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

Don’t Mortgage Your Children’s Future

• ANNEXATION WOULD BE VIRTUALLY IRREVOCABLE.

• TUITION IS TEMPORARY, BUT TAXES ARE FOREVER.

• VOTE NO ON AUSTIN COMMUNITY COLLEGE TAX ANNEXATION.