Tax check-off for scholarship to start

SANTA FE, N.M. (AP) - A new law will allow New Mexicans to donate a portion of their state income tax refunds to strengthen the finances of a college scholarship program.

The scholarships are financed with lottery proceeds and cover tuition costs for New Mexico high school graduates who attend a public college or university in the state. But the program faces financial problems because scholarship costs are outstripping the growth of lottery revenues.

Gov. Susana Martinez signed legislation into law last week to permit people to give all or part of their tax refunds to the scholarship program starting next year.

The tax department says $134,000 was donated in 2008 through a wide range of voluntary contribution funds, including ones for wildlife protection and to offer grants to communities for planting trees.