SUMMIT COUNTY — Colorado Mountain College is bracing for the possible impact of three state ballot measures which, if passed, could have a net effect of slicing the school's operating budget by as much as half.

The CMC Board of Trustees passed an official resolution opposing Amendments 60 and 61 and Proposition 101 in June. CMC president Stan Jensen said the passage of the measures would have a detrimental impact on the college, its 11 campuses and the communities served by those campuses.

“The cutbacks could be profound,” Jensen said. “The effects could be devastating as far as the quality and amount of service we could provide.”

Amendment 60 in particular could have a sizable impact on the operating budget of CMC. The measure would repeal voter-approved exceptions that allow for a property tax rate exceeding the constitutional maximum in the state. The college currently receives 81 percent — or about $52.7 million — of its total budget from local property taxes. If passed, Amendment 60 would cut off between $2 million and $32 million of that revenue stream, depending on which year is determined as the basis for tax cuts — a detail not included in the verbiage of Amendment 60.

“It's a very sobering picture,” CMC vice president of finance Linda English said. “We could be faced with cutting the college's budget by nearly 50 percent.”

Proponents of the measure say doomsday scenarios are being flaunted by opponents to scare voters into voting against the measures.

“No way will the CMC budget decline 50 percent. That's like a ten-fold exaggeration,” an anonymous source from proponent organization CO Tax Reform said via e-mail when asked for comment.

“It is not as though we are attempting to raise taxes,” English said. “These were local voters in our district who want (CMC) to be able to keep these funds, build infrastructure to be able to provide higher quality education. (Amendment 60) would roll that back and undo that vote of the people.”

The ballot questions Amendment 60 Limits property taxes, requires school districts to reduce property tax rates by half. Amendment 61 Prohibits state from borrowing money; limits local governments' ability to pay for projects through long-term financing. Proposition 101 Makes steep cuts to vehicle taxes/fees, state income tax and telecommunications taxes/fees.

Filling the gap

While the state would be required to backfill any cuts to local property taxes for K-12 education, Amendment 60 does not require the state to make up any lost revenue to higher education institutions like CMC. Therefore, repealing voter-approved “de-Brucing” measures that allow CMC to retain more property tax would provide no guarantee the state would provide additional funding to CMC beyond its currently level.

“It is not as though we are attempting to raise taxes,” English said. “These were local voters in our district who want (CMC) to be able to keep these funds, build infrastructure to be able to provide higher quality education. (Amendment 60) would roll that back and undo that vote of the people.”

The college has already budgeted for a 50-percent reduction in state funding for the 2010-2011 fiscal year, and Jensen is not so sure more state funding will be on the way if Amendment 60 is passed.

The state currently appropriates 46 percent of its operating budget to K-12 education, and should Amendment 60 pass, the state's requirement to backfill lost revenue from property taxes could cause that figure to rise between to 67 and 99 percent of the state's total operating budget, leaving a smaller percentage of the state's budget for other services, such as higher education.

The slice of the state budget appropriated for CMC could see an even bigger cut if Proposition 101 is passed. Over a four-year period, the measure would decrease state income tax; reduce or eliminate taxes on vehicle purchases, registrations, leases and rentals; eliminate state and local taxes and fees on telecommunication services, except 911 fees; and require voter approval to create or increase fees on vehicles and telecommunication services. Cutting off these revenue streams to the state would leave less money in the general fund, meaning whatever percentage is allocated to higher education would represent a smaller amount of money.

If the school loses large portions of its local and state revenue, it would have to recoup the loss through a combination of tuition hikes and program cuts. Along with the possibility of losing existing programs, CMC could also see a delay in the introduction of new programs — such as the potential offering of a limited number of bachelor's degrees, for which the college is currently seeking accreditation.

The CMC district currently employs about 850 people across its 11 Colorado campuses, including the Breckenridge and Dillon campuses in Summit County — many of which could be at risk if the college is forced to make cut-backs. The economic impact on the community extends well beyond the school itself, according to English. Up to $11 million in wages could be lost under the worst-case scenario, which could have a substantial impact on local economies that rely on those wages to feed other sectors.

Passage of Amendment 61, which restricts borrowing, would have far less of an impact on CMC. CMC built the Breckenridge campus and renovated the Dillon campus with cash. According to Jensen, the school's only major debt obligation is to student housing and should be paid off within the next two-and-a-half years.

SDN Reporter Drew Andersen can be contacted at (970) 668-4633 or drewa@summitdaily.com.

About the series On this year's statewide ballot, voters will be asked to consider three questions that will have significant impacts on how state and local government funding works. Not since the passage of 1992's ‘Taxpayer Bill of Rights” (TABOR) amendment have Colorado voters faced such potential to change how government taxes and borrows. Proponents of the measures say it's all aimed at limiting government and lowering taxes, while opponents say they'll put the state in an even more dire financial position than it is already. The Summit Daily's five-part series this week focuses on how these measures are likely to affect Summit County. The series: Monday: Impacts to Summit School District today: Effects on Colorado Mountain College Wednesday: Effects of Proposition 101 on local government Thursday: Effects of Amendment 60 Friday: Effects of Amendment 61