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Brandywine School District coping with loss of tax revenue from businesses

Delaware Public Media

Three Delaware companies downsizing or shutting down operations have significantly impacted the Brandywine School District’s budget this year - adding to the urgency of passing its second tax referendum try later this month.

District officials say for FY16 Brandywine has lost a combined $1.4 million in revenue it previously received in property taxes from AstraZeneca, Chemours and Evraz Steel. And they expect these losses to continue into FY17.

 

Brandywine School District Finance committee member Charles Landry says the closing of one of AstraZeneca’s sites was the biggest blow.

 

“When AstraZeneca – just by taking down that one building – cost the school district $1 million a year. Now that doesn’t count taxes that were lost when employees leave the area," Landry said. "Those are losses.”

 

Brandywine CFO Scott Kessel says the district also lost $300,000 from Chemours and $100,000 from the Evraz Steel.

 

Kessel is working with New Castle County to ensure the district receives more notice in the future when local companies start to downsize.

 
These losses are part of the district’s reason for taking its tax referendum to voters a second time May 17th. A first attempt was shot down narrowly in March.

 

But James Butkiewicz, Chair of the University of Delaware’s Department of Economics says Brandywine’s situation may not be as dire when you look at the bigger picture.

 

“JP Morgan has bought part of the AstraZeneca campus and they’re planning on bringing jobs in," Butkiewicz said. "So while the losses in the Brandywine School District certainly are immediate, the longer run prospect may be brighter for the jobs coming in.”

 

JP Morgan Chase estimates it will bring 1,800 jobs to Delaware by 2019. However, Landry and Kessel say Brandywine can’t count on income from those jobs at the moment.

And there are additional worries about AstraZeneca, which has made Delaware home to its U.S. headquarters since 1999. Recent reports suggest it may close its Fairfax headquarters for another location in the state and the company has said it will cut more of its its global workforce by the end of 2017, though it has not indicated if Delaware jobs are at stake.

 
 

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