By Gene Davis, DENVER DAILY NEWS
The voter-approved loosening of gambling laws will give the Colorado community college system an additional $5.38 million to work with this September.
But the revenue is significantly less than the $18-$25 million the Colorado Gaming Association originally predicted the lax gaming laws would bring to the community college system in the first year alone. And the $5.38 million will not be nearly enough to avoid cuts to the college system that has seen a continual increase in enrollment and decrease in funding.
Amendment 50 authorized casinos in Black Hawk, Central City and Cripple Creek to increase bet limits, add new games and extend gaming hours. The measure earmarked 78 percent of the gaming tax proceeds from the changes for community, district and junior colleges.
The Colorado Limited Gaming Control Commission authorized the distribution of the funds at their Aug. 26 meeting.
“While total gaming tax revenues were up in 2009-2010, the industry is still struggling to recover from the economic downturn,” said a statement from Colorado Gaming Association Director Lois Rice. “Despite tough economic times, both the industry and the state are keeping their word to Colorado voters by providing new revenues for community colleges.”
Nancy McCallin, president of the Colorado Community College System, is thankful for the alternative revenue stream that she knows will grow in the future. However, the money is small change compared to the 8.2-percent drop in federal and state funding the community college system is facing this school year.
“(The $5.38 million) is very welcome, but clearly it’s not enough to offset the cuts, and it was not intended to offset the cuts,” she said.
The funding drop comes as the community college system is facing an overall 12 percent increase in enrollment compared to last year, which was a 20-percent enrollment increase from the previous year. The Community College of Denver, for one, is seeing a 25.7-percent enrollment increase this year.
Compared to the 2000-2001 school year, the funding per student in community colleges is expected to drop approximately 40 percent by next year. The significant funding decrease has caused an inability to expand community college buildings or create new programs when there is a need. Community colleges are also relying more on part time professors, who don’t match full-time instructors when it comes to the retention and graduation rate of students, according to McCallin.
“There is a lot of strains on the system, clearly,” she said.
All of the cuts are leading up to the next school year that is expected to face an additional 30-percent cut in funding for the community college system. McCallin said community colleges have done a good job of cutting costs already and putting money in a “rainy day fund for when it rains” in 2011-2012. The community college system will likely look towards expanding online classes, which are more cost effective, and cutting high-cost programs that “might not be performing.”
Community colleges might also have to limit enrollment, according to McCallin.
The state has put together a bipartisan strategic group of more than 12 people to consider any possible higher education funding solution that could be turned into legislation. The group is still working together and has a meeting scheduled for next month.
The state is still waiting to hear from the federal government as to whether they can cut higher education to state funding levels below what they were in 2006. States are required to maintain 2006 funding levels to qualify for stimulus funding unless they get a waiver. The state will be updating their waiver request after the Sept. 20 revenue forecast, according to Gov. Bill Ritter spokesman Evan Dreyer.
A decrease in tax revenue caused Ritter and other lawmakers to close more than $2.1 billion in budget shortfalls over the past two years. Lawmakers were also charged with closing a shortfall exceeding $1 billion in the 2010-11 budget.
