Newton County holds second public hearing on House Bill 581; no opt-out vote

The Newton County Board of Education held the second of three public hearings on House Bill 581 on Jan. 15, 2025, hearing presentations from district staff and nearly two dozen public commenters but taking no formal action to opt out of the law.

Dr. Bradley, superintendent of Newton County Schools, and Erica Robinson, the district’s chief financial officer, told the board and the public that House Bill 581 creates a statewide floating homestead exemption that limits annual increases in a homestead’s taxable assessed value to the rate of inflation and that the law took effect Jan. 1, 2025. "House Bill 581 took effect on January 1, 2025," Robinson said, and she presented the district’s estimate that the measure could reduce Newton County Schools’ revenue by an estimated $3.9 million in 2026, $6.2 million in 2027, $8.8 million in 2028 and about $11.6 million in 2029, for a cumulative shortfall through FY2029 of $30.6 million.

The projected revenue losses, Robinson said, flow from the law’s "floating homestead exemption," which caps the annual increase in taxable home value at the inflation rate determined by the state revenue commissioner; Robinson illustrated the effect with an example of a $300,000 homestead whose taxable value would rise by 2% under the exemption instead of 10% and whose owner would pay roughly $32 less per month in school taxes under the law.

Why it matters: The board must decide whether to exercise a permanent, one-time opt-out available to counties, municipalities and local school districts. If the board chooses to opt out, it must hold at least three public hearings (one between 6 and 7 p.m.), complete required advertising, adopt a resolution and submit it to the secretary of state by March 1, 2025, Robinson told the meeting. If the board does not opt out, the district expects significant budget pressure that, Robinson and Dr. Bradley warned, could affect staffing, class sizes, programming and facility maintenance.

Board members and public commenters debated tradeoffs between tax relief for homeowners and funding for schools. Board member Anderson Bailey said, "I don't think it's the right solution for Newton County Schools," arguing the district would face difficult staffing and program cuts without additional state support or alternative local revenue. Chair Miss Henderson Baker reminded residents that the ballot language included the opt-out option and emphasized the board’s recent local steps to reduce millage and expand a senior homestead exemption.

Public commenters largely urged the board to opt out. Nakia Smith, a Newton County Schools graduate, told the board, "This bill is a threat to public education," saying cuts would mean larger classes and fewer resources. Mikaela George, a current student, said, "This bill will also affect our children," and described how reduced funding could affect students' classroom support.

Several residents proposed alternatives the board cannot itself implement, such as asking the General Assembly to provide state funding or creating a local sales tax earmarked for schools; board members and Dr. Bradley noted limits on the school board's authority and emphasized coordination with state and county officials would be necessary for some proposals.

Outcome: The board did not adopt an opt-out resolution. Dr. Bradley and other board members thanked attendees and reminded the public that the final required hearing is scheduled for Feb. 5, 2025, at 4 p.m. at the Board of Education Administrative Offices. The only formal board motion recorded during the meeting was a motion to adjourn, which was seconded and approved by voice vote.

What remains: The board must complete at least one more hearing and then decide whether to adopt a resolution to opt out and submit it by March 1, 2025. District staff will continue to refine revenue projections and answer residents’ questions about funding sources and budget options.