BURLINGTON — The property taxes local residents will pay for Gateway Technical College next year are to be cut in half thanks to an act of the Legislature passed this year, according to officials and Gateway’s proposed 2014-15 budget presented Thursday.
The total amount taxpayers are budgeted to pay next year for Gateway is $28.98 million, down from $60 million this year.
“Homeowners will see a reduction in their local property taxes which gives them the relief they are looking for and Gateway has been able to demonstrate good performance, so we’ll see an increase in the revenue streams to support ongoing training,” Gateway President Bryan Albrecht said following a budget presentation Thursday at the Gateway Technical College District Board meeting in the HERO Center, 380 McCanna Parkway, in Burlington.
Under Act 145, the property tax relief act passed this year, the state will pick up a large portion of what local property taxpayers usually pay for technical colleges throughout the state, explained Conor Smyth, a spokesman for the Wisconsin Technical College System. It doesn’t mean a new pool of money for technical colleges, he said. It means local taxpayers will pay less, while statewide taxpayer dollars, now part of the state surplus, will be more heavily relied upon.
The surplus is the result of holding down spending, Act 10 savings, and the growing economy, according to state Rep. Robin Vos, R-Rochester.
Change in state funding
Statewide, local property taxpayers used to pay 68 percent of the cost of technical colleges. That is now reduced to 33 percent, and the amount the state pays is going from 9 percent to 44 percent, Smyth said.
For Gateway, approximately $32 million is being moved from local property taxes to the state. That means about $83 in property tax relief for someone with a $100,000 home.
Vos, the Assembly speaker, said the biggest complaint he hears from constituents is about taxes and this provides relief, but state Rep. Cory Mason, D-Racine, said instead of simply swapping out property taxes more money should have gone to technical colleges for worker training, and he had proposed a bill that would have done that.
Mason said he voted against Act 145 not because he thinks the property tax cut is bad, but because technical college funding needs to be restored to prior levels.
“All the money they put into the technical college went to property tax relief, nothing from that bill went for job training or getting people back to work ... If jobs really is the No. 1 issue, we should be investing in things that get people back to work.”
Albrecht said the college is getting additional state funding through a new performance-based calculation that rewards the school for doing well. The college has also applied for an additional $2.7 million through what is being called the Blue Print for Prosperity, according to Albrecht. That includes money for more boot camps, among other things.
Additional budget items
Overall, Gateway’s proposed total budget is down from $161.62 million to $156.76 million. Albrecht attributed that in part to Act 10, which essentially eliminated collective bargaining for public employees. It allowed Gateway to make changes to benefits such as retirement and health insurance, he said. Also he said over the last three years there were approximately 85 retirements, which contributed to the college’s savings because employees who had been with Gateway used to receive longevity pay based on the number of years they were with the college. Now he said instead of budgeting for longevity pay, they have funds budgeted for merit-based pay increases.
“We certainly want to be an employer of choice and recognize employees for the great work they are doing,” Albrecht said.
GATEWAY'S BUDGET AT A GLANCE
Total budget levy, the amount local property taxpayers pay
Current ’13-’14 budget: $60.04 million
Proposed ’14–’15 budget: $28.98 million
Tax rate, the amount local property taxpayers pay per $100,000 in property
Current rate ’13-’14: $163.47
Proposed ’14-’15 rate: $80.51*
Gateway’s total budget
Current ’13-’14 budget: $161.62 million
Proposed ’14-‘15: $156.76 million
Capital improvements budgeted for Racine’s campus
$1.95 million budgeted for a new roof, HVAC system and repairs
$250,000 for restroom remodeling in the Lake Building
Timeline for the proposed budget
Public hearing: May 5 at 7 p.m. at the Center for Bioscience and Information Technology, 3520 30th Ave., Room 120, Kenosha.
Scheduled date for budget approval: May 15 at 8 a.m. at the SC Johnson iMET Center, 2320 Renaissance Boulevard, Sturtevant.
*The proposed ’14-’15 tax rates is based on a projected 2 percent decline in equalized property values and reduced greatly due to recent tax relief legislation. The final tax rate is not set until the fall.