3 Middle GA school districts declined homeowner tax break on the same day. What it means

Just days after Bibb County Schools unanimously voted to opt out of legislation that would provide property tax relief to certain homeowners, several school districts in Middle Georgia followed suit on Tuesday.

Houston, Monroe and Twiggs school districts voted to withdrawal from House Bill 581, or the Save Our Homes Act, which aims to limit property tax assessment increases for homeowners with homestead exemptions. The legislation was approved by 63% of Georgia voters during the general election.

Middle Georgia school leaders have expressed concerns that the controversial law could have a significant impact on finances and local education in various ways.

The Houston County School District voted 6-0 to opt out of HB 581 on Tuesday afternoon.

Michelle Morris, HCSD chief financial officer and a supporter of the decision, said the district would have lost over $4 million if the homestead cap was in effect for the 2024 tax year.

“Property taxes help fund part of our teachers’ salaries, as well as support staff salaries and benefits, such as bus drivers, bus monitors, paraprofessionals and custodians,” Morris said. “We do not have additional resources to replace the lost revenue.”

Morris noted that the bill does not have a sunset clause, so the funding cap will keep growing.

The district also highlighted that the value of local property tax assessments directly affects the amount of funding it receives from the state, as boards of education are required by law to pay into the state budget with its local five-mill share.

Five locals addressed the board during the public hearing, with some questioning its financial management.

“I’ve been watching my taxes go up just like everybody else,” Houston County resident Kathy Peterson said, noting an influx of new houses being built in the area. “So, what’s it going to be in five more years?”

Peterson said the district should consider cutting expenses, adding that bills are being introduced in the Georgia Assembly to provide public schools more funding.

Peterson also called for the board to carefully look into the legislation and how it will financially impact its stakeholders, considering that legislators have recently proposed HB 92, which would postpone the date local governments are authorized to opt out of the homestead exemption and repeal conflicting laws.

Board member Jon Nichols protested against the bill and emphasized the board’s ability to use funds wisely and need to maintain local control.

Monroe, Twiggs school districts also opt out

Twiggs County Public Schools voted unanimously to opt out of HB 581 Tuesday evening.

The district said it is opting out because it doesn’t “need Atlanta dictating how it manages property taxes,” because it already has “effective tools in place to protect taxpayers from tax shock,” such as senior citizen tax exemptions and control over the millage rate, according to a TCPS memo.

At a previous public hearing, TCPS Assistant Superintendent James Austin said the bill would reduce the money available for its students, teachers and schools by capping revenue increases with inflation limits.

“It unfairly shifts the financial burden to local taxpayers, potentially requiring millage rate increases to cover funding gaps,” he said.

Board member Chesney Butler said that the district has listened to community concerns, but the board must prioritize its students’ needs given the short time constraint for making a decision.

“This is a 50-year bill. We have an opportunity to go 50 years forward or 50 years backward,” Butler said. “We have to make a decision that’s toward growth in our community and in our county. So, I’m willing to die on this hill.”

The Monroe County School District voted 5-2 to opt out of the bill, discussing its complexities and financial implications.

“As a tax-payer, it’s kind of hard to swallow voting for a tax decrease and then getting told it’s not the best thing,” a resident said at the district’s third and final hearing Tuesday evening.

Board member Greg Head expressed concern about the measure’s impact on the board’s levying authority, as well as the state’s facilitation of the law.

“You got 159 counties and at least three entities per county — your school board, your county commission and your city — they’re all going to decide whether to opt in our opt out. You know how many differences that is? That’s a lot to manage, so it’s going to increase government (involvement),”