Athens-Clarke County school board holds second HB 581 hearing; decision scheduled for Feb. 13

The Athens‑Clarke County Board of Education on Thursday held the second of three required public hearings on House Bill 581, the state law that establishes a statewide floating homestead exemption that caps annual increases in property tax assessments at the previous year’s inflation rate.

Chris Greiner, chief financial officer for the Athens‑Clarke County School District, told the board that HB 581 would limit an individual home’s assessed-value increase to the prior year’s inflation rate and that the state revenue commissioner will set the applicable inflation rate. “If a home increases in value 5%, it gets assessed at 5% higher, by the tax assessor, but the previous year’s inflation rate is 2%, then that home would only be valued at 2% more,” Greiner said.

The hearing drew sustained public comment both for and against the board choosing to “opt out” of HB 581 for the school district. Proponents of opting out said the district could lose revenue needed to maintain staff and services. Opponents said voters approved HB 581 in November and the board should honor the electorate’s preference.

Greiner reviewed the district’s fiscal profile and the mechanics of the exemption. He said property taxes account for roughly 57% of the general fund; the district’s current property tax budget is about $135,000,000 based on an 18.8‑mill rate. Greiner told the board that the statutory millage cap for school districts is 20 mills and noted that a reduction in assessed value under HB 581 could be offset only up to that cap by raising the millage rate. He presented illustrative scenarios: using Consumer Price Index figures, a single‑year CPI of about 4% would have reduced revenue by roughly $1,000,000 in 2024 under the cap; across a six‑year hypothetical the district’s cumulative revenue loss would be approximately $7,400,000 under the assumptions used in his chart. Greiner also said the district is projecting about $3,400,000 of additional classified employee health‑insurance costs in FY2026 under the governor’s proposed budget.

Board members asked clarifying questions about how assessments are calculated and how a school decision would interact with county assessments. Greiner and a guest who said he represented counties and tax assessors explained that the tax assessor would still calculate full fair‑market value, then compute an alternate capped value to determine an exemption amount; that exemption would be applied like other homestead exemptions. They noted the system would create two different values when local governments and the school district make different choices.

Public comment reflected sharply divided views. Claire Suggs, identifying herself as an Athens‑Clarke County taxpayer and CCSD parent, urged the board to “opt out of House Bill 581,” saying the district faces “known financial pressures” including rising health‑insurance costs for classified staff. JB White, a 30‑year resident, said he opposed the board opting out and argued the board should “honor” the November vote in which a majority statewide supported HB 581. Rita Rains, a district special‑education paraprofessional and a homeowner, said she wants the board to “decline to opt out of HB 581,” citing personal concern about being able to afford housing in retirement.

Other speakers from both sides cited figures and local priorities: some speakers urged the board to preserve district revenue to avoid staff reductions, larger class sizes or cuts to student services; others argued HB 581 provides necessary predictability for homeowners and that the board should follow voters’ intent. Several speakers raised related fiscal points including recent reductions in federal Title I funding (Greiner said the district lost about $1,000,000 in Title I this past year), the effect of potential state voucher programs on enrollment and QBE funding, and the district’s operating fund balance (public speakers referenced district surplus estimates in the $48–49 million range).

The board did not take a formal vote on HB 581 at the hearing. Greiner said the board’s only required action would be to adopt a resolution to opt out if that is the board’s direction; any resolution and supporting documentation must be submitted to the secretary of state by March 1. He reminded the board that the final decision is scheduled for the board business meeting on Thursday, Feb. 13 at 7 p.m.; the third required public hearing will be held Thursday, Feb. 6 at 6 p.m.

The meeting did include routine business: the board approved the meeting agenda as presented in a motion made by Mark Evans and seconded by Heidi Hensley. The chair called for the ayes and the motion passed.