School construction and renovation projects are on the ballot in local funding referenda across the Commonwealth. Voters in six localities will decide whether to approve taking on debt for the projects. In Danville and neighboring Pittsylvania County, they’ll vote on instituting one percent sales taxes to help fund the local projects.
“It’s very typical,” Senator Chap Petersen (D-Fairfax City) said. “Localities are allowed to issue public indebtedness in order to build schools. And typically, in order to bind the taxpayer with what’s called a general obligation bond, they have to go to a referendum. I’d say ordinarily most school systems have a referendum eight to ten years. Now, smaller jurisdictions, like where I live in Fairfax City, which is 25,000 people, it usually is less likely to go to a referendum unless you’re building a new school altogether, otherwise they’ll typically pay for these projects out of operating funds.”
Virginia law strictly limits the amount of sales taxes localities can impose, but in 2019 and 2020, the Virginia General Assembly allowed several localities to hold referenda to pass a one percent sales tax increase to fund school construction and renovation. Halifax County approved the tax in 2019, and in November 2020, five more counties approved the tax, according to The Martinsville Bulletin and The Virginia Public Access Project.
In Pittsylvania, the sales tax would expire on September 20, 2051.
Danville’s sales tax would expire May 31, 2041. Danville voters are also considering a measure that would allow the city to issue general obligation school bonds for up to $141 million in debt to fund school renovation and construction projects. Vote Yes 4 DPS lists three priority projects: renovating George Washington High School, built in 1955; renovating Langston School, built in 1957, and renovating elementary schools to eliminate trailer classrooms. Opposition is concerned that the sales tax increase could harm local merchants and consumers.
Virginia’s sales tax rate in most places is 5.3 percent, but some localities have higher rates. The counties with new school-funding sales taxes have 6.3 percent rates. Since 2019, all the counties that held a referenda on the tax have approved it.
Bonds to fund school construction and renovation are also on the ballot in Fairfax, Spotsylvania, Loudoun, Goochland, and Arlington Counties. Maximum debt amounts range from $60 million (Goochland) to $360 million (Fairfax.)
Petersen said the bond referenda usually pass, and are common in Virginia. He said the general obligation bonds typically take about 20 to 30 years to pay off, and school buildings only last about 30 years before they need renovating.
“I’ve never heard of a bond being defeated,” Petersen said. “The short answer is they’ll pass every time. The only time that they’re really every contested is sometimes you’ll have a bond where you may be closing one school or consolidating schools. We had that in Fairfax City about 25 years ago. It was controversial, we were closing two elementary schools.”
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Eric Burk is a reporter at The Virginia Star and The Star News Network. Email tips to [email protected].
Photo “Construction Site” by MichaelGaida.
