Colorado proposes new department to streamline higher education and workforce development

This article appeared in the Spring 2026 issue of ColoradoBiz under the headline, State Report Proposes Combining Agencies to Help Learners, Job Seekers, Employers.

Last December, Gov. Jared Polis announced the release of a report titled Reimagining the Future of the Postsecondary Talent Development System in Colorado.

The report, which Polis had previously commissioned with Executive Order 2025-006, tasked agencies with analyzing the state’s post-secondary talent system and outlined several recommendations for improvement.

One proposal is to combine two departments to create the Colorado Department of Higher Education and Workforce Development, a one-stop shop for Colorado learners, job seekers and employers.

The new department would help to streamline an unwieldy system. According to the report, the post-secondary talent system consists of 472 schools, more than 300 apprenticeship programs, 4,500-plus eligible training programs and nearly 10,000 degree options. The current system does not meet the needs of individuals, schools, or businesses because of a disparate assortment of strategic plans, performance metrics and accountability structures.

Meanwhile, the report noted, more than one million Coloradans aged 25 to 64 have only a high school diploma, and half a million started college but did not complete a degree. By 2031, 73% of all jobs in Colorado (2,232,000 jobs) will require some post-secondary training beyond high school.

Supporting businesses

That presents a challenge not only for individuals overwhelmed by the various educational offerings but also for businesses seeking to attract and hire qualified candidates. Businesses are facing labor shortages, and the current system’s fragmented structure makes it difficult for employers to find skilled job seekers to fill positions, for education and training organizations to build the talent pipeline, and for tax credits or grants to help fund the company’s training needs.

For businesses, the combined department “will eliminate low-value engagements, and create clear, responsive channels to address business needs,” according to the report. The new department will work with other agencies, for example, coordinating advisory groups for the State Approving Agency for Career and Technical Education (CTE), Registered Apprenticeships, work-based learning and private occupational school oversight.

While the report did not outline specifics on how the department would work with businesses, it noted that the department would support partnerships, set expectations for employer leadership and provide data and technical assistance to chambers, talent associations, industry associations and unions.

“Businesses don’t often know how to interface with government, especially when it’s many different agencies,” Polis said by video call in February. “This will make sure there is a single point of entry for apprenticeships and skills upgrades and companies can make sure they meet their workforce needs for the future and help make Colorado more competitive.”

Legislative effort

The report noted that other states have revamped their higher education and workforce development departments. Missouri realigned several departments in 2019 and established the Missouri Department of Higher Education & Workforce Development. In 2023, Virginia passed legislation to create the Department of Workforce Development and Advancement, or Virginia Works.

In 2024, an executive order in Delaware established the Office of Workforce Development within the Delaware Department of Labor to help organize and improve job training and education programs in the state.

In Colorado, the General Assembly has to pass legislation to create the Colorado Department of Higher Education and Workforce Development. House Speaker Julie McCluskie, D-Dillon, said she will sponsor legislation this session.

“My transformative bill will improve the way learners access education and how businesses meet their workforce needs,” she said by email. “We’re working to grow our economy, and that means equipping workers with the tools, skills and opportunities they need and supporting our businesses.”

The current approach is siloed, Speaker McCluskie said, and these efforts will help workers and students access good-paying jobs. Employers will benefit too. “I believe that Colorado businesses are aligned with this bill because it makes it easier for them to recruit and train talent,” Speaker McCluskie said.

The report also listed several long-term recommendations. One is to support employer engagement for high-quality work-based learning opportunities, while minimizing burdensome requirements. That builds on a recommendation from the 1215 Task Force, established as a result of House Bill 22-1215, co-sponsored by Representative McCluskie, who became Speaker in 2024.

The 1215 Task Force was established to develop recommendations to expand work-based learning opportunities for students.

These and other recommendations have a timeline of 2027 and beyond.

“With the passage of this bill, for this to be fully functional, of course, could take a year or two to make sure we can benefit from all the efficiencies we have and eliminate any redundancies,” Polis said.