Should Wicomico County End Its Education Impact Fee?

At yesterday’s Wicomico County Council meeting councilman Bob Culver proposed abolishing the county’s education impact fee. While we sympathize with Culver’s desire to stimulate residential construction in Wicomico County, this is not the right solution.

While it was stated that enrollment in Wicomico County public schools will be down this coming year, there is no question that most students attend schools that are in excess of their designed capacity. In addition, any new residential construction, except construction restricted to seniors will most likely add to school enrollment. (Construction of senior housing is not subject to the impact fee.)

In the age of the revenue cap and flat or declining county revenue, some mechanism must be in place to help increase school capacity. The impact fee is that mechanism.

Councilman Joe Holloway suggested a compromise to Culver’s proposal – charge the fee when a home receives its certificate of occupancy. This helps to mediate some of the burden on the developer – they wouldn’t have to pay the fee until they have a buyer for the property. At the same time, the county’s schools have some of the funds needed to address capacity issues.

Several council members stated opposition to both Culver’s proposal and Holloway’s compromise. We can’t understand why.

When the impact fee was originally put in place, the argument was made that waiting until occupancy would allow too many properties to slip through the cracks. However, since that time we have seen the city of Salisbury implement several pieces of legislation which require certain documentation at property settlement. This could be done here as well.

When a new (previously unoccupied) home goes to closing it could easily be required that a certificate of occupancy AND proof that the impact fee was paid be part of the required documentation. In the case of self-built or custom-built homes, the fee could be added to the homeowner’s tax bill IF he or she failed to get a certificate of occupancy.

While we applaud Culver for his desire to help the county’s economy, we think that there are better means. For those council members who oppose Holloway’s compromise, I would suggest that you come up with some better reasons. Those that were discussed yesterday simply did not hold up under their own weight.

IF one extra house is constructed by moving the time of impact fee payment, it is a good idea.