Dr. Evan Horton, the Coweta County School Superintendent, has raised concern about the State of Georgia meeting its obligation to fund public education under the Georgia State Constitution. His presentation highlights the fact that Georgia has shorted Coweta schools in earned funds over $100 Million since 2008 due to financial challenges Fayette has also had similar experience, resulting in almost a quarter billion dollars between just these two public school systems.
The legislature first challenged public school systems with “austerity challenges” subtracted from funds earned under the State’s QBE or “Quality Basic Education” formula and later had greater reductions as the State was hit by and recovered from the Recession of 2009. However, as the State recovered and had surplus, it did not re-pay the funds it owed.
Below, Article VIII of the Georgia State Constitution says that public education shall be the primary obligation of the State of Georgia. The State uses a formula called Quality Basic Education or QBE, which is primarily based on the number of students in either elementary, middle, and high school based on set unit costs. However, Dr. Horton correctly identifies that these costs are not regularly updated for inflation which places that burden upon the local district.
A general overview is attached nearby,
While one could abide by a simple algebraic equation that would fit on a post card to fund schools, it is unfortunate that this formula has been over complicated over time and must be reformed.
First, Dr. Horton’s concern about the “Five Mil fair share” illustrate how the legislature attempts to equalize the effects of differing property values across the state by subtracting 5 Mils (percent) of the gross property tax digest from the funds earned under QBE. While I understand the good intentions of this adjustment, the road it paves creates an inequality that disfavors Fayette and Coweta students.
There is a difference of “which” tax digest these five mils are calculated. The State of Georgia uses the “gross” or total digest before “local” homestead exemptions. Local homestead exemptions include those for senior citizens, the 3% School Homestead Fayette voted for in 2020, and now HB 581, which is ironic since the homestead exemption under HB 581 is created under an amendment to the Georgia STATE constitution. So, while the schools use the net digest to compute the school tax, the state deducts a higher “hypothetical” amount as the (not so) “fair share.”
In the case of the excellent and quality Fayette County schools, which has a large senior homeowner population, and the voters elected a three percent limit on property tax valuation growth this has resulted in millions of dollars in less funding each year. In 2024, Coweta was assessed $37.4M for 5 Mils with Fayette at $31.4.
Coweta County Schools have provided an example (attached nearby) that shows the effect of the gross v net on revenue earned from the state with the 5 Mil adjustment. In the example, they implement 581 in 2019 and results in approximately in $17M less revenue with no less students.
Our legislature can go a long way in helping all Georgians by directing the 5 Mil adjustment to the net property tax digest which will recognize both the senior’s property tax homestead exemption and HB 581 without penalizing the success of taxpayers. I thought that was the point of HB 581.
In the eighties there were lawsuits over an earlier funding program “APEG”, the State added an “Educational Equalization Grant.” This is yet another way that Georgia seeks to “level the playing field” with higher and lower property value districts. Coweta last received a grant of approximately $4M before the latest policy change in 2014, while I cannot find any record of Fayette ever receiving this grant.
While funding alone does not drive quality education, it seems the focus on funds versus results may be part of the problem. There was $756M distributed under these equalization grants in 2024 to all but a few GA counties but including both Fayette and Coweta. Nearby Clayton received nearly $57 million dollars with this grant after a $47.4 million 5 Mill adjustment giving nearly ten million additional funds.
While I completely agree with Dr. Horton’s concern about accepting the limitations of property value growth under HB 581, I disagree with any attempt to veto the votes of over 63% of Coweta’s voters in the last general election. Georgia must revisit, revamp and reform not only its funding practices but also seek to make spending more efficient.