By L. Parsons The Navajo County Community College District Governing Board held a public hearing last week in order to present their budget plans for the coming year, which includes a reduction in tuition for the fall and spring semesters. To begin, Northland Pioneer College Vice President of Administrative Services Maderia Ellison informed the governing board that no revisions had been made to the proposed budget already discussed in April. “While no alterations have been made, staff does see some use of the carry forward balance this upcoming year, but we do have a healthy balance of over $30 million to address any needs.” The district bases their yearly budget on enrollment. This year, enrollment numbers are expected to be different than previous fiscal years. Ellison said, “This is all based on full time student equivalent (FTSE) count, which was provided by the state several months ago. We do expect fluctuation but we do not know in which direction.” NPC has reduced their tuition rates for the fall and spring 2020-2021 semesters from $79 per credit hour to $40. Ellison said, “We anticipate about $30 million in revenue from general tuition, state appropriations and property taxes along with several other line items. This does include the reduction in tuition rates for fall and spring next year as we are trying to anticipate the impact COVID-19 has had on our students. We anticipate that we will need to use $2 million from the fund balance to help offset the tuition reduction.” She explained the transfer of revenue from one fund to another is common practice, especially in unforeseen circumstances such as COVID-19. Overall anticipated revenue for budget year 2021 are $30.4 million, a decrease from 2020 of 3.2 percent or $7.8 million. Ellison continued, “The total fund estimate also includes some information on compensation related to salaries, hourly wages, retirement and other benefit costs. It shows increase in salary for our nonexempt employees by 2.5 percent and $1 per hour for hourly employees.” The district also plans to move forward with construction on a previously approved expansion of the White Mountain campus. “We have set aside $20 million for that project and this year we will use about $14 million of that.” Total expenditures for the upcoming year are $51 million, an increase over last year of .06 percent or $291,433. This was a public hearing, so comment was solicited from members of the community. One comment was submitted through the college’s website from Navajo County resident Jerry Brownlow. Ellison delivered Brownlow’s message, which was in support of the decision to reduce tuition in 2021. Ellison concluded, “This budget reflects a revenue neutral property tax levy with a reduction in the tax rate, it includes a reduction in our tuition rate to help our students and it also helps our employees with continuing to move forward with a raise even though we are looking at a down turn in the economy.” The governing board approved the proposed 2021 budget by unanimous vote and with all members present. Also approved was a levy amount of $15.7. “This reflects the reduction of the tax rate of about three cents,” said Ellison. She explained, “This particular tax rate and levy were approved as part of the preliminary budget approved on April 14. In that meeting, we presented several different tax options and the board adopted a truth in taxation rate. That means that we were not increasing our property tax levy amount except for the new construction. That equates to $139,000 and reduces the tax rate from 1.8 to 1.78 percent. That did not need to face a truth in taxation hearing because it did not exceed the previous year’s rate.” The capital budget was then approved. According to Ellison, “This is the proposed capital budget that was also approved on April 14. It covers 2021-2023, a three year look with the first year included in the budget that was just approved.” The capital budget includes the district’s annual requirements for the White Mountain campus project as well as administrative, student services, career and technical education and nursing clinic services.” The total expenses foreseen for 2021 in the capital budget are $14.3 million. The entire proposed budget is available for viewing at www.npc.edu. The budget process will continue until it’s final adoption in July.
