AWC foresees loss in funds
Challenges include falling state aid, flat enrollment, tax error
Arizona Western College has to find ways to make up for losses in funding due to decreasing state aid, a tax error that caused a budget shortfall and anticipated flat enrollment for the next fiscal year.
During an Oct. 15 meeting of the AWC District Governing Board, Shahrooz Roohparvar, vice president of finance and administrative services, pointed out some items of note.
The state’s budget for FY 2019-20 is expected to continue to be fiscally constrained; consequently, state assistance may be more difficult in the future, Roohparvar said.
For 2019-20, the college estimates that the state aid appropriation will be $2.45 million, a decrease of $165,000. The district will be receiving an estimated appropriation of $798,000 for STEM (science, technology, engineering and mathematics) programs, a decrease of $44,400.
The AWC board will levy taxes as needed to address maintenance, continuance of programs and services and capital for the district, he added.
The college will also have to consider what “appropriate” action it will take to recover from a budget shortfall of $388,000, caused by misstated property valuation by the La Paz County Assessor’s Office.
The incorrect figures were used to set tax rates for the 2018-19 year. AWC decided to keep the incorrect tax rates and lower tax levy since an adjustment would have likely increased the rate this year.
After the error was discovered in September, AWC President Dr. Daniel Corr said the board has the ability to recoup the loss with an increased tax levy next year.
Roohparvar explained
that the final budget will be limited by available revenues, especially in light of current state and national financial projections. The district will continue to seek external sources of funds from foundations and federal and state grants.
Tuition, room and board, and/or other fees may be increased to partially offset loss of state aid, inflation and operational needs of the district while maintaining accessibility. The fulltime student equivalent target for revenues will be based on a flat projection over actual enrollment in FY 2018-19.
The staffing plan will be reviewed and revised to address the staffing needs and implemented based upon available funds. To maintain financial stability, the district will continue to protect adequate cash reserves.
The college anticipates funds for FY 2019-20 from Proposition 301, a voterapproved initiative passed in 2000 that provides education funding, will be similar to FY 2018-19, which was about $988,000.
In addition, Roohparvar noted, the college will have to consider needed repairs for aging facilities and infrastructure.
The district will work with the Arizona Legislature, Governor’s Office, Arizona Community College Coordinating Council and the other college districts in requesting funding for the community colleges, Roohparvar added.