WATERLOO - The Board of Trustees Tuesday approved Hawkeye Community College's 2009-10 budget, including a 2.3 percent decrease in property taxes.

Property tax collections for the college's 10-county service area are expected to decline $162,850 to $6.89 million next year due to reductions in the tort liability and insurance levies. The $56.61 million budget represents a $1.59 million decrease from the re-estimated 2008-09 budget. It must be certified with the Black Hawk County auditor and the Iowa Department of Education by March 15.

The college's budget also estimates a $31,000 drop in tuition revenues to $13.8 million with student fees remaining steady at $462,200. Student tuition and fee rates will be set at a later point, once state aid levels are known.

The budget estimates $14.48 million in state aid, a $210,280 increase. Gov. Chet Culver proposed a 6.5 percent reduction in education funding for next year and imposed a 1.5 percent cut in state aid for the current year. If Culver's proposal is approved by the Legislature, Hawkeye would receive $1 million less from the state in 2009-10 than it initially expected this year.

Other budgeted revenues include $950,000 in federal aid, $27,000 in sales and service, $5 million in proceeds from certificates and $11.05 million in "other money."

Homeowners in Hawkeye's 10-county area can expect a small decrease in the college's portion of their taxes, provided there's little or no increase in the house's value. For a $100,000 home whose value doesn't increase, Hawkeye's property tax will drop $1.34 to $37.97. If the home's value increases to $102,000, the college's property tax will drop $0.49 to $38.82. HCC makes up less than 2 percent of a homeowner's property tax bill.

The 7-cent reduction in the tax rate to 93 cents per $1,000 of taxable valuation, which is responsible for the lower estimated collections, fulfills a pledge made by college officials nearly two years ago. At the time, the college was seeking an instructional equipment levy of 6 cents per $1,000 of taxable value, which was approved by voters in September 2007.

Officials intended to implement the reduction for the current fiscal year after a higher rate was approved by the board. However, the proper paperwork was not filed on time.

Contact Andrew Wind at (319) 291-1507 or andrew.wind@wcfcourier.com.