Why not use it in a manner that will create $4.4 million in student scholarship aid?  Or, give faculty a one-time bonus?  No one in the administration is talking about those kinds of alternatives

Commentary

Yavapai Community College has received back $4.4 million from the town of Prescott Valley pursuant to an agreement made in 2007.  Rather than apply the money to the 2018-19 budget to cover capital costs (the $4.4 million must be used for capital), the College has announced it intends to bank the money and use it for future capital projects.  (See Video.)

Wouldn’t a better use of the windfall to apply the $4.4 million to the 2018-19 capital budget and use the primary taxpayer $4 million now linked to capital expenses to establish student scholarship aid?  Or, provide staff with a one-time bonus?  So far, the Board has shown no inclination to do anything more than to bank the $4.4 million so it can build the future soccer field or some other similarly wasteful project.

The history of the $4.4 million begins February 26, 2007 when the College entered a memorandum of understanding with the Town of Prescott Valley and agreed that it would provide money to build in the Prescott Valley Library facilities to be used for “a wide range of educational services, including library services, classroom instruction, administration, and cultural performances.” In January 2008 the College and the Town of Prescott Valley broke ground on a joint use facility for the stated purpose of providing classrooms, administrative offices and a library complex at the Prescott Hall library.  A combination of bond proceeds and funds from the districts Future Capital Projects Accumulation Fund were used for the project.

The Community College joined with Northern Arizona University around 2010 to provide an experimental three-year full college degree granting program at the facility.  The idea was apparently that the Community College would teach two-year courses and NAU handle upper division courses.  The arrangement fell through a couple of years ago and the College asked for its money back.  The Town of Prescott Valley agreed.  Finally, the money has been returned to the College.

The College explains how it is handling the $4.4 million in the short video below.

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.