DENVER—More than two-thirds of Colorado students could get college scholarships under an initiative announced Thursday that would get the money by taking away a tax credit from the oil and gas industry.
Gov. Bill Ritter said he is backing an initiative for the November ballot that would ask voters to end property-tax deductions for the oil and gas industry that allows producers to take a credit of up to 87.5 percent of the prior year’s property tax liability from their severance taxes.
Ritter said it would provide the state with more than $200 million a year.
Under Ritter’s proposal, 60 percent would go to a fund called Colorado Promise Scholarship, 15 percent for local impact of the oil and gas industry on transportation and water quality, 15 percent for wildlife habitat, and 10 percent to clean energy projects. Part of the money also will be put into a trust fund so students wouldn’t lose their scholarships if revenues decline.
Scholarships would be based on a family’s adjusted gross income and eligibility would be capped at higher income levels. They would also be based on the number of students a family has in college. Students would be required to maintain a 2.5 or greater grade point average.
Ritter said a student studying to be a teacher at the University of Colorado-Colorado Springs, for instance, whose family had an adjusted gross income of $62,000, would qualify for a $2,000 grant. He said it would reduce tuition and fees from $6,500 to $4,500, a 31 percent cut.
“This is about Colorado’s future. It’s about developing our economy. It’s about enhancing the quality of the Colorado work force. It’s about creating opportunities and doing the right thing at the right time,” he said.
Ritter said oil and gas companies are enjoying record profits and he doesn’t not expect a major impact on oil and gas prices in Colorado.
Meg Collins, president of the Colorado Oil and Gas Association, said the state keeps piling on regulations and taking away incentives for the industry in Colorado.
“This is bound to have an affect on prices,” she said.
Republicans said eliminating the tax break would shut down marginal wells across the state and drive up prices. They said it would also cost jobs in one of the only industries weathering the current economic slump.
“To me, it just shows his economic illiteracy,” said Sen. Greg Brophy, R-Wray.
Petitioners would have to gather 76,047 valid signatures to get the initiative on the November ballot.
Blake Gibson, a Colorado State University student and chairman of the Associated Students of Colorado, said his organization will work to get the initiative passed.
“We’re fighting for more accessible and affordable education. Something has to be done,” he said.
Touting his education reform programs, Ritter also testified in favor of a bill (Senate Bill 212) aimed at updating the state’s curriculum standards from preschool through college to make sure high school graduates are ready for college or the working world.
Ritter said education must change for the 21st century and the state has to be innovative when it makes the transition from a system based on 20th century methods. Ritter said the current drop out rate is too high, and not enough students are graduating from college with the skills they need.
“This legislation is not an indictment of our current system. It’s an acknowledgment we can do better,” he said.
Ritter also signed a bill that will provide $26 million to expand Colorado’s bioscience industry by expediting research from the lab to the marketplace. The bill (House Bill 1001) provides money to research institutions and private companies for bioscience research.
