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| For Release: IMMEDIATE | Contact: Public Affairs |
| Date: April 4, 2003 |
Celebrating 40 years of "College That Really Works" for North Carolina
STATE BOARD OF COMMUNITY COLLEGES ENDORSES RESOLUTION CALLING FOR TAX FREEZE
Consultant to Board committee: "The System is lean and mean."
RALEIGH: A recommendation for a "tax freeze" was the first order of business for the State Board of Community Colleges at its Thursday afternoon meeting. The Board endorsed a resolution calling for a delay of scheduled income and sales tax reductions. The Board expressed concerns that if State Revenue collections drop significantly as the result of tax cuts that are scheduled to take effect on June 30. That drop could mean additional System budget cuts would be imposed on top of reductions already included in the House proposal, which will be presented on Monday.
Board member Anne-Marie Knighton, Town Manager of Edenton, in making the motion to endorse the resolution said, "Mr. Caruthers has said the System is ‘lean and mean.’ We have gotten that way because of the budget situation. If we are cut any more, we will be lean and frail and unable carry out the responsibilities our students deserve."
The resolution will be forwarded to Governor Easley and each member of the General Assembly. The North Carolina Citizens for Business and Industry has also endorsed a similar resolution. (The resolution is attached.)
Dr. Kent Caruthers of MGT of America presented an interim report to the Finance and Capital Needs Committee of the State Board of Community Colleges on Thursday morning. He reminded the committee that the purpose of his study, which was mandated by the General Assembly, is to determine the economy of scale that exists within the System and eventually determine ways that it might be improved. Caruthers told the panel that what he has discovered is that the operation of the NCCCS is "lean and mean, particularly when compared to other states."
The interim report includes an overview of the North Carolina Community College System. It shows that the NCCCS invests more than two-thirds of its state appropriation on instruction. This percentage compares to slightly more than 50% on the national average.
Caruthers told the committee that only 5% of full-time positions in the NCCCS are classified as "executive or managerial," and that most non-faculty positions support students.
When commenting about the series of six regional workshops and the correspondence that he has received about the study, Caruthers told the committee that the overwhelming perception is that the local institutions are "critical as education and economic development resources" for the community. He said the rationale for maintaining local governance includes the attention to local education and training needs; that the colleges are the center of community life; and that the colleges develop important community leadership. He added that donorship from local sources could potentially be lost without local governance.
Caruthers reminded the committee that the NCCCS has the third highest number of community colleges than any other system in the nation. He presented statistics showing that North Carolina community college enrollment ranks 15th for the entire population and ranks 19th for students between 18-44 years old. He attributed the high enrollment rate per population in North Carolina to the convenience of the community colleges for the students.
Caruthers presented some examples of consolidation of administrative functions that are employed by colleges in other states. They include consolidating employee training and benefits coordination; combining some business and financial services; and merging some plant operations, maintenance, and construction functions.
Next steps for Caruthers include further analysis of NCCCS organization and structure and the basic elements of administration. Caruthers will also assess opportunities for consolidation of delivery of instructional and administrative support. The final report is due on June 1.
The State Board met in the afternoon. The Board heard a report on the passing rates for nursing graduates. Judith Mann, NCCCS Associate Director of Program Services, reported that 60% of Registered Nurses and 100% of the Licensed Practical Nurses working in North Carolina were trained at a community college. Mann told the Board that compared to other nursing programs, the PN and the ADN programs offered by the NCCCS report aggregate passing rates higher than the national passing rates.
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State Board of Community Colleges
Resolution in Support of
Tax Freeze
Whereas, budget projections anticipate a General Fund shortfall of $1.681 billion for the 2003-2004 fiscal year; and
Whereas, the Governor’s Budget has proposed cuts to the Community College budget of $27,354,481 in order to balance the budget while at the same time providing for full enrollment growth; and
Whereas, that level of cuts in the Governor’s Budget anticipates a two-year delay in the implementation of certain sales and income tax reductions now scheduled to take effect June 30, 2003, which freeze would make available $460 million in state revenues; and
Whereas, the proposal now under consideration by the House of Representatives Appropriations Committee would provide cuts of $41,085,864, including very damaging cuts of $3 million to academic support and increased tuition, but provide for full enrollment growth; and
Whereas, those additional cuts in the Community College budget now under consideration in the House of Representatives are the result of there being no final decision with regard to a delay in the collection of those sales and income taxes; and
Whereas, Community Colleges in the state are experiencing all-time highs in enrollment as our colleges provide retraining opportunities for unemployed and underemployed citizens of the state and respond to the unprecedented demand for higher education by younger students; and
Whereas, even the lower cuts called for in the Governor’s proposal would have a direct and negative impact on the availability of classes for these retraining opportunities; and
Whereas, the greater reductions in the House proposal and tuition increases will, as a matter of course, have an even greater impact in the classroom and in the student support services so critical to the success of students returning to college after years in the workforce.
Now, therefore, be it resolved by the North Carolina State Board of Community Colleges that it supports the proposed delay in implementation of those sales and income tax reductions now scheduled to take effect June 30, 2003, so as to make those additional revenues available to assist in educating, training, and retraining the workforce for the future, which educational opportunities will greatly enhance the economic recovery and transition in North Carolina;
And be it further resolved that a copy of this resolution be provided to Governor Michael Easley and each Member of the General Assembly.
This tenth day of April 2003.
James J. Woody, Chairman
State Board of Community Colleges
-NCCCS-
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