‘Significant’ Layoffs Anticipated In Schools As County Moves Forward With Plans To Cut Funding

Pasco County Commissioners intend to move forward with plans to reduce or eliminate the school impact fees residential developers currently pay.

School board members had hoped a joint special session between the two government bodies this morning, April 4, would resolve the issue. County commissioners, however, indicated their willingness to look at a reduction rather than an elimination of fees, but none voiced an opinion in favor of taking the proposal off the table entirely.

At issue are nearly $5,000 in fees charged to developers for every single family home built in the county. This money is used by the school district to fund construction of new schools to meet the demands of growth.

The school board contends the is needed to help pay debt payments on bonds it has taken out to cover the costs of building 11 new schools. The debt service payment on these bonds is $16.8 million annually. All told, the district bonded out $276.6 million for those 11 schools,  but has a grand total of $474.8 million in debt.

The Pasco County School District is facing an estimated $60 million shortfall because of cuts on the federal, state and local level. The reduction of impact fees, district officials have argued, will add one more financial burden to their plate. Fees are expected to add up to about $4.5 million this year.

School board chairwoman Joanne Hurley said the recent cuts have taken their toll on the district. Up until this year, the board has avoided layoffs, but that will not be the case with this round of cuts.

“We’re cutting the heart and soul out of the budgets,” she said. “We’re affecting people.”

With no certainty that reducing impact fees will really stimulate the local economy, Hurley asked commissioners: “If it does not harm, what good does it do? What will you count as a success?”

School Superintendent Heather Fiorentino echoed Hurley’s concerns.

“We have avoided layoffs as long as we could,” she said. “This year we will be laying off people and we will be laying off a lot of people.”

School board member Cynthia Armstrong said the layoffs would represent a “significant number.”

While county commissioners expressed concerns over the school district’s funding cuts, they contend reducing or eliminating impact fees is necessary to spark economic growth. This, in turn, commissioners said would help increase school funding in other areas by raising property tax revenues and sales tax earnings.

“I cannot see cutting the impact fees to zero,” said County Commission chairwoman Ann Hildebrand. “I would look at 50 percent.”

If the proposal to reduce or eliminate fees is passed, it would be temporary, Hildebrand pointed out. “We’re looking at this for 22 months,” she said.

Commissioner Pat Mulieri said she thinks reducing the fees will “create a buzz,” which might help foster growth and recovery.

“The last thing I want to do is hurt the school board,” said Commissioner Jack Mariano, adding that the county commission has to “look at the big picture.” The reducing fees, he said, might help stimulate the economy, which would provide a long-term gain for the school district.

School officials pointed out that the district has spent more than $602 million on construction since 2005. In that time period, it has employed 22 construction management companies and has worked with more than 1,200 subcontractors. All told, 7,500 construction workers have been employed through the district’s projects.

The impact fee reduction is hoped to put residential construction workers back on the job.

With that in mind, Fiorentino said cutting impact fees to spark residential growth is like “swapping one for the other.”

In addition to school and county officials, a number of residents also spoke. Construction representatives spoke both for and against cutting the fees.

County Commissioners will discuss setting public hearings on school impact fees during their meeting tomorrow at the Historic Pasco County Courthouse, 37918 Meridian Ave., in Dade City. That meeting starts at 10 a.m., but a time certain for the impact fees has been set for 2:30 p.m.

Before the fees can be cut, the commission will have to decide by how much and will also have to hold public meetings.

The school board also meets tomorrow for its regular meeting at 9:30 a.m. at 7227 Land O’ Lakes Blvd.