Paulding County holds final public hearing on HB 581 floating homestead exemption; no opt-out vote taken

PAULDING COUNTY, Ga. — The Paulding County Board of Education held its third and final public hearing required by Georgia law on House Bill 581, the statewide “floating homestead exemption,” with no formal vote on whether the district will opt out.

Steve Barnett, superintendent of the Paulding County School District, opened with a presentation and video explaining the law and the board’s timeline, saying the constitutional amendment and HB 581 created “a statewide floating homestead exemption that caps how much homestead values can increase annually” and that the district must hold three public hearings before the board may adopt a resolution to opt out. Barnett said the decision is a one‑time choice and “will permanently impact the school district.”

The nut of the debate centered on how the exemption would affect school funding in a fast‑growing, low‑wealth district. Barnett emphasized the district’s fiscal profile: 32,000 students, a tax digest that is roughly 86% residential (up from about 80% five years earlier), and growing dependence on local revenue — local sources rose from about 30% to about 38% of the general fund in recent years. He warned that the exemption, because it caps increases by an inflation index rather than by actual growth, could “have a significant impact on the long term fiscal stability and operations of the school district.”

Residents who spoke at the hearing expressed sharply divided views. Dave Roberts, a business owner from Fulton County, argued against the exemption and used strong language to describe property taxes: “Ad valorem taxes are a form of extortion,” he said. Several speakers including Emily Gladden and other older residents pleaded that higher property taxes would threaten seniors and fixed‑income households; Gladden said her concern was that “when your property taxes go up, your house payment goes up,” and that older residents could be taxed out of their homes.

Other speakers urged the board to accept the statewide amendment. One attendee said many districts claiming uniqueness also say they should opt out, and argued that “in a world where everybody’s special, nobody’s special.” Several commenters also asked why county commissioners — who control zoning and development — were not present, saying new housing drives enrollment and tax‑digest composition.

Several technical points Barnett and staff noted for the public record:

- The constitutional amendment and HB 581 do not change existing state or local exemptions (Barnett: “It did not remove or change existing state or local property tax exemptions, including our current homestead exemptions”). - The law provides only one opportunity to opt out; the decision is permanent unless changed by another constitutional amendment or statewide action. - The district cannot participate in the local option sales tax (SPLOST) created by the amendment; SPLOST rules and participation for school districts are constrained by state law. - Examples and math produced with the county chief appraiser, James Stokes, are posted on the district website; Barnett said the district will update FAQs with answers raised in these hearings.

Speakers raised programmatic and operational consequences if local revenue declines, including larger class sizes, fewer local initiatives, reduced ability to expand senior or other exemptions, and possible reductions to safety and security spending (Barnett noted the district spent about $12 million on security over the last three years, with roughly $1.5 million in one‑time state grants). Several speakers warned of downstream economic effects on commercial growth, home resale values and the ability of low‑ and moderate‑income families to remain in the county.

No formal opt‑out motion or resolution was introduced at this meeting. The board took public comment, said it was recording and compiling questions and would post responses on the district website, then moved to adjourn. A motion to adjourn was moved by Miss Lyons and seconded by Mr. Nolan and was adopted.

Ending: The board emphasized it will consider community input before making any decision on opting out. Barnett told attendees the board will not make a decision before February and encouraged people who could not attend to submit written comments to the superintendent’s office or via the district website.