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Colo. higher education in trouble, leaders say

Hoffman, others say new funding structure needed

Colorado’s higher education and business leaders made a plea Wednesday to save the state’s public colleges and universities from what they say is a looming funding disaster.

By Kate Larsen, Camera Staff Writer

http://www.dailycamera.com/bdc/buffzone_news/article/0,1713,BDC_2448_2514142,00.html

"If something is not done to address the funding challenge posed by the combination of TABOR and Amendment 23, there will be no public money available for higher education by 2010," University of Colorado President Betsy Hoffman said, reiterating a message she’s been carrying for several weeks.

Hoffman presented findings at the state Capitol from CU’s budget and finance office, which estimates an 88 percent drop in state funding for higher education, or $603 million, by 2009.

She also outlined three possible long-term options that may improve the situation.

No state leaders, including Governor Bill Owens, are disputing CU’s financial projections, Hoffman said.

She and leaders from other state colleges and universities are working on a comprehensive higher education bill they hope will win approval this coming legislative session. The bill may call for "opportunity scholarships," which would funnel tax money directly to college students instead of institutions; more management and spending flexibility; and performance contracts, which would assure more accountability for public dollars at each school.

Hoffman detailed three other options.

First, getting higher education out from under TABOR — which limits an institution’s spending growth to 6 percent over the previous year. That could prevent future tuition refunds and give schools more spending flexibility.

The move would require a constitutional amendment and approval by the state’s voters.

"I don’t know if you could sell it," said Sen. Dave Owen, R-Greeley, who chairs the Legislature’s Joint Budget Committee.

Another option is to create a constitutional provision to guarantee funding for higher education, Hoffman said.

The last and least favorite option, she said, is for public universities to begin the process of privatization.

"It’s essential that we retain the public universities for the public good," said Larry Penley, president of Colorado State University.

Penley said Colorado could lose jobs to countries like China and India, which are investing in their public research universities.

Backing up the message Wednesday were some of the state’s business leaders from companies such as McData Corp., StorageTek and Sun Microsystems Inc.

"Higher education is very important to our business community and to our return to economic prosperity in Colorado," said Chuck Berry, president and CEO of the Colorado Association of Commerce and Industry.

Contact Kate Larsen at (303) 473-1361 or [email protected]

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