With the state budget situation potentially in a crisis mode, some legislators are seeking relief through measures aimed at freeing higher education from the TABOR (Taxpayer's Bill of Rights) Amendment.

Senate Bill 189, currently in the Senate Education Committee, would, among other things, establish the College Opportunity Fund and free the state colleges and universities from TABOR constraints.

House Concurrent Resolution 1004 would ask voters to define state higher ed institutions as enterprises, regardless of the level of state funding they receive. The measure passed the House Education Committee last week and now awaits consideration in the House.

By defining higher ed institutions as enterprises, the institutions would be removed from spending and revenue restrictions imposed by TABOR, which currently restricts how much tuition increases can be.

However, even if higher education institutions such as Metro are granted enterprise status through SB 189 or HCR 1004, that doesn't mean that tuition increases could be used to completely solve budget problems because the legislature would have the final say on tuition increases.

"The real benefit of enterprise status would be in higher education institutions having the flexibility to set their own tuition," said Vice President of Administration and Finance Mike Barnett. "As the bill is drafted, the legislature and the governor still have the final say in the level of tuition increases."

Another piece of SB 189, establishing a College Opportunity Fund, will also have financial implications for Metro State. Under the proposed legislation, the fund would be administered through the Colorado Student Loan Program. A trust fund for eligible undergraduate students would be established, providing stipends for undergraduate students admitted to state higher education institutions. Students attending one of three private institutions - Colorado College, Regis University or the University of Denver - would receive a stipend equal to half that for a public institution. The stipend would replace the general-fund, per-student-FTE appropriation now given directly to state colleges and universities.

The impact on Metro depends on how much the stipend would be, which has yet to be determined. "If the amount is $2,500 per full-year full-time student, then there's really no gain to Metro," Barnett said. "If the amount is higher then there will be a benefit."

Legislators should have a better idea about how much funding may be available for higher education later this week when the Joint Budget Committee determines budgetary figures for higher education.

Another development related to the overall state budget situation is the possibility of selling off a portion of Colorado's future tobacco settlement dollars in exchange for funds now, which would be used to help balance the budget.

Also, legislators are considering changes to TABOR and to Amendment 23, which has required annual increases to K-12 school spending while most of the budget is being cut.