ML19329F625

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Discusses Financial,Ethical & Educational Aspects of Plant Site in School District.Plant Will Benefit Area W/Proper Environ & Safety Protections
ML19329F625
Person / Time
Site: Midland
Issue date: 02/08/1972
From: Owen G
MIDLAND, MI
To:
US ATOMIC ENERGY COMMISSION (AEC)
Shared Package
ML19329F616 List:
References
NUDOCS 8007030413
Download: ML19329F625 (3)
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Attention: Director of the Division of Radiological and Environmental Protection

Dear Sir:

h:. you;cre unare, the qtiestion of whether the Consumcrs Power Company of 1.*ichir;an will be permitted to build u..uclear power plant in Midland, Michigan han bern undet discussion for a n:uribcr of months before a hearing board of the i

I.ioraic Ercitrf Co:r. mission. One of the questions which has been raised is the isq act on th*' public cchool system of the construction and operatica of this plant, j N

The *:lic on which this pit.nl is to be built is within the School District of the City of :/.idland. In order to give you some information about the financial aspect:. of thin projcct to this school system, may I ask you to consider the

-fo' lowing:

The prenent stato equalized evaluation of all property in the 4

h*idland school district is $387.,000,000. The projected cost of the nuc! car poner ;>lant has ranged from $400,000,000 to

$500,000,000. Assuming that the actual cost is the lower of these two figures and that the stato equalized valuation of the plant, in caccrdcncc with the Michigan co.:stitution which re-quiren this valuation to bo 50% of the cost, is $200l000,000.

It is cicar, then, that the valuation of the school district will be ra :.ed by appio;;iniately one-half.when this plant is completed.

The present rate of property tax levy in the Midland school dis-trict is 30.~/5 mills. If the state equalized valuation of the district is increaned b'/ 50%, then the tax rate can be decreased to 20 mills with the same production of funds to support cducation.

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ur.r:r..ployn:.:.:t rate here is well above the national average. It seems cicar t

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c.n Jr. inu crea can become t rn con.pcLH ive if the tx:es ti.u: cro rcquirsd to pay to support nchoolc are decruased.

Du:ing the pact soveral year.s, 611 of the school disincts In' Midiond County have it :t a c<iing to discuss the ethical L..d educationn! implications of the 8:v.ol lurtnct of li. Cp.y of Midland recoJving the revenue from such a val Oblo picco ei p.opcrty. Tnere is universai agreement thia a way should Iw iound to distr,:mtn.the educatior.pl valuen of this twenue araong all of these st hool dicitiets. Consequently, in cooperation vnth the 13ureau of I

!k hool !;crvices 'of the University of Michigan, a new nicthod of organization of :ht :,chon) dis.cicts in the cos.nty has been developc.d. This method of or -

gr.nization is called a federated district and is similcr to the concept of organi-

mtion of school districts in operation in Montreal, Toronto, and other Canadian g

citics. To organi: o in this way will require permissive legislation at the state Irivel. There seems to be universal agreement that such legislation will not bc I

h.rd to obtain, because it providos a method for a r. umber of school districts to share in the taxec generated by a large physical plant.

The educntional leadcrs in this county have delayed proceeding any further wi'h this approach to school district organization for two reasons. The first of these two reccons is the uncertainty as to whether the nuclear power plant will, in fact, be built. The second reason is that the present discussion on the n.ethod of financin; public schools in Michigan indicatcc that the system of local poport'/ to:: coupled with state aid may be modified in the next year or two. Depccding o the directions which this modification takes, the tax

. revenue from the nuclear power plant in Midland would either be distributed among all of the school districts in the county, in occcrdance with the study ur.: c:Luken by local educational leaders, or would bc (iistributed to all school

' districts in the state. Either way there would be a mLjor benciit to cducation-in Michigan.

Other questions have boon raised about the capacity of the Midland school dis-1:Ict to absorb the children who would como to this area with their families during the construction phase of the project's development. This absorption can probabl/ tahn place with rio major difficulty, cinco dc.clining birth rates in the past few years and the exodus of families from the area as a result of the economic recession have given the Midland Public Schools some excess capacity. 1:stimatcc of the nun.ber of children who would come to the area as a result of construction activitics place this number within the available capa-city of the school system. The permanent increase in students beyond the construction phase is not anticipated to be great since the operation of the plant will :ut.:.e... ire inat much manpo.mr.

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it ' p. e., s :.i itT c! :;iD:1 ill I!s(, co;r.:r,0;;jly CAD UO anticij:DtCd. The toini c% tent t l i s t i:. (..

s'.'.J::<! it; [njn:}iJiica oVt;l the nont decado or (Vlo iS difi!cu't to si !! l'ecO:ii<.s substadtlal, then there v.ill be a considerable 8::t....m.

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v :, ou n of m u.-t d sc.iool c;.; icity in this nchco) district. At the present 1it..e, ' ' o / O.' (t: aboill 13,000 :;tttdent c carol]cd j;) the MidJund schools, and tiie : hool d <:trict cau].i ebr.r.:b cnother 500 to 1,000 students without further bui hiims. ::.'c:a a dec}ine world, of course, be unfor.unate be:cause of tl c ca::1.h:< of edt.ci. ion which th:; Midland school system has been able to provide.

Prr,.. :h. ;. air.: of vii w of 1:nire of un working in public education in this area, only h nef r.: c,t.n accrue to the arca as a result of the construction of the nut.) :ir ; ovecr plant. It fu my hope that the determination of the nec'escary

( n i;...nn.cr.tcl.;ad cafcty 1,rotections can be expedited so thct the work on th.<. plant can :.mvc fc:vcard.

Sir.myjy,

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