BUSINESS SUPPORT
Background:
In 2018, the Sidney-Shelby Economic Partnership (SSEP) identified improving available housing as a top priority. More recently, data and analysis brought SSEP to the conclusion that school funding for the Sidney Public Schools is an existing roadblock that negatively impacts housing, economic and overall community development. School funding and school performance are critical to attracting talent to a community, especially families with children. Recruiting and retaining talent is clearly a critical issue for most businesses today.
After further research and investigation, the SSEP Board of Trustees came to the following conclusions:
The current real estate tax funding model does not allow for growth. A hybrid of income and real estate should be considered.
Except for Sidney, voters in every public school district in Shelby County have approved a School Income Tax Option. SSEP believes an earned income tax is a better way to fund Sidney Schools.
Sidney City Schools are funded at lower levels when compared to comparable school districts in the region. In fact, the recent Ohio Cupp Report showed that Sidney School expenditures per pupil were lower in every category when compared to the closest comparative district, which is Piqua City Schools.
Objective:
After meeting with the Sidney City School administration, the SSEP Board of Trustees committed to engaging in an effort to educate residents on the correlation between school funding and economic/community development. Business leaders are presently working closely with SSEP, the Sidney Schools, and Levy Committee to educate voters about the importance of investing in our youth, the future workforce of Sidney and Shelby County.
Research:
Below you fill find highlights of recent reports on the correlation between school funding, school performance and economic growth.
A National Bureau of Economic Research study concluded the following: A $1.00 increase in per pupil state aid increases aggregate per pupil housing values by about $20.00, indicating that potential residents value education expenditure.
A 2013 Realtor.com survey showed 91% of home buyers said school boundaries are important in their search.
In 2010, the Wall Street Journal reported on a higher correlation between school performance and home values. According to the report, the increased availability of school data has led to more families searching for homes based on the quality of schools in the neighborhood than ever before.
According to research by Realtor.com, buyers are also willing to put their money where their mouths are. One out of five home buyers said they would pay six to 10 percent above their budget for the right school. One out of 10 would double that to 20 percent.
“Real estate value is strongly tied to the quality of schools. The quality of the schools largely depends on the teaching staff and the support of parents and the community,” According to Sophie Tsang, writing about the relationship between strong schools and home buying for Palo Alto Online.
According to a recent study authored by Eric A. Hanushek of the Hoover Institute, Ohio could increase its GDP by improving educational performance to the level of Minnesota. (Minnesota is widely recognized as one of the top performing school systems over the past decade.) Hanushek’s research found a strong relationship between state test scores and economic growth. “The future will depend at a large degree on how hard the business community pushes for school improvement,” according to the report.
Conclusion:
The future workforce of our community is a critical investment for our future.
In collaboration with the Workforce Partnership, Sidney Schools have been a leader in launching innovative programs to help students explore careers and develop an achievable career plan. Without stable funding, these programs will be negatively impacted.
We ask voters to join the SSEP and the business community in supporting the Sidney City School Earned Income Tax Levy on May 4th.
Jim Hill,
Executive Director, Sidney-Shelby Economic Partnership (SSEP)
