Pima Community College is proposing a new budget that includes higher taxes, higher tuition rates and higher paychecks for college employees.
The college would raise taxes by 3 percent — the maximum allowed — and give employees a temporary 2 percent pay increase under a preliminary budget narrowly approved by its Governing Board.
The $246 million proposal, billed by PCC executives as one that will “rejuvenate the college,” passed by a 3-2 vote at a board meeting Wednesday.
It calls for the elimination of more than 100 currently vacant staff positions and increased spending on the college’s modernization efforts.
The property tax increase would add about $4 to the PCC portion of a county homeowner’s tax bill for every $100,000 of a home’s assessed value. A homeowner with a $100,00 home who now pays $134.85 would pay $138.90 next school year.
A home worth $150,000 would have a PCC tax bill of $208.35 next school year, and the owner of a $200,000 home would pay $277.80 to the college.
The proposed budget must go to a public hearing before final adoption by the board. The hearing and final vote are set for June 14 starting at 5 p.m.
The new budget would take effect July 1, the start of the 2017-2018 school year.
The plan includes:
- $2 million for a one-time, 2 percent raise that would not be part of employees’ base pay. The PCC administration had sought a permanent 3 percent increase to base pay, but that plan was scrapped due to objections from a committee of outside financial experts.
- An estimated $400,000 to $500,000 for a consultant study to see if PCC’s current pay levels are in line with the market. The board’s outside finance advisers recommended the study because the college hasn’t done one in 17 years.
- Around $500,000 in additional spending to try to reverse a longstanding enrollment slump that has left the school with 8,000 fewer students since 2011. The college already spends about $400,000 a year on advertising aimed at potential students.
- $3.6 million in debt-servicing costs for bonds the college hopes to issue later this year to pay for renovations and upgrades to facilities.
- The elimination of more than 100 currently vacant job positions by the end of the school year, for an estimated savings of $6.3 million.
- A 3.8 percent tuition rate increase for most of PCC’s students, which the board approved last month to help cover the raises for college employees.
- Another $500,000 to keep PCC athletics afloat, the same amount the department received this year. Athletics used to be funded by student fees, but that revenue source shrunk as enrollment fell, so taxpayers have been making up the difference.
Governing Board members Sylvia Lee, Demion Clinco and Meredith Hay voted in favor of the proposed budget.
Board chair Mark Hanna said he voted no because the board should have kept in the 3 percent wage increase for staff workers.
Board member Luis Gonzales said he voted no because he objected to the tuition increase.
