The special construction tax levied on County builders is estimated to generate $903,100 in the 2018-19 academic year for the Community College. According to data issued by the College, this represents an increase of 32.4% over last year.
The charts that follow show that the Community College will have increased the property tax rate by 2% in five of the last 10 years. It also shows that the Community College has increased tuition in some form in every year over the past 10 years.
The charts raise a question about the constant need for tuition and property tax increases when college enrollment has declined by 5,582 students seeking credit courses.
After surveying the Yavapai Community College Governing Board members at the April 2018 meeting, the College Administration has enough votes to increase the County property tax rate by at least 2%. In February 2018 the Board had voted 4-1 (McCasland dissenting) to increased tuition by 5%. The increases will generate at least $1,504,600 in new revenue flowing to the College.
The increases will be approved despite the fact that the College received a windfall of $4 million from the sale of its teaching facilities at the Prescott library. It was once hoped that Yavapai College and Northern Arizona University would jointly operate the three-year experimental degree program at the library. However, those plans evaporated when NAU hired a new president. Per an agreement with the town of Prescott Valley the $4 million investment by the College in the town library is being returned.
The property taxes being paid by east Yavapai County residents far outpace the return of that revenue by the College to the east County for post-secondary education. On March 7, 2018 County Assessor Judd W. Simons provided a “rough estimate” of property taxes being paid by east County residents at the request of realtor Rob Witt. Mr. Simmons estimate in writing was put at $14,570,400.
Mr. Simmons estimate is fairly consistent with other estimates received from the County in 2014 and 2015. In those years, the estimate was about $12.5 million.
East County residents have argued for years that their taxes are paying for programs, building and projects on the west side of the County that they do not have reasonable access to and do not benefit from. Despite their pleas and documented evidence, little has been done to reduce the inequity between the east and west sides of Yavapai County when it comes to College development.
It is of interest that when Yavapai Community College released its press report explaining what took place at the January 16, 2018 Governing Board meeting there was no mention of Wills’ request for a 4% tax rate hike (or 5% tuition increase). But for the Blog and the videotape of the meeting, Yavapai residents would be completely in the dark about her tax rate request. As of this date, there have been no local newspaper accounts of the tax rate request and the Governing Board reaction to it.
The Wills’ administration, in preliminary talks about the 2018-19 budget at the Governing Board meeting on Tuesday, January 16, sought large increases in revenue flowing to the College. The Administration suggested a four percent increase in the Yavapai County Property Tax rate. It also suggested a five percent student tuition increase for 2018-19.
The suggested increases did not go down well with at least three members of the Board. Board members Deb McCasland (Verde Valley/West side), Ray Sigafoos (Prescott) and Pat McCarver (Chino Valley) all indicated concern with the either the tax rate or tuition or both. Sigafoos seemed particularly concerned about the tax rate increase. He suggested the Administration go back to the drawing board and return with a more reasonable proposal.
Third District Verde Valley Representative Connie Harris and Prescott Valley Representative Steve Irwin said nothing.
The proposal by the Wills administration is a preliminary one. In February the first serious test of the recommendation will come when the Board sets tuition for the 2018-19 academic year. The tax rate decision will come after that with a final decision in May or June 2018.
On September 8 Attorney General Mark Brnovich filed a complaint against the Arizona Board of Regents claiming board members have “dramatically and unconstitutionally’’ increased the cost of going to one of the state’s three universities. He argued that Arizona’s Constitution, article XI, § 6 was violated. It states that “The university and all other state educational institutions shall be open to students of both sexes, and the instruction furnished shall be as nearly free as possible.”
Does the fact that student tuition at Yavapai Community College is specifically used to pay off revenue bonds that were sold to renovate the student residence halls violate that Amendment? After all, the Governing Board could have asked voters to approve a General Obligation Bond to pay for renovation rather than put the debt on the shoulders of student tuition.
Does the fact that over the past ten years the Governing Board has increased tuition in some form at a rate far above inflation while spending an estimated $100 million on capital projects, using money paid from primary taxes for those projects, rather than applying those funds to keep tuition low, violate the State Constitution? After all, the Governing Board could have sought voter approval via General Obligation Bonds to pay for those expensive projects.
Does the fact that tier 2 courses cost double what they cost ten years ago or that in some alleged “market based courses” students pay over $500 per credit hour violate the Constitutional provision to keep tuition as “nearly free as possible”?
Maybe this lawsuit will bring about some answers to those questions. Maybe the Yavapai Community College District Governing Board might even discuss this issue—but probably not. The Blog assumes the Board with Deb McCasland most likely dissenting will push through another tuition increase in excess of inflation in February or March 2018 while continuing to spend millions on capital projects using primary tax money rather than ask voters to approve General Obligation Bonds for the projects. After all, given its history, does anyone really believe there will be a serious attempt by the Yavapai Community College Governing Board to keep tuition as “nearly free as possible?”
The Yavapai Community College District is flush with money from taxpayers. That was confirmed in an analysis released in the September report by the Arizona Tax Research Association (ATRA). In the special state-wide report on Community Colleges, ATRA provided a detailed comparative analysis of how much each Community College District is paying in total taxes per FTSE. FTSE is defined as the total semester credit hours divided by 12, which is considered to be a full-time course load.
According to the September ATRA report, “on average, the taxpayer effort per FTSE is just under $6,000” in Arizona. However, “the highest is Navajo CCD at $11,421 with Yavapai close behind at $11,091.”
The report also states that the Yavapai District’s “primary property tax levy per FTSE ranks highest in the state at $10,667, nearly double the statewide average.”
So Sedona and Verde Valley taxpayers, you now understand how the College can frantically spend millions of dollars on construction without seeking voter approval; it has a lot of money to spend.
You may read the entire report by clicking here.
Yavapai Community College President Penelope Wills appeared before the Sedona City Council October 27 to answer questions about the future of the Sedona Center. She began her presentation by apologizing for leaving Sedona out of her travels around the County promoting the tax increase prior to its adoption in June by the College Governing Board. She had met with Cottonwood, Prescott Valley and other municipal governments promoting the reasons she wanted to increase property taxes but not Sedona.
The only explanation offered by Wills at the Tuesday evening meeting for leaving Sedona out of her tax increase speeches was that she was “unable to get to Sedona.” Nothing more. Although the tax increase was approved in June, she went on to say that she was now giving the Sedona Council the speech she had given (apparently explaining why she wanted property taxes increased) “so you don’t feel left out.” The brief Wills’ statement apologizing to the Mayor and Council can be found by clicking here.
Using 2012 data, the City of Sedona reports (9/25/2015) that the Sedona Taxing District annually forks out over $7 million dollars to Yavapai College. Of that amount, $6,589,567 is paid through primary taxes and $754,622 goes to pay off General Obligation bonds.
With total primary tax-based revenue in 2012 flowing to the College from Yavapai County property taxpayers of $43,701,144.00, this means the Sedona Taxing District alone contributed at least 15 percent of the revenue toward operating the College.
In the past two years the College has threatened to close and sell the Sedona Campus and shut down the well respected film program. Because of a wave of outrage at the potential closing, the District Governing Board backed off selling the property by settling a dispute with an adjacent landowner that had festered for a decade. However, the administration followed through on its threat to shut down the Sedona Film School. In fact, the College administration stripped the Sedona Center of all but one or two College credit courses taught by adjuncts. After two years, it has done little to return Yavapai College credit courses to the facility.
There are Osher Lifelong Learning courses offered by the independent nonprofit Osher Foundation. The Foundation is not a part of the College, rather it is a 501(c)(3) nonprofit that pays Sedona Osher employees from a $2 million fund it set up for them. The College provides in-kind support by allowing Osher to use its facility.
The full story carried in the Redrock News online can be read by clicking here.