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Gov. Bill Ritter signed a bill Wednesday giving Colorado colleges more flexibility in setting tuition rates.

He also signed a measure providing $35 million to help lower- and middle-income students with tuition.

Lawmakers say the legislation was necessary because the state plans to cut college funding by $300 million next year to cover a projected $1.7 billion budget deficit.

The tuition flexibility bill allows governing boards to increase tuition up to 9 percent per year for the next five years, starting in July 2011.

Larger increases would have to be approved by the Colorado Commission on Higher Education.

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