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Last Updated: Oct 16th, 2008 - 13:33:17 |
New scholarships for Colorado resident undergrads could become available if an initiative backed by Gov. Ritter goes on the books in November. Funding for the scholarships would stem from voters deciding to end a property tax credit currently available to oil and gas industries. While essentially a tax hike for the oil and gas industries, Ritter’s office says an estimated $200 million annually could be raised.
In his announcement on the steps of the Capitol April 24, Ritter outlined the proposed uses for the resulting funding. Sixty percent would go to fund Colorado Promise Scholarships, 15 percent for wildlife habitats affected by drilling, 15 percent would go to road repairs and projects and 10 percent would go toward state renewable energy projects.
Scholarship awards would be based on a family’s adjusted gross income, but caps would be set for families with higher incomes. Part of the money would be placed into trust funds in the event of revenue shortfalls so students would not lose their scholarships. Ritter estimates that two-thirds of Colorado resident undergrads would be eligible to apply for the so-called Promise Scholarships as long as they maintain a 2.5 GPA.
There is opposition from the oil and gas industries that operate in Colorado. Meg Collins, president of the Colorado Oil and Gas Association, is dubious about the aftereffects of such a message going on the books. Collins believes the increasing impact of regulations on the industry may drive prices up and make Colorado less attractive for companies looking to do business here. State Sen. Greg Brophy R-Wray called Ritter’s move an act of “economic illiteracy.” Brophy believes that if the initiative is passed, eastern Colorado communities would be in a tight spot.
The initiative is still not on the ballot for November however, because more than 76,000 voter signatures are needed to get it there. Several campus organizations affiliated with the University of Colorado are backing the measure and intend to work to get the initiative passed.
Higher-ed administrators applaud Ritter’s efforts to achieve better funding for colleges in Colorado, but believe Promise Scholarships will not be enough. CU President Bruce Benson is concerned that he will not have enough operating money to fulfill his obligations to pay faculty and other expenses this year or next. Benson believes that with Referendum C funding coming to a close in just two years—not to mention the economic recession—Coloradans could be facing some tough questions on how to fund higher education.
This initiative is the third proposed or signed legislation in less than a month that will affect Colorado higher-ed institutions’ funding. Ritter signed Senate Bill 73 into law in early April that will effectively lower textbook prices by forcing publishers to unbundle textbooks from other optional media. Additionally, this initiative comes just days after Ritter publicly backed another measure, Senate Bill 218, aimed at funding renovation and construction projects on Colorado campuses such as Auraria.
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