Lawmakers are looking at funding schools with money that would otherwise go to future water projects.

Sen. Chris Romer, D-Denver, proposes to sell loans that the Colorado Water Conservation Board makes to water providers and storage agencies, such as cities. Instead of repaying the water board, the cities would make payments to investors who buy the loans.

The same process occurs when a lending agency, such as a bank, sells a private home mortgage to another company.

Romer said he would like to sell enough water loans to reduce cuts this year to K-12 and higher education by more than $50 million and to head off $100 million of cuts next year.

He will introduce a bill as early as next week.

If cities repay their loans to investors, instead of the water board, the money will not be available for new water projects.

Leaders of the water board could not be reached for comment Monday.

Romer said the loans he proposes to sell are a small part of the $600 million available for water projects. At the moment, no major water projects are on the horizon, he said.

"So why are we keeping money that we don't need for a decade, at the same time that we're laying off faculty and teachers?" Romer asked.

The money will eventually be replenished from severance taxes and the state's share of mineral leases on federal lands, said Sen. Jim Isgar, D-Hesperus, the chairman of the Senate Agriculture Committee.

Isgar, Romer and others have been discussing the idea for some time. Romer mentioned it at a Senate Democratic caucus Monday. Most members were noncommital.

Sen. Abel Tapia, D-Pueblo, a member of the Joint Budget Committee, said the JBC staff is analyzing the idea.

Tapia said the committee is not ready to build the money from Romer's proposal into the budget.