Impact Fees For Teachers? – Some fast growing counties are considering "transition fees" to the school portion of impact fees to help pay for teachers.

New fees sought to pay for teachers

As fast-growing area school districts eye new ways to get much-needed cash, some municipalities are considering a new impact fee to help the districts hire teachers.

By Janelle Walker
STAFF WRITER

http://www.suburbanchicagonews.com/couriernews/top/e25schools.htm

Some area municipalities — including Huntley and Algonquin — are adding "transition fees" to the school portion of impact fees.

Impact fees, also known as developer donations, are the one-time contribution by developers to municipalities to offset the strain their housing developments have on schools, parks and other public services. Those fees may range from a few hundred dollars to a few thousand for every home built, depending on what individual municipalities decide to charge and the age of the annexation agreement.

Impact fees for schools may pay for only land or "bricks and mortar," however, and do not cover the cost of hiring staff to teach the new students.

Fast-growing school districts suffer because as new students come into a district, the tax receipts from their houses may not come in for a year to 18 months after the students actually are enrolled.

Based on an average 25-to-1 student-to-teacher ratio, four new teachers are needed for every 100 students, said Brad Hawk, the new Burlington-based Central School District 301 superintendent.

"Transition fees can help pay for that. But it is a one-year deal. It closes the gap. It goes right into the education fund," Hawk said.

"Transition fees are intended to minimize the disparity, the timing between when (students) enter school and (payment of) the first property tax bill," said West Dundee Village Manager Joe Cavallaro.

His village board has directed him to look at adding transition fees into future annexation language, Cavallaro said. West Dundee, however, has no plans to annex land in the near future, he said.

Unlike impact fees, which are state-mandated, there is no way to force developers to agree to the extra transition funding.

District 301 has no such transition fees coming to it, Hawk said.

Neither does Elgin School District U46, said Larry Ascough, director of school/community relations.

However, Hawk said, he hopes transition fees can be included in future annexation agreements.

The idea is very new for school districts, said Chuck Bumbales, a Community Unit School District 300 administrator who tracks upcoming housing developments for the district.

Algonquin, which has portions of the village in both Huntley-based School District 158 and District 300, also has included transition fees in its annexation agreements.

"We haven’t collected for it yet," Bumbales said.

But, the district appreciates what funding could be coming, he added.

"Transition fees are an idea that has been there, but it is now getting buy-in" from developers, Hawk said.

The village of Huntley began adding transition fees during his time with District 158, Hawk said.

"Huntley embraced them, and they were supported by the Huntley city council, as well as Algonquin," Hawk said.

In Huntley, Hawk said, the transition fee came to about $2,000 per home. Based on an annual teacher salary of $30,000, just 15 new homes paying that fee would pay for one teacher for a year.

Developers, which have fought legal battles with school districts over the use of impact fees, should embrace the transition fee, Hawk said.

Developers often tout the quality of the school district as a selling tool for their subdivisions, he noted.

"They do not want to short-change the students," Hawk said.