Community college students in Iowa can expect to shell out more money for their tuition next year. The Daily NonPareil reports colleges under stress of producing a budget are basing tuition increases on Governor Branstad’s proposed 1.5 percent increase in State Aid for community colleges. The Iowa Legislature may up that to somewhere between 1.5-and 3-percent, but most educators are preparing for the at least the lower figure. In addition, enrollment at Iowa Western is down 5-percent. Those two significant factors could shift the budget up or down.

A preliminary budget however from Iowa Western Community College presented Monday afternoon, anticipates a $10 per credit hour tuition increase to address the shortfall largely created by an anticipated 5 percent enrollment decline. Odds are the state’s other community colleges also will consider tuition increases, after each of the 11 institutions raised rates for this school year. Iowa Western’s $11 a credit hour jump last year was the second largest in the state, representing a 7.2 percent increase compared to Western Iowa Tech Community College’s 13.2 percent hike.

For the current school year, resident tuition is $149 per credit hour, and nonresident tuition is $154. If the rates assumed by the preliminary budget ultimately are recommended, a $10 per credit hour increase would translate to a 6.7 percent overall increase to resident tuition. Iowa Western does receive proportionally less state support and more local support – tuition income, largely – than the community college system as a whole. Property taxes only account for about 5 percent of overall funding.

The property tax levy for Iowa Western will grow next year, although that’s largely a one-time increase to pay for an early retirement program that will net $650,000 in savings annually for the college’s general fund, representing a tax savings going into future years, according to Eddie Holtz, IWCC’s vice president of finance. Property taxes are slated to go up by 37.602 cents per $1,000 in taxable valuation next year, with about 90 percent of the increase connected to early retirement buyouts. The college can replace those senior employees with new hires who command significantly less in salary, and other positions could be left vacant to save costs as well.

Holtz said Iowa Western will continue to look for cost savings in the next few months, as the Iowa Legislature works on setting how much community college and other educational institutions – both K-12 schools and the regent institutions – will receive in funding next fiscal year. The board is expected to vote on adopting the budget next month and likely will set tuition rates in the spring, probably at either the April or May board meetings in Council Bluffs.

A public hearing on the budget is planned for the college’s meeting on Monday, March 14, which is scheduled for 2 p.m. at the Shelby County Center, 1901 Hawkeye Ave. in Harlan.