After resistance from three members of the Governing Board (Sigafoos, McCarver, McCasland) at January 2018 meeting when 4% increase suggested, Administrators moving forward with 2% rate increase request

The Yavapai Community College formally has announced that it will seek a 2% property tax increase at the May 8, 2018 Governing Board meeting.  It made the announcement in the news media April 13, 2018.  (See, for example, The Verde Independent, dated Friday, April 13, 2018.)  The Governing Board representatives have not held public meetings in their districts to discuss the proposed rate increase and apparently do not intend to do so.

The College will ask for a 2% increase in primary property taxes, which will produce revenue of about $896,100 annually.  The College indicated in January 2018 it wanted a 4% tax rate increase to accompany a 5% tuition increase.  Chair Ray Sigafoos, and Board members Deb McCarver and Deb McCasland indicated a proposed 4% property tax increase was not acceptable.  However, the Board approved a 5% tuition increase at its February 2018 meeting 4 – 1 (McCasland dissenting). 

The Governing Board last approved a tax rate increase in 2015 (3 – 2).  There was unanimous opposition from the two Verde Valley representatives (Al Filardo, Deb McCasland) to that property tax rate increase.  There was also unanimous opposition from the Verde Valley Board Advisory Committee, which had representatives spread throughout the East side of the County.  The opposition made no difference to West-County Board members Sigafoos, McCarver, and Steve Irwin.

A video summary of the Board reaction in January 2018 to the proposed 4% property tax increase follows.

Extends Proposition 301 sales tax due to expire in 2021 to 2041

Yavapai Community College breathed a sigh of relief when Governor Doug Ducey signed into law a bill extending for 20 years the education sales tax rate that generates about $667 million annually for Arizona schools. For the past several years, Yavapai College has indicated concern that it would lose the annual State contribution from proposition 301 when it sunsetted in 2021. That concern is now gone.

The College annually receives state assistance in three categories: First, it receives about $640,000 based on enrollment. Increased enrollment means increased state aid. This is called “maintenance support.”

Second, the College has been receiving about $639,000 pursuant to a special Science, Technology, Engineering, and Math (STEM) grant.

Finally, it receives about $700,000 from the State as its “State Shared Sales Tax.” Because of the new law, the sales tax revenue flowing to the College is no longer in danger of evaporating.

It was almost 20 years ago when Governor Jane Hull and Arizona voters passed Proposition 301.

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Fears 1% decline in student enrollment; Increases in compensation estimated at $1.52 million

The Community College has provided details of its preliminary assumptions for the 2018-19 academic year.  Among the data furnished the College District Governing Board, about  $1.52 million of new revenue will be used as additional compensation for faculty and staff.  The remainder of the $2.7 million in new revenue will be allotted to maintenance and programmatic initiatives.

The College Administration projects that a 4% increase in the tax rate will bring in an additional $1 million in revenue and the 5% increase in tuition will yield about $500,000 in new revenue.  The preliminary assumptions appear below as they were presented to the Governing Board.

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Tax hike appears to have more opposition than tuition increase

The video below shows the Community College Governing Board discussing Dr. Clint Ewell’s tentative budget increase suggestions for 2017-18. The discussion took place January 16 during the regular Board meeting on the Prescott Campus.

It appears that at least three members were uneasy with the Administration’s suggestion that it consider approving in February a 5% tuition increase  and in May a 4% property tax increase.  (Representative Connie Harris was seen occasionally nodding, which suggests she may have also been concerned.) 

Chair Ray Sigafoos seemed most concerned with the property tax rate hike.  Representative Deb McCasland pointed out that there was a questionable need for more money to increase deferred maintenance and alluded to the College’s large reserves.  Representative Pat McCarver seemed concerned with both the tuition and tax rate hike. The video is about four minutes in length.

Says College needs $2.7 million more in revenue for 2018-19

The short video below contains Dr. Clint Ewell’s list of needs that the Administration believes justifies its request for a 4% property rate increase and a 5% tuition increase.  The list is “preliminary” although the tuition rate will be set next month at the February Board meeting.

Total expenditures 148.9% of budget with overrun due to Prescott Valley building expansion and Sedona Center remodel

The Yavapai Community College administration reported to the Governing Board at its August 8, 2017 meeting that it had spent $17,343,277 during the fiscal year 2016 – 17 on capital projects. It had originally budgeted $11,648,400 to spend on buildings and grounds during that period. It attributed the additional $6 million increase in capital spending to the Prescott Valley building expansion and the Sedona Center remodel. 

Because College has so many millions of dollars paid in by taxpayers annually, there was no need for any bonding needed to provide $17 million for these capital projects. As this blog has repeatedly told its readers, the college is flush with revenue. Furthermore, in the opinion of the blog, there is little serious oversight over how these millions are spent each year after basic educational expenses are met.

You may view the College explanation and verify the amount spent on capital projects during the past fiscal year by clicking here and going to page 23 of 154.