Post-Labor Day School Start Means Millions To MD Economy: Report

ANNAPOLIS, MD — Even as school boards across Maryland consider whether to start school next year before Labor Day, a new study on the economic impact of beginning classes after the holiday says it's a boon to the state's economy. Starting school after Labor Day has an economic impact of up to $115 million, according to a new analysis from the Business Economic and Community Outreach Network at Salisbury University.

In 2016, Gov. Larry Hogan issued an executive order that schools had to wait until after Labor Day to start classes, citing the boost it would give tourism, plus polls that said residents preferred a later start. But several school districts strenuously objected to the change. When members of the Montgomery County Board of Education sent Hogan a letter asking him to take another look at his executive order, the governor called them "whiny."

In March 2019, Maryland legislators passed a law that said school districts may again start the school year before Labor Day, then overturned a veto by Hogan.

The governor criticized the legislation, which he said "unravels years of bipartisan work and study."

The Salisbury University report's findings are similar to a study done by the Maryland Bureau of Revenue Estimates in 2013, which forecast an increase in state and local tax revenues and wages resulting from a Post-Labor Day school start date, said a release from Comptroller Peter Franchot's office.

“This independent analysis validates what we already know: starting school after Labor Day is good for Maryland families, good for our local businesses and good for the Maryland economy,” said Comptroller Peter Franchot. “At a time when the state is considering new sources of revenue for our public schools, this adds millions of dollars to our state’s coffers, all while supporting great family-owned, small businesses and sustaining summer employment.”

The report, entitled “The Economic, Employment and Fiscal Impacts Of Added Summer Vacation Days Attributable To Post-Labor Day Opening of Maryland’s Public K-12 Schools,” says about $58 million in revenue comes from six additional days of summer vacation and nearly $115 million for 12 extra days, depending upon when Labor Day falls on the calendar each year.

Additionally, the report estimates additional wages earned by workers to be between $2.875 million and $5.75 million during the final days of summer with local and state government revenues increasing between $8 million and $16 million, also depending upon the timing of Labor Day.

“Tourism is one of our state’s most important economic engines and is especially critical to areas like my hometown of Baltimore City, where the tourism industry is an even more significant employer and source of local revenue,” said Michael Haynie, a hotel management consultant, former chairman of the Maryland Tourism Coalition, in a news release. “The extended summer also means more employment opportunities for our city’s youth before heading back to the classroom, providing much-needed family income and experience in a major job sector.”

Ocean City Mayor Rick Meehan said schools in Worcester County have had a post-Labor Day start date for years and students thrive.

“A post-Labor Day school start benefits all Marylanders,” said Meehan said.

Tourism is the state’s 10th largest employment industry, supporting more than 200,000 jobs and producing over $15 billion, which represents four percent of the state’s total economy.

The nonpartisan task force, created by the Maryland General Assembly and appointed by then-Governor Martin O’Malley, recommended a post-Labor Day start by a vote of 12 to 3 in May 2014.

Franchot's office said more than 24,000 Marylanders signed the “Let Summer Be Summer” petition in 2016 in support of a later start date, which helps rural Marylanders to participate in the Maryland State Fair before Labor Day each year.