Two Percent Tax Levy OK’d By College Governing Board

Northland Pioneer College Vice President for Administrative Services Blaine Hatch explained that the decision to pursue the maximum amount was based upon the fact that the federal and state governments do not fund for capital improvements, so the college needs to reserve funds for future projects.

“Equalization funds will total $5.8 million for the coming year. This figure is not based on enrollment, but on the assessed valuation capacity. Compared to the $14.5 million we’re proposing to assess, that would be $40 to supplement every $100 by property taxes,” said Hatch, noting that the net assessed valuation within Navajo County is not growing like it is in the rest of the state. “We’re still falling behind.”

Hatch added that Navajo, Graham and Cochise counties receive equalization aid to make up for property taxes that more populated areas receive. “With the state taking large cuts from universities, it makes us a good target. If we don’t raise it as much as we can (with property tax), then the option is to decrease services,” he said

“Let me ask this,” stated board member Prescott Winslow. “If property tax diminished, we’d have to replace it in state or federal aid, which we won’t be getting, or increase tuition and fees. What would be the impact?”

“Without the increase, it would mean a $4 per credit increase, but in doing that we would lose students. The intent is to keep the tuition as close to free as possible. We receive state aid and because of enrollment loss, have taken a 50 percent cut,” Hatch replied.

Winslow noted that the value that quality educators and facilities bring to the area is not something that we can afford to lose. “NPC makes contributions to the workforce occupations, something that cities can use to promote communities, a place where training and business development can occur. Navajo County is one of the poorest counties in the country and I’m not happy we need equalization like a poor country cousin. We need to maintain the quality services NPC has to offer,” he said.

Chairman Ginny Handorf stated that she thought that the true impact on each homeowner was being lost. “The bottom line is that for every $100,000 valuation it means an increase of $3.42 for the year. That’s 28.5 cents per month. That doesn’t really come through when you’re talking about millions and percentages,” she said.

The board heard from five residents from Shumway, Linden and Show Low, each opposing the increase in taxes.

Brad Farber addressed the board, stating that he represented absentee voters in Shumway, and explained that a number of property owners were already being taxed excessively for property that they are unable to sell. “We’re poor and you’re rich. I’m asking you not to pass this increase,” he said to the board.

Judy McFarland noted that she lives in Linden and is already paying $5,000 in property taxes per year. “I’m ready to get out and leave. Education is great and wonderful, but they need to pay their way rather than me,” she said.

Carolyn Brewer then addressed the board, along with her parents Joy and Moylen Owens, noting the struggle they face paying the taxes currently required of them. “We’re just hard working people. My dad was born in Show Low, and has owned businesses and property. We work hard trying to make an income on our property,” stated Brewer, who owns an RV and trailer park. “I buy a trailer for $4,000 and the county tells me it’s worth $30,000. I pay $50,000 per year in taxes for my property. We’re being taxed to death.”

Joy Owens expressed her unhappiness with the circumstances, saying, “They must think this is an endless source of income. You already have nice campuses and you’re trying to extract too much out of us. We’ve paid all along, and can’t continue doing this over and over again; it’s just wrong. We paid for our education, they need to pay for theirs.”

When it came time to vote, Winslow addressed those present, stating, “You may or may not be familiar with equalization funding, but in addition to paying their own taxes, they (other counties in the state) are subsidizing ours. If they realized that, I don’t know that they’d be too happy about it. Another reason I support this is because it is fiscally conservative to save, then build or expand to avoid debt service. It’s also important that we remain competitive with quality. When we are recruiting graduates from high schools with the discounts we offer, we are an increasingly good value. If students prioritize in high school they can earn half of their bachelor’s degree for just $800. I tell that to parents and their jaws drop open.”

Board member James Matteson echoed Winslow’s sentiments, saying, “I had two children go through community colleges in Arizona and both became successful business people. Without community college, I wouldn’t have been able to afford their education.”

After discussing the matter, the board, including Winslow, Matteson, Handorf, Daniel Peaches and Frank Lucero, voted to approve the two percent tax levy increase.