BLINN BOARD SPLITS 5-2 ON PROPOSED TAX RATE INCREASE TO ADDRESS STATE FUNDING PENALTY

  

Lengthy discussion accompanied a split vote by the Blinn Board of Trustees today (Thursday) to propose a property tax rate increase that takes the rate just under the voter approval rate, but is meant to reduce the penalty in state funding imposed for having too low of a rate.

Trustees voted 5-2 on the new rate proposal of $0.0468 per $100 valuation, which is above the current rate of $0.0438 and the calculated no-new-revenue rate of $0.042653, while falling shy of the voter approval rate of $0.046857.  Trustees Richard O’Malley and Dr. Dennis Crowson voted against the proposed increase.

Much of the board’s discussion focused on the rule created by the legislature in 2023 to require community colleges to have a minimum maintenance and operations tax rate of $0.05.  Blinn is the only community college in Texas with a rate below $0.05 and is losing state appropriations each year it does not meet that threshold, including approximately $870,000 for Fiscal Year 2025 and an estimated $570,000 for Fiscal Year 2026.

Vice Chancellor for Business and Finance Dr. Clen Burton said the state has imposed a freeze on tuition and fee increases for Fiscal Year 2027 and is also expected during the next legislative session to consider reducing how much government entities can raise their tax rate each year, dropping the cap from 8 percent to 4 percent.  He said if all calculations remained the same and no laws change, he anticipates Blinn would be able to pass the $0.05 mark next year.  O’Malley argued that it will be harder to hit that level if property values keep going up.

Dr. Crowson said with Blinn being the only college impacted by this 5 cent rule, and in the event that the state’s $0.05 mark were to go up, the College needs to ensure that local legislators are vocal about changing or removing the rule, as Blinn and its taxpayers are being punished.

Other trustees stated that the long-term effects of being under the $0.05 threshold are significant and that the additional revenue is needed to keep the College and its programs growing.  Board Secretary Rebecca Ehlert said Blinn has to try to fight to keep taxpayers’ money local.

Chancellor Dr. Mary Hensley said she does not believe the $0.05 rule will be addressed in the next session, as there are larger funding issues that the Texas Higher Education Coordinating Board will need to address.  She contested Dr. Crowson’s statement that local lawmakers are not doing enough, saying they have actively spoken out on behalf of Blinn College.

The levy from the proposed tax rate is estimated at $3,582,611 and would generate an additional $276,895 in revenue compared to the no-new-revenue rate.  Taxpayers would pay $46.80 per $100,000 of home value annually.  All property tax revenue collected within Blinn’s taxing district in Washington County must support the College’s Washington County operations.

The board will hold a public hearing and official vote on adopting the tax rate during a special meeting on Thursday, September 10^th.