The Daily Citizen, Dalton, GA

Local News

September 3, 2010

Dalton Public Schools: Tax increase hearings draw objections

Two public hearings on Thursday on the proposal to raise Dalton Public Schools’ property tax rate drew about 55 people, with 11 speakers, but no one who voiced approval.

At the noon hearing, six people addressed the five members of the Dalton Board of Education, one at a time, each allowed up to five minutes to talk.

Mayor David Pennington finished to applause after he said the city has priced itself out of the market as an economical place for property owners to live. He urged the board members to reconsider their proposal to raise the tax rate from 7.845 mills to 8.134 mills. They hope to generate another $1 million to cover a portion of the $17 million they’ve lost from state revenue since 2003 and the $2.6 million lost in local property tax revenue since last year.

“We sympathize with the city school board’s problems, the county school board’s problems, all governments’ problems, but we also sympathize with all the people who have to pay those taxes,” Pennington said. “The cost of living in a community — basically the price for our product — is the millage rate. The city of Dalton’s millage rate is the highest in Northwest Georgia by far. There’s nobody even close.”

Pennington said the city taxes that property owners pay are at 100 percent of their property’s value while almost every other taxing entity in Georgia taxes only 40 percent of the value.

“The price to live inside the city of Dalton versus outside the city of Dalton in Whitfield County is about 60 percent higher than it would be for the same house ... It’s about 35 percent higher than what it is in Gordon County and about 40 percent higher than what it is in Catoosa County.”

None of the individuals speaking at the hearings said they currently have children in the school system. Throughout the hearings, the common theme from the speakers was that now is not the right time to raise taxes.

Pete Gunn said he travels across Georgia for his job with a repossession company and witnesses firsthand people who are struggling to make ends meet.

“I just don’t think it’s appropriate at this time to place another burden on the taxpayers,” Gunn said.

Phil Neff, a Dalton businessman who employs 47, said he recently stopped giving himself a salary because he is struggling to keep his company afloat. He said he doesn’t want taxes to go up for himself or his employees.

“I’m in a survival mode,” he said. “... It is not the right time to be imposing any type of a tax increase.”

Larry Underwood said this month he is going from a salary of about $40,000 a year to having to live on Social Security, “which is not very much.”

“I’m probably in better shape than some people (but not as good a shape as others),” he said. “I don’t think this time — with what I understand about the school district — is the time to increase taxes.”

Marshall Mauldin said he is concerned that the local property tax base will decrease even more when appraisers look at commercial values again next year.

“I think you’ve really got to take a long-term approach to this,” he said.

Vann Roberts said college expenses are a burden for families, too, so school officials need to think harder about finding ways to better prepare students for college without incurring extra costs for taxpayers.

Troy Smith asked several questions about the school system’s costs, including why board members are considering a tax increase when the $56.7 million budget is already balanced.

“Next year is going to be much worse,” board Chairman Steve Williams replied, explaining officials expect further reductions in both state and local revenue.

Cathy Holmes, a member of the board that governs Dalton Utilities, asked school system officials to reconsider spending $9,000 per student, a cost higher than surrounding districts. In Whitfield County Schools, for example, spending per student is about $8,000.

“The city of Dalton stands out as being the most expensive,” Holmes said. “It just suggests to me that perhaps there would be the opportunity for some true blue benchmarking.”

Williams said he understands the need to help make Dalton a city where people want to live, but he said not all of that depends on the property tax rate. For middle management and young professionals, many are looking to live in an area with a good school system, he said.

“We’re not in an economy where that is an option for nearly as many people,” said John Didier.

Denise Wood, a member of the Dalton City Council, asked board members to “sharpen the pencils and take a business perspective” by considering ways to cut the budget beyond the $5 million they’ve already trimmed this year.

Williams said board members are already doing that, but continue to seek ways to do more. He said the school system is operating on about the same amount of funding as in 2005 but is serving about 700 more children.

Board member Richard Fromm said after the noon meeting adjourned he appreciates the input from the public and understands planning must be conducted from a long-term rather than a one-year approach.

“It’s a community discussion that needs to be had,” he said.

Board member Tulley Johnson said the board hasn’t increased taxes since 2003.

“I think we’ve done a good job,” he said. “We’ve just been cut (from the state) every year since 2003. We’ve reduced staff, salaries and transportation ... We’re faced with a lot of difficulties at this time.”

Board member Danny Crutchfield thanked members of the public for coming but added there’s a misconception about the board members’ desire to raise taxes.

“You guys have got it all wrong,” he told the evening audience. “We’re not for an increase. We’re for our kids.”

The final hearing on the tax increase is Monday, Sept. 13, at 6:30 p.m. at City Hall. Board members are scheduled to vote on the proposal after the hearing.

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