Here's what to know about the Del Mar College budget. Public hearing set for Aug. 29

Del Mar College is considering a balanced budget and a decreased property tax rate.

The Del Mar College Board of Regents will host a public hearing and vote on the fiscal year 2024 budget on Aug. 29, as well as an update on the tax rate. The board plans to hold a public hearing and vote on the tax rate on Sept. 12.

The regents examined a preliminary budget plan Tuesday.

“It’s been an unusual year to say the least,” Del Mar College President Mark Escamilla said. “We’re overcoming some very difficult circumstances that came way late in the calendar year when we were heading into a year that was probably going to be one of the best overall opportunities and times for the community colleges in the state of Texas.”

Del Mar College is expecting $2.1 million in additional funding from the state in 2024.

This spring, lawmakers redesigned the state community college funding model, increasing funds and prioritizing outcomes. Escamilla and board Chair Carol Scott both served on the commission tasked with recommending a new funding formula.

The 2024 preliminary budget is based on a $2 in-district tuition rate increase and projected 4% enrollment growth.

The college’s total tax rate, including both the rate that funds maintenance and operations and the debt service rate used to fund large campus improvements, has been falling over the past several years. In 2024, the total tax rate is expected to drop by 2.9 cents.

Last year, the annual homeowner property tax for the average $224,353 homestead was $534. Under the new rate, that would be $532.

In total, the 2024 maintenance and operation budget includes $115.2 million in revenue, an increase of over $500,000 from last year. Preliminary expenses are set at the same level, including a decrease in salary expenses, primarily through vacant positions and turnover.

The college learned in June that due to disputes on property values, it could see a $4 million revenue impact. The college’s tax rate is based on property values as determined by the Nueces County Appraisal district. The tax rate decreases when property values increase.

Two industrial entities are contesting their values, each proposing values that are more than $1 billion less than the appraisal district values.

“Unfortunately, since the two entities and the appraisal district are so far apart in their respective valuations, the college is sure to see a shortfall in property tax collected due to the assessed amounts being contested and subsequent lawsuits being filed,” Del Mar College Comptroller John Johnson said.

Scott and regent David Loeb clarified that the college does not take a side on property value disputes but is detrimentally impacted by uncertainty.

“This is not an issue of what someone’s value is – this is an issue of the difference between the value that we have to set a tax rate at and the value we will actually collect,” Loeb said.

Scott said that the increased state funding will help the college face the revenue challenges.

“But that was not the intent of those funds,” Scott said. “The intent of the state funds was to invest in our programs, invest in outcome-based programs and opportunities for our students."

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This article originally appeared on Corpus Christi Caller Times: Here's what to know about the Del Mar College2024 budget