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OCC Economics 101 Economics
By George Cartsonis
Did you know that OCC – your community college – is the largest school of its type in the state of Michigan? That OCC enrolls more students each fall than Eastern Michigan University, the University of Chicago or Yale? That 600,000 people – the equivalent of half of Oakland County’s population – have enrolled at OCC over the last 35 years?
Oakland Community College is a major element in Oakland County’s educational, industrial, law enforcement, health care and cultural environments. Here’s a basic overview of how this organization, a crucial part of Oakland County’s past, present and future, is funded…
OCC’s sources of income
Oakland Community College operations are funded through three main sources: • A property tax on all real estate within the college district.
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The tuition and fees paid by students
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Yearly appropriations from the State of Michigan
The property tax
A one mill property tax for operating expenses was approved by college district voters at the same time OCC was established in 1964. In June, 1995 the voters authorized the college to collect an additional eight-tenths mill (.8) for seven years.
Originally, one mill (one tenth of a cent) provided the college with one dollar in revenue for each $1,000 in State Equalized Valuation (SEV) assessed on a piece of property. Due to tax limitation legislation enacted in the 1980’s, the actual amount OCC currently collects has been reduced to a little more than eight-tenths of a mill, .8309 to be exact. The additional eight-tenths of a mill authorized in 1995 is also reduced to .78, bringing the total the college levies to slightly more than a mill and a half (1.6109 mills).
What does it cost me?
Homeowners can calculate how much they contribute annually to support the college by multiplying the current OCC millage rate (.001609) by the "taxable
value" entry on their tax bill. The yearly rate for a home with a taxable value of $75,000, for example, works out to $120.68.Because of this "local contribution" college district students pay the lowest tuition rate – $48.70 per credit hour. Other Michigan residents pay $82.40 per credit hour, while out-of-state and foreign students are charged $150.60. Senior citizens, by the way, receive a tuition discount of 20 percent.
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Other Revenues OCC’s other two major sources of revenue are tuition/fees and state appropriations. The college’s budget comes into effect on July 1, and ends the following June 30. During fiscal year 2000-2001 income from local property taxes made up the largest portion of the college’s operating budget – 58 percent. Translating Into Dollars In dollar terms OCC’s income for fiscal year 2000-2001 will total $116.4 million. Of this, the property tax portion comes to $67.7 million, or 58 percent. Income from student tuition and fees ranks next, totaling $25.5 million, or 22 percent. Appropriations from the State of Michigan are expected to reach $21 million, or 18 percent. Finally, miscellaneous revenues (grants, investments, etc.) will provide an estimated $2.2 million, about 2 percent. Where Does It Go? |
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Because the college’s budget must balance at the end of each fiscal year, OCC’s revenues and expenditures for 2000-2001 will be the same – $116.4 million. Here’s how the money is allocated: 65 percent of the budget covers personnel costs, a total of $75 million. Capital expenses – facility, technology and equipment replacement projects – will total $22.4 million, or 19 percent.
Supplies and operating expenses will account for 13 percent of the budget, totaling $15.8 million. Utility expenses for OCC’s seven major sites will amount to $2.9 million, the remaining 3 percent.
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