Traverse City Record-Eagle

Archive: Wednesday

July 31, 2013

Forum: Why I am voting ‘no’ on NMC millage

I am a proponent of funding initiatives for general and higher education, provided the institution seeking support has a compelling need and a clear plan. Northwestern Michigan College’s new millage initiative unfortunately fails on both counts.

NMC has not demonstrated an obvious need for new taxes at this time. It weathered the national economic crisis in remarkably good financial shape, with total revenues increasing steadily from 2007 through 2012, more than matching increased expenditures. As reported in the Record-Eagle, NMC is now sitting on reserves of some $16 million.

The college’s financial reports show that annual contributions from property taxes to the total budget (operations and facilities) increased from $11.2 million in 2007 to $12.4 million in 2012. Tax revenues into the general fund, where the new millage would go, grew from $8.3 million to $9.1 million over this period. Declines in property values have had only a marginal, recent impact on the college’s millage inflow, following an all-time high in 2010. NMC’s preliminary financial report for the year that ended June indicates millage revenues are again on the upswing, and the college ran another budget surplus.

The $1.7 million that would be generated by the new millage in the first year alone would more than make up for all recent losses in property tax revenues. So, why are we being asked to vote for a measure that would generate many millions beyond that amount for the next 15 years?

The question is especially pertinent because NMC has refused to specify how new funds from a millage increase would be used. There is no way of knowing what possible difference, if any, the additional monies will make in helping the college deliver better educational services to the community. Are there new programs and faculty hires in the offing? Better course selections? What exactly is the investment in the future? With so many demands being placed on the limited budgets of so many households, voters deserve more information about how their hard-earned dollars will be spent than has been provided.

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