AAUP-CO POSITION PAPER: SCR 04-001
POSITION PAPER OF
The Colorado State Conference
of the
American Association of University Professors (AAUP)
BALLOT TITLE:
SCR 04-001Submitting to the registered electors of the state of Coloradoan amendment to Section 20 of Article X of the Constitution of the State of Colorado, concerning the exclusion of tuition paid to public institutions of higher education from the definition of "Fiscal Year Spending," and, in connection therewith, limiting the effect of the exclusion on state fiscal year spending limits by requiring such limits to be calculated based upon prior state fiscal year spending limits, with adjustments for inflation and population growth, without being subject to reduction due to declines in state revenues.
OUR POSITION:
The Colorado State Conference of the AAUP (CCAAUP) respectfully recommends that the Colorado State Assembly approve SCR 04-001.
REASONING:
Even the most casual observer recognizes that Colorado higher education serves a vital role for its citizens and that Colorado’s publicly funded colleges and universities continually demonstrate academic excellence, serving the nation and the world. Unfortunately, given the serious economic setbacks of the past three years, and in compliance with TABOR, Gallagher and Amendment 23, state funding for higher education has declined to the point of seriously threatening the ability of Colorado’s publicly funded colleges and universities to continue to effectively serve their students and their taxpaying constituents.
Because of a variety of factors, including the fact that 60% of Colorado's budget spending is mandated by law, funding for higher education has declined from 19% to a little more than 12% of the state budget since FY 1993-94. In FY 2004-05, Colorado's higher education stands to lose another $740 million in tuition revenue. Considering that demand for higher education in Colorado has increased over that same period, some estimate that if funding continues to decline at the current rate, higher education will become bankrupt by 2010.
CCAAUP believes that our colleges and universities face a fiscal crisis that can only be solved by the constitutional process. The provisions of SCR 04-001 would exempt from state spending calculations tuition revenues totaling as much as $1.5 billion over five years. We do not believe the voters intended tuition revenue, made by students directly to their institution of higher education, to count as state expenditures. Furthermore, SCR 04-001 would eliminate the ratcheting down affect of TABOR, which, as a result of the recent recession has left us with a budgetary spending limit last seen in 1968. Because of our recovering economy, and our 1968 spending limits, under current law, that $1.5 billion in tuition could be refunded to taxpayers in general–not necessarily the students whose tuition payments it represents–as part of TABOR defined surpluses.
The CCAAUP believes that Coloradoans in general support the century old tradition of excellence and service in higher education. We believe that Colorado voters expect government spending to reflect prudent investment for the present and for the future, and that spending limits were not intended by our electorate to bankrupt our institutions of higher education. Colorado voters intend spending limit legislation to also ensure responsible stewardship of public resources. Removing tuition revenues from TABOR calculations as proposed in SCR 04-001, will free up funding to help Colorado’s public colleges and universities reclaim their fiscal health, and will permit the state to avoid the questionable practice of refunding to the taxpayer, in general, tuition dollars paid by students. Removing tuition revenues from TABOR calculations as proposed in SCR 04-001 is responsible stewardship of public resources.
