Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the House Bill 581 Opt Out topic
No spam. Unsubscribe anytime.
Houston County Board holds second hearing on opting out of House Bill 581; CFO warns of funding risk
Summary
At a public hearing required by House Bill 581, Houston County School District Chief Financial Officer Michelle Morris told the board that opting out could force higher millage rates and reduce state funding because of a 5-mill ‘‘local final share.’’ The board held the second of three hearings; the next is Jan. 22 at 2 p.m.
The Houston County Board of Education held the second of three public hearings required under House Bill 581 on whether the district should opt out of portions of the new state law that change assessment notices and create a statewide floating homestead exemption.
The hearing is a prerequisite for the board to consider opting out, and Michelle Morris, chief financial officer for Houston County Schools, outlined potential fiscal impacts if the district declines the bill's provisions. Morris said the district could need to raise its millage rate to maintain current service levels and staff, and that the state's treatment of the policy could reduce the amount of state aid the district receives.
"House Bill 581 focuses on changes to property," Morris said during the hearing. She told the board the district would need "long term fiscal stability to continue providing a high quality education" and warned the combined effects of valuation changes and the state's withholding rules could diminish local revenue available for schools.
Morris provided several specifics. She said the district's calculated millage could move to 11.719 mills under a scenario discussed at the hearing; the district's lowest prior millage was 11.760 mills in 2002. She also explained a requirement she called the "local final share": five mills of local revenue are treated as a deduction before the state calculates school funding, a step that applies to school districts but not city or county governments. Morris said the state's characterization of House Bill 581 as creating a local exemption means the district could be required to remit more in withheld funds as valuation changes, even while collecting less local revenue.
Board attorney Billy Jerrells opened the hearing and explained the procedure: the board will hold three advertised hearings before it may take any opt-out action. Jerrells said a prior hearing was held the previous night and that the final hearing will be Jan. 22 at 2 p.m. at the board's offices in Perry. Members of the public who wish to review the materials Morris referenced were told the documents are posted on the district website.
No formal vote on opting out was taken at the hearing; after public comment the board closed the session on House Bill 581 and returned to its regular agenda.
The board will hold the final required hearing on Jan. 22 at 2 p.m.; the district posted hearing materials and the opt-out notice on its website, the board said.
