Joint Budget Committee approves $39.8 million higher education package, sets 3.5% resident tuition cap

The Joint Budget Committee approved a package of higher education appropriations and related policy steps that together add $39.8 million in general fund for public institutions for FY 2025'26 and set policy direction on tuition increases and financial aid.

Committee action included a motion to appropriate $39,800,000 general fund to higher education (motion passed 6'0'00) and a follow'up motion that set a 3.5% cap on resident tuition increases at public institutions (passed 6'0'00). The committee also approved a $7,500,000 appropriation into need'based grants to align financial aid with new tuition commitments (passed 6'0'00) and set nonresident permissible tuition rate increases at 3.5% for institutions whose nonresident tuition the state helps underwrite (passed 6'0'00).

In committee discussion, staff and university representatives said the total $39.8 million figure combined general fund allocations and aligned financial aid; staff recommended allocating the financial aid portion primarily to need'based grants but noted the committee could place some funding into other legislative bills to help those measures pass. Ms. Bickel, JBC staff analyst for higher education, recommended the need'based grants approach and a footnote to allow some flexibility if the committee chooses to align aid with specific bills.

Members debated a proposal by Senator Kirkmeyer to reallocate $2.5 million of COSI (Colorado Opportunity Scholarship Initiative) program funds toward competitive grants for nonprofits that provide student supports tied to college completion. Some members supported testing a pilot reallocation to reduce administrative burdens on institutions and to leverage nonprofit capacity; others raised concerns about starting a new grant program and administrative costs. No committee motion redirected COSI funding during the session; staff said a footnote or placeholder could preserve options.

Committee members also discussed persistent base'funding inequities across public four'year institutions and community colleges. Representative Taggart and others urged a multi'year approach to lift smaller regional universities toward peer averages; members asked staff and institutions to continue negotiating solutions as the broader funding formula and performance elements are reworked.

The committee instructed staff to finalize footnotes and language to reflect the actions: $39.8 million general fund total, a 3.5% resident tuition cap, $7.5 million for need'based grants, and a 3.5% limit on nonresident tuition in covered cases. The committee adopted the higher education package and accompanying footnotes without objection.