top of page
Writer's picturedigfrankfortky

How Our Schools Benefit from Economic Development Projects

Our local schools cannot grow and prosper without economic development. “Give a man a fish and he will eat for a day. Teach a man to fish and he will eat for a lifetime.” is the famous quote from Laozi, the ancient Chinese philosopher/writer. But it wasn’t until Nobel winning economists introduced the notion of education as an investment that we began to understand that investing in education creates several economic advantages.

The benefits of a better education are most often discussed in terms of personal gain: higher wages, greater economic mobility, and a better life.


· Education reduces poverty and improves prosperity, opportunity, entrepreneurship, and a more educated governance. A school’s higher enrollment rates and lower dropout rates are directly associated with positively higher levels of per capita income.

· Without access to a quality education, many students will remain trapped in multigenerational lower-wage jobs. Therefore, we must provide more high paying jobs that offer numerous career options so individuals can pursue work that interests them.

· Workers with more skills make more money and are provided with more career opportunities. These skilled workers are more effective in their jobs, as they are better equipped to manage a range of circumstances in the work environment and are more efficient and productive.


The benefit of better funded education bolsters the pool of skilled and productive workers and causes economies to flourish. Availability of a qualified workforce is the number one site selection criteria for nearly every industry. Higher-skilled workers serve as an economic driver and help boost GDP and improve the overall economy. Good schools can drive population growth, which adds to our tax base. Ask any realtor and they’ll tell you that people with families looking to move ask about the quality of local schools. Often if they work in Frankfort, they will live in another city if they perceive the schools to be better.


Our community has been presented with several large-scale developments projects that would generate millions of dollars for Franklin County schools, which could help them improve their output immensely. The Franklin County School District's tax rate for the year 2021 was $.713 per $100 of assessed value on real estate and $.713 per $100 of assessed value on personal property (business furniture, fixtures, and inventory).


If Buffalo Trace were allowed to build 16 warehouses at an approximate value of $7M each, the real property tax generated for the Franklin County School System would be $50,000 per warehouse or a total of approximately $800,000 of additional revenue annually. For the same 16 warehouses, the schools would collect an additional $800,000 annually in “barrel” or inventory tax. This doesn’t include the millions that the Duncan Road property could raise for the schools once the property is built and paying property taxes if it is rezoned to IG. The millions of dollars in taxes that could be raised for our county schools could be a game changer. Our schools could pay higher salaries to be competitive with other counties. Increased resources could help students learn communication, problem solving, personal, and social skills that prepare them to enter the workforce.


With additional funding, our schools could invest in programs and resources to further prepare young children for entering school. Education systems that prepare children early, reform continuously, use the data to measure improvements are paving the way to help young children adapt to a thriving educational environment. As labor markets adjust to automation, our schools must be able to adapt for those skill sets. Our schools could also expand opportunities for disadvantaged youth, so they have an equitable chance to succeed. It takes resources to support the help they need to overcome the challenges of completing their appropriate level of education.


Quality education is truly one of the most powerful instruments for reducing poverty and inequality and it sets the foundation for sustained economic growth, suggesting that the economic growth afforded by improvements in education would certainly outweigh the cost.


Confronted with decisions on growth and development, it’s important to understand the far-reaching advantages and the positive opportunities it brings to all citizens. Jobs provide higher tax revenues. Higher tax revenues provide more funding for schools. More funding for schools provides a better qualified workforce. A better qualified workforce provides higher wages for employees and an incentive for employers to create new jobs in Franklin County. Additional investment in our children is an investment in our future.


Berry Popp


5 views0 comments

Recent Posts

See All

Comments


bottom of page