Recently the editor shared his opinion regarding the three questions on the ballot. The first asks whether the Georgia Constitution should be amended to create a floating statewide homestead exemption that would limit the amount property tax values could increase (HB 581). His opinion suggests a “yes” vote and I agree.
This bill would provide a statewide floating homestead exemption that would limit annual assessment increases on a homesteaded property to the rate of inflation. The annual rate of inflation is based on the consumer price index (CPI) and will be set by the Georgia Department of Revenue.
Fayette County has already voted for a homestead exemption that limits property valuation to three percent. A vote for this amendment would bring other Georgia counties into a level taxation playing field with Fayette. Based on the wording of the bill, Fayette would be provided the benefit of the rate that provides the greater benefit.
The bill also provides for local jurisdictions to create a local option sales tax (LOST) to provide property tax relief. However, the bills retain a limit of two percent for local sales tax initiatives. Right now, Fayette, Clayton and Coweta each have both an ESPLOST and a SPLOST which means each is at the local option limit.
However, the future presents each with options. Clayton currently has a reserve of $400 million in ESPLOST reserves which can only be used for hard assets such as buses books and buildings. Their school tax property tax milage rate is at the maximum.
Fayette is now on its fourth ESPLOST after being one of the last counties to adopt the program. FCBOE built the new Booth Middle school using ESPLOST 3 funds and auxiliary gyms and tennis courts with ESPLOST 4. At the same time, a homestead exemption voted by the taxpayers has limited operational funds resulting in the reduction of seventy positions in 2024.
While there may need to be clarifying legislation, the question at hand should be how can Fayette’s public schools use this legislation to better fund operations?
Fayette already has the homestead exemption now on the ballot for the rest of the state but can FCBOE use the sales tax provisions to fund operations paid for by the community and its guests through a sales tax.
As I get nostalgic for the early days of the ESPLOST committee, the scenario is the same. The community is at a crossroad of how to properly fund the excellent Fayette public schools.
While the amount of the property shielded from school tax due to the senior tax exemption continues to grow, the additional homestead exemption voted in by the taxpayers limits the school revenue to less than the growth rate for benefits and retirement costs, creating an untenable situation. The conversation needs to be how can we instead of why we can’t.
When ESPLOST 4 expires, Fayette should be able to choose to replace it with the same penny, without the ESPLOST restrictions to offset the property tax benefit given to the property owners of Fayette. While I do not believe it was the intention of the authors of this legislation to create opportunities for school systems, the sales tax options provide that opportunity.
This opportunity may need additional clarifying legislation and I have been told by legislators from both Fayette and Coweta that they would be interested in having that conversation. Again, I recommend vote “yes” on question one as a path forward on funding quality education.
[Neil Sullivan is a finance/accounting executive and CPA. He recently moved from Peachtree City to Coweta County. 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.]
Until staff positions stop growing faster than classroom positions and funds follow students rather than fund systems and teacher unions I’m happy to put the squeeze on and force some better priorities.
For four decades the cry had been more money is the answer. It has given us more staff and dumber students.
Neil, will it be difficult to have the ESPLOST regulations modified to eliminate the restrictions? Won’t FCBOE still be handicapped by voters who choose not to support ESPLOST? That’s my prediction. This whole scenario seems like an uphill battle that’s going to become impossible to climb.
Hi Mom
Yes its going to be an up hill climb, but with facts, i beleive it is possible. We are on our 4th ESPLOST other systems are half way through #5. Clayton has $400M in ESPLOST funds but lack operational funds with schools so bad that they are all voucher eligible.
From a campaigning standpoint, it helps that we have two systems that are so different but both would benefit from change.
Meant to say handcuffed but you got my drift
Neil, I understand that retirement and benefit costs are the primary forces driving the increase in school budget. Seniors who have the means should help foot the bill. It seems doubtful legislators will be re-elected running on a platform that doesn’t support all senior positions moving forward. I guess they will have to re-write ESPLOST regulations or my tax bill will continue skyrocketing until I’m eligible for the senior homestead exemption.
Hi Mom: I am not necessarily advocating working around the senior exemption. I think moving some of the burden to the sales tax without raising taxes (Fayette already pays two pennies) is a better plan. School costs are going up faster than inflation primarily due to retirement and benefit costs.
I ma not sure what “big thing” could be in ESPLOST 5 other than polo fields and Elementary school drive thru Starbucks. Thats a way without increasing costs.
Neil, it seems the only way to work around the senior homestead exemption is for legislators to modify the ESPLOST rules. I will be voting “yes” on question 1. What a shame that legislators won’t/can’t amend the senior homestead exemption to reflect the changing times. I believe seniors will be calling the shots at the ballot from this day forward. They are outnumbering the rest of us and have their own priorities.
Mom … US Census stats as of July 1, 2023, for Fayette County are as follows:
Age under 18 = 22.2%
Age 19-64 = 57.1%
Age 65 and over = 20.7%
I’m not sure how your statement of seniors “They are outnumbering the rest of us” is true. The US Census numbers speak the truth.
I’m speaking more broadly. Federal and State legislators are writing the rules. They are increasingly influenced by an ever growing proportion of senior voters who believe they should be exempt from paying taxes for public education.