Licking County superintendents get more time to prepare after Intel, Microsoft delays

NEW ALBANY, Ohio (WCMH) -- Local leaders told NBC4 they worried major construction delays in Licking County could complicate revenue for school districts, but superintendents are taking new timelines in stride.

Microsoft's $1 billion data center investments were paused last week, not long after Intel's $28 billion Ohio One project was delayed again in February. Microsoft was set to build data centers in Heath, Hebron and New Albany, receiving various incentives, including property tax breaks.

The Heath and Hebron centers were within the boundaries of Lakewood schools. Microsoft said it intends to follow through on its infrastructure investments in the Lakewood School District but will ultimately repurpose the land for farming. The New Albany development, which Microsoft delayed rather than canceled, joins Intel Ohio One in falling within Johnstown-Monroe Local Schools' district.

Johnstown-Monroe Superintendent Philip Wagner said fiscal complications with Intel delays or Microsoft pauses are less impactful than one might think. As the area prepares for growth, enrollment numbers have remained relatively steady, so the revenue development would provide is not yet needed.

"What will drive the need for increased revenue is more housing, or more students in the school district, more residents, and we haven't really seen a significant increase in that so far," Wagner said.

Lakewood administrators agreed, and both Lakewood’s treasurer and Board President said the Microsoft delays would not complicate their district's tax revenue. Still, Lakewood Superintendent Scott Coffey said the delay was “disappointing.”

"We were and are definitely looking forward to a productive partnership with Microsoft and all entities who are choosing Lakewood as their home," Coffey said. "Microsoft has a stellar reputation for partnering with schools, and the adjusted timeline will simply defer the potential benefits of that partnership.”

In April 2024, Microsoft said local tax revenue was one way the company would give back to Ohio communities. Ohio school districts rely heavily on property tax revenue, but both Intel and Microsoft received property tax breaks from New Albany. Microsoft owes nothing in property taxes for 15 years, and Intel has a 30 year property tax break on its buildings, although it is still responsible for the land.

To offset these breaks, Wagner said most of the money schools would receive from Intel or Microsoft would come from income tax funds. These payouts have been minimal so far, as Wagner said there have not been many new employees. However, Wagner said steady enrollment has given them more freedom to wait for payouts.

"The change is for us is more transient behavior. We have more students coming in and out of the school district than any time in our recent history," Wagner said. "Our overall enrollment is staying the same, generally, but we've seen houses turn over and much faster, and some of it's related to the demolition of existing homes to make way for economic development projects."

Within Johnstown-Monroe district boundaries, more than 100 homes have been demolished to make way for development. Wagner said the district receives a small sum of money from real estate transfers, which offsets possible property tax losses from home demolitions.

Wagner said timeline delays offer more time for districts to prepare for increased enrollment. Johnstown-Monroe is investing in new construction, including a six-classroom addition at Johnstown High School set to open this summer. Currently enrolling around 1,680 students, Wagner said if enrollment reaches projected levels, the district could increase capacity to nearly 4,600 by constructing two new school buildings.

"We're taking any of these delays or pauses as an opportunity to continue our planning and to prepare," Wagner said. "So in some respects, that's been a gift for us. A gift of time."