Growth Policy Affects Property Taxes

Growth Policy, School System and Board of Commissioners

My previous editorial attacked property taxes for the school system. Some folks took it personally; some misunderstood the focus was on taxation! I referred only to “school system executives,” the county commission and long term management planning. We elect the School Board and Commissioners as executives to manage and figure out tough problems. Now we must ask them for serious action to maintain quality education while controlling property taxes. Even if Governor Perdue loosens some state money it will not replace the shortfall.

My original complaint stands: The School Board has never insisted the County Commissioners slow the growth. They have explained that Henry spends less per student ($6,571, up from $6,177 in 2004) than other school systems. Reductions in state funding have reached $16.4 million in four years. And we pay 19.4 mils property tax for the Maintenance & Operations budget, fourth highest among sixteen metro counties.

Fulton County, highest in spending $8,599 per student with M&O millage rate of 17.3, has a larger population (estimate of 904,801) and tax digest. Henry cannot be expected to “meet the average of $7,321” with these odds stacked against us. Our individual property tax burden would be devastating. Increasing per student spending by $1,000 would require another $32 million! Besides, we have seen that Fulton’s higher per student spending does not produce exemplary educational results. Meeting or exceeding averages should not be the objective.

Henry has the fastest 2005 metro growth, adding 10,700 people according to the ARC. The average growth in our school system is 8.5 percent over the last ten years. Our 35 schools and 32,128 students will continue to increase. The two primary funding sources for new school construction are SPLOST and bonds, with less than 20% of capital funding coming from the state. We are told the system cannot generate sufficient revenue from those sources to build schools faster than they are now being built.

We are in a vicious cycle. We need new schools. The School Board buys land in rural areas and extends the sewer. The Board of Commissioners is then obligated to pave the road, typically pulling funds from other projects. Once sewer and a paved road come, developers can build 2 1/2 times the number of homes. They build the homes, and then we need more schools. The School Board has repeatedly advised the Commissioners that “Continued residential development will further impede the ability to house all students in permanent classrooms.” Everyone knows why we have over 8,000 students in trailers!

During 2004-2005 the County issued over 5,500 new residential building permits. Population growth in our four cities is another huge factor: McDonough alone doubled its population and doubled residential dwellings in just five years. That 15-percent annual increase far exceeds the 6-percent average increase in our other cities. The County allows a maximum 2.5 houses per acre, and home value must meet $280,000 for property taxes to meet costs for provided services. New houses in unincorporated areas now sell, on average, at $300-$400,000. In the cities starting prices are in the low $100s. Obviously, annexation and density of 3–10 houses per acre seriously compound the problem. Dependence on residential property taxes drives county and city revenues, but it also drives the vicious cycle.

Influences on growth come from our cities, where slow-growth advocates were recently elected in McDonough and Hampton. The Board of Education must continue budget-reducing strategies. The Water & Sewer Authority Board and Development Authority are directed by the Commissioners through appointed members. The One Henry initiative is in place. We must ask the County Commission for continued decisive action. The need is great; the opportunity is now.

One School Board member said, “I hope someone can find an answer to the overpopulation problem. It's not too late to manage what we have.” An example is Woodland School where sewer will be extended. That choice reduced costs, and they will pick-up Pleasant Grove on sewer and eliminate that septic system. Already developers are lining up to submit zoning requests for the higher density allowed with the sewer. Only the Commissioners can change the expectation that sewer availability guarantees higher density development.

The old argument that “schools cannot be used as a restrictive factor in zoning decisions” is false! Local adoption of state law OCGA 36-67-3 (written for counties with larger population) would place priority on “whether the zoning proposal will result in a use which will or could cause an excessive or burdensome use of existing streets, transportation facilities, utilities, or schools.” Failure to adopt and enforce this provision has held the floodgates open.

The Board of Commissioners, as the county governing authority, must provide leadership. An official said, “I am not an anti-growth person in any manner and I am proud of our continued growth and prosperity, but the infrastructure needs to be in place or closely following in order for growth to continue to be viewed as a positive to the quality of life of our citizens.”

Larry Stanley
McDonough, GA
January 2, 2006

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