Economic impact of new school construction eyed The Huber Heights City School District is planning on constructing five new K-6 elementary schools, a new middle school and a new high school at a cost of $159.1 million. The district wanted to know how this investment from Jan. 1, 2010 to August 2012 would affect the community outside of the schools, so they contracted with the Center for Urban & Public Affairs (CUPA) to conduct the economic impact of new school construction on the local economy.
"I think that the economic study does a good job of that--what they call the ripple affect--because it does impact the motels, and the restaurants, the service stations and grocery stores and all those other periphials," said William Kirby, superintendent of Huber Heights City Schools. "So, when we have that many contractors coming in to help build schools, that many other service providers, I think the economic study shows that its millions of dollars that's going to be spent in our community over the next two-and-one-half years, as a result of what we are putting in the schools."
The study estimates the construction project will generate a total of 1,944 jobs in Montgomery, Greene, and Miami counties related to the construction of the school buildings. It estimates that 1,113 laborers and professional employees will be directly related to the construction of the Huber Heights school buildings. Indirectly, 387 jobs will be created as a result of products and services (associated with the construction the Huber Heights facilities) purchased from area businesses. An additional 444 jobs will be created in the three‐county area to support increased household spending generated by those workers affected directly and indirectly by the construction project.
The total labor income is estimated in the study to be nearly $92 million. The direct effect of labor income supported by the school district construction is approximately $55.4 million, while nearly $36.5 million in wages and benefits is projected to be generated in indirect and induced effects - $19.9 million and $16.7 million, respectively.
The study suggests that economic activity will also have a significant impact on tax revenues. The model estimates that $2.3 million will be generated indirectly by businesses as sales tax. The model also estimates that just over $2.2 million will be generated in the local economy as income tax revenues paid by employees.
The study suggest that the total impact of new construction on the Huber Heights (zip code 45424) economy is estimated to be 668 jobs out of the 1,944 jobs generated. These jobs are estimated to generate $33.2 million in labor income. New building construction is also estimated to generate nearly $1.3 million in state and local sales and income tax revenues.
The report states that the effect on Huber Heights may be overstated because of leakages to other jurisdictions.
"Workers hired from outside the city of Huber Heights will be required to pay income tax to the city of Huber Heights if they work in the city for 12 or more days within the calendar year," the report states. "If not, contractors hired from outside jurisdictions will not report earnings or pay taxes to the City of Huber Heights. Instead, those employees will report their earnings and pay taxes to the jurisdictions from where the business office is located."
Kirby noted half of the cost of construction will be paid by the state and half paid locally by the bond levy.
Kirby said awards for construction bids of Monticello Elementary is expected to approved at the board meeting on March 11.
"By August, we expect to be breaking ground at all seven sites," said Kirby. "By winter, we'll have contractors building schools at all seven sites. The high school alone, we think at peak, will need as many as 200 laborers on site. Then you ad the middle school and five elementary schools, just in our labor force, you are going to see close to 500 people at peak. That's a lot of money in our community because they come in and spend at least a week. They'll stay in hotels and motels. They'll have their meals here. so that's the ripple effect we're talking about."
Reader Comments Posted: Wednesday, April 21, 2010
Comments
Gary Borden
I've lived in Huber Heights Oh for close to 50 yrs. I have a son who recently graduated College grad working at a fast food joint. Great work ethic just doesn't have the experience. Is there anyone he could contact for some type of office job for any position in connection with the Huber Heights School Construction Project? He has been accepted in Wright States Business Masters program. Any help would be appreciated.
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