Why I Oppose HCC’s Annexation of Spring Branch

On November 3, 2009, Spring Branch residents have an important decision to make – should we approve the annexation of Spring Branch by Houston Community College (HCC)?

Let me start this post with the following disclaimer. The opinions stated here are mine and mine alone.  They do not represent Spring Branch ISD, its Board, or Administration.

In addition, because I have been asked a number of times, there appears to be some potential confusion about this election. To be clear: Spring Branch ISD, our Board, and our Administration have absolutely nothing to do with HCC and its decision to seek to annex Spring Branch. HCC and its Board are completely independent from Spring Branch ISD and Spring Branch ISD’s Board of Trustees.

With that said, after significant deliberation, I am opposed to HCC’s annexation of Spring Branch.

My opposition is not an indictment of HCC as an institution. Indeed, as the proponent on the Spring Branch Board who initially articulated Spring Branch ISD’s “college focus” goal, regular readers know how strongly I feel about the need for students to obtain additional education beyond high school. I believe that community colleges like HCC play a critical role to reach that goal.

Nevertheless, despite my support for HCC generally, I cannot support the annexation of Spring Branch at this time for the following five reasons: (1) the taxes that would be imposed by HCC are too high; (2) HCC has failed to articulate exactly how the money raised by these new taxes would be spent; (3) HCC cannot guarantee that the new taxes raised will be spent exclusively within Spring Branch; (4) unlike Spring Branch, HCC does not freeze taxes on residents who are over 65 or disabled; and (5) it is currently unknown who will act as Spring Branch’s representative on the HCC Board.

The taxes that would be imposed by HCC are too high, and HCC has failed to articulate exactly how the money raised by these new taxes would be spent.

In the event that Spring Branch voters approve the proposed annexation, Spring Branch residents and businesses will, for the first time, be required to pay taxes to HCC. HCC’s current tax rate is 9.243¢ per $100 in valuation. The average taxable value of the homes in Spring Branch is approximately $300,000. As a result, should the annexation be approved, the average homeowner will pay a new tax totaling $250.00 per year. Indeed, here is the breakdown on this new tax (click table to enlarge):

This new tax is estimated to raise between $14 million and $15 million from Spring Branch residents and business in its first year, and that amount will increase as property values increase. It should be noted that contrary to your school district taxes, there is currently no requirement for HCC to seek voter permission for a future tax increase, and there is no current maximum rate for HCC’s tax rate.

In my opinion, based on what HCC has stated, this new tax is too high to justify. Specifically, HCC has stated the following benefits should this new tax be approved:

1. Tuition for the 2,100 students who live in Spring Branch would decrease from $104 per credit hour to $57 per credit hour.
2. HCC will provide free dual credit classes to Spring Branch high school students.
3. A loosely defined building expansion program that might include a general expansion, a possible health science building, and a 1,200 seat auditorium could be commenced.

The bottom line for me is that this is too vague a “plan.” I certainly appreciate that the decreased tuition would directly benefit students living in Spring Branch, but the savings to the current students that would be replaced with tax dollars totals approximately $2 million. That is far less than the $14 - $15 million in new tax revenue HCC would receive.

In addition, I contrast HCC’s undefined plan for the use of the funds with the plan Spring Branch had for our 2007 Bond where I could tell the voters exactly how the money raised would be spent. The 2007 Bond was developed over 2 years with over 200 community members directly participating in the development of the plan. Here, HCC has not yet done that type of community engagement to determine (1) if there is a community need for what it proposes or (2) how Spring Branch residents want their taxes used. In essence, with its request to annex Spring Branch, HCC is saying, “Vote for annexation, and once annexed, we will tell you how we will spend your money.” I believe that this approach is inconsistent with our community’s expectations.

HCC cannot guarantee that the new taxes raised will be spent exclusively within Spring Branch.

In response to pressure from the community, HCC has stated that it is “committed” to keeping the taxes generated by Spring Branch residents and businesses in Spring Branch. However, HCC acknowledges that it cannot bind future HCC Boards to any particular action.

In addition, the taxes Spring Branch residents and businesses would pay would go into HCC’s general fund budget. It would be very difficult to then determine if HCC is increasing the amount it spends in Spring Branch by the amount of the new taxes, or if by contrast, it is merely replacing current general fund dollar support with those new taxes. For me, there are significant questions about the ability to hold HCC accountability for compliance with this issue.

Unlike Spring Branch, HCC does not freeze taxes on residents who are over 65 or disabled.

In Spring Branch ISD, your school district taxes are frozen when you turn 65 or if you are disabled. From that point forward, regardless of increases in tax rate or appraised value, your school district taxes paid to Spring Branch ISD never increase.

By contrast, the table below details the new taxes that Spring Branch’s residents who are either disabled or over 65 would be required to pay in the event the annexation is approved. (Click the table to enlarge).

Thirty percent (30%) of the homeowners in Spring Branch are over 65 or disabled. These residents, many of whom are on fixed incomes, are the least capable of taking on a new tax expense that is not frozen and that will increase as appraised values increase or as HCC raises its tax rate. And as stated above, contrary to your school district taxes, there is currently no requirement for HCC to seek voter permission for a future tax increase, and there is no current maximum rate for HCC’s tax rate.

It is currently unknown who will act as Spring Branch’s elected representative on the HCC Board.

If the annexation is approved, the current HCC Board will appoint one of its own current Board members to represent Spring Branch. In 2011, HCC will redistrict based on the 2010 census. HCC Board members currently serve 4 year terms. As a result, should the annexation be approved, it is highly likely that it will be 2013 before Spring Branch voters would choose their representative on the HCC Board.

Conclusion

On November 3, you will have the opportunity to vote to decide whether Spring Branch should be annexed by HCC. Once annexed, there is no current way for a district to de-annex, so this is a critical vote.

I strongly urge you to read the available information and make your own decision. Information about the annexation can be found on the HCC website. In addition, a group called Vote No HCC Tax has information on its website.

Community education on this issue is critical. The ballot language on November 3 is innocuous. It will merely state:

Vote for or against: "Annexation of the following territory for junior college purposes: Spring Branch ISD"

In addition, this item will likely be at or near the end of a very long ballot that, in addition to the City of Houston elections (if you live in the City), will also include 11 Constitutional amendments.

Therefore, please forward this post to those who might be interested or who might not even be aware that this issue is on the ballot.

As always, I welcome your comments below or via email at [email protected].

Comments

[David]

I'm glad it didn't pass. Even as an hcc student, it didn't make sense. My parents shouldn't end up paying for the rest of their life, so that I can get cheaper school for a couple of years. Not saying I wouldn't appreciate it, but they should've known that being as vague as they were about important issues wouldn't get them the vote.

[Mike Falick]

I am not in any way affiliated with the VoteNoHCC Tax website. Please direct any comments you have about their website to them.

My statement is correct. There is no legal maximum rate, and there is no requirement that HCC seek voter approval for a tax increase. The rollback rate changes every year, and is not the same as either a legal cap on the maximum rate or a requirement to seek voter approval for a tax increase. By contrast SBISD must go to the voters for ANY tax increase.

[T Berends]

IMPORTANT:

Please notify your readers as well as the VoteNoHCCTax web site group you link to that the statement "there is currently no requirement for HCC to seek voter permission for a future tax increase, and there is no current maximum rate for HCC’s tax rate", and the statement on the VoteNoHCCTax site "the upper limit of taxation is an enormous $1 per $100 valuation" are both INCORRECT.

The CORRECT information is as follows:
"Any tax increase by HCC over the statutory limit is subject to voter approval through a rollback tax election. That rollback rate is 0.10088 per assessed $100 valuation. Not $1.00."

I trust you will post this information as soon as possible, so that no more people will be misinformed.

[Kelly Frazier]

Helping you get the word out Mike. I vote NO.

[paul]

i attend hcc and honestly its ridiculous that i pay out of district fees to attend "houston"community college when cleary i live in houston. whos cares thats i live in spring branch....is that not part of houston or what? im paying double for the same education...its pathetic.

[T Berends]

Mike, obviously San Jacinto College District does things differently from HCC. Does an excellent track record, a good-faith $35 million dollar capital investment, plus a firm commitment to return 100% of Spring Branch property tax dollars to Spring Branch with Spring Branch representation on the HCC board mean absolutely nothing to you?

What you are saying is that you distrust HCC, even though HCC has given you absolutely no reason to do so in all the years they have served this community. You are reduced to pointing to San Jacinto's track record instead, and holding it against HCC. That is shocking. Yours is a vote of no confidence, period.

[JJ]

Mr. Timmons, that's great that HCC has kept its tax rate flat and lower than other community college districts (although it should be noted that the total property value in HCC dwarfs Lone Star & San Jacinto College Districts) - but given that there is no voter approval of the tax rate each year and no cap, how would you like to address the FACT that San Jacinto College taxes went up 12% from the 2007 to 2008? (look it up, the tax rate went from .145365 to .163411)

What prevents HCC and its trustees from raising the HCC tax rate 12% in 2010? Nothing. Unlike local ISD taxes, no circuit breakers exist for the college districts to grant voter approval rights for increases over a certain rate. Just publish the notice, have a hearing, and vote on the increase.

[Spring Branch Parent]

Mr. Little seems to think that we should "support" HCC because it would feel good. I already support HCC. I pay federal income taxes, which support HCC through stimulus money, Pell grants, and a cornucopia of job training and education grants; I pay sales taxes, which go to the state and are allotted back to HCC by the state on a per-pupil basis; I pay Spring Branch ISD taxes so that Spring Branch can pay the tuition of the Early College Program enrollees.
If Mr. Little wants to send his own money to HCC, that's his business. When he wants to send *my* money to HCC, that's unacceptable. SBISD will not have its rainy day fund forever, and will have to get voter approval for tax increases. I would rather send that tax money to SBISD than to HCC. Unfortunately, if that tax money goes to HCC, there's an excellent chance that the taxpayers will be tapped out and a tax increase for our school district will fail.
So, Mr. Little, we live in a world of choices. Which do you support - HCC or Spring Branch Independent School District?

[Jessica Murgioni]

I find it absolutely ridiculous that people seem to think that the out of district tuition is inexpensive. Not everybody that lives in Spring Branch is made of money and can afford to pay a $1000.00 for a couple of classes.

[Tim Timmons]

Why it will work
HCC’s Spring Branch vision is sound and conservative

I read Mike Falick’s comments on the proposed annexation of the Spring Branch community by Houston Community College with great interest. I like and respect Mike, but I disagree with him on this matter. Here are the reasons why.

I served on the Spring Branch school board from 1989-1998. I, too, fought for conservative values and leaner government so I understand his perspective. Good public officials must always work to lessen the tax burden on homeowners, while continuing to provide the services demanded by those same constituents. They must constantly balance these competing ideals. And they must work diligently to make sure programs are lean and effective and that those charged with implementing them are safeguarding the interests of the people.

That being said, HCC’s leaders pass that test. They have presented a vision for HCC’s continued presence in Spring Branch that is both practical and forward thinking. In addition, they have done so with substantial community input.

As Mike’s blog points out, HCC is independent from the Spring Branch ISD and its board. Nevertheless, our schools have always found a willing and cooperative partner in HCC. As Mike also notes, HCC plays a critical role in providing educational opportunities to students beyond high school – a key component to the economic success of any region. Spring Branch students and their families have for many years benefited from this partnership. The HCC campus in our area has been in operation since 1986 and more than 100,000 students have pursued their dreams by attending classes there.

Now let’s talk about the issues.

Mike’s first argument is that HCC’s tax rate is too high. Interestingly, he does not mention that HCC’s tax rate of 9.23 cents per $100 assessed valuation is lower than any other regional community college system. For example, the San Jacinto College System rate is more than 16 cents and the Lone Star College System rate is almost two cents higher than HCC’s.

If asked, I’m sure that most of us would say that our public school taxes, while high, are well worth the investment they represent in Spring Branch students. I couldn’t agree more, but here is another comparison. The tax rate for our public schools is $1.3825 per $100 valuation, which we pay to support fourteen years of schooling. In contrast, HCC is asking our consent to assess less than 10 cents per $100 valuation to support two additional years of education, which Spring Branch students will receive for lower tuition and which will further prepare them for either advanced study or worthwhile careers. Sure, I know it is not a direct comparison, but I for one do not understand why our investment in our public schools is a good one and an investment in HCC is not.

I’d also point out that HCC leaders have long acknowledged the tax burden faced by homeowners. The HCC property tax rate has been lowered twice in recent years. Those decreases were passed in the face of an economic downturn and while HCC maintained stable tuition rates that are among the lowest in Texas.

While HCC was providing real relief to taxpayers, its financial strength and disciplined fiscal management were recognized as excellent. The system received a rating improvement on its bonds from AA to AA+ by Standard & Poors. In other words, HCC has run a tight financial ship during an economic downturn and at the same time provided tax relief. This is not a small accomplishment.

In addition, this year, the HCC trustees approved a 10 percent increase in the system’s over-65 exemption – relief aimed directly at the people who helped build this community. After much deliberation and study, HCC concluded that seniors receive a better benefit on their tax bill by raising the exemption to $100,000 than they would from the tax freeze that currently occurs at age 65. The fact is that regardless of their approach to this issue, HCC has done the right thing by its older taxpayers.

In addition to HCC’s excellent record of tax reduction, its board has committed to (1) keep the rate steady and (2) return 100 percent of all tax revenue raised in Spring Branch to the Spring Branch community.

Mike may disagree, but I believe them. I, too, watch all my elected officials, and I think that those who have twice lowered their tax rate in recent years and provided tax relief to seniors can be trusted to keep their word. And we should be able to hold them to their word since their commitment is in writing. HCC officials have not only said time and again that money raised in Spring Branch will stay here, that is stipulated in the plan adopted by the HCC board. There is no reason to believe this money will go anywhere else.

In fact, other funds from throughout the HCC system – in the form of federal and state grants and other monies – will be pumped into Spring Branch and combined with the tax revenue to strengthen the Spring Branch campus. HCC leaders have promised that, too, and documented it in writing also. Those funds are in addition to the tens of millions of dollars HCC has ready to pump into the Spring Branch campus after annexation is approved.

Mike has also rightly raised the issue of representation on the HCC board. In Spring Branch, we expect our voice to be heard. It will be. Upon annexation, the community will have automatic representation by a sitting HCC board member whose area is adjacent to Spring Branch. A new HCC trustee district that includes Spring Branch will be created when HCC redraws district lines after the 2010 Census. It will be ready for the 2010 election.

And, by the way, if you want your voice to be heard now, you can contact any HCC trustee through their website, www.hccs.edu.

To summarize, the people of Spring Branch will have an immediate voice. Your support through a vote for annexation will give you that right, regardless of who serves on the HCC board. After that, a more permanent solution will be fashioned to assure that our voice is heard through participation in subsequent elections.

Even without our having a vote, HCC personnel have been out in the community tirelessly seeking input from residents and meeting with community and civic groups. The plans on the table now for HCC in Spring Branch – documents readily accessible to anyone – were all developed with substantial input from all parts of the area. HCC has been listening and will, I believe, continue to listen to the concerns of our community.

While those are the facts, I understand Mike’s dilemma because it reflects our values. We’re always wary of growth of government and higher taxes. That makes it easy for him to oppose the inclusion of Spring Branch in HCC, but I believe that an association with HCC is an opportunity to improve the educational opportunities of our community.

Spring Branch residents have always fostered success through education. We have one of the best public school systems in America, and one reason is the support we provide it through property taxes adopted by Mike, his colleagues on the Spring Branch school board and their predecessors, including yours truly. By voting to give the same support to HCC, we will further extend and improve the education for everyone who lives here, and at a far lower cost than what we now pay for our public schools.

In the end, this is more than another line on your tax bill. Spring Branch students and their families deserve the tuition breaks and dual credit incentives they will get with this annexation. Beyond that, the education they receive at HCC will lead to good jobs that will improve their lives, further build our community and strengthen the nation.

I know that we are talking about a leap of faith in these uncertain times. But HCC has shown that it is a partner who cares about our input and listens to community concerns. They have held down their costs, cut taxes, and kept their word. That’s why I believe it’s a good time for us to work together. It’s the only way the best things get done.

Submitted by Tim Timmons

[Alan]

I support education initiatives on principle, because the more educated a community is, the less crime there is in that community and the less dependence on government that community has.

We live in an increasingly techical society, and community colleges help provide the additional education that is REQUIRED to function in society.

For all the naysayers, let me ask you these questions:

1. Do you support taxpayer-sponsored education for K-12 (i.e. public school)?

2. Would you say that a K-12 education is sufficient to function in today's society?

3. If you support taxpayer-sponsored education for K-12, but you don't think a K-12 education is sufficient to function in today's society, then why would you be against an effort to increase post-secondary education within a community?

If you support K-12 public school, but you think it's not enough for most people, you should logically support post-secondary initiatives such as this.

Aside from the philosophical arguments for education, this annexation should enable an additional 3,000 - 5,000 students to be enrolled at HCC Spring Branch during any given year. This means more jobs for faculty and staff and increased money being spent within Spring Branch and surrounding areas. Not only is this going to provide exceptional educational opportunities, HCC Spring Branch will become a larger employment center within the community.

[T Berends]

RE: H Jackson's post:

"HCC yes, annexation NO"...

"They will continue to do what they do--offer very reasonably priced education opportunities to the community"...

Spring Branch campus has outgrown its original intended capacity by 2000 or so students and counting. Tuition won't cover the needed expansion. So who should pay for any additional accommodation to meet increasing community need? Alief?

[LaneyGroup]

Mike, I appreciate your cogent comments regarding AN UNNECESSARY TAX on Spring Branch ISD residents, the proposal for SBISD to fund HCC via taxation on SBISD residents is totally without merit. How does something like this get on the ballot? In my area consisting of mostly Senior citizens there is no advantage via annexation or even being a member of HCC. Students attending HCC should fund HCC or obtain funding to attend. Regardless of the surrounding districts that made an unwise decision to fund HCC it is incumbent on SBISD to ensure that we have the finest education possible from preK through seconday schools and let colleges provide the next step of education without a specific tax on SBISD citizens. Memorial Villages residents would be required to pay in the range of $1,000 to in excess of $3,000 for no benefits (taxation without representation) which would be totally without merit. Thanks for your continued effort to provide valuable input to ensure rejection of this proposal.............

[H Jackson]

What seems to be missing here is that the HCC Spring Branch campus is not going to dry up and blow away when the annexation does not pass. According to Zach Hodges, HCC recently bought the Chilis corner. They aren't going anywhere. They will continue to do what they do--offer very reasonably priced education opportunities to the community. We don't need HCC shrines at the corner of I-10 and the Beltway. If the community needed a 1200 seat performing arts center, don't you think the developers at Memorial City or City Centre would have worked one in? I say NO to taxpayer funded shrines. HCC yes; Annexation NO.

[sbisd parent]

We can be active in a college focus w/o paying an additional tax (unlimited) annually. The discounted rate for our SBISD students does not justify years of taxes that can go up whenever they want them to!

[Wilchester Resident/Taxpayer/Parent]

The idea that HCC wants to access the SBISD tax base is unconscionable. What "right" does this entity REALLY have to simply impose a tax to subsidize the MOST AFFORDABLE "higher education" option in the greater Houston area? To make the impotent argument that SBISD's tax rate would be the same as other areas already annexed is irrelevant. This is another example of Robin Hood, which is bankrupting school districts across our state - the ONLY difference in this case is that the money from taxation will go to a junior college - regardless of whether the constituents use it or not! The bottom line is this: HCC has no RIGHT to any district's tax base/monies.

Among the many unethical issues here is the fact that, if SBISD is annexed, it is PERMANENT - and ... HCC can raise our taxes at will, WITHOUT A VOTE of the homeowners. Even if a homeowner thinks that a member of their family MIGHT use HCC in the future, the discounts that a student would receive amount to nothing compared to a lifetime of higher taxes that cannot be overturned.

Finally, how is it remotely ethical that HCC does not follow traditional taxation - i.e. freezing the taxes of those over the age of 65? Let's foster an atmosphere of appreciation and respect for this age group!

[Keith Little]

I agree with T Berends' post. The Greater Houston area has weathered the recession relatively well because of our diversified economy and strong industrial base. Many businesses in the area need employees with technical and vocational skills that simply are not taught in high schools or traditional four year colleges. Community colleges are reportedly the fastest growing sector of the U.S. education system. With a strong community college network, the U.S. can compete with any other economy. Spring Branch ISD needs to get on-board.

[T Berends]

When calculating potential economic benefits, let us please not forget the benefits to the Spring Branch COMMUNITY as a whole. This goes far beyond a tuition decrease to any individual. Well-educated communities have less crime, more property-tax-paying home owners, generate more sales taxes, and a more qualified, local workforce for local business owners to draw from. In addition, it is a fact that while post-secondary education is not mandatory, in this increasingly technological age it has become absolutely necessary in order to be self-sufficient in society. Those of us who volunteer for the Texas Scholars program preach this to our Spring Branch 8th graders each year. We should follow up by supporting HCC.

As for the benefits to individuals, the number of Spring Branch residents enrolled at HCC is a gross underestimation. Many Spring Branch students illegally avoid the out-of-district tuition by "borrowing" a Spring Branch address.

I hope you will reconsider.

[pammyc]

one reader commented that Mike is "not getting the bigger picture." I guess I don't get it either. What is the big picture that we are missing?

[JJ]

Keith, HCC will not invest in the SBISD area because real estate is too expensive to support the purchase of any reasonably-sized campus. All the SBISD resident tax dollars to HCC will do nothing other than pay off debt on the facility on Westheimer and other locations.

This is a money grab, pure and simple, and borderline taxation without representation.

Given the proportion of SBISD homeowners who are older and not apt or likely to take HCC classes, the value of a reduced "resident" tuition rate is about as valuable as air conditioning in the arctic for most taxpayers.

[Spring Branch Resident]

This is just disappointing to read considering your involvement in SBISD.

Seems as if you're not grasping the bigger picture, and how this will directly influence SBISD and the Spring Branch area.

Call me crazy, but I expected a lot more from you.

[Robert Stevenson, CPA]

Mike,
Thank you for being the "College Focused" board member and for articulating so clearly the facts about this lifetime tax. Please note that at "ParentU" on October 3rd at Spring Woods High School we will be discussing new tax credits that will help pay for college costs.

[Mike Falick]

Mallory,

I don't think SBISD is subsidized. The students pay tuition, and HCC receives funds on a per student basis from the State.

[Mallory Shaddix]

Thanks Mike,
You state you think the tax is too high, but that it is the same rate the rest of the community is being assessed. So, why should the SBISD community get a free ride and be subsidized by the rest of the city?
To me, that is the first and most important question to answer. Your thoughts?

[Kelley Abbott Hammon]

Bravo for getting the true facts out. While HCC serves an excellent purpose for many students, it is unconscionable for HCC to put this on the backs of Spring Branch residents. Even if my child were to access HCC in the future the amount of taxes paid would far exceed the amount paid in tuition. Please remember that taxes NEVER end. However, tuition does. Frankly, for 14 or 15 million dollars annually, Spring Branch could set up an endowment scholarship fund just for Spring Branch students in order to send many kids to college. Why pay it to HCC? VOTE NO.