MATC will, if the newly agreed compromise budget is passed today, be limited to a 4% increase in its property tax levy over the next two years.
It had already passed a 5% increase hoping that would be permissible when the state budget was finalized.
MATC teachers' union president, and state technical college board member, Michael Rosen was quoted in the morning Journal Sentinel saying this is bad news for students and for economic development. "It's going to cause the colleges to increase tuition and price out the workers who will be fuel for business expansion".
What do you do when your income doesn't support your expenses? You and I reduce our expenses. What has MATC done over its history when its revenue didn't meet its expense needs? It raised its revenue by increasing taxes and/or tuition.
This statement is indicative of one of the major problems at MATC, and possibly with other tech colleges. They simply do not consider balancing a budget by reducing expense. Here are a couple of ideas for their consideration. Either eliminate positions since that consumes something close to 90% of their total budget, or sell some land and buildings and lease those back from the new owners. If their agreements do not permit 'permanent layoff' then offer a buy-out that can be spread over future years.
Businesses use these tools all the time. Incidentally, WCTC just took its increase and had no problem living within its means. It also just completed negotiations with its labor organizations and held increases to a very manageable level.
Why not MATC?
