by JENNIFER BIUNDO
Next week, the first wave of Texas voters will take to the polls and cast their ballot for a slew of political candidates, from governor all the way down to the proverbial dogcatcher.
In Hays CISD, voters will see something else on the ballot: “Annexation of the following territory for junior college purposes: All of the territory in Hays Consolidated Independent School District.”
A vote in favor of the annexation will pull Hays CISD property owners into the Austin Community College district, where residents will pay a tax — currently set at 9.5 cents per $100 of property valuation — in exchange for in-district tuition rates and a pledge from ACC to construct a campus in Kyle. San Marcos ISD voters are considering a similar annexation.
Those in favor of the ballot measure say that supporting higher education will improve the overall quality of life for the region and increase earning power for local residents. But some voters are concerned that the annexation would bring disproportionately higher taxes with little benefit.
Under the tagline of “tuition is temporary, taxes are forever,” Hays County resident Barry Gilardi is fighting the ballot measure. Gilardi is concerned that the ballot language is vague and doesn’t tell voters that the annexation comes with a tax impact. He’s established a website, www.noacctax.com, hoping to get out his message.
“Why does everybody move out here from Austin? To get away from Austin. And we let Austin come out here and tax our property,” Gilardi said. “It’s a bad deal all the way around in Hays.”
Hays CISD, if annexed, would provide ACC with about $3.3 million in tax revenue, while San Marcos ISD’s slightly lower property values would yield just over $3 million in revenue.
The owner of property valued at $150,000 would pay ACC about $137 annually. Meanwhile, property owners who are disabled or over the age of 65 would get a $120,000 exemption and pay about $37 annually on a $150,000 home.
In return, the region would get a break on tuition rates. In-district students pay $58 per credit hour in tuition and fees at ACC, while out-of-district students are charged $166. An associate’s degree typically requires 60 hours, meaning an in-district student would pay about $3,500 in tuition for the two-year program, while an out-of-district student would be charged about $10,000.
But it’s unclear how many students that enroll in ACC actually earn a degree. A recent investigation by the Texas Tribune found that only about one out of three community college students in Texas earn any credentials within six years, with 15 percent getting a bachelor’s degree, 11 percent earning an associate’s degree and five percent completing a professional certificate. Those figures don’t include the large number of part-time students, who may be even less likely to complete their education.
In 2005, Hays CISD had just under 500 students enrolled in ACC classes, and this year, that number has grown to more than 1,000. About a quarter of those are Hays and Lehman high school students taking classes for college credit at a cost of $40 per class. If those numbers increased to 2,000 students, Hays CISD taxpayers would be paying about $1,650 per student per year.
The Hays campus would likely open in August of 2013, said Ben Ferrell, ACC’s executive vice president for finance and administration. The 72,000-square-foot campus, slated for FM 1626 near the Plum Creek business district, is projected to cost $20-23 million.
Actual programming hasn’t yet been determined, though the college would probably initially offer a general slate of transfer courses, Ferrell said.
A total of five districts are considering joining the ACC taxing district this November, including Hays, San Marcos, Bastrop, Elgin and McDade. That concerns some opponents, such as Kyle dentist Ray Wolbrecht.
“They’re expanding their base rather than raising taxes,” Wolbrecht said.
Gilardi agreed, pointing to a 2008 Austin Chamber of Commerce report stating, “To avoid the possibility of ACC facing severe fiscal constraints…the Metro Austin business community should strongly consider supporting thoughtful efforts to expand ACC’s taxing district.”
“They’re in debt and losing state funding and suddenly five districts want to join,” Gilardi said.
But Allen Kaplan, vice-chair of the ACC board of trustees, noted that ACC doesn’t usually gain from taking in new property.
“ACC does not itself benefit financially by annexations, since most areas that are interested in joining are those with relatively low property values and a substantial need for low-tuition higher education,” Kaplan wrote in a recent editorial. “The cost of building and running a new local campus fully absorbs the local tax receipts.”
Instead, he said, the smaller communities benefitted from the economies of scale, since ACC is already covering the administrative overhead expenses.
A recent report by the Texas state comptroller suggests that a community sees a return of $5.50 for every dollar invested in higher education, mostly from the increased earning potential that a two- or four-year degree can yield.
While most of the reports look primarily at higher wages, some also try to account for increased social benefits, said Neil Vickers, Acc’s associate vice president for finance and budget. Though the hard numbers can be subjective, it seems clear that there are benefits, Vickers noted.
“A more educated population tends to be healthier, less frequently incarcerated, and needs less spending on social welfare,” Vickers said. “A college campus also helps attract more business to the area, and generates traffic for the businesses you already have.”
Buda Economic Development Director Warren Ketteman agreed with that theory.
“Yes, we’ll pay a little more in taxes,” Ketteman said. “Would you rather pay more in taxes for more education, or would you rather pay more in taxes for more social services?”
Early voting starts on Oct. 18 for the Nov. 2 election.
