| Q: |
Is this a new tax? |
| A : |
No. Every ten years, since 1948, Montanans ave been asked to renew the six mill levy during the general election. |
| | |
| Q: |
Why have Montana voters supported the passage of the six mill levy since 1948? |
| A : |
Access to affordable higher education has been a longstanding tradition in Montana. Montana businesses increasingly look to the university system to provide a well-educated and skilled workforce needed to compete in changing markets.
Annually, the university system spends over $500 million in Montana communities. Research and development spending at UM, MSU, and MT Tech will exceed $240 million in just a few years.
Montanans continue to receive a good value from the six mill levy and that’s why over the last three decades, voters have approved the continuation of the six mills by an average of 64% of the vote. |
| | |
| Q: |
What is the property tax impact of the six mill levy on an average Montana homeowner? On all MT taxpayers? |
| A : |
The property tax impact of the six mill levy is about 12 cents for every $1,000 of property value. For a home worth $100,000, the tax effect of the levy would be $12 a year.
The levy collected $12.25 million in 2005. It is projected to grow to $13.36 million in 2009. |
| | |
| Q: |
How much money is spent each year on the university system? |
| A : |
The total spending for the university system is about $1.2 billion a year. Of that total, the state contributes about $200 million. |
| | |
| Q: |
Does revenue from the six mill levy help support the colleges of technology? |
| A : |
Under Montana law (§15-10-107, MCA) the six mill proceeds go into a special revenue fund for the “support, maintenance, and improvement of the Montana university system.” The system is composed of eleven campuses across the state serving 42,000 students: UM-Missoula, UM-Western, Montana Tech of the University of Montana, MSU-Bozeman, MSU-Billings, MSU-Northern, UM-Missoula College of Technology, UM-Helena College of Technology, Montana Tech of the UM College of Technology, MSU-Billings College of Technology, MSU-Great Falls College of Technology. There are three community colleges: Dawson Community College in Glendive, Flathead Valley Community College in Kalispell, and Miles Community College located in Miles City. Because of specific budgeting rules, not all these campuses receive direct support from the revenue raised by the six mill levy. |
| | |
| Q: |
UM just raised well over $100 million dollars from private sources in its capital campaigns. Doesn’t that mean there is less need for tax dollars? |
| A : |
These funds come from private individuals and corporations who are interested in helping address needs that are not met through other funding sources. The capital funds will be used for buildings, scholarships and endowed faculty chairs; these funds are not used for the operation of the University. |
| | |
| Q: |
Are tax dollars used to recruit athletes and fund athletic programs? |
| A : |
Yes, tax dollars are used to recruit students that demonstrate outstanding academic and athletic achievements; however, a significant part of athletic funding comes from private contributions, student fees, and ticket sales. |
| | |
| Q: |
As Montana ages, enrollment on college campuses will decline. Can’t the System downsize? |
| A : |
Spending per student enrolled in the Montana university system is among the lowest of the 15 states in the West. For example, spending on students at UM and MSU is about half that at the University of Wyoming.
Realistically, most costs won’t decline because of a small decline in enrollment. Building costs won’t drop. Faculty salaries won’t drop. Projections suggest that enrollment will decline 1 % each year until 2017, when the university system anticipates an increase in students. |
| | |
| Q: |
What will happen if the levy fails? |
| A : |
The Legislature would be asked to make up the resulting shortfall from other revenue sources. Additionally, tuition would very likely increase. |
| | |
| Q: |
Hasn’t state funding increased significantly in the past several years? |
| A : |
Yes, at the request of the Governor, the Legislature approved significant increases as part of a program that also froze tuition for two years. This reflects the interest of our state’s leaders in making higher education accessible and affordable to more Montanans. Unfortunately, many costs, such as health care for system employees and utilities continue to increase. |
| | |
| Q: |
If the levy passes, will the tuition freeze be extended? |
| A : |
It’s too soon to say what will happen as a result of the 2009 session of the Legislature. But it is clear that it would be hard to maintain a tuition cap if voters were to decide not to retain the six mill levy. |
| | |
