NIC opts to boost budget

COEUR d'ALENE - The $37.6 million 2011 operating budget approved Wednesday by North Idaho College trustees means higher tuition and fees for full-time students, and increased taxes for county property owners.

The college's projected general fund operating budget is $1.2 million less than last year's budget.

"In the face of continued uncertainty of funding due to large state revenue shortfalls, and $4 million in holdbacks over the last two years, as well as a large increase in enrollment and demand for services, the NIC board moved forward with the proposed budget," said chair Christie Wood.

The majority of trustees - Wood, Judy Meyer and Rolly Williams - approved the budget, including a 3 percent increase in the college's taxing authority, the maximum allowed under Idaho law.

The 3 percent increase, with a forecasted 15 percent decrease in overall property valuation, is projected to raise property taxes for the owner of a $200,000 home, after all exemptions are applied, by $3.94 per year.

Trustee Ron Vieselmeyer said Thursday that he didn't expect to vote on the budget Wednesday, but the early request for action was not the reason for his opposition.

"My reason was I feel that when the economy is tight as things have been for the last few years, that the responsibility of meeting the ends should be spread around," Vieselmeyer said. "I believe the taxpayer deserves even a small cut."

He did not oppose the entire budget, and commended the college's finance department and the administration's efforts to balance it.

"I would have liked to have seen us take 2 percent from the property owners instead of 3 percent," Vieselmeyer said. "So many people have taken a cut in salary and businesses aren't doing well. They're already sacrificing."

Mic Armon also opposed the budget's approval, after inquiring how much taxpayers would save if they chose to increase the taxing authority by 2 percent.

With the same forecasted 15 percent decrease in overall property valuations, a 2 percent increase would have cost taxpayers $2.33, or $1.61 less per year.

For NIC, it would have meant $120,000 less to apply to program costs.

The 3 percent increase will raise NIC's 2011 revenue by about $367,772.

Board members approved the draft budget following its "first reading" at their regular monthly meeting. An hour-long budget workshop was held prior.

The first reading traditionally takes place earlier in the year, usually in April, with trustees voting on the budget at the following month's regular meeting.

Wood said action on the budget following the first reading is always an option available to trustees who had previously "reviewed it one-on-one with the president."

NIC spokesman John Martin said college budget planners decided to postpone the first reading this year so they could consider any changes in state revenue figures.

Before they voted, college President Priscilla Bell told trustees that if they made any changes to lower the recommended tuition increase or tax increase, she couldn't guarantee that programs would be safe.

"If either is reduced, we will go back to the budget and restructure," Bell said.

The 5.8 percent tuition and fee hike approved by trustees raises the 12-credit full time tuition rate from $1,246 to $1,318 per semester, reflecting a $6 per credit increase.

The additional revenue generated from the tuition schedule change will be $253,253.

Even with the overall increase, nearly half of NIC students, the 44 percent who take 10 credits or less, will see tuition and fees decrease next year by as much as 12.7 percent.

Last year, a student taking one credit was charged $126, while full time students were charged $104 per credit.

The varying costs per credit are part of the college's transition begun in 2009, from an 8-credit full time tuition rate to a 12-credit rate.

The move, mandated by the Idaho State Board of Education, brings all state college's definitions of a full time student in line and is consistent with federal financial aid rules that award full aid to 12-credit students.

"By next year, the cost per credit will be the same across the board," said Sarah Garcia, NIC's controller.