Whitfield school board says state to blame for proposed tax increases

“There is no one on this board who wants to raise taxes,” Whitfield County Board of Education Chairman Louis Fordham said Tuesday during public hearings on a proposed property tax increase.

Board members are talking about raising the tax rate from $14.76 to $19.76 on every $1,000 of assessed property value to collect $30 million for the $97 million budget that was adopted back in June, said Fordham.

The 33.38 percent increase on homes valued at $75,000 would be $110, while the increase on non-homestead property valued at $75,000 would be $150, officials said.

Fordham said state-mandated programs are the main reason the tax hike is being discussed.

“We receive unfunded mandates from the state level,” said Fordham. “Things like teacher retirement, health care insurance and benefits are not controlled by the local board since we are not a private company. We have no say. We can either pay what the state wants us to pay or get in big trouble.”

Fordham said the tax increase is unpopular with property owners but it’s what the school system needs in order to teach 13,526 students this year. Chief Financial Officer Ron Hale agreed.

“We have a $5 million deficit from last year,” Hale said. “That hole has never been filled. You also have to add on $3.5 million in these state mandates and a $3 million loss in revenue from last year. We can not get through this year without the increase.”

Several property owners at the evening hearing said they are concerned about the suddenness of the increase in an already tight economy.

“I find this very frustrating,” said Ned Stevens. “We are slinging more money into education than we ever have in the history of the world and we are not getting a return investment in the working force.”

Joe Yarbrough, executive vice president of operations for Mohawk Industries, said education cannot be cut if the community wants to survive.

“The reality is that the pain we feel stems from a lack of jobs,” he said. “Companies are passing us up because we don’t have the education we need. What will get jobs back is many of the things the board is proposing to help get us back on track.”

Fordham said he understands the community’s frustration and encourages more participation from parents and property owners.

“I know some people are unhappy but raising the rate was expected,” said Fordham. “We did not decide to do this suddenly. We communicated honestly to the community that we need this increase in light of declining state funds. Our job is to make sure your kids get an education. Your job is to keep us accountable.”

Fordham said there have been an average of 2.5 citizens at the board’s meetings this year. There were more than 40 attendees at the Tuesday night hearing, said school officials.

One person who did not identify himself suggested cutting teacher salaries, but Fordham said the state determines salaries and cutting them would only make the system undesirable to new teachers. The state Department of Education reported Whitfield County Schools has the 10th lowest entry-level salary ($34,000) out of 13 Georgia school systems with 5,900 to 20,000 students.

“There is not much we can cut without consequences,” Fordham said. “We could cut supplements, we can close schools and we can eliminate programs but it’s going to start getting personal. We will lose teachers, and the quality of our education system will never be the same.”

“I don’t mind paying school taxes,” said a property owner who did not give his name. “However, I’m worried about our town, especially the older members of the community who are on Social Security. We cannot pay this.”

Fordham said residents have suggested using the Education Special Purpose Local Option Sales Tax (ESPLOST) to help cover costs and lift the financial burden of the community but that is not an option.

“The state limits special taxes like ESPLOST to funding facilities, technology or transportation,” Fordham said. “It cannot go into our general fund, 85 percent of which pays for teachers and staff. Instead we will be using the ESPLOST to get us out of debt, renovations on facilities and buying new technology.”

Whitfield County did not vote on the special tax in 2011, making it one of five counties in the state without ESPLOST funding. The ESPLOST will return on Jan. 1, 2013, but will not impact the property tax rate, officials said.

“If the ESPLOST was not returning for next year we would need to depend on property owners even more,” said Eric Beavers, community and media relations specialist. “The (property tax) tax rate is capped off at $20 (for every $1,000 of property) but it can be raised for purpose of paying off debt.”

Fordham said people in the community have criticized the board members for relying on the tax rate increase to make up for the lack of ESPLOST funding this year.

“We talked about raising the rate before ESPLOST and our records can show it,” said Fordham. “People have been saying the board was upset over not getting the ESPLOST this year so we worked around it by raising property tax. That is not the case.”

Fordham said the community needs to understand the rate can be lowered if needed but until then this is the only way to maintain the quality of education.

“Every child is important,” Fordham said. “When someone says ‘now is not a good time for this tax’ they’re saying now is not a good time for your child. They’re saying your child is not entitled to the same caliber of education.”

Fordham was asked when the rate would go back down. He said it would be difficult to know at this point.

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Whitfield school board says state to blame for proposed tax increases

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