, improvement, ownership, operation, leasing, and lease-purchasing of workforce housing.Section 1 also describes the characteristics of bonds issued by school district-created enterprises for the purpose of financing workforce housing. Section 2 adds certain school district and school district enterprise lease agreements, lease-purchase agreements, and revenue bonds entered into or issued in connection with financing workforce housing to the state intercept program. Sections 3, 9, and 10 grant the division of public school capital construction assistance, the state treasurer, and the division of housing the powers necessary to implement the bill.(Note: This summary applies to this bill as introduced.)
The act includes approved facility schools in the definition of 'employer' for purposes of the public employees' retirement association (PERA) and allows an approved facility school to apply to the PERA board to affiliate with PERA.(Note: This summary applies to this bill as enacted.)
