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April 12, 2024 SB 24-143
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated February 14, 2024)
Drafting Number:
Prime Sponsors:
LLS 24-0628
Sen. Coleman; Zenzinger
Rep. Herod
Date:
Bill Status:
Fiscal Analyst:
April 12, 2024
Senate Appropriations
Anna Gerstle | 303-866-4375
anna.gerstle@coleg.gov
Bill Topic: CREDENTIAL QUALITY APPRENTICESHIP CLASSIFICATION
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill requires that state agencies evaluate if non-degree credentials meet certain
standards and apply an international classification system to credential pathways and
apprenticeships. The bill increases state expenditures on an ongoing basis.
Appropriation
Summary:
For FY 2024-25, the bill requires an appropriation of $154,287 to multiple state
agencies.
Fiscal Note
Status:
The revised fiscal note reflects the introduced bill, as amended by the Senate
Education Committee.
Table 1
State Fiscal Impacts Under SB 24-143
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue - -
Expenditures General Fund $154,287 $217,853
Centrally Appropriated $20,949 $36,643
Total Expenditures $175,236 $254,496
Total FTE 1.2 FTE 2.0 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $23,143 $32,678
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April 12, 2024 SB 24-143
Summary of Legislation
The bill requires that state agencies evaluate if non-degree credentials meet certain standards
and apply an international classification system to credential pathways and apprenticeships, as
detailed below.
Non-degree credential framework. Beginning in January 1, 2026, the bill requires that the
Colorado Department of Higher Education (CDHE), in collaboration with the Colorado Workforce
Development Council (CWDC), Department of Education (CDE), Department of Labor and
Employment (CDLE), the community college system (CCCS), and the Office of Economic
Development and International Trade (OEDIT) on an annual basis:
evaluate non-degree credentials offered through state-recognized programs to ensure the
credentials meet quality standards; and
supply the CWDC with a list of credential programs that meet the quality standards, for
inclusion in the Colorado Talent Report and in a credential registry.
Application of International Standard Classification of Education. By July 31, 2025, CDHE
must complete a stakeholder engagement process to study and make recommendations related
to:
adopting the International Standard Classification of Education (ISCED) as the state’s
standard framework for classifying non-degree credentials;
the application of ISCED within the state education and workforce system; and
how ISCED equivalency levels may be implemented and assigned to credentials, pathways,
and apprenticeships.
The results of this process must be reported to legislative committees before July 31, 2025. By
July 31, 2025, CDHE must assign ISCED equivalency levels to the stackable credential pathways.
The Office of Future of Work in CDLE must determine ISCED equivalency levels for each
registered apprenticeship program, which must be included on all public listings and
apprenticeship certificates of completion. Equivalency levels must be determined by
January 1, 2026, for apprenticeships registered before July 31, 2025. Equivalency levels for
apprenticeships registered on or after July 31, 2025, must occur beginning January 1, 2026.
Background
Senate Bill 22-192 required that the CDHE create a framework for evaluating access to and
quality of non-degree credentials, and identifying alignment between credentials and
work-based learning.
A non-degree credential is a postsecondary certificate, apprenticeship certificate of completion,
professional license, or industry certification. Page 3
April 12, 2024 SB 24-143
The ISCED is a framework for organizing education programs and applying standard definitions
that allow for comparison of different programs and qualifications. It was adopted by the United
Nations Educational Scientific, and Cultural Organization (UNESCO) in November 2011.
State Expenditures
The bill increases state expenditures in CDHE and CDLE by about $175,236 in FY 2024-25 and
$254,496 beginning in FY 2025-26, paid from the General Fund. Expenditures are shown in
Table 2 and detailed below.
Table 2
Expenditures Under SB 24-143
FY 2024-25 FY 2025-26
Department of Labor & Employment
Personal Services - $49,134
Operating Expenses - $1,165
Capital Outlay Costs - $6,670
Data System Updates $30,000
-
$22,200
Centrally Appropriated Costs
1
- $10,458
FTE – Personal Services - 0.5 FTE
CDLE Subtotal $30,000 $89,626
Department of Higher Education
Personal Services $109,411 $136,764
Operating Expenses $1,536 $1,920
Capital Outlay Costs $13,340 -
Centrally Appropriated Costs
1
$20,949 $26,186
FTE – Personal Services 1.2 FTE 1.5 FTE
CDHE Subtotal $145,236 $164,870
Total $175,236 $254,496
Total FTE 1.2 FTE 2.0 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
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April 12, 2024 SB 24-143
Department of Labor and Employment. CDLE will incur ongoing staff costs and one-time data
system costs to implement the bill.
Staffing. CDLE requires an 0.5 FTE beginning in FY 2025-26 to collaborate with other
agencies, evaluate non-degree credentials for approximately 331 registered apprenticeship
programs, and assign ISCED levels for new and existing apprenticeship programs. Costs
include standard operating and capital costs, including a software license for the new staff.
Data system updates. The bill requires that ISCED codes are displayed in apprenticeship
certificates, training provider lists, and the Colorado State Apprenticeship Directory. The cost
to update these systems is estimated at $30,000 in FY 2024-25 only to update the user
interface for the training provider lists, and $22,200 in FY 2025-26 only to update the
software interface for the apprenticeship directory. Costs are based on existing vendor rates.
Department of Higher Education. The CDHE will incur staff costs to implement the bill.
Staffing. In FY 2024-25, the CDHE requires 1.5 FTE in FY 2024-25 to manage the stakeholder
process and assign ISCED equivalencies to stackable credential pathways. Beginning in
FY 2025-26, these staff will evaluate non-degree credentials, apply the quality standard
framework across the educational and workforce development systems, and handle required
reporting. Costs include standard operating and capital costs and first year costs are
prorated based on a September 2024 start date.
Other state agencies. The bill also increases workload for CDE, OEDIT, and the community
college system to collaborate with CDHE and CDLE to ensure that programs align with the
quality standards and assign ISCED classifications, and to participate in the ISCED stakeholder
process. This change in workload is assumed to be minimal; no change in appropriations is
required.
Centrally appropriated costs. Pursuant to a Joint Budget Committee policy, certain costs
associated with this bill are addressed through the annual budget process and centrally
appropriated in the Long Bill or supplemental appropriations bills, rather than in this bill. These
costs, which include employee insurance and supplemental employee retirement payments, are
shown in Table 2.
Other Budget Impacts
General Fund reserve. Under current law, an amount equal to 15 percent of General Fund
appropriations must be set aside in the General Fund statutory reserve. Based on this fiscal note,
the bill is expected to increase the amount of General Fund held in reserve by the amounts
shown in Table 1, decreasing the amount of General Fund available for other purposes.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed. Page 5
April 12, 2024 SB 24-143
Departmental Difference
CDHE estimates that the bill requires an additional 0.8 FTE in FY 2024-25 and 0.5 FTE in
subsequent years, for a total of 2.0 FTE ongoing. This estimate is based on uncertainty about the
complexity of ISCED levels, and assumes that managing the stakeholder process and assigning
ISCED equivalencies in the first year and application of quality framework and ISCED
equivalencies in subsequent years requires a minimum of two staff members.
The fiscal note assumes that 1.5 FTE ongoing will be sufficient because the stakeholder
engagement process and initial assignment of ISCED equivalencies will be completed by CDHE
prior to beginning the evaluation of non-degree credentials and application of the quality
standard framework in FY 2025-26.
State Appropriations
For FY 2024-25, the bill requires the following General Fund appropriations:
$124,287 to the Department of Higher Education, and 1.2 FTE; and
$30,000 to the Department of Labor and Employment.
State and Local Government Contacts
Education Higher Education Labor
Office of Economic Development
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.