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.