Oregon State Treasurer Ted Wheeler wants to start with $100 million in a college aid fund.
Ted Wheeler proposed a little-known measure that will appear on the November ballot. Measure 86 would amend the state constitution, creating an endowment that could be used only for student financial aid. It would also allow the state to take on debt to fill the kitty. He wants to start with $100 million.
Oregon’s college tuition is high, and state support for financial aid is low compared with other states, Wheeler said.
“A lot of low-income and middle-class students are being shut out of education and job-training opportunities at exactly the time when employers are telling us that advanced education and training are more important than ever and will continue to be more important in the future,” Wheeler said.
Wheeler is quick to point out that issuing bonds to fill the endowment is only an option; the Legislature could also fill fund it with a direct appropriation or seek philanthropic support. Voter approval is no guarantee that the fund will actually materialize because lawmakers are not obligated to commit funds.
Oregon’s constitution generally prohibits the state from going into debt, but voters have created exemptions to allow bonds backed by the general fund for specific purposes. They are generally used for construction projects, such as prisons and buildings for state agencies, universities and community colleges.
Critics worry about the consequences of incurring debt, which has traditionally been used only for construction projects, to pay for student aid. Some also say it would be better for the state to address the underlying costs of providing a college education.
