Big guns hired in severance-tax fray

By Myung Oak Kim, Rocky Mountain News (Contact)

Originally published 04:50 p.m., May 1, 2008
Updated 04:50 p.m., May 1, 2008

Well-known local political consultants will square off over a ballot initiative that would increase oil and gas tax revenue and create a huge college scholarship fund.

David Kenney, an influential political insider who backed Ritter and worked on John Hickenlooper's reelection campaign, will be the campaign manager for the initiative.

He said the campaign will be called "A Smarter Colorado" and will be funded by conservation, renewable energy and education advocacy groups.

The ballot initiative, introduced last week, would remove a state credit that saves oil and gas firms about $200 million a year in severance taxes. The additional funds would help communities affected by oil and gas drilling, pay for college scholarships and fund water and wildlife projects.

The oil and gas industry has hired Dan Hopkins, who was former Gov. Bill Owens' spokesman, and veteran political consultant Rick Reiter to run the opposition campaign. Reiter led the campaign to pass Referendum C.

Kenney called the battle "classic David versus Goliath."

"The oil and gas companies will try to spend $20 million to buy the election," Kenney said. "We're going to get outspent. We will never be able to spend as much money."

Backers face a funding dilemma because the primary beneficiaries of the proposal are Colorado families who want to send their children to college. This population will be harder to tap for funding a campaign than deep-pocketed interest groups.

Kenney said he expects to raise at least $1 million, but wouldn't say how much above that. He said he believes companies and citizens who understand the need for having a better educated workforce will contribute to the campaign.

Reiter called the David and Goliath description "silly."

"I doubt that comment seriously."

He said the governor wouldn't have entered into this initiative without financial backing.

Reiter wouldn't say how much money opponents will spend to defeat the measure.

"As a rule I don't discuss strategy and tactics of the campaigns I'm involved in."

kimm@RockyMountainNews.com or 303-954-2361

• May 1, 2008

  5:02 p.m.

  Suggest removal

  happymike44 writes:

  How about giving some of that money to the people who actually deserve it.Like the taxpayers okay! I am sick of colleges getting 18 million dollars here and there.While the average working class family gets nothing.So instead of giving it to spoiled rotten little brats give it to the people who worked and paid taxes.Make the little sweetie darlings work for it,I never qualify for anything yet I pay taxes.Why not give the taxpayers a rebate of some of that money.

• May 1, 2008

  5:15 p.m.

  Suggest removal

  Acemon writes:

  Socialism is alive and thriving in Colorado. No matter where you shop (such as King Soopers or Target), part of your purchase is diverted to "local charities," and now with your purchase of fuel for your car or natural gas to heat your home you can subsidize the continuing education of your neighbor's children. Never mind that you already helped pay for their pre- and post-natal care, day care, health insurance, K-12 schooling, and so on. The nanny state knows best, so fork over more cash to support the people who are too irresponsble to support themselves.

• May 1, 2008

  5:20 p.m.

  Suggest removal

  Gene writes:

  Ritter,
  How much of my money will you spend tilting at Santa Claus' magic windmills full of money?

• May 1, 2008

  5:21 p.m.

  Suggest removal

  Gene writes:

  Ritter,
  Lets say you hit the jackpot, and they don't leave the state. Will that make natural gas cheaper?

• May 1, 2008

  5:25 p.m.

  Suggest removal

  Brain writes:

  Companies that collect taxes to distribute to the government collect it from you!

• May 1, 2008

  7:35 p.m.

  Suggest removal

  Froward69 writes:

  Renewable's are the future. A solar panel or a wind turbine eliminates those companies that collect distribution taxes.

  Its about time Colorado catches up to states like Alaska. spending the money on higher ed is sensible. removing the credit is simply getting monies already owed to the state.

• May 1, 2008

  8:33 p.m.

  Suggest removal

  gethoht writes:

  Education is good for everyone. Education means better jobs, less crime and a higher standard of living. There is no downside to some kids getting scholarships to go to college, period. Any money that was spent gets repaid to society many times over in the form of more taxes collected, a stronger economy, less spent on welfare, and less spent on jails and law enforcement. I think higher education is a much more noble cause than needless wars or bailing out corporate giants such as bear stearns. You want to talk about irresponsibility? The last place you should look is a scholarship fund so some more kids can go to college. Why don't you look at wall street and washington before you go whining about how "irresponsible" kids get to go to college off of money siphoned from the oil and gas industry(who are raking in record profits every quarter).

  Oh noes! Kids are getting subsidized in order to go to school so they can make something decent of their lives, someone call ronald reagan's corpse!

  You don't like socialism acemon? Then don't drive on roads, don't count on the cops showing up at a crime committed against you, and god help you if your house catches on fire and there is no fire dept. to help you save your house. All of these services are examples of socialism.

  Spending money on higher education is one of the greatest things you can do for society and the economy.

• May 1, 2008

  9:56 p.m.

  Suggest removal

  USC85 writes:

  Maybe they could get a LOAN from the Blackhawk officials,
  they seem to have an abundance of extra money these days!