The Amarillo College Board of Regents approved a higher property tax rate Tuesday, but college officials expect to bring in less property tax revenue as AC navigates declining taxable property values and reduced state funding.

Regents adopted a tax rate of $0.24670 per $100 of assessed property value. The rate is about 4 cents higher than last year, representing a 13.59% increase.

Despite the higher rate, Amarillo College expects to collect about $1 million less in property tax revenue. Net taxable property value within the college’s taxing district has fallen by roughly $149 million.

“I feel like we did everything we could possibly do to avoid having to increase taxes, and I don’t see a way that you get around it,” Board of Regents Chair Jay Barrett said. “The oddest thing of all to me is that we’re going to increase taxes and still get less money.”

The tax rate was approved alongside AC’s budget for the 2026-27 fiscal year, which attempts to maintain existing services while dealing with tighter revenue.

In addition to the projected $1 million decline in property tax revenue, the college is expecting $2.3 million less in state funding.

Even with those losses, the budget calls for adding $5 million to the college’s fund balance. It also includes a 2% pay raise for Amarillo College employees and additional funding for adjunct faculty.

Regents also approved a new $5 million revolving line of credit with Amarillo National Bank. The credit line carries an interest rate equal to the Wall Street Journal prime rate minus 1%, which is currently 5.75%.

College officials characterized the credit line as a financial safeguard rather than money AC expects to borrow.

“We recommend that we simply renew the line of credit on the same terms for another year, not with an eye toward using it, but just as a prudent business practice,” Mark White, AC’s executive vice president and general counsel, said.

Taken together, Tuesday’s decisions highlight the financial balancing act facing Amarillo College: taxpayers will see a higher rate, while the college itself expects less revenue from both local property taxes and the state. At the same time, AC’s new budget aims to preserve services, provide employees with a modest raise and strengthen the college’s reserves.