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Public hearings begin on HB 581 opt-out; brief public comment opposes board preemptive opt-out
Summary
As required by law, City Schools of Decatur held the second of five public hearings on whether the district will opt out of the statewide homestead exemption enacted by House Bill 581; staff laid out projected multi-year revenue impacts and several members of the public urged the board not to opt out.
City Schools of Decatur held the second of five public hearings on Jan. 14 to gather public input on whether the district will opt out of the statewide homestead exemption authorized by House Bill 581. The district intends to complete required hearings before a board resolution is filed by March 1, 2025.
Chief Financial Officer Dr. Lonita Broom reviewed the bill—s provisions and the district—s planned opt-out procedures. House Bill 581 would permit the state to establish a statewide homestead cap on property-tax increases tied to inflation. Local entities (cities, counties and school systems) can opt out through a formal process that includes public advertisement and at least three local hearings; Decatur staff advertised multiple dates and scheduled five hearings to maximize access. Broom provided a conservative projection showing a potential revenue reduction to the district of roughly $0.5 million in FY26 under the assumptions used in their slide set and a projected cumulative shortfall that grows over subsequent years (the staff presentation used a conservative CPI estimate and digest-growth assumptions to model impacts).
Broom told the board the district relies on property-tax revenue for about 60% of its general fund and warned that a tax cap could force cuts to operating services, staffing, and programs if local revenue is constrained: "The reduction in the general fund operational budget from the property tax cap will negatively impact the district's ability to provide adequate educational services and competitive salaries," she said.
The hearing format allowed for three-minute public comments. Three in-person speakers asked to be heard. One speaker urged the board not to preemptively opt out of the state law, noting that a majority of county voters had supported the amendment in the November election and asking for more outreach to homeowners. Another speaker said the district had not widely publicized the in-person hearing and urged improved outreach. One additional commenter said they opposed the board opting out.
Ending: The district will hold additional virtual hearings on Jan. 21 and Jan. 30. After the full series of hearings, the board is scheduled to adopt a resolution for filing if it votes to opt out; staff said the earliest possible filing date would be Feb. 13 with adoption on the Feb. 11 board meeting agenda.
