This study examines the extent to which racial preferences are used in Colorado's 12 public colleges and universities and attempts to determine how the elimination of racial preferences would affect enrollment patterns in these schools. It uses actual admissions data from the State Commission on Higher Education. Detailed analysis shows that all public colleges and universities in Colorado use racial preferences in undergraduate admissions to increase black enrollment. There was no school at which the black median Scholastic Assessment Test (SAT) score, American College Testing Program score (ACT), or grade point average (GPA) was higher than the white median in 1995. Most of the public colleges and universities in Colorado use racial preferences to increase Hispanic enrollment. There were only a few schools at which whites did not have a higher median SAT or ACT score, or GPA, than Hispanic American students in 1995. Asian Americans appeared to receive very few or no preferences at all. Schools using racial preferences routinely reject White and Asian American students who have higher test scores and grades than Black and Hispanics who are admitted. The greatest preferences tend to be granted at the state's most competitive schools. It is concluded that the use of racial preferences decreases Black graduation rates strongly and Hispanic graduation rates slightly, presumably because students admitted by preferences lack the academic preparation needed to succeed. If Colorado schools were to begin admitting students on a colorblind basis, Black and Hispanic admissions would not drop sharply across the board. In four schools, there would probably be significant declines in Black and Hispanic enrollment, but the other eight would be relatively unaffected. (Contains 53 figures.) (SLD)