Local News

September 28, 2012

Board: 73 Georgia schools bankrupt, millage rate to save county

At the final Whitfield County Board of Education public hearing Thursday night to discuss  increasing the system’s property tax rate almost 34 percent, Emitt Tate had a grim prediction.

“We’ll have to go sell our house at the courthouse steps,” Tate said. “You’re putting a gun to our head and asking for our money.”

About 60 people crowded the Whitfield County Schools Central Office to vent their frustrations over the pending property tax hike. There was such an overflow of attendees that extra chairs had to be brought in. Board members explained that the increase is needed for the school system to stave off going broke.

The board plans to raise the property tax rate from 14.756 mills to 19.756 mills to collect $30 million for the $97 million budget it adopted in June, Board Chairman Louis Fordham said. 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

Attendees at the hearing said they were ”distraught” over the tax hike.

“It would be OK to punch someone in the nose,” Whitfield County Tax Commissioner Danny Sane said. “It’s another thing to take a bat to them. I’ve seen record foreclosures and this won’t help. Every day I look into the eyes of people who are very distraught. It haunts me at night.”

Sane said the board should look at a gradual tax rate increase over the next four years to help the community prepare, but the board said it won’t help.

A budget forecast provided by the school system projects bankruptcy if the tax rate is not increased to 19.756 mills this year. School officials said if the local economy does not improve by 2014 then the increase will be enough to keep a fund balance of $1 million, while setting a rate of 18.76 mills until 2014 and then increasing to 19.756 mills will bankrupt the school with a $500,000 deficit.

Any other formula that does not include a 19.756 mill rate this year will add to the deficit, officials said, while no increase would put the system in bankruptcy by next year.

So far 73 school systems in the state have gone bankrupt, Superintendent Danny Hayes said.

“I talked with state Superintendent (John Barge) and asked him what’s going to happen to those schools that are out of money,” said Hayes. “He doesn’t know. No one knows. It’s never happened before.”

Whitfield County resident Gloria Kirkland said the board should stop putting so much money into the local schools.

“I don’t care how much money you pour into these schools, you’re not going to change them,” Kirkland said. “Let (the system) bankrupt. If teachers want to leave, let them.”

Susan Moore, a single mother and former substitute teacher, said the board should look at cuts instead of raising taxes.

“The system has a Literacy Collaborative that costs $830,000 from the general fund,” Moore said. “It’s very expensive. Is the board really looking at alternatives? Is the board exploring real cuts?”

The Literacy Collaborative program aims to improve students’ reading skills in six elementary schools with the highest poverty levels: Antioch, Cedar Ridge, Dawnville, Dug Gap, Eastside and Valley Point. Fordham said it has a proven record.

“We’ve been using that model for eight years,” Fordham said. “We talked through the options with community leaders and it was the best one.”

Brown Gladys said the board and the community should settle for less.

“Do we have to have the Cadillac of schools?” Gladys asked. “Can we settle for a satisfactory school? I don’t think we can afford it.”

The board is expected to vote on the tax increase today. The meeting is at 7 a.m. at the central office.

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