To the editor:
The Princeton Public Schools referendum is the tip of the iceberg. The PPS Board of Education has not estimated the impact of the $130 million referendum on our real taxes. An estimate (with only some of the known costs) follows.
The PPS operating budget is $100 million, increasing by 2 percent to 3.9 percent annually. A new 5/6 school will add “about $2.5 million for personnel,” according to Superintendent Cochrane. It will have operating ($600,000) and maintenance ($350,000) costs – let’s say $1 million – totaling approximately $3.5 million.
Moving 520 fifth and sixth graders to a 5/6 school requires new bus routes, costing upwards of $500,000 – we’re now up to $4 million. For unknown energy and maintenance changes at all schools, add $1 million. This does not even consider the costs associated with the new administrative buildings, turf fields, and sports facilities. Maybe between $2 million and $4 million? That brings the total to between $7-9 million.
Assume a $6 million annual referendum payment incurs a $700 per year tax increase on the “average” home. A $9 million annual budget increase imposes another $1,000 increase, for a total of $1,700 for the first year.
A home value of $400,000 could incur a total tax increase of $850/year. A home value of $1.2million could incur a total tax increase of $2500/year. A home value of $2 million could incur a total tax increase of $4500/year.
All of these increases are the first year only, not the total Princeton Public Schools tax increase five years in the future.
An increase of $9 million to the operating budget is nearly 10 percent the first year, but with current budgetary increases it will be 13.5 percent above the current budget the second year, 18 percent higher the third year and 22 percent higher the fourth year. Splitting the referendum doesn’t change this fact five years from now.
I ask the PPS BOE to estimate the impact of the $130 million referendum on the budget for the next five years to reveal the Iceberg.
If you rent in Princeton, your rent will increase. Monthly rents of $2,000-$4,000 will increase by $100-$200. Low income and fixed income residents will be forced to leave town. And maybe the wealthy will just say “I’ve had enough” and leave town also, which could cause house prices to fall, which is what none of us want. We are a town of thinkers. Think about it.
Charlotte O’Connell
Princeton