Southeast Community College seeking to lower tax rate
Action during preliminary budget approval, comes after college fields criticism from state lawmakers
By News Channel Nebraska
BEATRICE – The Southeast Community College Board has given preliminary approval to a lower tax rate with its new budget, after hearing pushback from state lawmakers and citizens.
In June, the Southeast Community College Board approved a preliminary 2023-2024 budget that included a maximum general-fund tax levy rate of 9.25 cents per $100 of assessed valuation as part of a transition to the new Community College Future Fund model. That would have placed the school's total tax rate at 11.25 cents....the maximum allowed.
Based on open public forums held by SCC officials, feedback from state senators and other community leaders, the board Tuesday unanimously approved advertising a budget that reduces that maximum 9.25 cents general operations rate, to 8.5 cents…midway between the 7.5-cent minimum Community College Future Fund rate established by state lawmakers and the maximum 9.25 rate for SCC.
The result would be a savings of $6.1 million in taxes and more each year thereafter to the Future Fund. The Board’s action came during its regular monthly meeting held at the Falls City SCC Learning Center.
Dr. Paul Illich, SCC president, said he appreciated the opportunity to meet with constituents and get valuable feedback.
SCC officials have held a dozen town hall information sessions in July and August throughout the College’s 15-county service area. The last scheduled session was Wednesday night at the Beatrice Campus Academic Excellence Center. About twenty people attended, asking questions about how community colleges are funded and the new state funding plan set to start in 2024.
Illich said, “The College will be making the necessary cuts in identified projects in operating maintenance, technology and other expenditures and believes it can continue to pursue strategic goals with the 8.5 cents tax rate.”
That rate would result in an advertised general-fund budget of about $114.3 million and a total SCC budget of $351.56 million.
The Board will take final action on the 2023-2024 tax rate at its Sept. 26th meeting on the Milford Campus. If it approves the 8.5-cent general-fund levy, SCC’s total levy rate will be 10.5 cents. That includes a two-cent capital fund levy community colleges are allowed, under the new state funding formula.
When the new state funding plan kicks in, community colleges will lose the ability to levy property taxes for general operations.