Tax revenues to remain stable in 2017-2018
TEXAS CITY — Trustees for College of the Mainland voted unanimously to approve an effective tax rate for 2017-2018 that does not include an increase over the previous year, despite an increase in the college’s operating budget.
At the recommendation of administration, Trustees approved an effective tax rate of .216791-cents per $100 valuation, which provides the college the equivalent in tax-generated revenues as last year.
According to the Texas Comptroller of Public Accounts, “The effective tax rate enables the public to evaluate the relationship between taxes for the prior year and for the current year, based on a tax rate that would produce the same amount of taxes if applied to the same properties taxed in both years.”
Tax revenues generated by an increase in population and business growth more than offset the need to raise the tax rate.
Earlier this month, Trustees approved a budget of $32.8 million for the coming year, up 9.6% over last year.
Vice President for Fiscal Affairs Clen Burton said the new budget anticipates “stable tuition and fees, and a slight increase in state appropriations and ad valorem tax revenue.”
Enrollment at the college increased by more than 9% this fall, requiring additional faculty, support staff and equipment.
“Our budget is sufficient to provide first-rate instruction for our growing enrollment,” said President Dr. Warren Nichols. “And Trustees gave a 3% salary increase to our employees.
“I am very pleased we are able to fund these needs with no increase in taxes. It is a reflection of the good stewardship of our Trustees and administration.”