Ritter's Oil and Gas Severance Tax Proposal Would Provide Scholarships

Gov. Bill Ritter's proposal to increase the state's severance tax on oil and gas extraction activities could benefit eligible college students to the tune of $1,000-$6,000 if the initiative makes the ballot and is approved by Colorado voters.

The dollar amount is the value of scholarships that could be awarded to students, according to a report in today's Rocky Mountain News.

The grants, called "Colorado Promise Scholarships," would be funded by the removal of a property tax exemption now enjoyed by the state's prosperous oil industry.

The Ritter Administration's Department of Higher Education approved the scholarship proposal yesterday and indicated the agency's support for the ballot initiative.

According to the Rocky article by Berny Morson,

The analysis presented Thursday assumes scholarships would be available to students from families earning up to $102,000 a year. But the actual cap could be different, and it's not clear how the rules would apply to large families supporting several students in college, Skaggs said.

The analysis also includes the assumption that students would make a financial contribution, by working or with the help of a nonprofit organization. Awards would be affected by amount of federal aid the student receives.

Students would be expected to maintain a minimum grade- point average.

A portion of the money raised under the program would be given to each of the higher education institutions to distribute as additional aid based on academic merit.

House Clears Resolution Calling for Study of Merger of Departments of Education, Higher Education

The state's Departments of Education and Higher Education might end up being merged into one department if an interim committee created by a resolution cleared by the House Thursday makes it into the law books and the panel recommends that structural change to the executive branch.

HJR 1027 was approved on 56-6 vote Thursday. Opposition came only from two Republicans - Douglas Bruce of Colorado Springs and Ken Summers of Lakewood - and four Democrats - Anne McGihon of Denver, Karen Middleton of Aurora, Cherilyn Peniston of Westminster, and Nancy Todd of Aurora. Middleton is a former member of the state Board of Education and Todd and Peniston are former teachers.

The resolution now moves to the Senate. It is sponsored by Rep. Paul Weissman, D-Louisville, and Sen. Nancy Spence, R-Centennial.