How expensive is a high school? The simple answer is “very”.
High schools are not built everyday. But the most recently built high school, in close proximity to us, was just finished in Oxford, CT, last year. The approximate cost to build the high school was $45,000,000. That’s a lot of money. They got half the cost reimbursed from the state.
If it were just a one time hit, maybe that would be acceptable, but it goes deeper than that. Let’s explore Oxford for a minute.
Oxford
Population: 12,000
Size: 32 square miles
Density: 355 people/square mile
Median income: $94,000
Median House Value: $336,000
Total Town Expenses: $32,000,000 (Education: $22,000,000, Municipal: $10,000,000)
Mill rate: 12.45
Police Department: Up until recently, none, they used the CT State Police. They now have 9 officers.
Now lets take a look at ourselves
Hopkinton
Population: 8,000
Size: 43 square miles
Density: 188 people/square mile
Median income: $61,000
Median House Value: $303,000
Total Town Expenses: $23,000,000 (Education: $17,000,000, Municipal: $6,000,000)
Mill Rate: 14.47
Police Department: 16 officers.
Now obviously we’re not the same. Hopkinton is bigger, less dense, has fewer people and has less money than Oxford. But Oxford is a rural Town in southern-central Connecticut, currently undergoing rapid suburbanization. I include the numbers for the police department as a matter of future reference.
So using the Oxford numbers (and I will admit it may not be entirely appropriate but it’s all I got) if we dumped all our municipal services, we could pay to run a small school system. Assuming we like our municipal services, we’re going to have to raise taxes. The question is, by how much?
In the upcoming fiscal year, Hopkinton can expect to raise $15,069,614 from taxes (if few people default). So we are raising $8 million through other sources. Assume that number is fixed. If we then need $22,000,000 to run a high school and have a municipal budget of $6 million, we will be paying about $30,000,000 in taxes (I know it’s $28 million, but I rounded up for simplicity). If we divide the $15 million by 14.47, we get a taxable base of $1.03 billion dollars. So if we need to raise $30 million we subtract the $8 million for non-tax revenue and we get a mill rate of about $22 per 1000.
What does this mean for you? If your house is worth $303,000 (the median Hopkinton value) you will pay $4400 in taxes next FY. If we had a high school, you would pay about $6700 in taxes.
What am I missing? Firstly, what about middle school costs? Secondly, what about the $45 million bond that paid for the high school? We will owe it over 20 years with interest, just like a mortgage. Throw those into the mix and you are easily looking at and extra $3 to $5 million more, on the conservative side. So now your taxes jump to $7500-$8000.
My final question: Are we freaking insane? In the middle of a recession, when a lot of people already can’t pay their property taxes, we are talking about new high schools and separate districts? I have said it before, I don’t like Chariho. But it is the cheapest way to educate our children. You can can argue my numbers all you want (and throw in the meager pittance we might get for state aid), but even cutting $5 million off my estimate still puts you in the $7000 tax range, which is a $2500-$3000 increase per year. In the worst case scenario, our taxes double. Unless, of course, we can get the teachers to work for us pro bono, out of the good of their hearts…
Try swallowing that without choking.