Aid Slashed? So Hike Taxes

Trustees of Maricopa County Community College District will consider a plan Tuesday night to raise property taxes to compensate for an 85% cut in state aid.

The 3% increase in the rate would raise the annual tax on a $100,000 home in the district by $24. The new rate would go into effect July 1.

Gaye Murphy, associate vice chancellor for business services, said the college district had not anticipated the $38 million cut in aid from Arizona as a result of lackluster state revenues.

State aid totaled $45.3 million in fiscal 2011, but will be only $6.9 million next year.

The 3% increase would generate $11.4 million a year, Murphy said.

Revenue from the property tax, which makes up about two-thirds of the 10-school district's budget, has dropped due to a decline in property values in Phoenix and other cities in the county.

The tax is expected to generate $7 million for the district in fiscal 2012, down 36% from the $11 million collected in fiscal 2011.

Aid from Arizona accounted for 10% of the school district's budget in fiscal 2008, but will account for less than 1% in fiscal 2012.

The Goldwater Institute slammed the district last week for seeking a tax hike while it retains a $160 million reserve account.

Schools chancellor Rufus Glasper said the healthy reserve account, which would cover about 63 days of operations, is a major factor in the district carrying triple-A bond ratings from the three major credit agencies.

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