Pima Community College is proposing a 1 percent increase to its portion of local tax bills next year as it struggles to reverse the worst enrollment slump in its history.
βContinued enrollment declinesβ are a major factor in the spending plan approved unanimously Wednesday by the collegeβs Governing Board, a staff report said.
Another major factor is the Legislatureβs decision to cut all state aid to the college for the second straight year, the report to the board said.
Even with a tax increase, PCCβs total spending is expected to fall by nearly $11βmillion next school year.
Thatβs due in large part to a projected $5 million drop in financial aid revenue β money the college wonβt receive with fewer students on board.
For homeowners, the tax increase works out to an extra $1.36 for each $100,000 of assessed value. The owner of a $100,000 home who current pays $135.97 would pay $137.33.
Property taxes are PCCβs largest revenue source, providing more than a third of the $247.8 million the college expects to spend in the school year that starts July 1.
βItβs a challenging budget,β PCC finance boss David Bea told the board, adding that itβs critical for the college to start reversing the enrollment slide that began in 2011.
PCC has lost the equivalent of more than 6,400 full-time students as it faced accreditation problems and controversy over admission restrictions that later were abandoned.
The new spending plan calls for measures including:
- A $2.3 million cut to college operating costs with specifics to be determined by individual units.
- Elimination of 23 jobs from PCCβs payroll, all of which are vacant positions.
- A $500,000 contribution from taxpayers for PCCβs athletic programs, which used to be funded solely by student fees. With fewer students now paying fees because enrollment is down, athletics needs help to cover its basic operating costs, Bea said in an interview.
- More than $500,000 to try to boost enrollment, including $400,000 for marketing and advertising and around $150,000 for a new software program to identify students at risk of dropping out.
- A 4 percent tuition hike for the vast majority of local students and a tuition decrease of nearly 15 percent for international students.
The new spending plan doesnβt mention how many students the college expects to have next school year, and Bea did not respond Thursday to repeated requests for that information.
The proposed budget is subject to a public hearing before a final board decision. Both are scheduled for June 8 at college headquarters starting at 5 p.m.
