To address funding challenges for K-12 education and higher education in the state of Colorado, the Adams State University Board of Trustees unanimously adopted a resolution calling for the repeal of the Gallagher Amendment during its meeting Thursday.

In November, Colorado voters will be asked to repeal the Gallagher Amendment, which was adopted into Colorado’s constitution in 1982.

Adams State Trustees support the repeal of Gallagher because it has forced a continual reduction in residential property tax assessment rates and consequently eroded local property tax bases across the state. The Trustees said the Gallagher Amendment has been detrimental to the funding of both K-12 education and higher education.

Adams State Trustee Reeves Brown said 25 years ago, two-thirds of the cost of funding K-12 education came from local property tax assessments and the state legislature would then cover one-third of K-12 costs.

The formula has flipped as a result of the Gallagher Amendment, Brown said. Now state funding covers two-thirds of K-12 education costs and local property taxes are covering one-third of their local school district’s costs. As a result, higher education is negatively impacted because the state has less discretionary money available to fund public institutions like Adams State.

Adams State will welcome students back to campus for fall semester classes beginning Aug. 24. In 2021, the University will celebrate its 100th birthday since it was established by legislative action in 1921.

The full resolution adopted by Adams State Trustees is below:

Adams State University Resolution of Support for Repealing Colorado’s Gallagher Amendment

WHEREAS the Board of Trustees of Adams State University recognizes that the State of

Colorado takes great pride in its history of developing a world-class system of higher education; AND

WHEREAS access to high quality academic programs at every degree level is a central tenet in the State of Colorado’s economic development strategy and the state’s financial support of higher education is essential to maintaining such access; AND

WHEREAS the Gallagher Amendment, which was adopted into Colorado’s constitution in 1982, has formulaically forced a continual reduction in the Residential Property Tax Assessment Rate from 21% in 1983 to 7.15% in 2020 and thus eroded local property tax bases across the state; AND

WHEREAS Gallagher’s erosion of local property tax bases has challenged local funding for K- 12 education, thus forcing the State to increase its investment as part of that Local-State funding partnership, from 43% in 1989 to 66% in 2015; AND

WHEREAS the State’s increased investment in the Local-State K-12 funding partnership has reduced funds available for other state priorities such as the state’s support for the cost of higher education tuition which has been reduced from 68% in 2000 to 35% in 2017; AND

WHEREAS the State’s reduction in support of higher education has shifted the tuition burden to students who are now graduating with increasingly higher amounts of college debt which inhibits their ability to contribute to the economy upon graduation; AND

WHEREAS the Gallagher Amendment’s forced reduction of the Residential Assessment Rate has also resulted in shifting the state’s property tax burden from residential owners (who used to be responsible for 42% of the statewide property tax burden when Gallagher was adopted in 1982) to business owners (who are now responsible for 80% of the property tax burden) and this increasing burden on businesses is neither sustainable nor good for Colorado’s economy; AND

WHEREAS the Colorado General Assembly has referred to Colorado voters in 2020 a ballot measure which proposes to repeal the Gallagher Amendment from Colorado’s constitution and stop the continued forced decline of the Residential Assessment Rate and the corresponding erosion of local property tax bases in order to help stabilize funding for both local services and state priorities like higher education;

NOW THEREFORE BE IT RESOLVED that the Board of Trustees of Adams State University hereby supports repealing the Gallagher Amendment from Colorado’s constitution as proposed by the legislature’s referred measure on the 2020 ballot.

In other action, the Trustees conducted their annual evaluation of Adams State President Cheryl Lovell, including a review of her compensation package. The evaluation was conducted in executive session. Following the private review, Trustee Board Chair Michele Lueck stated “The Board of Trustees of Adams State University applauds the leadership of our president, Dr. Cheryl Lovell. In reviewing the past year of her performance, Dr. Lovell has delivered on key priorities of the University. These include pragmatic management of our financial assets, essential development of a strong leadership team and charting a strategic vision for ASU’s next century of service as outlined in our 2020-2025 strategic plan.

“Dr. Lovell has been a trusted partner to the Board of Trustees and continues to lead the University during unpredictable times. We are all grateful for her pragmatism in the day-to-day operations of the University while always sharing a vision for ASU as both an affordable and accessible educator and as an asset to the San Luis Valley.

“We are grateful for Dr. Lovell’s leadership and we acknowledge her remarkable achievements.”

Further, Trustee Board Chair Michele Lueck said the Trustees and President Lovell agreed to defer a portion of her compensation package that is an incentive payment awarded at the board’s discretion. The decision was made in light of COVID-19 and the uncertainty it adds to the financial resources of institutions of higher education. The Trustees and President Lovell agreed to work out how the deferred compensation will be awarded at a later time, Lueck said.