The Clarke County Board of Education voted Feb. 13 to opt out of a new state law capping the amount that homeowners’ property tax assessments can rise.
Under House Bill 581—approved by voters in a November referendum—assessment hikes are capped at the rate of inflation. For example, if a home’s assessed value rose 5% but inflation was 2%, the assessment would increase by 2%.
This has led to concerns that, over time, schools could lose significant amounts of revenue. Property taxes make up 57% of CCSD’s budget, and an analysis by the district found that losses could quickly compound into seven figures. The losses could be recouped by raising the tax rate; however, that would shift the burden onto businesses and renters, and at 18.8 mills CCSD is already near the maximum under state law of 20 mills.
“It’s clear we need to opt out, especially with the current situation with a lot of unknowns, a lot of funding that is not necessarily as guaranteed as it used to be. I think this is the best decision for our students,” school board member Tim Denson said.
Board member Linda Davis called the decision “prudent.” LaKeisha Gantt cited uncertainty about state and federal funding, transportation and health care costs, and the impact of a new private school voucher program. “I think it would put us in a pretty tight position if we opt in,” Gantt said.
Although 62% of voters supported House Bill 581, Heidi Hensley said the referendum was confusing. A majority of speakers at three public hearings held by CCSD opposed opting out, although some seemed not to understand what they had voted for.
“I think we should go along with the voters, and we are not spending a lot of money the way we should,” said Mary Bagby.
The vote was 5–2, with Denson, Davis, Gantt, Hensley and Mumbi Anderson in support of opting out, and Bagby and Mark Evans opposed. Patricia Yager and Nicole Hull were not present.
Evans said he was swayed by a constituent who called him and said she was being taxed out of her home. “$112 for that constituent of mine is money she doesn’t have,” he said, referring to the amount the average homeowner would save.
School districts and local governments have until Mar. 1 to decide if they want to opt out. According to Hooker, 70% of school districts are doing so. “They realize the impact it will have on the schools, maybe not tomorrow, but 10 or 12 years down the road,” he said.
Earlier this month, the Oconee County BOE also voted to opt out of HB 581, reported Lee Becker on his blog Oconee County Observations.
Cities and counties also have an opportunity to opt out by Mar. 1, but the Athens-Clarke County government does not plan to do so, according to Mayor Kelly Girtz, because ACC has a more diverse tax base than CCSD and can better withstand the hit to property tax revenue.
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