State funding was the main topic of discussion at last week's legislative update sponsored by the Higher Education Association of the Rockies. Panelists included Tonya Kelly Bowry, lobbyist for the University of Colorado system, Andy Hartman from the Bell Policy Center, Toni Larson, lobbyist for Independent Higher Education of Colorado, and Bridget Mullen, director of budgets for the CCHE.

The 2004-05 state budget appears headed for approval, with no additional cuts to state funding and a 1.1 percent tuition increase. Colleges will still face increases in certain fixed costs, such as salaries. "In essence, we're still taking a cut," Mullen said.

Panelists agreed that Senate Bill 189, which would create the College Opportunity Fund, is a necessary short-term solution to the state's higher education funding crisis.

In addition to providing stipends to Colorado students to attend college, the bill would free state colleges and universities from TABOR constraints, thereby no longer limiting tuition increases to the rate of inflation. (See This Week @Metro, 3/3/04
http://www.mscd.edu/%7Ecollcom/@metro/tw@metro_vol1/budget_twv1030304.htm)

"It's a short-term fix that doesn't provide any new revenue," explained Bowry, who nevertheless supports SB 189. The bill has been passed by the Senate and is awaiting action in the House.

The real need is to reform the way TABOR works, panelists agree, and for political reasons that means pushing for changes to Amendment 23 and to expand the issue beyond higher education. "Higher education isn't enough of an issue to push the public to want to change TABOR," Hartman said.

A number of proposals to change TABOR and Amendment 23 are floating around the legislature. Each proposal requires a two-thirds approval in the House and the Senate to go to the voters in November.

The bill that most closely fits the criteria of the Bell Policy Foundation is House Concurrent Resolution 1010, written by Rep. Brad Young, chairman of the Joint Budget Committee. The resolution would change the current TABOR spending limit that is based on population growth and inflation to 6 percent of the state's total personal income. Young maintains it would still limit government growth but would tie it to a more accurate indicator of economic growth.

Young's proposal would suspend some of the spending mandated under Amendment 23 for two years and allow increases to be suspended during bad times. Any suspension would be repaid when the economy recovered. His plan also would eliminate mandated spending increases once school funding is made whole. The proposal would also create a rainy-day fund that could be used during tough times.

To read more about TABOR, go to http://www.thebell.org/index.html. Bell Policy Center representatives will be on campus April 20 to discuss "The Future of Public Higher Education in Colorado." They will discuss the impact of TABOR and Amendment 23 on higher education as well as SB 189. The presentation will be in Tivoli 320 from 3 to 5 p.m.

More information about House Concurrent Resolution 1010 and other proposals can be accessed through http://www.leg.state.co.us/.