Politics & Government
Fairfield Taxpayers, How Much Subsidy Do You Receive or Pay?
Information provided by Bud Morten, a citizen, property owner, and taxpayer dedicated to a well informed and thoughtful debate about Fairfield's future.
Fairfield’s fiscal 2013 budget is $272 million: $123 million for town services (e.g., debt service, police, fire, roads, beaches, parks), and $149 million for operating our schools.
After subtracting commercial and industrial taxes, residents pay ~$90 million for town services, which works out to ~$4,500 for each of the ~20,000 households in town, and since there are ~10,000 students, the cost per student in our schools is ~$15,000.
The average home is valued at ~$650,000 and pays ~$10,600 in taxes, which is obviously less than the cost of even one student, so the 70 percent of households with no children in our schools pay the additional cost. Homes valued at less than ~$300,000 also receive subsidies to cover the full per-household cost of town services. Homes valued at less than ~$1 million with 1 pupil, at less than ~$2 million with 2 pupils, and at less than ~$3 million with 3 pupils do not pay enough taxes to cover the full cost of their children’s education.
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The table below quantifies the subsidies received and paid. For example, a family in a $750,000 home with three pupils receives a subsidy of almost $40,000 from their neighbors, and therefore obtains almost $5 in services for every after-tax dollar it pays in property taxes. The stability of this system rests on the willingness of the 70 percent -- perhaps because they plan to or previously did benefit by sending their own children to our schools -- to continue to pay for more services than they are currently using. Many of these people will leave if the cost of living in Fairfield becomes too high relative to other states and other CT towns, and property values will decline.
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TABLE*
Home Taxes Net Subsidy Received or (Paid) Cost-Benefit Ratio Value Paid Taxes 0 Pupils 1 Pupil 2 Pupils 3 Pupils 0 Pupils 1 Pupil 2 Pupils 3 Pupils 100K $1,636 $1,391 $3,364 $18,364 $33,364 $48,364 3.23 14 24.8 35.59 200K 3,272 2,781 1,228 16,228 31,228 46,228 1.62 7.01 12.41 17.8 300K 4,908 4,172 92 15,092 30,092 45,092 1.08 4.67 8.27 11.86 400K 6,544 5,562 -2,044 12,956 27,956 42,956 0.81 3.51 6.2 8.9 500K 8,180 6,953 -3,680 11,320 26,320 41,320 0.65 2.8 4.96 7.12 750K 12,269 10,429 -7,769 7,231 22,231 37,321 0.43 1.87 3.31 4.75 1 M 16,359 13,905 -11,859 3,141 18,141 33,141 0.32 1.4 2.48 3.56 1.5 M 24,539 20,858 -20,039 -5,039 9,961 24,961 0.22 0.93 1.65 2.37 2 M 32,718 27,810 -28,218 -13,218 1,782 16,782 0.16 0.7 1.24 1.78 3 M 49,077 41,715 -44,577 -29,577 -14,577 423 0.11 0.47 0.83 1.19 4 M 65,436 55,621 -60,936 -45,936 -30,936 -15,936 0.08 0.35 0.62 0.89 5 M 81,795 69,526 -77,295 -62,295 -47,295 -32,295 0.06 0.28 0.5 0.71 6 M 98,154 83,431 -93,654 -78,654 -63,654 -48,654 0.05 0.23 0.41 0.59 8 M 130,872 111,241 -126,372 -111,372 -96,372 -81,372 0.04 0.18 0.31 0.44*Assumes a 15 percent effective tax benefit from property taxes paid, $4,500 per household for Town services, and $15,000 per student.
Paid for by Bud Morten, a citizen, property owner and taxpayer dedicated to a well-informed and thoughtful debate about Fairfield’s future.
