Ritter backs severance tax for college scholarships
By Ann Imse, Rocky Mountain News (Contact), Myung Oak Kim, Rocky Mountain News (Contact)
Originally published 04:37 p.m., April 24, 2008
Updated 04:37 p.m., April 24, 2008
Gov. Bill Ritter announced today he'll back a citizen initiative to increase the money Colorado receives from the severance tax on the oil and gas industry to provide $100 million in college scholarships.
The expected $200 million in additional income also would go to transportation and clean water projects in the areas impacted by oil and gas drilling, to wildlife protection and renewable energy.
Colorado currently has an effective tax burden on oil and gas of 5.7 percent, considerably less than the 9.4 percent in New Mexico and 11.2 percent in Wyoming.
The proposal eliminates a credit for property taxes that is now deducted from the oil and gas severance tax. Backers must gather signatures to put it on the ballot and then it must be approved by the voters in November to become law.
The governor said students from two-thirds of the state's families would meet the income eligibility for the new scholarships. Students would need to have a 2.5 grade point average to qualify.
State Rep. Kathleen Curry, D-Gunnison, said she believed that the proposal unites the various groups that had planned competing severance tax initiatives for the November ballot.
But higher education officials said the proposal won't help Colorado's serious shortage of funding for the colleges themselves, which caused CU to order a tuition hike of $1,300 a year on Tuesday.
"Giving the students tuition (money) will help them and that's a good thing to do, but it doesn't solve our problem," said Richard Krugman, dean of the University of Colorado Denver School of Medicine. "It doesn't help us at all. I still have to pay the faculty; I'm still short in the base funding."
The CU medical school gets the lowest amount of public funding per student of all public medical schools in the country, he said. The state pays about three percent of the school's total budget.
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April 24, 2008
6:24 p.m.
Suggest removal
Gene writes:
There is no "Peace Dividend" if you drive out the energy companies, Ritter. Meaning there is no tax money for your college scholarships or whatever you suggested yesterday, and what you will come up with tomorrow.
April 24, 2008
6:38 p.m.
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Golden writes:
Why wouldn't he just pass another executive order... You don't think maybe his is losing his fascists ways do you?
April 24, 2008
8:09 p.m.
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PajamaPulitzer writes:
Let's kill the goose that lays the Golden Eggs. Pretty sad when the Gov fails to understand concepts grasped by 6 year-old kids.
April 24, 2008
8:18 p.m.
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Sweetpickle writes:
This is the land of opportunity, not the land of free rides.
April 24, 2008
8:43 p.m.
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coloradojess writes:
Colorado funds colleges at 49 out of 50 states. Low income already qualify for pell grants, work study etc. It is time to fund the colleges so all students benefit instead of only a few.
April 24, 2008
8:50 p.m.
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BillK writes:
People complain about gas prices, then want to raise taxes on oil companies who will only turn around and pass those same tax increases on to their customers.
Seriously, has Ritter ever taken a single economics class?
April 24, 2008
9:02 p.m.
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timeandagain writes:
Ritter is an imbecile governor. He has demonstrated that time and again in his relatively short tenure. It is mind-blowing but anytime he actually DOES SOMETHING, he DOES SOMETHING STUPID!
The oil and gas companies are one of the few segments of our Colorado economy that is keeping things afloat. Don't bite the hand that feeds you knucklehead!!! Not to mention, where do you think the oil companies are going to make up for the new tax, Ritter?? Are you trying to get us to $5.00/gallon gas??
Ritter never met a tax he didn't like... It is too bad he doesn't understand fundamental economics. How many more years of his bone-headed administration can we afford??
April 24, 2008
9:28 p.m.
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windbourne writes:
timeandagain, lets get real. The increase STILL makes it the lowest state in the west. Personally, I would like to see this increased to what Dakota, Wyoming and NM are charging, which is a great deal more.
April 24, 2008
10:22 p.m.
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Jimminy writes:
The last two posters have a common interest.Timeandagain wants not to pay more gas tax.Windbourne wants to pay more gas tax.Windbourne should pay timeandagain's gas tax.You good with that,Windbourne?
April 24, 2008
10:31 p.m.
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Jimminy writes:
Another way to deal with the cost of higher education(to get this thread back to education) is to triple the tuition for any course in the Liberal Arts/Social Science curriculum,and halve the tuition for courses in hard science.