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WHY CITIZENS SHOULD VOTE NO ON THE AUSTIN COMMUNITY COLLEGE
TAX ANNEXATION
Bastrop County Taxpayers Association*(BCTA) Bob Parmelee, Chairman
and BEARPAC
(Bastrop Education Alternative RemedyPolitical Action Committee)
8/23/2010 REV B 8/29/2010
http://bastroptaxpayers.org/; http://www.acctaxfacts.com/http://noacctax.info/
Bastrop is home to high taxation & wasteful spending
• Bastrop among highest taxed counties in Texas. (Texas Public Policy Foundation)
• Current rank: 12th highest taxed county• Bastrop tax rates today driven by bond debt:
– $35 million City of Bastrop
– $46 million Bastrop County– $430 million Bastrop ISD
Do you really want to add more debt?
– $444 million ACC Tax District
Bastrop Debt is Driven by Wasteful Spending
WHY DON’T WE STOP? • Debt has been driven by “spending follies”
– BISD Performing Arts Center
– Bastrop Convention Center
– “Giveaway” of the old Bastrop city hall
– etc
The Austin CC BISD Proposal
• Taxation rate.0946 * per $100 property valuation• Discount of $108 per credit for academic
courses.**• No Discount for Continuing Education courses.• Austin CC to borrow and spend $38 M for 87
acre Bastrop campus
*notes: ACC Tax rates are rising due to falling property values in Travis County and elsewhere. BCTA uses a more reasonable estimate of .100
**Based on $42 “in-district” tuition vs. $150 out-of-district
Austin CC Taxation would create “A Great Sucking Sound” of Wealth to Austin
• Annual taxation about $2.6 million.*• Tuition advantage only $976K.**
$108 (discount per credit hour) x 9035 (est credit hours)
• Net annual BISD area economic loss $1.6 M.
* Based on reasonable ACC taxation rate of .100 per $100 valuation
**Source: Austin CC public hearing presentation. http://www.austincc.edu/annexation/presentations/071210bastroppublichearing.pdf)
Austin CC plans are Financially Irresponsible
• Buy 188 acres in Bastrop County• Build two campuses 16 miles apart for $74 M.• “Taylor Center” Junior College already in place
north of Elgin (817 students, 23 from Elgin)• ACC also buying 217 acres in Hays, Leander,
San Marcos & Austin. Total taxpayer land cost: $35.4 M.
DOES THIS PLAN MAKE SENSE TO YOU?
Austin CC is engaging in Land Speculation
• Real estate is declining in value. ACC and Elgin ISD just announced tax increases to cover falling property values.
• And yet, says Austin CC President Kinslow, "Acquiring this land now is a good investment," (Hays Free Press)
• Do community colleges have the authority to gamble on real estate with taxpayer money?
What if the “Great Recession” deepens?
• With annexation, BISD taxpayers will share liability for Austin CC debt - now at $444M - BEFORE the planned land buys.
• As the recession deepens, land values may fall further forcing ACC to raise taxes to pay its immense debt.
Ethics Complaints Pending
• Sworn complaints cite misuse of public funds during Austin CC petition and campaign.
• BISD Board Members recently voted to let BISD lawyers represent current and past board members facing ethics complaints.
• BCTA members confirm service of ethics violation complaints filed against members of the BISD Board of Trustees.
Alternatives to improve education
in BISD and Bastrop County • Expanded use of high school facilities,
• Texas State Technical College trade school
• Emphasize BISD academics over athletics
• K-12 School Choice
• Distance Education !!!!
• Tuition tax credits- a simple way to save $$
• None of these options were adequately explored. ~ WHY?
An Austin CC Monopoly? WHY?
• Taxpayer subsidized tuition discounts would give Austin CC a huge advantage in Bastrop; an effective monopoly.
• Students would drop other college enrollment• Austin CC was recently criticized for low
graduation and transfer success rate.
Why award a monopoly position to an mediocre college?
Would You Buy This Used Clunker ?
Rules:
No alternatives considered
No long term cost-of-ownership determined
Irrevocable ownership
Perpetual Taxation
No test drive
No tire kicking
IS THIS AN EXAGGERATION ???
Remember the Del Valle Fiasco? • In 2004 in a light turnout election;
Just 803 Del Valle taxpayers voted ACC tax on 35,000
• In 2009, just 325 Del Valle students attended Austin CC for a $500K annual tuition advantage.
• In 2009, Del Valle taxpayers paid ACC $2.6 million
• Del Valle’s 2009 net economic loss: $2.1 million
• Del Valle’s 7-year economic loss: $14.7 million
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