MCLENNAN COUNTY, Texas (KXXV) — State-level changes at McLennan Community College could increase property tax bills for local homeowners.
WATCH HERE:
The college's board is considering a tax increase to make up for a $3.1 million cut in state funding.
MCC exceeded its required performance goals, but the college president told the board last week that the state didn't set aside enough money to fully fund Texas community colleges.
The increase being considered by the board would add almost $6 to the average homeowner's tax bill.
Donna Myers, a homeowner in McLennan County, said she does not want to pay more in taxes to make up for the funding shortfall.
"I don't really think it's fair that some of us that are older, who've already taken care of our kids, might be part of that increase that we have to do tax-wise," Myers said. "I think it's a bad idea that the state didn't fund the school like it should've."
Students are also feeling the impact of the state's decision.
"Hearing that we're not getting the funds for it even though we're meeting our expectations and the goals that MCC has, I think it's kind of unfair," said Susana Garcia, an MCC student.
DR. Johnette McKown, president of McLennan Community College, addressed the shortfall in a statement.
"McLennan Community College remains financially responsible, committed to student success, and focused on serving Central Texas," McKown said. "House Bill 8 is producing the intended results by improving student outcomes. Our responsibility now is to thoughtfully manage the statewide funding challenge while continuing to fulfill our mission."
A public hearing and final vote for the tax rate is set for Aug. 25.
Here's a list of facts MCC sent us:
Statewide Funding Context & House Bill 8 (HB8)
- HB8 Outcome: All 50 community colleges across Texas responded to HB8 by significantly exceeding original student success projections.
- Funding Shortfall: Because performance outpaced expectations, the Texas Higher Education Coordinating Board did not request enough money from the Texas Legislature to cover the earned performance-based funding.
- Action Taken: The Coordinating Board was tasked with altering the metrics used by colleges to allocate the available funds.
McLennan Community College (MCC) Performance & Growth
- Credential Increase: Through May of the 2025–2026 academic year, MCC awarded 2,143 degrees, certifications, and advancements—a 14% increase over the previous year.
- Enrollment Growth: Since HB8 took effect, MCC experienced a 15.3% average enrollment growth across fall and spring semesters, specifically:
- A 14.6% increase in fall enrollment.
- A 16.1% increase in spring enrollment.
- Workforce Impact: This growth resulted in a higher output of teachers, nurses, first responders, skilled trades professionals, dual-credit earners, and university transfer students for Central Texas.
Financial Impact on MCC
- The Funding Gap: Due to the statewide formula deficit, a gap exists between the performance funding colleges actually earned and the funds appropriated by the state.
- Projected Deficit: MCC is projecting an approximate $3.1 million reduction in anticipated state performance funding for FY2027.
- Cause: The deficit is a result of a statewide systemic funding issue driven by the model's success, not MCC's performance or financial stewardship.
MCC Budget Options & Next Steps
- Cost-Saving Measures: To address the gap, MCC’s Board of Trustees is evaluating options such as delaying select capital and technology projects, managing hiring, and finding operational efficiencies.
- Tax Rate Scenarios: The Board is reviewing multiple tax rate options, including:
- Maintaining the current tax rate.
- Increasing the tax rate by approximately six-tenths of a cent, which would offset part of the gap and support employee compensation and rising health insurance costs.
- Timeline: No final decisions have been made; the Board will review these options before taking final action in August.
