The Navajo County Community College District Governing Board approved an increase in tuition, as well as some course fees and a replacement money card fee for the upcoming fiscal year, despite concerns by one member of the board who felt increases of that nature would present a greater hardship to residents of Navajo County.
During the March 15 meeting, board member Dusty Parsons expressed concerns that residents of Navajo County are already dealing with economic strife and increased property taxes, and that increasing tuition would make it even more difficult for families to afford an education for their children.
Northland Pioneer College Vice President of Administrative Services Blaine Hatch estimates that while approximately $200,000 of new revenue would be generated by a tuition increase, it is expected that the budget for tuition and fees revenues will still decrease by $435,000.
He proposed the board increase tuition by $4 per credit hour for Navajo and Apache county residents, and for out of state students, a $5 increase per credit for one to six hours and a $15 increase per credit for seven hours and beyond would be instituted. Hatch explained that by raising the fees gradually over time it would avoid shocking the students with a sudden large tuition increase in the future, as state cuts are expected to increase. He also noted that the increase would still leave the college with the lowest tuition rate in the state.
“In 2011-12 we will see a $2 million decrease (in state funding). In 2013 it’s likely to be cut by 50 percent or $4 million. In that scenario, we would need to dip slightly in our reserves. In 2014 we start using large amounts of our reserves and by 2017, our reserves would be depleted,” stated Hatch, adding that because of its reserves, the college would have time to adjust operations and services before state aid would be gone.
While there appeared to be no doubt that cuts would continue from the state, the concerns presented by Parsons were based more on the economic impact being felt by residents now, and not the uncertainty of cuts from the state down the road.
Earlier in the meeting, the board discussed a two percent increase in salary for all regular employee classes. A two percent decrease in salary was OK’d the previous year. Hatch pointed out that other community colleges had continued with increases or at minimum, wage freezes. “The cut put us two and three-fourths percent below average,” he explained, adding that the increase would add approximately $210,000 to the budget. The recommendation will be considered at the board’s April 19 meeting.
The college also intends to levy the primary property tax at the maximum amount of two percent this year. This increase would provide an additional $772,000 in revenues. Hatch noted that this is in response to the anticipated $2 million cut in state aid and as an argument for equalization.
“Why do we need to increase tuition? We have no need to increase taxes or tuition. We had a $27.7 million dollar budget with $19.6 in expenditures, leaving a carryover of $8.1 million. We’ve restored employee wages, put $1 million in contingency, anticipate $32.8 million in revenues with a $20 million budget. Why do we continue to increase?” asked Parsons.
In addition, Parsons also expressed concern regarding the increase in property taxes for Navajo County, while Apache County receives services without an increase to taxes.
“You’re asking Navajo County to pay a higher property tax, but you’re not willing to charge more for Apache County. This is a much sweeter deal for Apache County,” stated Parsons.
Hatch responded by stating that Apache County services are paid in total by Apache County. “A comparison of services between what is offered in Apache County compared to Navajo County shows we have much more for our students here. The two centers in Apache County have limited services, while we have full-service campuses in Navajo County. Many students from that area have the added expense of travel to receive some of the instruction they need,” explained Hatch.
The response did not appear to ease Parsons’ concerns, as he stated that the board shouldn’t even be thinking of an increase in tuition. “At what point does the homeowner get a break in this environment? In two to three years we don’t know where we’ll be. Right now we have a lack of jobs and no pay increases. People can’t afford to send their kids to school and that’s what we’re supposed to be here for,” emphasized Parsons.
The motion to increase tuition, some course fees and a replacement fee for money cards was approved by board members Daniel Peaches, Ginny Handorf, Bill Jeffers and Luoella Nahosonhoya, with Parsons voting against it.
In other action March 15, the board:
* Approved adjustments to the fiscal year 2009-10 adopted budget as reports indicated that expenditures for that fiscal year were $1,307,817 below the statutory expenditure limitation.
* Approved a dual enrollment intergovernmental agreement between the college district and the Round Valley School District.
* Approved an increase to specific course fees, with Parsons voting against the increase.
* Approved a three-year contract for Internet service at the White Mountain Campus with CableOne and a five-year contract for Internet service at the Painted Desert Campus with Frontier Communications. The contract with CableOne is for $126,000 and the agreement with Frontier is for $174,000. Both will be paid with grant funding.
* Approved a revision of the criteria for the Associate of Applied Science degree, the Certificate of Applied Science and the Certificate of Proficiency in Cosmetology.
