In New Jersey, property taxes fund the schools. Therefore, any new residential development is viewed with suspicion: will the tax revenue it generates cover the cost of the new students it brings?
The Rutgers Model
We don't guess. We use the "Rutgers Center for Real Estate Urban Policy" demographic multipliers. This data tells us exactly how many public school children (PSC) to expect based on unit type, size, and rent level.
Key Insight: New luxury apartments (especially 1-bedrooms and 2-bedrooms) generate very few school children. Families with school-age kids typically want single-family homes with backyards, not 4th-floor apartments.
The Revenue Side
A Fiscal Impact Study calculates:
- Municipal Revenue: Property taxes, court fees, construction permit fees.
- Municipal Costs: Police, fire, public works, and general government.
- School Costs: The big one. The cost per pupil varies by district but often exceeds $15,000/year.
The Net Result
For most commercial and industrial projects, the impact is overwhelmingly positive (lots of tax revenue, zero school kids). For residential projects, it's a balancing act. High-density luxury rentals usually break even or are positive. Affordable housing or 3-bedroom townhomes often show a deficit.
Conclusion
A robust Fiscal Impact Study is your shield against the "burden on the school system" argument. It turns emotional opposition into a math problem.