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New Houses: Cost Burden on State Budget

Detailed calculations or Excel spreadsheet.

Construction of new houses costs the state money.

 

Every new house with 2 new students in public schools costs the rest of the state $8,000 per year to operate schools. Impact fees pay none of this. Impact fees never pay operating costs.

 

Much more money comes here to operate new schools than the new houses send back in tax money.

 

The State has a target for school operating costs in Jefferson County, including a formula, plus extra costs for retirement and special education. The state target is $5,500 per student per year, and the state pays whatever we don't raise locally. So a new house with 2 students costs $11,000 per year for school operations.

 

The occupants of a new house pay $3,040 per year in taxes which can be used for school operations.

 

For a new house with 2 students the rest of the state pays for this gap of almost $8,000 per year per new house. Every 125 houses like this cost the rest of the state a million dollars per year for years to come.

 

The state pays even more for new construction. Local impact fees pay some of the construction cost but not all. They pay nothing for annual operating costs.

 

Most of the state is poorer than the growing counties, but the state sends money to teach students in new schools here.

 

Detailed calculations or Excel spreadsheet.