AI-generated summary, not yet reviewed by Better Utah staff. Please consult the bill text.

Higher education funding formulas in Utah would see two major changes under this bill. Starting in July 2026, the state would use a new formula to adjust funding for universities and technical colleges based on enrollment changes, with the state covering a set share of average instructional costs — 50% for research universities like the U of U and Utah State, 60-65% for regional universities, 75% for community colleges, and 90% for technical colleges. Beginning in 2027, the state would also replace current performance-funding metrics (access, timely completion, and high-yield awards) with new measures, including how well graduates' degrees match high-demand jobs, how many degrees institutions award per enrolled student, and for technical colleges, how successfully graduates find jobs or continue their education; the process for legislative committees to review and adjust these performance goals every five years would also change, requiring recommendations from the Higher Education Appropriations Subcommittee before going to the Executive Appropriations Committee. This version adds new requirements not in the earlier draft: it directs the Utah Board of Higher Education to study and report by October 2026 on a possible new funding framework to help technical colleges expand program capacity to meet unmet student and employer demand, and it requires the Higher Education Appropriations Subcommittee to ensure that non-statutory funding formulas for technical colleges count secondary and adult students equally and fully account for the colleges' required services.