In a review of the upcoming budget, Vice President of Administrative Services Maderia Ellison provided the Navajo County Community College Governing Board with an introductory budget analysis for the proposed $33.4 million budget at last week’s meeting.

This included several options regarding property taxes, which include setting the levy rate at the maximum $1.8178, generating $16.7 million; leaving it at the current rate of $1.7505, generating $16 million; or setting the levy rate at the TNT rate of $1.6708, generating just under $15.4 million.

Ellison noted that the change in property tax valuation for the current year compared to the prior year, known as “new construction”, is a decline of $36 million. This is related to the planned closure of the Cholla Power Plant in Joseph City. The decline in assessed valuation reduces property tax revenues by approximately $600,000.

It is estimated that state funded operating aid will come in at close to $1.4 million, decreasing over the current year by $115,100. Operating aid is based on enrollment two years in arrears.

Equalization Aide is estimated at $9.9 million, increasing over the current year by $741,900. This aid is provided to the community college districts with property tax bases that are less than the minimum assessed value for their rural district or county (populations less than 500,000 persons).

Rural funding is estimated at nearly $1.3 million, decreasing $368,400 over the current year.

Tuition is estimated at $4.4 million, taking into consideration the decline of enrollment, offset by a $3 increase per credit hour for the in-district and in-state tuition rate.

Government grants and contracts is estimated at $3 million, which is comparable with historical revenues. Investment income is estimated at $300,000, a decrease in budget but comparable to historical revenues. Other income is estimated at $200,000 and is related primarily to cosmetology retail sales and microwave tower rentals.

The state funding for STEM activities is estimated at $309,900. Other capital fund revenue will be transferred from the general fund or fund balance. The fund balance of $20 million is committed to facility expansion, of which $12 million is for the new skills center in Show Low.

With the passage of Proposition 207, legalizing the sale of recreational marijuana, the district is expected to see revenues for workforce development of $1 million to $1.5 million.

Regarding tuition, the upcoming year will not include a tuition waiver that was implemented to help with the impacts of COVID-19. The board adopted a three-year tuition plan in fiscal year 2020, which was amended in FY 2021 to include a new in-district rate for the remaining years. For FY 2021-22, the rate is $82 per in-state credit hour and $65 per in-district credit hour. FY 2022-23 will see a $3 increase to $85 per in-state credit hour and $68 per in-district credit hour.

The presentation was information purposes only. The board will be discussing the budget in more detail prior to approval in the coming months.