Forsyth school board holds public hearing on whether to opt out of state’s HB 581 homestead cap

The Forsyth County Board of Education heard public comment Wednesday on whether to use a one‑time opt‑out from House Bill 581 and keep the district’s locally drafted 4% floating homestead cap under House Bill 717.

Chairman Mike Valdez, the Forsyth County Board of Education chairman, opened the hearing by saying, “The matter before the board is the decision whether to opt out or not from house bill 581.” Valdez and district staff presented comparisons between the locally crafted 4% cap (HB 717) and the statewide option created by HB 581, and recommended that the board opt out of HB 581.

The recommendation to opt out rests on staff concerns about how HB 581 ties the cap to a consumer price index (CPI) measure that the Georgia Department of Revenue would select each year. Larry Hamill, the district chief financial officer, told the board, “We don't know where they're gonna get the CPI number. We don't know what the source is.” Hamill and other presenters warned that that uncertainty could make multi‑year budgeting difficult for a district that has added roughly 1,200 students a year over the past decade and faces capital needs tied to enrollment growth.

Nut graf: The hearing focused on predictability versus statewide uniformity. Forsyth’s locally negotiated HB 717 imposes a fixed 4% cap on reassessments for school taxes and expires in 2035; HB 581 creates a CPI‑linked cap that applies statewide and offers a single, one‑time opt‑out window. Staff and several speakers said the local cap offers more predictable revenue for planning school services and safety staff that the district funds locally.

Board and staff overview

Valdez and district staff reviewed how Forsyth pursued a local cap in 2023 and said that voters approved HB 717 in the local referendum. Hamill summarized the district’s fiscal position: the maintenance and operations (M&O) millage rate is 15.208 and the debt millage is 1.418; the district holds a AAA bond rating and a five‑star financial efficiency rating on state metrics. Valdez noted that Forsyth also has a blanket senior exemption: “Once you hit 65, you qualify,” he said, explaining that eligible seniors with a homestead exemption pay no school property tax.

Staff compared seven years of historical CPI figures and showed how a CPI‑linked cap would have varied year to year (examples shown in the presentation included CPI values of 2.1, 2.4, 1.8, 1.2, 4.7, 8.0 and 4.1 for different years). Hamill and Valdez highlighted cumulative modeled savings to homeowners over those seven years: about $75,000,000 under HB 581 versus roughly $76,400,000 under the fixed 4% HB 717 — a difference of about $1,200,000 in favor of the local cap, according to the district’s presentation.

Public comment and concerns

Three members of the public spoke during the hearing. Eric Edstrom, who identified himself as a finance professional, urged clarity about which CPI would be used and said long‑term averages are available but that ambiguity affects voters’ perceptions: “It historically has been around 2%,” Edstrom said regarding CPI, and he recommended the district show both state and national CPI comparisons.

Resident Donald West said reassessment spikes have become “unsustainable,” adding, “This simply is just unsustainable from a standpoint of 24% a year.” West urged the board to consider how tax increases affect affordability for longtime residents and first‑time homebuyers.

Mike Pappa asked staff to include a national CPI column in future comparisons and sought confirmation on the duration of the local cap; staff clarified that HB 717’s 4% cap is in effect until 2035, when the board and community may reassess options.

What the board can and cannot do

Valdez and staff emphasized limits on local authority: the board cannot change state law and the opt‑out from HB 581 is a one‑time window that must be completed between Jan. 1 and March 1. The board’s staff recommendation was to opt out of HB 581 and remain under the locally negotiated HB 717 fixed cap. Valdez also said the final decision is up to the five elected board members and will come after additional hearings and public comment; the board scheduled a final decision for Feb. 18.

Formal actions and procedural votes

Two procedural motions were recorded in the transcript. A motion early in the meeting (mover recorded as Mr. Grimes; second by Mrs. Hoye) was approved unanimously. At the close of the hearing, a motion to adjourn by Mrs. Hoye, seconded by Mr. Grimes, passed unanimously.

What was not decided

No formal vote on opting out of HB 581 occurred at the hearing. The discussion and public comments will be part of the record for the remaining two hearings and the board’s eventual vote on Feb. 18.

Background and context

House Bill 717 is the locally developed floating homestead exemption that Forsyth officials worked with their state legislative delegation to design and that the district said was approved by roughly 74% of Forsyth voters. House Bill 581 is the statewide floating homestead exemption approved in the 2024 election by about 69% of voters statewide; it does not include a sunset date. HB 581 covers counties, municipalities and school districts and ties the annual cap to a CPI measure chosen by the Georgia Department of Revenue, according to district staff.

Ending: The board closed the hearing after public comment and said written and in‑person input at the remaining two hearings will be considered before members take a final vote on Feb. 18.