The Data Center in Saline Township Will Not Provide $8 Million a Year to Saline Schools

During its presentation to rezone land for a data center on the western edge of Saline Township, an official from Related Digital said the development would generate $8 million a year for Saline Area Schools.

At Tuesday's Saline Board of Education meeting board Treasurer Tim Austin had a different take. He said while the development would increase revenue for bonds, sinking fund millage, and the CARES millage, it won't have any real impact on the district's general fund and day-to-day operations.

So, who's right?

 The Saline Post reached out to David Arsen, Professor Emeritus of Education Policy and Educational Administration at MSU's College of Education.

After listening to Arsen, it appears Austin is right. Saline Area Schools will not receive $8 million a year.

Arsen said the additional revenue collected in Saline Township goes to the state's school aid fund. And then once the state determines the rate for funding through the state, the amount of money that comes back to the district is reduced. So that Saline tax money will be spread through the state-wide system.

"There really isn't any advantage for additional revenue for local school districts," Arsen said.

Arsen said Michigan assesses 6 mills locally and then local school districts like Saline can assess 18 mills. An expensive, tax-generating property will pour money into the School Aid Fund and into local governments. But if a district collects more taxes, the money it receives from the School Aid Fund is reduced, dollar for dollar.

Where can it benefit local schools? Saline Area Schools would collect additional money for bonds, the sinking fund and CARES fund.

In addition, the Washtenaw ISD will collect more funds, whether it's for operations, which are spread throughout the county, or to fund bond projects. Washtenaw Community College would also see increased revenue.

But Saline Areas Schools will not receive revenue to fund teacher salaries and other general fund costs as a result of data center taxes, as was suggested at Wednesday's meeting by the Related Digital official.

Saline Township would generate much more tax revenue, however. The official estimated the township currently collects $650,000 a year - a number that will quadruple. 

Related Digital wants to rezone about 500 acres - about half of which would be used for the data center.

"250 acres represents about one percent of the land value of the township and it will be paying three-quarters of the tax revenue," he said.

The estimate is $1.6 million a year in revenue for the township. Those estimates are said to include abatements and other tax breaks.

Township residents have also expressed concern about:

• A development using water and draining aquifers.
• Noise.
• Pollution.
• Traffic.
• Nearby property values.
• Impacting the rural atmosphere.

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