Below is a release sent to the media today headlined “PCC’s Budget Drops $11 Million for 2016-17”
Tucson, AZ – Pima Community College’s Governing Board voted Wednesday to approve the College’s fiscal 2016-17 budget of $247.8 million, a decrease of approximately $11 million, or 4 percent, when compared to the current year budget.
The 2016-2017 budget reflects a significant reduction in spending made by the College to better align its finances and organizational structure with expenditure limitation, revenue, and enrollment challenges and realities. The spending reduction aligns with internal spending decreases that have been in place since July 1, 2015, as well as with the expenditure limitation plan that the College has been publicizing.
The Board of Governors also approved a 1.0 percent increase in the College’s primary property tax levy for fiscal year 2016-17. The funds generated by the levy increase will be used to support capital projects for fiscal year 2017, and will enable the College to implement the initial elements of the educational and facilities master plans that are currently being shaped. The total increase in primary property tax revenues from both new and existing property compared to the fiscal year 2015-2016 budget will be approximately $3.1 million: $2.0 million from growth of new property; and about $1.1 million from the 1.0 percent levy increase. The total primary property tax levy for fiscal year 2017 is projected to be about $107.3 million.
Assuming that assessed property tax values are unchanged year to year, for a residential home with a full cash value of $100,000, the College’s primary property tax levy will result in a tax bill of $137.33, an increase of 44 cents over the current year. For a class one commercial property with a full cash value of $100,000, and assuming an unchanged assessed value, the College’s primary property tax levy will result in a tax bill of $247.19, a decrease of -$6.06 over the current year. Due to the reduction in the assessment ratio for class one commercial property, commercial class one property taxpayers will likely see a reduction in the property tax payable to support College operations.
The College’s primary property tax rate continues to be below the average of its peers, and the primary property tax rate for fiscal year 2017, $1.3733 is almost the same as that from fiscal year 2000, 17 years ago. Pima Community College’s secondary property tax rate will remain at zero.
A presentation made to the Board of Governors on Truth in Taxation and Adoption of Fiscal Year 2017 Proposed Budget is available on the College’s website.