Gov. Bill Owens signed legislation Monday to create the College Opportunity Fund, making Colorado the first state in the country to provide vouchers to college students.

Under the legislation, the state will essentially switch from funding colleges and universities to funding individuals. Vouchers, or stipends, representing general funds that previously have been provided to higher education institutions, will be given directly to eligible college students. Students will still be responsible for paying tuition.

Every Colorado resident with a high school diploma or equivalent will be entitled to receive a stipend toward a public college education for up to 175 academic credits under certain circumstances. Waivers to the credit limits may be granted on a limited basis. Low-income students will be eligible to receive a stipend for a lesser amount to attend Regis University, the University of Denver or Colorado College.

Every year, the legislature will set the value of the stipend based on the state budget. Stipends will be available beginning in the 2005-06 academic year.

"It can not yet be determined if this bill will be a windfall for anyone or a disaster for anyone," Interim President Ray Kieft said at last week's Board of Trustees meeting. "I don't think it will be either."

"The devil is in the details and the details have yet to be determined," he added.

The legislation also gives colleges and universities enterprise status, freeing them from spending restraints that are part of the Taxpayer's Bill of Rights (TABOR). However, tuition increases must still be submitted to the Colorado Commission on Higher Education, which will take those requests to the legislature and the governor, who will retain the power to limit any increases.

Finally, the legislation requires institutions that want to participate in the College Opportunity Fund to agree to enter into performance contracts, tailored to the role and mission of each institution.