Monday, February 25, 2019

From the Texas Tribune:Texas community colleges warn they may consider tuition hikes in the face of property tax reform

As discussed in class, a consequence of the ongoing weakness of groups representing the interests of community college students.

- Click here for the article.

The community colleges that educate about half the state’s higher education students are warning of possible tuition hikes if the Texas Legislature enacts its sweeping property tax proposal.

The high-priority legislation would slow the growth of property tax revenue, which makes up an average 40 percent of community colleges’ funding, according to an association that represents them. The share for state appropriations for the schools, meanwhile, has plummeted from 66 percent in the 1980s to near 23 percent today.

“Community colleges are alarmed,” said Brenda Hellyer, chancellor of San Jacinto College. While she understands the need for property tax reform, she said, “The concern is you've got two revenue sources — your state revenue source is pretty much capped. And now, if you put a very tight cap on your property taxes, what can you do other than increase tuition and fees or cut your services?”

Touted by Republican leaders as a needed check on spiraling property tax bills, the proposal would require taxing units to receive voter approval before raising property tax revenue 2.5 percent more than the previous year. It would apply to municipalities and special districts for hospitals and community colleges — and, depending on yet-to-be-filed legislation, to school districts, which levy the bulk of property taxes statewide. New developments don't count toward the 2.5-percent cap.