In my first column, I took issue with Dr. Steven Owens’ guest editorial in the AJC. In his editorial, Dr. Owens suggested that the funding Clayton students received was not “equitable” when compared to Fayette and by extension Coweta County. [Getting the facts straight on Fayette school funding (https://thecitizen.com/2023/12/31/getting-the-facts-straight-on-fayette-school-funding/)]
He cites an example where “Clayton County schools received $1,245 less per student in state and local funding than neighboring Fayette County, due to the uniquely American policy of tying school funding to local property values.”
In my last analysis, I pointed out that in FY 2023, Clayton had over fifty thousand students whereas Fayette and Coweta added together only come to less than forty-four thousand. In simple terms, Clayton has a denominator issue where the number of students outstrip the available tax base of the third smallest county in Georgia when measured in land mass, not population.
In the budget analysis I presented last time, my research provided prospective to the above facts. When you look at the “capital fund” of the school budget, Clayton is sitting on nearly four hundred million dollars or nearly 60% of one year’s operating budget, Fayette has one hundred two million (33%), and Coweta one hundred three million (31%).
Now these capital funds are typically ESPLOST or other capital revenue funds which are heavily restricted. However, I think its fair to wonder if it is time we reconsider how we restrict funds and why.
In the case of all three school systems, we have purchased new buildings, expanded/ refreshed others, acquired/renewed technology, and bought fleets of buses. Reasonable people may wonder at what point do these capital funds become an entity of their own. Our FCBOE administration is reviewing if we have added “too much” technology.
For years, I have been on these pages and others promoting the necessity of ESPLOST, given that Fayette got its first in 2008, one of the last systems to adopt the program. Now over fifteen years later, we reduced seventy school-based positions due to rising costs, but still have funds to put tennis courts and auxiliary gyms in each of our high schools.
Worse, while Clayton is set to spend almost seven hundred million dollars and has capital reserves nearly four hundred million (added together that’s over a billion dollars), nearly every Clayton student goes to a school where the parents can request a voucher from the state as their schools are on the bottom twenty five percent in all of Georgia.
While the above proves that money alone does not make good schools, it demonstrates that the school system has the cash, but it is not all available.
School boards can do only so much, and we need legislators to help with better and more flexible rules. While the Fayette Board of Education was able to grant themselves a brand-new middle school from the capital funds voted for by the public, it was unable to provide the resources necessary to keep our class sizes low.
The two neighboring systems of Fayette and Clayton discussed by Dr. Owens are dissimilar in so many ways but share the common fact that “helpful” state legislation is causing challenges.
Clayton has the world’s busiest airport and neighbors a NASCAR track with two races a year. The economic impact from those gives them all the capital necessary to build an endless supply of pretty school buildings, filled with teachers who do not have the resources they need to educate students who are failing by the state’s standards.
Fayette has always been near the top of Georgia’s public schools. Many suggest that our smaller neighborhood schools with lower class size contributes to that. Our tax base is limited by a higher senior population who have partial or total school tax exemption. In addition, the property value for school tax is limited to no more than three percent growth due to a homestead exemption the public voted itself after the school board granted themselves a middle school. Now FCBOE is expanding class size due to rising costs and lower revenue.
In this election season, it’s easy to talk about lower taxes, or reckless government spending, but I suggest it is more important to look beyond the slogans or hyperbole for a plan.
In the scrum for a solution, legislators from various branches of government have proposed their solutions and some have enacted pieces or parts without making sure they integrate for a better public-school solution.
More money by itself is not an answer, more tests are certainly not a solution, more disjointed plans are not helpful. In this election season ask for plans, details, and who are they planning to work with to help our schools.
[Neil Sullivan is a finance/accounting executive and CPA. He has lived in Peachtree City over 20 years with his wife Jennifer, a Fayette County History teacher and son Jackson, a student at Erskine College. He has been active in public school related issues in Fayette County, leading three E-SPLOST initiatives as chairman of Fayette Citizens for Children. He has appeared previously on these pages in letters to the editor.]
Neil – please help me out here, I think this is right – Fayette County schools operations budget is approx. $15k per student – is that right?
So a classroom of 20 students has $300k to work with, 25 students would be $375k. Before I get too worked up with this, please confirm that’s the right starting point.
My point is, perhaps they have plenty of money if they spend it wisely & reduce the bureaucracy.
I’m also of the opinion that a major reason we have excellent schools is that we have good, strong families. I’ve noted this before, my partner taught over 15 years (different county, just FYI) & the single biggest thing that determined how difficult/easy/enjoyable/frustrating their year would be was how well behaved the kids were.
I’m fine with changing ESPLOST to let the county spend it as they see fit BTW. Doesn’t seem like it should be tied to only capital improvements.
Are we ignoring fixed and variable costs? Teachers gets paid the same whether there’s one student or 30. The building costs the same whether anybody walks in or not.
Cafeteria food is completely variable. So our classroom supplies. Utilities are semi variable.
Just saying.
Hi Esteban
Its not quite that simple as lower grades get more money from the state, with smaller max class sizes with high school classes getting less. To Hometown’s point, other costs can be scaleable to the school due to size such as ES smaller than HS.
Class size denominator is another variable. All school systems use total class count to get to average class size. This is distracting because for SPEC ED class size can be all of one (Self contained) which adds one to the numerator and the denominator, falsely lowering class size. From what I understand, using 30 for average class size is closer to right in the HS setting.
But to hometown’s other point, The $300k you calculate includes Central Office which is not in the classroom for sure.
n
Thanks, seems like it’s rather difficult to pin this down. Perhaps looking at the budget for a single school would make it doable – how much for administrators & how many, etc. I’m still struggling with the debate about whether we have an underfunding issue given that the #’s are unavailable. C’est la vie.
Need to close the non profit loophole. We have hospitals, cancer centers, and large church schools across the region selling services worth hundreds of millions of dollars annually who pay zero property tax on hundreds of million in property. Yet consume govt services for free. Their employees buy homes which they pay taxes on, but that revenue covers the services consumed by the personal home not the $200m hospital bldg they work for
The burden on priority owners across the state is getting very heavy as inflation roars.
Don’t know if I agree Jacketman. Where I think we can agree is using something where they may be a NGO tax on revenue where Revenues exceed disbursements. But taking money from NGO in taxes to fund the government is not ok with me.
This is one of my concerns with “affordable housing”. I worked for both the Atlanta Housing Authority and Mobile ( AL ) Housing Board. Neither of which added to the local school boards, but sent many children.
I think nonprofit organizations (including churches) should pay taxes on revenue as well as property. Same thing for domestic NGOs. International NGOs get a free ride, as far as I am concerned.
Affordable housing property valuations less than free market property valuations will negatively impact property tax funding of schools.
Curious – why would international NGO’s get a free ride?
Neil, I’ve done a little research and reflected some more on your proposal. Rather than asking our legislators for more flexibility with ESPLOST, perhaps we should be asking them to cancel some of the various property tax homestead exemptions. Specifically, the senior exemption should be reevaluated. Seniors who choose to live in our vibrant community should be contributing financially to our public schools.
Hi Mom
We disagree. I think the homestead bus is coming down the road and can’t be stopped. Many businesses have to plan with a limit to cost growth. Its unfortunate that the administration seems to think that voters will reverse the homestead exemption if FCBOE continues to cut schools due to “lack of funding”.
If another ESPLOST is passed, total capital ( funded by ESPLOST) will cross a BILLION dollars. After the tennis courts and auxiliary gyms, the only things left are polo fields and Starbucks kiosks. The $46 Million diverted to new Booth Middle that was not disclosed in ESPLOST 3 before the vote is a shining example of why we must restrain the beast of capital spending.
I used to agree with you on the homestead. Fayette has always respected the senior total and partial property tax exemptions which reflect how much taxes a person pays in school tax after or if ever, their children have left the schools.
Our lack of commercial and industrial tax base is a bigger and more immediate issue.
We’ve been promised untold governmental wealth from the QTS Datacenter, at the expense of the unfortunately homeowners along the path of their power cord. This may be the needed commercial base needed, we’ll see if it ever comes to fruition.
I understand Georgia offers a school property tax exemption for homeowners age 62 or older whose household income is $10,000 or less (excluding certain retirement income). I can’t help but wonder if Fayette County provides a more generous exemption for seniors? If so, we need to address that issue. I also understand ESPLOST can only be used to pay for capital projects or to retire debt. I’m in favor of ESPLOST as a solution to funding any and all capital projects voters support. Student teacher ratios should be managed by FCBOE. We need fewer administrators and more teachers to serve our students.
Perhaps instead of worrying about senior tax exemptions a school tax multiplier based on the number of children in the property, since school costs are proportional to the number of children in them. Why should residents have to pay for transient school users staying long enough to get their children through a high ranked school district then moving on.
This is important as the mayors keep trying to add dense multi-unit housing. The school tax generated must cover the students added.
I’m going to double down on my position re: senior property tax exemptions. Our property values are intrinsically tied to Fayette County public schools’ solid reputation. We have a growing number of seniors. Their home values have substantially increased in recent years in large part because of supply and demand. Younger families with school age children who want to relocate to our community are waiting for these homes to come on the market. Our public schools depend on tax revenue. You can’t have it both ways. I am surrounded by many delightful seniors in my large subdivision. They’re occupying expensive properties that would be grabbed up in 24 hours by eager buyers. Seniors are an invaluable asset to our vibrant community. They make for wonderful neighbors. I believe seniors should not be exempt from paying school taxes.
I agree seniors should not have school property tax exemptions. However, if governments provide school vouchers for non-public education, I am willing to accept my exemption. I don’t think senior exemptions are going away anytime, soon.
Because most seniors are on pensions and other fixed incomes that are NOT tied to home values in the cost-of-living adjustments, why should they be priced out of their retirement home because of rising school taxes for which they have no children enrolled.
This is a classic case of gentrification. Seniors don’t use school services, and most have contributed throughout their working career, only to find themselves faced with rising taxes on a fixed income. Forty years of paying school taxes should be enough. If seniors were to be faced with having to pay full school taxes, it would behoove them to demand school boards to reduce their budgets to something because they don’t use to something more manageable for someone on a budget. It’s the hogs and sows at the trough demanding caviar and want someone else to pay their extravagant tab. It’s like going out to eat in a group, and the person that orders the most expensive items on the menu including drinks appetizers and dessert, is the person that suggests that they divide the bill equally, rather than by what costs they contributed.
Your argument reeks of entitlement. Why should any of us pay taxes towards education? It is an investment in the future of our nation. Seniors are benefiting from social security. Should today’s workers stop paying into social security because it will be insolvent when they retire? You can’t have your cake and eat it.
I’m not the one feeling entitled to have my kids educated on somebody else’s dime. If you want to charge school taxes as a function of consumption taxes (sales) or income, fine. But basing it on the value of non-income producing (homesteads) housing values preys on those who have retired and are on limited incomes.
As for social security most people will never get back what they have invested in social security. If I was given an option to cash out, I would have done it. Again, this is another redistribution of money.
For those about to retire, print your annual contributions to SS then go back use the US EE savings bond calculator to determine todays value of what the contributions to your social security come to had they invested your FICA into EE Savings BONDS. Don’t forget to double it, because your employer also contributed the same amount (or more). For me, I’d have a lump sum of over 1 million dollars. Earning a 5 percent return on investment you’d have $50k a year without touching the principle at full retirement age, just the interest. Way more than what social security is paying. At the highest contribution levels at full retirement age ($38,000). What has depleted the Social Security coffers is the SSI program.
The fact that you don’t mind paying school property taxes through your old age suggest you really don’t plan on retiring here, so if it reduces YOUR property taxes now, you’d rather stick it to us on fixed incomes to share your burden. Based on the budget, it looks like it costs about $12.5K/year per student in FC schools which is more than U of GA tuition.
Lulu – This isn’t an argument, but rather a question of how revamping Social Security would work, especially for workers who are under median income. It seems that many Americans save little or nothing for retirement, some even refusing to open accounts to take advantage of matches by their employers. Many others raid their accounts on rainy days even though they must pay the 10% early withdrawal penalty. Apparently, a good number of Americans don’t think seriously about their future selves.
Would your revamping include government requirements that people save 6.2% of their income in an investment instrument? Would the employer be required to match this or somehow pass it on in salary or direct deposit into the instrument? Or perhaps, the employer would not be involved at all. Would there be strict rules so that the money could not be taken early under any circumstances? Would there be rules about how the money may be taken when the person reached retirement age (e.g., monthly payment, lump sums, etc.)?
Since Social Security is also a disability program, would people have to buy their own disability insurance? Would the government take care of this? Would it just be tough luck if someone became disabled? Also, since divorced spouses now can earn off their previous spouse’s earnings, would they be out of luck if their more wealthy partner left them?
Or maybe your position is that the government has no role whatsoever in retirement decisions and people can save or not and live with the consequences of either choice.
Again, I’m not criticizing you, but I am interested in how a change might work for people not financially savvy and not particularly forward thinking.
STF, unfortunately I share your concern that many people don’t worry about their retirement, thinking that the government will take care of them regardless. This has somewhat necessitates forcing people to have some kind of retirement plan in lieu of holding them accountable for their decisions.
The point I was trying to make and contrary to Mom’s assertion: Social Security isn’t an entitlement, as it was mandated by congress under the FDR’s New Deal. People are forced to contribution into a trust fund over their lifetime, with benefits based on your prior contributions and years worked. Wanting your children educated at the expense of others is an entitlement with steak and caviar on the side.
As for the disability insurance, that didn’t come about until 1957 under Eisenhower, and represents about 15% of your contributions to the Old Age, Survivors and Disability Insurance. (12.2 cents per dollar is 10.4 to OA and S, and 1.8 to DI). Yes, half of that is paid by your employer. These go into separate trusts. The DI appears to be solvent, but the OA & S, is at risk. Those born after 1943-1954 full retirement age was moved to 66, and between 1955 – 1960 was raised to 67 incrementally by 2 months per year. Due to apparent mismanagement of the OAS Trust, since 2010 the trust can no longer pays claims based on the interest earned and has started drawing on the principle.
I’m not an actuary, but I’m suspecting the trust was putting money in lower paying US bonds to help with the deficit at the expense of the Trust. Robbing Peter to Pay Paul so to speak, and so now the trust needs a massive influx of wage earners to match the receipts. The workforce labor market has not recovered from Covid as many decided to retire early, so we have more people drawing, and less people contributing. I believe raising the full retirement age is appropriate for new people coming into the system, as average lifespans are passing 80 for men and 85 for women, meaning they will have to draw money longer from the system. The other choice is to continue to raise OAS as lifespans continue to rise. The third and more unpopular option is to spread the money over the longer time by reduced payouts, perhaps by limiting COLA adjustments until back in line.
I’m not real happy having the feds manage retirement, especially if the elected (congress and president) can legislate changes to benefits, and or rob from the trust fund. I would have rather seen the option to contribute a private funds with like regulations when it was created, but I don’t see a way to get there from here now that it is in place. We should however minimize congressional meddling with benefits or buying votes with them.
As to school taxes, the purpose of providing exemptions to seniors is apparent when looking at the median income levels by age here in Fayette County.
Under 25 – $59,153.00
25 to 44 – $98,162.00
45 to 64 – $126,727.00
65 and over $69,789.00
The 25 – 44 age group covers most of the population with kids in schools, and the 65 and over are not likely to contribute to a drain on the educational system. Note: the median income for the 25 – 44 is 45% higher than the group Mom wants to eliminate the school tax exemption from.
I think you are correct that Social Security is too entrenched to change it significantly. Like you, I consider it mostly a ponzi scheme that pays out old investors through the contributions of new investors without securing any future.
If the seniors move out those young families who relocate to our vibrant community will add more kids to the schools, worsening the critical underfunding problem. We’re better off keeping the seniors who don’t fill up the schools.
Esteban, you have a valid point. Maybe it’s a catch-22. I just figured if I’m paying $10K in property taxes my senior neighbors should pay the same or let young families move in who will. You’re challenging me to reconsider my position. I don’t know what the answer is. I wonder how long we can continue on this course. It’s not sustainable. I don’t blame seniors for not wanting to pay school taxes. The future of public education is in jeopardy.
Hey Bill.
Alabama uses sales tax for schools and have low property taxes (in most places). One would think that property taxes may be offset if we use some ESPLOST $.
Many finance professionals would maintain a 5 year CAPEX plan so that we know what schools need which maintenance. SO we can make sure we have the $$ for what we need.
In Vietnan, there is a popular saying regarding the role of government: “The king’s order stops at the village’s gate”. I think we all agree that the State of Georgia doesn’t give a rat’s ass about public education. Since 2008, the State of Georgia has only fully funded public education 3 times. This leaves counties to carry all of the water, necessary to support public education. Counties should be able to do, whatever is necessary to provide the most effective and efficient education and to achieve this, Counties must be able to develop and utilize funding mechanisms, like ESPLOTS, to fund all aspects of education (personnel, materiel, supplies, equipment, facilities, etc.). And we need to stop comparing counties. How Clayton County decides to fund education is for the voters for Clayton County to decide. The same goes for Fayette County or Coweta County.
there goes gplanman again, off topic with his predictable GDOE doesn’t care, GA is a “low tax, low service, stupid” state he chooses to live in, even though GA schools are the best funded in the South East. Broken record
You may say “GA schools are best funded in the South East,” but the current “U.S. News and World Report” shows Florida is ranked number one in public education (Pre-K-12 and higher education). If what you say is true, Georgia can probably do better managing the funding. I like Mr. Sullivan’s thoughts on freeing the E-SPLOST funds to provide for the best possible public education outcomes.
agreed
Doug: as I am married to a Floridian, Florida is the southernmost northern state.
The argument presented over and over, “if we don’t pass ESPLOST, FCBOE will just take the money “needed” for facility projects from the general fund at the expense of teacher : student ratio. If that is indeed correct, we have a very serious problem with our board members.
TCHR1
We can still fund capital projects with part of the ESPLOST. However, we cut $7M (ball park) from the operations budget but hope to collect over $40M for capital?
We have caught up on deferred maintenance and now are doing projects that some say are nice to have, but aren’t necessary for the mission
“We cut $7M (ball park) from the operations budget but hope to collect over $40M for capital.” As absurd as this is, I am more interested in what FCBOE continues to prioritize spending on instead of maintaining smaller class sizes.
Back to your earlier article(s) on where cuts are occurring, priority should go to general homeroom teachers for the sole purpose of maintaining favorable student/teacher ratio. Instead there seems to be no shortage of money for PL instructors, curriculum specialists, collaborative planning days requiring substitute teachers, fancy assessment software licenses, elaborate student leadership programs, etc., all costing a lot of money. Were the instructional coaching positions eliminated? I hope! All of this while many, if not all, K-5 teachers are required to limit student screen time in favor of more traditional instructional methods with access to ONLY one copier and limited copies.
“We cut $7M (ball park) from the operations budget but hope to collect over $40M for capital.” As absurd as this is, I am more interested in what FCBOE continues to prioritize spending on instead of maintaining smaller class sizes.
Back to your earlier article(s) on where cuts are occurring, priority should go to general classroom teachers for the sole purpose of maintaining favorable student/teacher ratio. Instead there seems to be no shortage of money for PL instructors, curriculum specialists, collaborative planning days requiring substitute teachers, fancy assessment software licenses, elaborate student leadership programs, etc., all costing a lot of money. Were the instructional coaching positions eliminated? I hope! All of this while many, if not all, K-5 teachers are required to limit student screen time in favor of more traditional instructional methods with access to ONLY one copier and limited copies.
Neil – very thoughtful ideas. A couple of questions about the impact of using a funding source like ESPLOST for on-going operational expenses.
Tchr1’s vow not to support ESPLOST is an example of what might happen. While it unlocks funding for the short-term operating budget, what happens when the operating budget depends on ESPLOST but it is not renewed?
Also, what does your proposal mean for large one-time capital needs if ESPLOST is diverted to day to day expenses? That may be a positive if classroom expenses are prioritized over, for example, a new tennis court, but might it also mean necessary capital programs don’t get done?
Cheers
Bravo Neal! Bullseye! Until the powers that be get this straightened, I absolutely will not support another ESPLOST. Fayette County has more resources than most, resources only money can buy. Now these resources are dumped into classrooms with more students; teachers are expected to implement all the latest and greatest. In other words, Fayette County Schools gives it’s teachers excessive homework! It’s a recipe for apathy and low morale.
I agree with dumping all the latest and greatest on teachers. I also don’t think that’s all FCBOE is dumping on teachers.