This fall, voters in Orange County will have the opportunity to decide if a portion of sales tax should be allocated to school construction and renovation, a move that could generate millions, but not everyone is convinced.
A new law that went into effect in July allows Virginia localities to place a referendum on the November ballot that, if approved, would increase sales tax by 1% to fund school projects. Previously, only nine localities had the authority to levy the additional sales tax and more than 20 will decide if they’ll have the option this fall. In Orange County, as much as $5 million could be generated annually.
Both the school division and county have been releasing information aimed at educating voters about the referendum. Former District 1 School Board member Melissa Anderson said that’s a mistake.
At the school board meeting Monday, Anderson said allowing school division employees to use taxpayer resources and public platforms to push out what she said is favorable messaging for the referendum is “absurd.”
“The video doesn’t explicitly say [the division agrees] with the new tax, but it shows why you think the money is needed,” she said. “It doesn’t give any alternatives.”
Instead of being fiscally responsible, Anderson said board members are going back on previously issued promises.
“I warned this board over many years that spending beyond our means would eventually leave taxpayers with the bill,” she said. “Unfortunately, that is exactly where we find ourselves today.”
Anderson said board members were initially promised a turnkey career and technical education center for approximately $10 million. That price tag rose to $14 million and has now surpassed $23 million, a threshold she claims at least two board members said they would not support. She also said the grants received are not free money and are still taxpayer dollars. Anderson said plans to borrow money via municipal bond will leave taxpayers paying millions in interest.
In July, the Orange County Board of Supervisors adopted a resolution to obtain a direct bank loan through a lease revenue bond issued by the Economic Development Authority, a common structure that is utilized by localities. The $20.8 million Atlantic Union Bank loan has a fixed interest rate of 4.45% over 20 years. The county is expected to pay approximately $11.7 million in debt service over the life of the loan, $159,317 less than originally anticipated. The debt service payments have already been factored into future county budgets. That number could also decrease should the county pre-pay the loan or refinance it. The terms allow for both without penalty. The $20.8 million will be the bulk of the financing for the approximately $23 million innovation center. An additional $2.2 million is being funded through a school construction grant.
Anderson also took issue with the timeline for the new facility. A groundbreaking ceremony was held in mid-July, but the actual ground work is likely to begin this month. She said the center is supposed to open during the 2027-2028 school year, but no actual ground has been broken.
“Students in the community have lost time,” Anderson said. “The price continues to climb and the students who use the facility will be paying its interest for years to come.”
She said the career and technical education center should have been a referendum issue, not a question about increasing taxes.
“This is not a debate about another tax, it’s consequences of decisions, priorities and promises made over the last several years,” Anderson said. “I warned where this road would lead when I sat in one of those seats and I am deeply disappointed we have arrived here so quickly.”
The CTE center, dubbed the Hornet Innovation Center, has been discussed for nearly a decade and is said to offer both educational and economic development opportunities. When completed, the approximately 35,000 square feet building located adjacent to the softball field in the rear of the high school grounds will expand on the school division’s existing CTE programs while freeing up space in the high school for other classes. The center is expected to take into account the school division’s needs including one nursing classroom and lab space; one culinary arts classroom and lab space with a teaching kitchen; two agricultural classrooms and two labs including an outdoor covered work area and a welding lab; a carpentry and masonry classroom with lab scape accommodating both programs and an outdoor covered work area; an HVAC and plumbing classroom with a lab space accommodating both programs with an outdoor covered work area; an electrical classroom with a lab space with an outdoor covered work area; an automotive classroom with an outdoor covered work area and at least two bays; one technical education classroom with a lab space; one cybersecurity lab space; one computer science classroom; one robotics lab space and areas for an administrative office, reception area and teacher work space. Renderings released in April include dedicated space for the culinary program, building trades, metal fabrication and welding, health professions, automotive, cyber security, technical education and more.
Following Anderson’s comments, school board members unanimously approved the division’s capital improvement plan for fiscal year 2027. The plan includes building improvements and infrastructure and equipment replacements totaling $15.97 million, $15 million of which is dedicated to the CTE building.
As far as information being disseminated to the public regarding the sales tax referendum, superintendent Dr. Dan Hornick said the goal is to inform and encourage voters to get educated.
“It’s something you hope all voters do and to participate and make their vote count,” he said.
