0EEBE1212F7BBD348725843F0060A033 Hearing Summary

The committee recessed.

The committee came back to order, and Amanda Bickel, Chief Legislative Analyst, Joint Budget Committee Staff, came to the table. Her presentation can be accessed on the committee's website here: http://leg.colorado.gov/sites/default/files/images/committees/2017/presentation_to_affordability_group.pdf.  Ms. Bickel also distributed information on CDHE from the the JBC appropriation document (Attachment A) and charts on institutional tuition and general fund revenue (Attachment B).  Ms. Bickel gave a brief background on the higher education system and funding, including background on the ten state governing boards, which include the Colorado Community College System, the University of Colorado System, Area Technical Colleges, and local district colleges.  She noted that there are large variations in education and general revenue between each board and the education and general revenue excludes several costs of education, such as housing, books, and other costs.  Ms. Bickel answered questions from the committee regarding the cost of athletic programs.

Ms. Bickel discussed how general fund dollars are distributed, noting that 80 percent of general fund moneys that are allocated to higher education are put towards governing board supports. She explained ways in which the General Assembly can help keep student costs down through, citing supports for the governing boards, tuition caps, and increasing financial aid support. She talked about recent trends in governing board support, which has declined as a share of total funds. At that same time, institutional flexibility has increased, and the institutions increasingly act like private entities, competing for student enrollment and tuition. She also discussed the impact of non-resident enrollment on institutions, the decentralization of state financial aid, and student fees being used as a way to increase revenue and navigate around state around tuition caps. Ms. Bickel responded to questions from the committee.

Ms. Bickel discussed revenue and expense trends in the state, noting that declines in state support are a major, but not the sole, driver of cost increases for students. She stated that total revenue per student from tuition and state aid has increased generally and that cost drivers vary at each institution. She explained Bowen's Theory of Cost, which argues that colleges and universities will spend all of their revenue, so if revenue is increased, costs will also increase.

Ms. Bickel discussed the difference between cost of attendance versus published tuition, noting that living costs for students are often more significant than tuition. She also talked about the different sources of financial aid, including federal Pell Grants, state financial aid grants, institutional grants, and federal loans. 67 percent of students receiving a baccalaureate degree use federal loans as a source of financial aid. Ms. Bickel answered questions from the committee.