PCC Board Approves 2013 Proposed Budget

May 17, 2012

Tucson, AZ – Pima Community College’s Governing Board unanimously approved a budget proposal that incorporates targeted cost-reduction strategies to keep the College’s budget balanced while ensuring that expenses and tuition are kept low.

At its regular meeting Wednesday, the Board approved a budget of approximately $299 million for the fiscal year that begins on July 1. The spending plan includes $70 million for student scholarships, $40 million for capital equipment and $37 million for services and supplies.

The budget also includes the first salary increase for employees since 2009. The College’s educators – 353 full-time faculty members and 1,347 adjunct instructors – are the largest group of employees who will receive the 3.5 percent salary increase.

The 2013 budget contains several measures that will keep costs down and save taxpayers money.  For example, as part of its 2013 capital plan, which the Board approved in April, PCC will retire remaining debt owed to finance construction of the “A” Building on PCC’s Northwest Campus. The bonds will be callable in June, meaning that the $3.4 million principal can be paid early without having to pay additional interest, saving taxpayers about $1 million over the remaining 10-year life of the bond. It also will eliminate the need to budget approximately $450,000 for debt service in FY 2013, helping PCC balance its operating budget.

In addition, Pima is consolidating two leased facilities into a single long-term lease with the Tucson Unified School District. The Roberts Center lease will save PCC more than $150,000 a year and will provide improved space for its Adult Education and Public Safety and Emergency Services programs.

The budget also accounts for mandatory expenditure increases, including an expected increase in employer contributions to the Arizona State Retirement System from 9.87 percent to 11.15 percent, which represents more than $1 million in additional personnel costs. The budget also includes increases in employee health insurance costs, system license and maintenance costs, and required increases in Disabled Student Resources support.

A critical step in PCC’s budget process, adoption of a capital improvement plan, was approved by the Board in April. In March, the Board approved a tuition rate of $63.50 per credit-hour.

By approving the proposed budget, the Board establishes maximum expenditure and revenue amounts and enables the District’s primary and secondary property tax levies to become fixed for taxpayer review.

On June 20 at 6:30 p.m., the Board will conduct a public hearing on the proposed budget, and will hold a special Board meeting for the purpose of adopting the budget at 6:45 p.m. The hearing and special meeting will be held at the Community Board Room at PCC’s District Office, 4905 E. Broadway Blvd. Following the public hearing and special meeting on the budget, the Board will hold its regular meeting, which is scheduled to begin at 7 p.m.

CONTACT:
C.J. Karamargin
Vice Chancellor for Public Information and Government Relations
(520) 206-4850
ckaramargin@pima.edu