Ritter: Spend Federal Mineral $$$ On Education

Bill Ritter said Thursday he's considering a plan to tap mineral rights money the state gets from the federal government to provide more funding for education across the state.

Ritter said unless the state finds more money for schools, the education fund will go broke in the next five years.

"We took a serious look at the budget and said we have a serious issue with where K-12 funding is over time. We really believe we have to do something different in protecting the integrity of the state education fund," Ritter told editors and publishers at a Colorado Associated Press Editors and Reporters luncheon at the governor's mansion.

Ritter said his plan would freeze current spending levels from federal mineral lease funds and use a portion of any future increases for public education.

Sen. Josh Penry, R-Fruita, said the funds were designed to help local communities with the impact of increased oil and gas drilling operations and those funds need to be protected. He said he talked with Ritter about the plan and Ritter promised to work with the Western Slope to make sure those communities are not hurt.

Penry said the oil and gas boom has increased the state's federal mineral lease revenues from $60 million three years ago to $150 million this year. And if the federal government opens the gas-rich Roan Plateau of Western Colorado to drilling, "I don't think we could grasp the amount. It could be up to $1 billion."

Greg Schnacke of the Colorado Oil & Gas Association said the amount of money the state gets will depend on restrictions the federal government puts on drilling. He said oil companies would like to see the money used to compensate communities where the wells will operate, typically for 30 to 40 years.

"It's a policy call for the state. The trick will be to find some balance," Schnacke said.

The state education fund was set up to provide money for projects under Amendment 23, a constitutional amendment approved by voters that guarantees increased funding for schools. However, during the recent economic slump, the state used the money to balance the education budget.

Lawmakers have warned that unless the fund is replenished, it could go broke, forcing the state to take money from higher education, transportation and other programs that are not protected by the constitution.

Rep. Kathleen Curry, D-Gunnison, said she is opposed to any plan that would deprive oil and gas communities of the money they need to cope with drilling.

"I don't think the impact is self-limiting, it's going to increase. We would have to have some mechanism to make sure they are compensated," Curry said.

© 2007 The Associated Press