As Northland Pioneer College prepares it’s upcoming budget, it is once again planning for a reduction in revenues due to the tax funds lost with the reduction of assessed valuations at Cholla Power Plant in Joseph City and concerns over continued losses at the plant.
“At this time, overall revenues are expected to decline with a net decrease of approximately $300,000 compared to the current fiscal year,” explained Vice President for Administrative Services Maderia Ellison, as she addressed the Navajo County Community College Governing Board at their Feb. 21 meeting.
She explained that state funding is expected to increase approximately $43,000 related to enrollment and approximately $591,000 related to equalization aid.
Equalization aid is provided to community college districts with property tax bases that are less than the minimum assessed value for their rural district or county for populations less than 500,000 persons. There are currently two community college districts in Arizona who receive equalization aid aside from NPC, including Cochise in Cochise County and Eastern in Graham County.
The college will seek to levy the property tax at the maximum rate, which is two percent higher than current year tax levy and will require a truth-in-taxation hearing.
The proposed budget will provide $369,100 in funding for STEM (Science, Technology, Engineering and Mathematics) related activities, an increase of approximately $15,000 from the current appropriations.
Ellison explained to the board that all other capital fund revenue would be transferred from the general fund.
Proposed employee benefit cost increases of approximately six percent, totaling about $100,000 in additional cost will also be included in the budget.
Also noted in the budget was a 1.5 percent raise increase for all contractual faculty, staff and administrators.
Board member James Matteson made note that last year there were no percent raises provided, just a stipend, plus funding to offset an increase in medical costs for employees and the addition of dental cost coverage.
“The loss of income from taxes was caused by the reduction of the centrally assessed valuations that decreased last year. Primarily because of our friends at APS (Arizona Public Service) decided to reduce their output and we’re still facing that,” he said. When asked by Chairman Frank Lucero how soon a closure of the plant could impact the college, President Dr. Jeanne Swarthout reminded the board that there has been no notification of a definite closure.
“We will have more information on that shortly, regarding the timeline and impacts,” stated Swarthout, adding that the fiscal impact to the college would likely occur between 2019 and 2025. “We need to think about that before we get too far out there,” she added.
It was also noted that Cholla was not the only coal-fired plant that would affect the county as a whole. “The closure of the Navajo Generating Station (in Page) will also have a countywide effect,” Swarthout said, noting that the plant not only employs people living on the Navajo Nation within Navajo County, many people work for Peabody Coal, which will be severely impacted by the closure.
The items pertaining to the budget were approved for first reading and will be addressed again at the next meeting on March 21.
In other business, the board:
* Appointed Frank Lucero as the board representative to serve on the Arizona Association of District Governing Boards.
* Approved the purchase of wireless microwave broadband network tower equipment at a combined price of $731,760. The funds will be drawn from the 2016-2017 budget year as planned and allocated within the budget and project schedules. Completion of the network implementation is expected by early fall of this year. There are 14 tower locations involved in the proposal. The towers will provide a redundant design and reliable network functions with the replacement of hardware. The existing environment is currently beyond life expectancy by three to five years.
* Approved the addition of the Nursing Associate of Applied Science licensed practical nurse (LPN) to registered nurse (RN) and other minor changes to the nursing program.
* Approved modification to the General Education Associate of Arts (AA), Associate of Arts in Early Childhood (AAEC), Associate of Arts in Elementary Education (AAEE), Associate of Business (ABUS), Arizona General Education Curriculum (AGEC), Associate of Science (AS), Associate of Applied Science (AAS) and Associate of General Studies (AGS).
* Accepted the audited Annual Budgeted Expenditure Limitation Report (ABELR) for the year ended June 30, 2016.
* Approved an adjustment to the fiscal year 2015 budget in order to reconcile the budgeted expenditures with the actual expenditures for the fiscal year.
