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Omaha-area homeowners will see their property tax bills increase after the Metropolitan Community College board raised its tax rate Tuesday night.
The owner of a house valued at $100,000 will pay about $18 more next year to support the college.
It is Metro's first property tax hike in six years — an increase that board members described as unavoidable and as forced on them by the Nebraska Legislature.
The rate increase passed on a vote of 9-1.
Before the vote, board members spoke at length about how the state's new community college funding formula funnels money away from Metro and toward the state's other two-year schools.
Metro's state funding dropped by $4.4 million this year, while Southeast Community College's funding increased by $8 million, for example.
Board members called on state senators to change the formula so that Metro taxpayers can avoid future property tax increases.
Board member Jim Nekuda said he and others had warned that, without alterations to the new funding formula, this day would come.
“Maybe our state senators will now get the hint,” Nekuda said.
Other board members stressed that they had investigated alternative ways to balance the budget but found no suitable options.
The college is cutting a variety of proposed scholarship programs this year, saving $3 million.
Metro President Randy Schmailzl said the board would have to raise tuition by 52 percent to balance the budget without a tax increase.
College enrollment is growing, board members said, making deep spending cuts nearly impossible.
This school year, Metro has 2,000 more students enrolled than it did last fall. More classrooms and more instructors are needed to properly educate them, board members said.
“This isn't a case where Metro spent money willy-nilly,” said board member Crystal Rhoades.
Rhoades said the property tax increase equals about $1.50 a month for many homeowners.
She noted that 95 percent of Metro students remain in the state after graduation, forming the foundation of the area's educated work force.
For that extra $1.50 a month, she said, “we are creating a quality education for students who will stay in Nebraska.”
Tim Lonergan was the only board member to vote against the tax hike. Board member Steve Grabowski was out of town.
Contact the writer:
444-1064, matthew.hansen@owh.com
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