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COLUMBIANA -- More details on exactly how the city's Community Reinvestment Area (CRA) impacts the Columbiana School District were made available in the last few weeks.
District Superintendent Dr. Don Mook outlined the CRA program during the January board of education meeting, noting its financial impact on the school, according to per pupil cost statistics based off the Cupp Report.
The Cupp Report is made available by the Ohio Department of Education and provides a variety of data -- including property valuation and tax data-- for school districts.
Citing the Cupp Report's data, Mook said that it costs the district $7,112 in local funding to educate one student.
The district is concerned that it has "no voice" with regards to CRA agreements for residential new home construction projects and school officials have said that the district is educating 39 additional students from new residential housing that is part of the CRA and therefore not being taxed for at least 15 years.
Mook said in his report that educating the 39 students over 15 years of the CRA tax abatement is estimated to cost the district over $4.16 million.
He came to that conclusion by multiplying the local cost to educate, $7,112, by 39 students, which comes to $277,368, and then multiplying that amount by 15.
Furthermore, Mook said that the city has provided income tax data on 45 percent of the CRA housing and that the total income tax provided by the city as of Nov. 3, 2023 was $130,957.
The city provided tax information it had available through the Regional Income Tax Agency (RITA), and city officials said they are still waiting on data for the remainder.
Both the city and the school district have 1 percent income taxes, however retirees don't pay the city income tax but do pay the school district income tax.
Mook said the school district does not receive income tax on people who earn a wage in the school district boundaries including the city, and that the city collects income tax on businesses in which CRAs are issued.
"One hundred percent abated property taxes on businesses benefits only the city," he added.
Mook explained that the residential CRA program hurts the school district because it is difficult to predict what income tax will be on the remaining 55 percent of CRA residential properties.
He said that according to the data provided by the city, income tax revenue for each property ranged from a low of $7.02 to a high of $13,352
"Twenty two of the 77 properties are below $1,000 and seven are below $100. We are receiving little to NO new construction within the school district boundaries since the 15 year tax abatement," Mook said.
Mook's recommendation to the board was that the board meet with its legal counsel to consider the city's request for mediation and that a public forum be held whether the city attends or not.