Tax cuts could change tech college funding
March 7, 2014
From weau.com: “Tax cuts could change tech school funding” — A proposed tax cut could affect the way area technical colleges are funded.
Earlier this week, the state senate approved Governor Scott Walker’s plan to use the state surplus to cover $504-million in tax cuts.
Under the changes technical colleges would get more than $400-million from the state’s budget surplus- meaning homeowners would pay less toward funding schools like Chippewa Valley Technical College.
“From our point of view as a system it really brings us some balance in the system in terms of where our funds come from,” Wisconsin Technical College System President Morna Foy said.
Foy says the changes to buy down homeowners property taxes using the state’s surplus would mean more balance when it comes to funding schools.
“With this change happening in 2015 we would go back we would have greater balance state aid would account for 45-percent of our operating costs as opposed to 10-percent,” Foy explained.
What the cuts would mean for the average home owner and tax payers is more money in their pocket.
“For a typical working family in the state it means their property taxes will be down more than 100 dollars and it means there withholding the amount they see in their paycheck will actually go up by over 500 dollars through the end of the year,” Governor Scott Walker said.
Governor Walker says in addition to the shift in funding due to the budget surplus, the state will also give a one-time payment of $35-million to technical colleges to help cut down on the amount of time it takes to enroll in classes.
“There was $35-million available in the Wisconsin Economic Development budget and we shifted that into helping our technical colleges buying down our wait list,” Walker said.
Despite the increased money to technical colleges, area Democrats say it still doesn’t make up for the deep cuts that were made in the past year.
“It doesn’t address a few things. The first is it doesn’t address the fact that there was $72-million cut last year,” State Representative Dana Wachs said.
The tax cut bill now heads to the state assembly for a vote on March 18th. If approved it would head to the governor’s desk for his signature.