In a recent government meeting, officials discussed significant changes in local tax revenues and their implications for state funding, particularly in relation to education. Over the past six years, Catoosa County's local tax digest has surged from $1.68 billion to $3.12 billion. However, this increase has resulted in a decrease in state funding, with the local fair share withheld by the state rising from $8.4 million to over $13 million. Equalization funding has also dropped sharply, from nearly $10 million to below $4 million.

The discussions highlighted a troubling trend: as the county's tax digest grows, it is classified as wealthier by the state, leading to reduced state funding. Although the county received an additional $4.7 million in Quality Basic Education (QBE) funding, this was largely offset by new state-mandated costs and a loss of nearly $10 million in local fair share and equalization funding.

Local funding remains under the control of the Catoosa County Public Schools (CCPS) board, which can adjust the school millage rate. The assessed value of taxpayer property, however, is determined by the county's board of assessors, a process governed by state regulations. The net growth in the tax digest from 2023 to 2024 was reported at over $800 million, attributed to property reassessments and new growth.

The CCPS has implemented a robust set of exemptions, totaling $531 million, which significantly impacts the net growth of taxable property. Comparatively, the county's exemptions amount to about $260 million. The meeting also addressed the historical context of the millage rate, which has been rolled back to 15.040, the lowest since 2001, and maintained for the past two years.

Catoosa County's millage rate remains competitive compared to neighboring districts, but officials warned that further reductions could jeopardize the county's status as a qualified local school system, risking additional state funding. The board's current millage rate of 15.040 contrasts with an equivalent millage rate of only 11.33, as calculated by the state, underscoring the complexities of local funding and state regulations.