MSU Denver trustees voice opposition to tax measures
The University’s governing board says ballot initiatives would mean higher tuition and a threat to state’s economic viability.
Metropolitan State University of Denver’s governing board on Wednesday passed a resolution formally opposing two tax-related ballot measures that members said would lead to significant tuition increases and threaten the state’s long-term economic viability.
Unanimously approved by MSU Denver’s Board of Trustees and signed by Chair Kristin Hultquist, the resolution states that Initiative 108 and Amendment 50 would severely reduce state revenues and could force lawmakers to make significant cuts to higher-education funding, increasing the burden on already-strapped students to fund their college education.
The resolution notes that as the state’s only modified-open-access institution, MSU Denver educates a large number of low-income students from underserved communities. Nearly 60% of MSU Denver undergraduates are among the first generation in their families to attend college.
If the initiatives were to pass, tuition would likely increase significantly and fewer of these students would be able to afford college, “thus leading to a projected lifetime loss of economic and social mobility for these Coloradans and challenging our state’s ability to recruit and sustain good, family-sustaining jobs,” the resolution states.
“As trustees, we have a fiduciary responsibility to ensure Colorado has a vibrant and affordable system of higher education,” Hulquist said.
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Initiative 108 would reduce the state’s residential property tax rate to 5.7%, and it would reduce commercial-property rates to 24%. Separately, if passed, Amendment 50 would cap the annual growth of statewide property-tax revenue at 4%. Proponents say the measures are necessary to bring spiraling property-taxes under control.
MSU Denver trustees agree that property-tax relief “is warranted and merits resolution” but that the need was addressed this year with bipartisan state legislation that cut the residential rate to 6.95% and commercial rates to 25%. These rates would go into effect if the proposed ballot initiatives were to fail.
The board argues that the ballot initiatives “go further than is fiscally responsible” and would create a state-budget shortfall of up to $1.7 billion in fiscal year 2025-26, according to nonpartisan researchers at the state General Assembly.
Property taxes are assessed by local governments and fund school districts and county and city services. However, the ballot initiatives would mitigate the tax-revenue hits that local governments would take by reimbursing their losses with state money.
While interpretations on the size of the budget impact vary, funding for a range of state services, such as health care and education, risk facing cuts.
Those cuts loom large for colleges and universities that are heavily dependent on state funds to offset costs and support student success.
About half of MSU Denver’s operating budget relies on state funding that is necessary to keep tuition “reasonably affordable,” trustees said. In turn, the state benefits from graduates who fuel a diverse workforce and economy.
“Access to high-quality postsecondary programs is a central component of the State of Colorado’s economic competitiveness and job-growth strategy, and its ability to sustain a vibrant and large middle class,” the resolution states.
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Initiative supporters moved ahead with the ballot measures despite the bipartisan legislation passed this year, which lawmakers had viewed as a compromise to address rising property-tax rates.
Gov. Jared Polis is considering calling a special session of the legislature that would take another shot at a compromise solution. Lawmakers would have until Sept. 6 to strike a deal that would pull the initiatives off the November ballot.
“Responsible tax policy should strike a balance that protects property owners while safeguarding the state budget and higher education’s ability to prepare more Coloradans for the workforce,” said MSU Denver President Janine Davidson, Ph.D. “We are hoping a special session can chart a decisive legislative compromise that achieves that balance.”
“A special session is needed to avoid unacceptable tuition increases for our students,” Hulquist added.
Editor’s note: The two ballot initiatives were withdrawn from the Nov. 5 ballot after state lawmakers, Gov. Jared Polis and groups supporting the measures agreed on legislation that provided a smaller reduction in property taxes. The legislature passed the bill during a special session in August and Polis subsequently signed it into law.
