Tax increase would fund Delaware Tech infrastructure

Some lawmakers want to raise property taxes statewide to pay for infrastructure improvements at Delaware Technical Community College that school leaders say are sorely needed and long overdue.

Sen. Harris McDowell, who co-chairs the budget-writing Joint Finance Committee, has filed a bill that would create a new property tax. It would start in July 2017 at 1.9 cents per $100 of assessed property value.

Delaware Tech's Board of Trustees could then choose to increase those taxes. It would not be able to raise the tax to more than five cents per $100 over the next five years and would be limited to a maximum of 10 cents per $100.

"This is the responsible thing for the state to do – to invest in our community college and in our economy," McDowell said in a news release. "Passage of this bill will finally provide a long-term solution to the college's long-standing deferred maintenance problem while boosting Delaware's economy in the short term."

In addition to helping Delaware Tech, McDowell argues the construction projects funded by the tax would benefit local construction firms.

Delaware Tech has about 1.3 million square feet of space in more than 40 buildings. In five years, half its buildings will be at least 40 years old, school officials say.

The school's deferred maintenance list – projects put off for lack of funding – adds up to almost $85 million, Brainard said.

"We should be investing at least $12 million a year, just like every homeowner or building owner would, to make sure our buildings are safe and well-maintained," he said. "If we don't find a way to provide stable and reliable funding for our capital activities, it will quickly grow to $100 million. At some point you just can't catch up."

Brainard argues other schools, whether it's traditional school districts, vo-tech schools or four-year colleges, have multiple ways to raise money for capital improvements. But Delaware Tech's only way to get capital funding is to seek money in the state's annual bond-bill.

The school needed for a decade to expand its nursing facilities as the state grappled with a looming shortage of nurses, Brainard argued. But the school was only able to get an expansion – not a new building, as it originally hoped for – when lawmakers set aside money in the bond bill.

That new nursing wing at the Stanton campus just opened the past school year.

Raising property taxes to fund school operations has seen its fair share of controversy over the past few months.

When the Red Clay school district voters approved a tax increase, the district faced accusations it had rigged the vote by scheduling parent engagement events the day of the referendum.

And voters have twice rejected this year the Christina School District's request to raise property taxes to cover growing costs, which means budget cuts and layoffs are looming.

Opponents, especially senior citizens, said they couldn't afford the increases and argued the district should cut expenses rather than raise taxes.

Delaware Tech's tax increases, if approved by the Legislature, would not require such votes. Vo-tech school districts can get tax increases with the Legislature's approval.

Brainard argued Delawareans should support the tax increase because his school plays a vital role in the state's economy.

"Ninety-six percent of our students are Delawareans," Brainard said. "They are our family members, our neighbors and our business associates"

Contact Matthew Albright at malbright@delawareonline.com, (302) 324-2428 or on Twitter @TNJ_malbright.