Gwinnett board unanimously adopts resolution to opt out of House Bill 581 homestead cap

The Gwinnett County Board of Education voted unanimously to adopt a resolution opting the district out of the statewide adjusted-base-year ad valorem homestead exemption established by House Bill 581, district leaders said during the third required public hearing on the measure.

Board and district officials said the opt-out preserves local control of property-tax revenue used for Gwinnett County Public Schools and would protect programs and credit ratings that the district said rely on that revenue. Opponents at the hearing urged the board to honor the November 2024 voter approval of HB 581 and called for spending cuts and audits instead.

House Bill 581 capped homestead exemptions at the rate of inflation and included an opt-out process for local governments and school boards, said Dr. David Goley, the district's legislative and educational policy administrator. “They settled on provisions for House Bill 581 that capped the homestead exemption at inflation with an opt out provision,” Goley said, summarizing how the bill was negotiated and enacted during the 2024 legislative session and made effective in January 2025.

Chief Financial Officer Missana Mallard told the board that the opt-out vote was a one-time opportunity. “This was a one-time opportunity only,” Mallard said, explaining that the district's operating budget draws roughly half its revenue from state funding and more than 44% from local taxes, the majority of which comes from property taxes. Mallard and other staff presented an analysis the district said showed a potential loss of about $35 million per year under the statewide cap, or roughly $100 million over three years.

District officials outlined program areas they said would be at risk if local property-tax authority were limited, including teacher compensation, student transportation, multilingual and ESOL supports, pre-K and summer interventions, and credit-recovery programs. Mallard also stated the district had received cautionary guidance from credit rating agencies that not opting out could lead to a downgrade, increasing borrowing costs.

Speakers at the hearing presented opposing views. Several residents and state officials urged the board to accept the cap and said voters approved HB 581 to constrain property-tax growth. State Rep. Scott Hilton told the board he was “shocked and disappointed” the board planned to opt out and said the legislature has delivered tax relief and increased state school funding. Other residents cited large district reserves and rising property assessments and demanded spending reforms and a forensic audit.

Board member Miss Stone acknowledged the difficulty of the decision, asked for a comprehensive forensic audit, and repeated a call for renewed state support for the Quality-Basic Education (QBE) funding formula. Multiple board members said they are committed to using the millage rate to seek tax relief where possible while retaining local authority to protect district services.

At the end of the public-hearing portion, Miss Stone moved that the board adopt the resolution to opt out of the statewide adjusted-base-year ad valorem homestead exemption for Gwinnett County School District as provided by Georgia Code §48-5-44.2 and House Bill 581. The motion was seconded by Dr. Therese and carried unanimously.

Under the law as explained at the hearing, the opt-out process required three public meetings, public notice and advertising, and adoption of a resolution to be transmitted to the secretary of state by March 2025. District staff explained this was the single statutory opportunity to exercise the opt-out.

Board members closed the hearing citing the competing demands of taxpayer relief and the district’s fiscal responsibilities. The resolution will be filed as required by state law and the district said it will continue to explore millage adjustments and other measures intended to provide tax relief without reducing key programs.

Votes at a glance: The board voted to adopt the resolution to opt out of the adjusted-base-year ad valorem homestead exemption tied to House Bill 581. Motion: “I make a motion that the Gwinnett County Board of Education adopt the resolution to opt out of the statewide adjusted base year ad valorem homestead exemption for Gwinnett County School District otherwise granted by Georgia Code §48-5-44.2 (House Bill 581).” Moved by: Miss Stone. Seconded by: Dr. Therese. Outcome: Approved (unanimous; roll-call tallies not specified in the hearing transcript).

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