Posted 11:29 pm Friday, February 25, 2011
TJC: Cuts May Be $7.1 Million
Tuition Could Triple
By EMILY GUEVARA
Staff Writer
Staff Writer
If proposed state funding cuts go through, Tyler Junior College could see almost one-third less funding next biennium.
TJC President Dr. Mike Metke outlined the cuts during a board meeting on Thursday.
House Bill 1 proposes to cut TJC's funding by a combined $7.1 million in two areas: employee benefits and the instructional formula.
In addition, the bill does not account for almost $8 million worth of enrollment growth.
Metke said he understands community colleges have to take their share of the state's shortfall, but he wants them to be treated the same as the four-year institutions.
"We're facing the biggest cuts of the higher ed family," he said. "...It's devastating to what we're doing here at the college."
As proposed, the bill would cut the state's funding of employee health insurance to TJC by $5.9 million or 86 percent.
This would take state funding in that area from $6.8 million to $934,200, according to data provided by the college.
The state would cut funding of the employee retirement match by $1.1 million or 34 percent.
This would take that funding from $3.3 million to roughly $2.2 million.
Formula funding, based primarily on student contact hours, would drop to $36.2 million, which represents a $127,000 cut.
Add to that almost $8 million in unfunded enrollment growth and the college could deal with, in effect, about a $15 million reduction.
That's almost one third less funding than it received last biennium, college data shows.
Local legislators say the problem is two-fold.
State Sen. Kevin Eltife, R-Tyler, said in a phone interview Wednesday that state funding of employee benefits at the community colleges is an ongoing issue and one that is not directly related to this year's budget shortfall.
In 2007, Gov. Rick Perry vetoed health insurance benefit funding for the state's 50 community colleges after a disagreement about how the costs should be split. Perry later reversed his decision and the state awarded funding to the colleges.
Eltife said he supports the community colleges' position on this issue, but that is a small piece of a larger puzzle.
"Our bigger issue right now is how do we balance the budget?" he said.
State Rep. Leo Berman, R-Tyler, said he thinks many people are jumping the gun.
"Once (the bill) goes to both bodies, there are going to be several hundred amendments and a lot of debate before the final bill is passed," Berman said by phone Wednesday.
He said the initial budget cutters are going through with a hacksaw whereas later on in the process legislators will use a scalpel.
He said legislators will argue for and against certain funding and could decide to use the rainy day fund.
"We'll do what we have to do to keep Texas the great state that it is," he said.
In order to cover the proposed cuts, TJC has a few options. It could raise tuition, cut programs and/or personnel, or raise property taxes.
Metke and board President Clint Roxburgh have said raising property taxes is out of the question because the board promised taxpayers it wouldn't after raising them last year.
To make up for the cuts with a tuition increase alone, the college would have to almost double tuition for in-district students, Chief Financial Officer Sarah Van Cleef said.
That would mean raising it from $28 per credit hour to $55 per credit hour.
To make up for the state cuts and unfunded enrollment growth, the college would have to almost triple tuition raising it from $28 per credit hour to $83 per credit hour.
Dealing with the cuts through property taxes would require a 50 percent increase. The college would have to double the property tax rate to deal with the cuts and unfunded enrollment growth.
Metke said he presented the information to let the public know the situation. He said legislators want to hear from their constituents and urged people to speak up about their priorities.
These cuts represent only how TJC could be affected by the budget shortfall. Ms. Van Cleef said additional cuts such as those to grant programs and the state-funded insurance program likely will impact students and employees.
TJC Provost Butch Hayes said the cuts have the potential to negatively impact instruction.
"We're going to have to fight to keep that quality," he said.
Board President Clint Roxburgh said it is difficult to discuss this type of information in public but he thanked the TJC employees who were in attendance for their service.
He said all board members have a great affection for the college, but more than that for the community and the long-term good that TJC can do for the community.
Roxburgh said the college is considering both short-term and long-term solutions, but what they are not going to do is make decisions that will cripple the college or hurt taxpayers in the long run.
"What we want to do is be the best junior college when it's over and the place that survives the best," he said.
