Coweta County School Board opts out of HB581

Last week, the Coweta County School Board elected to “opt out” of the Coweta County citizens’ vote for HB 581 that would have provided homeowners with a homestead exemption that would limit the taxable growth of owner occupied homes to an annual growth factor similar to the consumer price index making the remainder of any growth untaxable in future years.

The board pointed to several factors for their decision, including unknown factors such as future cost growth and possible enrollment growth as well as items know such as previous funding reductions from the State of Georgia known as austerity cuts.  In reality, Coweta public schools are in a better financial state than most, at least partially due to the efforts of the board and administration.

During the four public sessions before the board’s votes there was an overwhelming number of residents speaking against the board opting out of a substantial vote by more than sixty three percent of Coweta’s voters.

At times, the rhetoric and invective from the public was both passionate about not opting out and personal against the administration and board members.

Two days after the board voted to opt out, the board suddenly called an early morning meeting to vote on a proposal for “tax relief,” without any feedback or input from the voters.

The board voted to ask our local legislative delegation for a chance for citizens to vote on:

• a five percent annual cap for both property growth or decrease,
• minor changes to property tax exemptions for seniors,
• removing the maximum property tax millage now set at 20 mils by Georgia State Law
• increase of reserve limit from 15% to 20% on a budget of over $300M
• sunset provision in ten years

While I was first hopeful that the board was making a serious offer of middle ground, further analysis proves otherwise.

While inflation targets are three percent, Coweta County School System (“CWSS”) as well as other school systems have experienced higher percentage increases for personnel increases particularly for healthcare and pension costs for teachers, while this is higher than most hoped, it is not my largest objection.

I have written for years about the financial challenges for the Fayette County schools due to the high amount of property that is exempt from school tax. Coweta offers a certain dollar amount off assessed property value with no tax after seventy-five years old. With the amount of growth in all types of property and no measurable increase in student population. Coweta Schools owe seniors a real tax break like Fayette. It is important to note the small size of Fayette versus the large area in Coweta.

The last two are most concerning, Coweta County school tax millage rate is at 15.41 and is the lowest in the area, there is a lot of room between that number and the max twenty mils (Fayette is at 19.6). Fortunately, CCSS has figured out that it is possible to exceed 20 Mils with permission of the voters. There are counties above 20 mils which was agreed upon in a vote. The board is asking for a blank check without the voters getting to assess any situation where this may be necessary.

Worse, in approximately 2010, Mr., Scott Autensen (who is now the CFO of the Georgia Department of Education) spoke to Fayette County school board and advised them that a ten percent reserve was considered “a reasonable target”. At the time Fayette had no reserves and a reorganization resulted in the 2012 redistricting I mentioned last week and a ten percent reserve.

Coweta already has a fifteen percent reserve on a budget of over three hundred million and that does not count ESPLOST dollars. Growing that reserved to twenty percent would take another fifteen million taxpayer dollars and put them in the bank while many taxpayers are living more hand to mouth with little reserves due to the very same inflation.

Now some say that the board is just seeking flexibility and seeking to build resources for a “rainy day” which appears reasonable except taxpayers are already drowning in economic floodwaters and are being asked to give an unprecedented blank check in exchange for a leaking life raft.

A practical real-world example would be Delta Air Lines raising fares in case fuel goes back up. In that case, the public can decide to fly another carrier, travel some other way, or not travel. Now the representatives of property owners seek to have “flexibility” with the taxpayers only option to sell their property to avoid the tax.

I believe that everybody wants excellent Coweta County Schools and will to work within reason to fund them. Unfortunately, the board and the public have different definitions of reason, and something must give to bridge the differences and find common ground.