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March 11, 2024 SB 24-156
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0740
Sen. Buckner; Coleman
Date:
Bill Status:
Fiscal Analyst:
March 11, 2024
Senate Education
John Armstrong | 303-866-6289
john.armstrong@coleg.gov
Bill Topic: COLLEGE PREPARATION & ENRICHMENT PROGRAM
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☒ School District
The bill establishes a program for institutions of higher education to establish
partnerships with school districts to improve college access and completion rates. The
bill will increase state expenditures beginning in FY 2024-25.
Appropriation
Summary:
For FY 2024-25, the bill requires an appropriation of $13,558,370 to the Department of
Higher Education.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under SB 24-156
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue - -
Expenditures General Fund up to $13,558,370 up to $13,564,625
Centrally Appropriated $11,878 $14,848
Total Expenditures $13,570,248 $13,579,473
Total FTE 0.8 FTE 1.0 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $2,033,756 $2,034,694
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March 11, 2024 SB 24-156
Summary of Legislation
The bill creates the Colorado College Preparation and Enrichment Program, which is
administered by the Office of Education Equity within the Department of Higher Education
(CDHE). The program is intended to create partnerships between institutions of higher
education and local education providers to increase the number of students who graduate from
an institution of higher education by providing services to students in middle and high school to
plan for college, be admitted to an institution, and receive support while in college.
CDHE is required to appropriate $500,000 annually to each institution of higher education that
opts-in to program participation. Institutions that receive money from CDHE must create a
guaranteed admission pathway for participating students, advise students through the college
application process, and assist students with acquiring financial aid. Institutions may provide
financial incentives to students who participate in the program for books, scholarships, and
emergency funds.
CDHE must include program outcomes as part of its SMART Act presentation to the legislature.
Assumptions
The fiscal note assumes that area technical colleges and the four-year institutions which
specialize in medical education (CU School of Medicine and CSU School of Veterinary Medicine)
will not request funding. Excluding these institutions, there are 27 eligible two-year and
four-year institutions in Colorado to receive an appropriation, including 13 in the community
college system. The fiscal note assumes that institutions will request funds annually.
State Expenditures
The bill will increase state expenditures in CDHE by up to $13.6 million in FY 2024-25 and
ongoing, paid from the General Fund. Expenditures are shown in Table 2 and explained below.
Table 2
Expenditures Under SB 24-156
FY 2024-25 FY 2025-26
Department of Higher Education
Personal Services $50,676 $63,345
Operating Expenses $1,024 $1,280
Capital Outlay Costs $6,670 -
Program Funding to Institutions $13,500,000 $13,500,000
Centrally Appropriated Costs
1
$11,878 $14,848
Total Cost $13,570,249 $13,579,473
Total FTE
0.8 FTE 1.0 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
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March 11, 2024 SB 24-156
Staff. CDHE will require 1.0 FTE Program Coordinator in the Office of Educational Equity to serve
as a point of contact for institutions, compile required data, and develop the annual report to
the legislature. Costs are prorated to assume a September 2024 start data and standard
operating expenses and capital outlay are included.
Program funding to institutions. Up to 27 institutions of higher education are expected to
request funding to participate in the program, as outlined in the Assumptions section. Assuming
the full $500,000 per institution, up to $13.5 million is expected to be distributed on an annual
basis. Institutions will primarily use this funding to provide services to participating students,
both while enrolled in a partnering school districts and at the institution. Funding may also be
used for administrative expenses. Actual distributions may be lower if not all institutions choose
to participate.
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.
School District
School districts that partner with the institutions of higher education will have increased
workload to determine eligibility criteria for their students, communicate with CDHE, and assist
in providing college readiness services to their students. This additional workload will vary by
district, depending on program participation.
Technical Note
The bill references that funding for the program must be based on Section 23-18-303.5 (2),
C.R.S., which pertains to the College Opportunity Fund. It is unclear how the bill interacts with
the College Opportunity Fund formula. Similar programs that provide direct funding to
institutions reference Section 23-18-308, C.R.S, which pertains to fee-for-service-contracts for
specific purposes.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed. Page 4
March 11, 2024 SB 24-156
State Appropriations
For FY 2024-25, the bill requires a General Fund appropriation of $13,558,370 to the Department
of Higher Education, and 0.8 FTE.
Departmental Difference
The CDHE believes the bill requires an additional $29,358 in general fund per year and 0.5 FTE to
implement the funding mechanisms of the bill. This additional 0.5 FTE would determine the
percentage of funding that each institution is eligible for based on the College Opportunity
Fund. The fiscal note differs from this estimate by assuming that all institutions who wish to
participate in the program are eligible for the full $500,000 appropriation and the additional
review is not needed.
State and Local Government Contacts
Education Higher Education
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.