Property taxes to drop nearly $200 for MATC

2014-05-14T04:55:00Z Property taxes to drop nearly $200 for MATCDAN SIMMONS, 608-252-6136

The owner of an average Madison home would pay about $200 less in property taxes that fund Madison Area Technical College this year, according to the college’s proposed 2014-15 budget.

The 46.4 percent drop is the result of the college’s move to a new Legislature-approved funding model that shifts more burden of paying for technical colleges from local property taxpayers to state tax revenues.

On an average $230,831 home in Madison, that means an end-of-year tax bill would be $227.71, down $197.25 from last year. That number does not include other parts of the tax bill, such as city, county and public schools.

The projected budget for 2014-2015 will be the subject of a public hearing Wednesday. It also proposes to cut more than 15 full-time jobs and projects stagnant enrollment.

State revenues for MATC will make up nearly half of total operating funds, up from just 10 percent in 2010-2011.

It comes in part because of changes approved by the Legislature last June in how technical colleges are funded. In Gov. Scott Walker’s two-year budget, state technical colleges got an additional $5 million in state aid along with a mandate to change to a new performance-based funding model.

Next fiscal year — 2014-2015 — will be the first year of the new model, when 10 percent of general state aid will be tied to performance measures including graduation rates, job placement and focus on training workers in high-demand fields. It will increase 10 percent a year until it reaches 30 percent of total funding in 2016-2017.

More help came from a $406 million infusion to the state’s 16 technical colleges approved by lawmakers this spring as part of a tax relief package funded by the state’s projected $977 million surplus.

The dramatic tax decrease comes after more than a decade of increases. The average annual increase between 2001 and 2011 was 6.32 percent. Last year, the college’s portion of the tax bill rose less than 1 percent.

The total amount the college would levy is $66 million, down from about $124 million last year under the old funding model.

The college’s general fund, which pays for day-to-day operations, will be about $151 million, an increase of about 2 percent next year.

Fifteen and a quarter jobs would be cut under the new budget for a savings of $1.7 million, said Tim Casper, senior executive and special assistant to MATC President Jack Daniels. A total of 6.5 full-time positions will be cut in academic affairs, including three faculty jobs. Maintenance staff will be cut by 5.75 full-time positions. The other cuts will be in student services, human resources and the grants office.

New student fees begun last year will remain in place: $25 to take the college’s Compass entrance test plus “academic support fees” of $1.65 a credit for college transfer students and $1.22 a credit for students in occupational paths.

Copyright 2015 All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

(9) Comments

  1. CHausen
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    CHausen - December 13, 2014 12:11 pm
    Individuals who rent pay property taxes, also.
  2. Bucky01
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    Bucky01 - May 13, 2014 11:25 pm
    Shifting the tax burden from property owners to everybody making a paycheck and the students themselves...that's it and that's all.
    Most students don't own a home and many work to pay their expenses so they should be thrilled.
  3. In Medias Res
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    In Medias Res - May 13, 2014 10:24 pm
    Maybe my property taxes won't go up by the usual 5 to 6 percent this year after all, but I'll believe it when I see it.
  4. denbar1948
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    denbar1948 - May 13, 2014 9:05 pm
    If you remember we had more of the school cost paid for by the State prior to Walker. His ideas are simply an election year ploy. Wait until next year with a big shortfall and see who gets hammered to cover it.
  5. Bee K
    Report Abuse
    Bee K - May 13, 2014 8:35 pm
    Not so fast!

    Gouvernor Cough Syrup doesn't do anything budgetarily without shifting the revenue burden downward.

    There is likely great reason for those who hate poor people to begin revelry!
  6. goldennugget
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    goldennugget - May 13, 2014 8:35 pm
    Spread the tax burden over a wider base. Did you flunk grade school arithmetic?
  7. denbar1948
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    denbar1948 - May 13, 2014 6:01 pm
    He saved you nothing just changed the source of funding from property taxes to State revenues. Smoke and mirrors.
  8. B-Man
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    B-Man - May 13, 2014 6:00 pm
  9. Thanks4Act10
    Report Abuse
    Thanks4Act10 - May 13, 2014 5:25 pm
    Yes, Libs, thank Governor Walker.

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