COMMENTARY
Excellence has a cost
By James R. Schroeder, D.D.S. MIDLOTHIAN DISTRICT SCHOOL BOARD MEMBER

Schroeder

Public education represents one of local government's largest expenditures. In Chesterfield County, however, the public school system also serves as one of the locality's strongest economic engines.

The quality of our local public schools has a financial value beyond education alone. Nearly 70 percent of Chesterfield County Public Schools' (CCPS) $572 million operating budget goes toward compensating nearly 8,000 employees. These talented employees live, shop and invest in Chesterfield. The national reputation that CCPS has attracts thousands of other families to our community. These new residents also buy homes, shop at local stores and invest in our community.

With a growing community comes challenges such as increasing real estate assessments, which have risen at a quicker pace than annual growth and the cost of living. The public concern is "Why ?" and "What can be done?" The quick response usually is "Cut the real estate property tax rate." I believe that is an old solution for a 21st century challenge - one that can negatively affect services delivered to the public.

The answer is not that simple; schools today are not the same as they were 20 years ago. We are not producing the same product, nor do we have the same raw materials. Our students and graduates are competing in a global workforce. Public education has never been more critical in the life of our community and our country!

I urge Midlothian residents to look closely at the implications of lowering the property tax rate. I believe lowering this rate puts our community and its citizens in jeopardy. Here's how:

Currently, we have $12 million in critical maintenance needs in our older schools. These needs were not addressed in the 2004 bond referendum. Fourteen schools are at least 40 years old and 26 others are between 20-40 years old. Old schools do NOT get better with time. A school in ill repair impacts children's learning and property values of neighborhoods that feed into the school.

Debt capacity is near its ceiling. State funds do not pay for bricks and mortar; local funds do. Approximately $46 million (8 percent) of our operating budget is for debt payment. The successful 2004 bond referendum provided for the construction of five new schools and 13 additions/renovations to existing facilities. Unfortunately, since the bond was passed, school construction prices have gone up 52 percent across the state. This has forced us to maximize debt capacity through 2012. We cannot go higher or we will jeopardize the county's AAA bond rating. The Board of Supervisors works hard to maintain this enviable rating, held by just 22 counties in the country.

Our schools are getting a smaller slice of the pie. In 1999, the county transferred 71.6 percent of real estate tax revenue to the School Board. A new formula that correlated growth in the general population versus the student population resulted in a decline to 67 percent of real estate tax revenue going to schools this year. This change occurred while demands increased. Growth in student enrollment (1,100 students annually), accountability standards (such as the federal No Child Left Behind Act) and services for a more diverse student population are among the many factors increasing costs. Simple factors such as an annual cost of living increase will not take us where we need to go to compete successfully in the 21st century.

Sustaining current programs may not be an option. Fewer dollars generated by a lower tax rate may well compromise our commitment to improving salaries for our employees and prevent us from hiring the best and the brightest. The payment of debt going forward will become an even larger percentage of our budget, and we will be forced to evaluate many of the excellent programs we offer in Chesterfield County to determine which ones can be sustained and which ones we must eliminate.

This is an issue for all citizens. Where is the greatest return on your dollar - investing in our community and our children OR paying less property tax? It is easy and popular to reduce the real estate tax rate. However, lowering the property tax rate only passes escalating debt into a time when education will have even higher demands and expectations. Everyone benefits - directly or indirectly - from excellent public schools. Having an excellent school system makes living in Chesterfield very attractive. I believe we need to continue to invest in our schools and our students. Excellence has a cost, but the price tag for mediocrity and failure is even greater.

The views of Midlothian District School Board member James R. Schroeder, D.D.S. may not represent those of other members of the Chesterfield County School Board.