Lake Michigan College Millage Renewal: The Facts

A message from the Chair of the LMC Board of Trustees

As Chair of the Lake Michigan College Board of Trustees, I want voters to have clear, factual information about the College and the College’s millage renewal proposals on the November 4 ballot. Unfortunately, as with many public institutions, misinformation about the College sometimes spreads quickly. I want to address those misleading and incomplete claims.

Lake Michigan College has served this community since 1946, providing accessible, high-quality education and workforce training for generations. Today, LMC remains one of the most important economic and educational anchors in Southwest Michigan.

Key Facts at a Glance

• LMC's operational tax rate hasn't increased in almost 50 years.
• Both millages on the November 4 ballot are renewals, not new taxes.
• The capital millage is being cut in half.
• Voting no would only save $12 per month on a $250,000 home, but would force major cuts to local programs and job training
• LMC provides real and measurable value for our community.
• LMC is essential to Southwest Michigan's workforce and economy.

1. Enrollment and Tax Rates

Community college enrollment has dropped nationwide over the past decade. This is happening for several reasons: fewer young people, demographic changes, and a strong job market that pulls people directly into the workforce.

Community college enrollment also goes up and down with the economy. When the economy is bad and people lose jobs, more people go to community college to learn new skills. When the economy is good, enrollment drops. LMC follows this same pattern.

The good news: Over the last three years, LMC's enrollment direct from high schools has doubled. Overall enrollment is up 10%, and credit hours are up 13%. This fall, the College has seen even more growth.

What hasn't changed is our tax rate. LMC's operating millage has stayed at 0.665 mills for about 50 years. We're not asking for a tax increase; just a renewal of this long-standing support that provides nearly 20% of LMC's budget. This money directly supports classes, teachers, student services, and partnerships with local businesses.

Without this renewal, the college would have to cut roughly 20% of its programs and services, leading to declines in enrollment and fewer opportunities for training and education that connect students to local jobs in manufacturing, healthcare, and public safety.

2. Out-of-State Students

About 75% of Michigan community college graduates work in the same county or a nearby county within one year of graduation. When students come to LMC, they build their futures here in Southwest Michigan.

Many of our local employers can't find enough workers. By educating both local and out-of-state students, LMC trains people to fill critical job shortages in nursing, public safety, and manufacturing. When we bring new students to our area, many stay, get jobs, buy homes, and raise families here.

"Lake Michigan College is an essential part of our regional economy. Whether it's nurses, law enforcement officers, electricians, or manufacturing technicians, LMC trains the professionals our communities depend on every day." — Arthur Havlicek, President and CEO of the Southwest Michigan Regional Chamber.

3. Completion Rates

Critics point to LMC's completion rate, but this doesn't tell the whole story. The official completion rate only counts students who earn a degree within six to eight years. It doesn't count the students who never intend or need to earn a degree:

• Students who take short-term job training courses.
• Students taking summer classes before transferring to a university.
• Workers taking a few classes for a promotion.
• People learning specific skills to get hired.

A welder who completes three courses and gets hired full-time is a success story, even though they don't show up in graduation statistics. The same goes for a working parent who takes accounting classes to get a promotion.

By national community college standards, LMC does well. The college consistently ranks among Michigan's top community colleges and was recently named the #1 Community College in Michigan and #13 in the nation by SmartAsset.

4. The Millage Renewals and What They Cost

The November 4 ballot proposals are not new taxes. Voting no would save the owner of a $250,000 home only about $143 per year, less than $12 per month. But losing this funding would seriously hurt LMC's ability to continue to serve the education and training needs of our community.

That $143 annual investment represents incredible value to our communities. In addition to building the skilled workforce needed to keep and attract businesses and employers, LMC contributes $371 million every year to our regional economy through graduate earnings, college operations, and reduced need for social services. The college trains the nurses, police officers, and skilled workers our communities need to fill job shortages and attract new residents.

There are two millage renewals on the ballot:

• Operating Millage (0.665 mills): This renewal keeps the same tax rate in place since 1987. It pays for day-to-day costs like classes, teachers, and student services.
• Capital Millage (0.24 mills): In 2016, voters approved a 0.48-mill capital millage for campus safety and facilities. We're now asking to renew this at half the original rate (0.24 mills) to maintain buildings, improve safety, update technology, and make necessary repairs.

5. The Niles Campus Sale

Berrien County tried three times to build a career and technical education center like those in neighboring counties. That would have cost taxpayers tens of millions of dollars. Instead, LMC and Berrien RESA worked together on a smarter solution.

In 2024, they created the Berrien Innovation Center using LMC's existing Niles Campus, which was built in 1998. Rather than spending tens of millions to build new, LMC transferred the campus to Berrien RESA for $1, keeping it in educational use and avoiding expensive new construction.

This wasn't a giveaway. It was a smart investment in our community's workforce. The College now saves hundreds of thousands of dollars each year in operating and maintenance costs while continuing to use the site for college courses at no charge. The facility serves both high school and college students and is home to Michigan's first youth apprenticeship program.

6. Comparing LMC and Southwestern Michigan College

Comparing LMC and SMC without context is misleading. Here's the reality:

LMC serves 67% more students: 3,910 students vs. 2,344 at SMC.
LMC offers more programs: About 80 programs vs. about 59 at SMC.
LMC gets less state funding: $6.6 million vs. $8.0 million for SMC (21% less, despite serving more students).
LMC charges less tuition: $175.50 per credit hour vs. $198.25 at SMC.

Even with less state funding, LMC serves more students at a lower tuition rate than SMC.

7. Legislative Advocacy

Like many colleges and nonprofits, LMC hires professionals to advocate for Southwest Michigan's educational and workforce needs in Lansing and Washington. We've worked with the same firm since 2014, at about $20,000 per year. This modest investment helps ensure our region competes effectively for state and federal funding that supports workforce training, student financial aid, and community programs that benefit local residents.

This work focuses on Southwest Michigan's specific needs and makes sure our region's voice is heard, separate from broader statewide discussions.

8. DEI Director Position

Before 2025, LMC employed a Dean of Diversity, Equity, and Inclusion (DEI) with a salary of about $90,000. This position led training, compliance, and initiatives in line with federal and state standards.

In January 2025, a federal executive order directed institutions receiving federal funding to eliminate DEI offices and roles. LMC eliminated the position to comply with federal requirements. Remaining required compliance, training, and student support functions were moved to other areas of the college.

LMC remains committed to serving all students and creating a welcoming environment. We've always had an "open door" admissions policy; anyone who is a high school graduate, has a GED, or is 18 or older can apply to LMC.

9. Student Housing

Contrary to social media claims, LMC's student housing (Beckwith Hall) is not paid for by taxpayers or LMC's operating budget. It's completely self-funded by the rent students pay. In fact, over the past decade, the residence hall has made an average net operating profit of about $575,000 per year, contributing to LMC's finances rather than draining them.

Affordable housing is hard to find in Southwest Michigan. Beckwith Hall's 194 beds provide an affordable option that helps students succeed while remaining financially responsible.

10. Community Event Sponsorships

LMC sponsors community events like the Southwest Michigan Regional Chamber's annual golf outing, which raises funds for local economic development and nonprofit organizations. These sponsorships average less than $2,000 per year, a modest investment in community partnership.

These aren't recreational expenses; they're strategic networking opportunities where college leadership connects with employers who hire our graduates, business leaders who shape workforce needs, and community partners who provide internships, apprenticeships, and scholarships for students. Events like these bring together decision-makers from across the region who directly impact our students' career opportunities.

Community colleges don't operate in isolation. Building relationships with regional employers and civic leaders is essential to ensuring our programs align with actual job market needs and that our students have pathways to employment after graduation. Being active in community events is part of that.

11. Tax Foreclosures

Some have claimed that 475 homes were lost to tax foreclosure in Berrien County this year. According to the Michigan Department of Treasury's official 2023 report, the actual number was 110 properties foreclosed and 86 sold at auction. Verified 2025 data won't be available until 2027 under state law.

Any loss of property is too much. Homeowners facing financial hardship should contact the Berrien County Treasurer's Office for payment plans or the Southwest Michigan Community Action Agency for property tax assistance.

LMC's ballot proposal helps reduce the local tax burden by cutting the capital millage in half while maintaining the facilities and programs that serve our community.

12. "I Don't Use It"

Supporting LMC isn't about paying for someone else's education. It's about investing in a healthier, safer, and stronger community for all of us. 

Some residents feel they shouldn't support the college if they don't use it or if their children are grown. But community colleges work like public safety, libraries, or roads — everyone benefits.

Everyone depends on the skilled nurses, police officers, teachers, and technicians trained at LMC, whether they ever visit campus or not.

An independent study by Lightcast found that LMC contributes an estimated $371 million every year to our regional economy through graduate earnings, college operations, and reduced social service costs. A stronger college means a stronger economy—more jobs, more employers, higher property resale values, and fewer people needing public assistance.

13. Financial Strength

LMC maintains an AA+ bond rating, one of only two community colleges in Michigan with this distinction, and receives clean audits annually, confirming accurate and transparent financial management.

The college holds $37 million in cash and investments as of August 31, 2025. About $29 million is designated for specific purposes like capital projects and debt service. The remaining $8 million may fund the cost of a much-needed second residence hall.

The College follows a fiscally responsible Board policy that requires keeping at least 120 days of operating expenses in reserve and mandates a balanced budget each year.

These reserves aren't excessive. They are smart, standard higher education practices that allow LMC to maintainservices during uncertain times, invest in critical improvements, and avoid costly short-term loans. In February 2025, S&P Global Ratings reaffirmed the AA+ rating with a stable outlook, specifically citing the College’s strong planning and financial management, and its low debt.

LMC manages over $270 million in assets and has a multi-year plan for approximately $52 million in maintenance, technology, and facility improvements.

Conclusion

For nearly 80 years, Lake Michigan College has been a source of progress and pride for this community. These millage renewals are not new taxes. They are a continuing investment in quality education, local workforce development, and economic growth while reducing the total tax rate.

The Board of Trustees remains committed to responsible management, transparency, and service to the people of Berrien County. Together, we can ensure that opportunity, education, and economic vitality continue to thrive in Southwest Michigan.
 

Respectfully submitted,
 

Joan Smith

Chair, Lake Michigan College Board of Trustees