University of Colorado Regent Michael Carrigan smiled Thursday as a bill that will help funding for the university's medical school was signed into law.

"This helps stops the bleeding, but we still need to heal the wound," the Denver resident said.

The medical school ranks 48th nationally in terms of state support.

Senate Bill 97 restores nearly $25 million in funds for the school and key health care programs statewide.

The money, from tobacco settlement funds, was slashed during Colorado's recession.

"Investing in children's health care, mental health, medical research, and drug and alcohol treatment will pay quality-of-life dividends and save the state money for years to come," Gov. Bill Ritter said, signing the measure into law in a ceremony in the Capitol foyer.

That the funds were restored is attributed to a healthy economy and the passage of Referendum C in 2005, which allowed the state to keep revenues that otherwise would be returned to taxpayers. Ref C helped the state recover from the recession.

A number of programs will be funded with the money, including mental health and public health nursing.

House Majority Leader Alice Madden, D-Boulder, and Senate President Joan Fitz-Gerald, D-Coal Creek Canyon, sponsored the legislation.

Fitz-Gerald called the measure probably "the most important bill we do this year" because it will impact future generations of Coloradans.

The bill is the second major piece of health care legislation Ritter has signed into law this year. The first was a measure to allow 398,000 Coloradans to buy low-cost prescription drugs.

bartels@RockyMountainNews.com or 303-954-5327