The oil and gas industry currently enjoys an outdated corporate tax subsidy that is unique to Colorado. It was created when gas was at about $10 a barrel. The industry is now thriving, so it makes little sense to continue to give them a $300 million subsidy. Colorado must make smarter investments in scholarships to help families and students with the rising costs of higher education, preserve wildlife habitat, support clean energy projects and help local communities deal with the impacts of oil and gas development.

• The measure will raise $250-$325 million a year, with 60 percent going to the Colorado Promise Scholarship Fund. The remaining funds will be split with 10 percent to renewable energy projects, 15 percent to wildlife habitat and 15 percent to local communities for road and water projects.
  
  
• The measure flattens the severance tax rate so that any producer with a gross income less than $300,000 is exempt from paying, so it won't small oil-and-gas companies more than the big companies.
  
  
• This common-sense measure has broad support from education officials and students, businesses that recognize the need to compete, conservationists, sportsmen, outdoor recreation enthusiasts, renewable energy supporters and local governments.
  
  
• This state has seen rushes on gold and silver come and go – this initiative will make sure that when the current rush on oil and gas is gone, Colorado will continue to have a competitive economy and a livable environment. It ensures that as finite resources in the state are extracted, we make an investment in our future. The corporate subsidy was written nearly three decades ago when gas was less than $1 per gallon. It has served its purpose, and now the responsible thing to do is to invest in Colorado's future
  
  
• Sixty percent of the funding will go to the Colorado Promise Scholarship program. As many as two-thirds of the families in Colorado could qualify for scholarships. The Colorado Commission on Higher Education will administer the funds and promulgate the detailed rules to implement the program. Eligibility and the amount of the scholarship will be based upon family income and number of college age children in the household. Families earning up to $100,000 annual adjusted gross income will be eligible.
  
  Colorado students attending any accredited state college or university (2 year and 4 year) will be eligible. Students must have and maintain a 2.5 GPA to qualify for the scholarship.

How this initiative will help Coloradans. photo © ASmarterColorado.com

• In addition to the current severance tax funding that goes to local communities, fifteen percent of the new funding will go to impacted local communities. The funding will help communities with critical transportation, water and sewer projects.
  
  
• Ten percent will go to help foster Colorado's new energy economy and renewable energy projects including energy efficiency programs for homes and businesses, transmission development and research and development.
  
  
• Fifteen percent will go to preserve Colorado's mountains, wilderness and wildlife. It will be allocated to the Division of Wildlife, local communities, parks and recreation sites for land purchases to preserve habitat.

This initiative does not raise an existing tax or create a new one. It simply retires 30-year-old oil and gas tax subsidy that was created to jumpstart the industry. It has more than served its purpose. Even without the subsidy, the oil and gas industry will still pay lower taxes in Colorado than in neighboring states like New Mexico and Wyoming. This proposal is very different from simply directing any new revenue into higher education operating budgets.