During the Navajo County Community College Governing Board meeting Tuesday, Sept. 15, Vice President of Administrative Services Maderia Ellison presented on the college’s expenditure limitation, which was addressed by resident Ed Wilson in previous meetings as a point of concern during call to the public.
Ellison explained that the expenditure limit is part of the Arizona State Constitution, and applies to other entities such as towns, school districts and counties. “It is intended to restrict (expenditures of) local revenues, even if NPC has the funding to utilize that amount. Think about it like having a great robust savings account, but you’re not able to use it,” she stated.
According to Ellison, the state constitution and NPC statutes defines local revenue as the majority of what the college receives. “Then there’s a long list of exceptions. When those exceptions are applied, it comes down to generally property taxes and state aid.”
After breaking down funding revenues as well as the formula used to calculate expenditure limitations, Ellison stated that the formula, which was implemented in 1980, is outdated and does not work well with how business is done today.
The base limit established in Fiscal Year (FY) 1979-80 that is still applied today is approximately $3.7 million, falling far below the college’s FY 2024-25 expenditure limitation of approximately $15.3 million, which has been the norm for the last five years.
Ellison provided the different iterations of the budget that the college goes through, comparing adopted budgets, revised budgets, budgeted expenditure limits and expenditure limits spanning from 2021 to 2025. She also went into further detail to explain why the college surpasses the expenditure limit, discussing efforts to increase student enrollment, the implementation of bachelor programs, new technology, construction and administrative costs.
“There has certainly been some criticism about administrative costs increasing. Specifically in the area of compensation,” Ellison stated. In 2015-2025, she explained that the number of administrative positions increased from 17 to 33. “In NPC, we talk about administrators as the president, the vice presidents and the associate vice presidents, but it also includes the deans and the associate deans, and then the directors.”
Ellison also countered criticisms pertaining to administrative increases were the doing of college President Dr. Von Lawson, stating that to be inaccurate. “Dr. Lawson has created a new interim position for a vice president in HR. All the other changes happened prior to him taking over as president of NPC.” She added that administrative positions were created to meet the demands of the college and its goals.
She concluded by talking about the struggles and efforts for an initiative to change the expenditure limits. “In the meantime, until this becomes a valid initiative, we will continue to use carry forward, which is not against the law and not inappropriate or unethical in any means. It is allowed in statute, and we will continue to use it.”
During the president’s report, Business Department Chair Professor Rachel Townsend gave a presentation on the college’s potential for providing 92-credit bachelor programs in applied science and business administration and a timeline. Although bachelor programs are traditionally 120 credits, the Higher Learning Commission approved reduced-credit degree bachelor programs in 2024.
The board approved a date change for their Oct. 20 regular meeting, rescheduling it for Oct. 27, due to two of the members attending the Association of Community College Trustees congress meeting.
The board received a progress report on the Enterprise Resource Planning (ERP) implementation as well as updates in the information technology (IT) department from Associate Vice President Chief Information Officer Michael Jacob.
Director of Facilities and Transportation Justin White provided a construction update on the districts’ Kayenta center, which is around 40% complete with a projected finish date in August of 2027.
Board Member Kristine Laughter was absent from the meeting.
The board also approved the Fiscal Year (FY) 2027-28 budget calendar and assumptions.
