Across Virginia, dozens of localities are asking voters to approve an additional 1% sales tax to finance public school construction and renovations. The proposals come as communities confront aging school buildings, costly infrastructure improvements and difficult decisions about how to pay for them. WMRA's Anjoleigh Schindler reports.
Voters in Albemarle, Charlottesville, Fluvanna, Greene, Nelson, Orange and Waynesboro are among the 47 municipalities considering the additional tax at the polls.
The referendums follow a change in Virginia law this summer that expanded the authority to propose such taxes to localities across the Commonwealth.
The additional revenue would be restricted to new school construction, major renovations and related financing costs. It couldn't be used for everyday operating expenses like teacher salaries or classroom supplies. But the amount of money at stake, and the projects it could support, vary considerably between communities.
In Fluvanna County, the school division requested $6.2 million in capital improvements for the current fiscal year. The board of supervisors approved just over $3 million through the county’s existing capital budget, separate from any revenue that could be generated by the proposed sales tax.
The county's capital plan includes future renovations at Abrams Academy and a $1.5 million roof replacement at Central Elementary School. Its financial records also show that the county has used reserves to support capital projects, illustrating the choices local governments face when deciding how to finance school improvements.
For Fluvanna resident James Schonster, who voted in favor of the referendum, the county needs to do more to prepare for future school construction. Schonster has lived in Fluvanna for more than a decade and has a young daughter who will eventually attend its public schools.
JAMES SCHONSTER: Things like schools get old. They need to be replaced. It's not some shocking revelation. It's something that everyone across the country deals with. So we need to plan for it and be prepared when it's time to build a new school.
He says the county has historically addressed infrastructure problems as they arise, rather than planning for them in advance.
Schonster acknowledges that an additional sales tax could place a financial burden on some households, even though he says it wouldn't significantly affect his own. He believes the revenue would help establish a more consistent source of funding for future projects.
But not everyone agrees that a sales tax is the right approach.
Jon Richardson has lived in Fluvanna for approximately 15 years and has two children who attend public school in Charlottesville. He voted against the referendum, arguing that sales taxes disproportionately affect working-class residents.
JON RICHARDSON: We need to be taxing landowners and billionaires, not people trying to buy a backpack for their kid.
Richardson says the additional tax would have little impact on his own finances, but he believes the county should reconsider how it raises revenue. He specifically points to Fluvanna's land-use taxation program as a potential source of additional funding, which allows qualifying agricultural, forested and open-space properties to be taxed at their use value rather than their market value, generally resulting in lower property taxes. Richardson argues the county should eliminate that preferential treatment and redirect the additional revenue towards schools.
Despite voting on opposite sides of the referendum, Richardson and Schonster agree that Fluvanna's schools need greater investment. Both also express frustration with the county's approach to school funding.
Richardson says his opposition isn't about whether schools deserve the money, but where that money should come from.
RICHARDSON: I do fully support our schools again, and I feel like they need to be fully funded. I just, I'm getting tired of the revenue always coming from the bottom.
In Albemarle County, school officials have identified more than $500 million in capital needs. The list includes a proposed $231.6 million high school, a $68.4 million elementary school and a $53.7 million preschool center, alongside renovations to existing facilities. Of these projects, only the new elementary school is included for future funding in the county’s current plan.
The city of Charlottesville's school division has documented problems ranging from deteriorating restrooms at Charlottesville High School to inadequate facilities at its elementary schools. Jackson-Via Elementary, for example, lacks a dedicated cafeteria and kitchen, while the layout of Greenbrier Elementary complicates efforts to create a secure entrance connected to its main office.
Charlottesville estimates the additional tax could generate approximately $12 million dollars annually.
In Nelson County, officials estimate the tax could raise about $1.9 million dollars a year. One identified need is a heating and air conditioning replacement at Rockfish River Elementary School, which the additional tax revenue would exactly cover.
The county projects that about 22% of the additional sales tax revenue would come from visitors and nonresidents.
In Waynesboro, the most immediate question is how to pay for the final phase of renovations at Waynesboro High School.
Mayor Kenny Lee says the project, which includes an addition and gymnasium, is expected to cost between $55 and $56 million.
KENNY LEE: A “no” vote, then we would have to go back and consider raising the real estate tax to pay for that debt.
Lee says the high school project is moving forward regardless of the referendum's outcome. But he argues that sales tax revenue would give the city another way to finance it, potentially reducing its reliance on property taxes.
LEE: A “yes” vote on sales tax would allow council to have discussions on the current real estate tax and potentially lowering that real estate tax to lessen that burden on our citizens.
That reduction wouldn't be automatic. City council would have to make a separate decision about changing those tax rates.
The proposals also raise questions about who ultimately pays for school construction.
According to the Institute on Taxation and Economic Policy, lower-income households pay a significantly larger share of their earnings in sales and excise taxes than wealthier households. The proposed tax would exempt groceries and certain other necessities, but supporters argue that it would also allow visitors and commuters to contribute to school construction costs when shopping locally.
Asked what he would tell residents who support renovating schools but can't afford another tax, Lee emphasized the exemptions, such as –
LEE: Groceries for home consumption, meat, milk, bread, eggs, things of that nature. Also, it would not apply to disposable diapers and certain incontinence products, feminine hygiene products, so there is some leeway in there, that it does not apply to those things. Of course, it would not apply to prescription drugs, as well.
An additional 1% would mean another dollar on a taxable $100 purchase.
Across the region, the referendum results won't erase the needs for repairs or new construction. But they could determine whether local governments have a dedicated new revenue source to help pay for them — or must rely more heavily on existing taxes, borrowing and other funding.
Voters will finalize those decisions on Election Day, November 3.
