Effingham County finance director proposes raising millage to 18.45 mills to close multimillion-dollar shortfall

Effingham County finance director Lauren Kane told the Board of Education that she recommends increasing the district’s millage rate from roughly 16.5 mills to 18.45 mills to address rising operating costs and a projected budget shortfall.

"I'd like to discuss with you, ultimately made my recommendation to raise our millage rate from 16.5 mills to 18.45 mills," Kane said, and walked the board through an 18-year history of millage changes and the district’s current tax digest. Kane said Effingham County’s net tax digest this year is $4,142,000,000 and that the value of one mill is $4,142,685; using those figures, she showed a rollback-rate revenue scenario that would produce about $66.8 million and leave an estimated $7 million operating deficit, versus roughly $74.0 million under her proposed rate.

Kane emphasized rising personnel-related costs as a primary driver. She presented Georgia Department of Education ("Georgia Insights") FY2024 figures showing the district received roughly $16,000 per student in total revenue, of which about $8,800 was state (QBE/other grants), about $6,000 was from local property tax, and about $1,200 came from federal or other sources. Kane also gave homeowner impact examples, saying a $350,000 home would face roughly a $273 annual increase under the proposal (about $22.75 per month) and a $650,000 home roughly $1,014 annually (about $42.25 per month).

Dr. Ford expanded on the uncontrollable cost pressures, naming increased state health benefits and retirement costs as major factors. "State insurance went up. There ain't a lot we can do about that," he said. He listed district cost increases he said include roughly $4.9 million for health insurance and about $3.0 million tied to employer retirement contributions to TRS, plus FICA and other items, which together created budget pressure the board must address.

Dr. Ford also said local tax abatements administered through the Industrial Development Authority reduce potential revenue. He estimated payments-in-lieu of taxes (PILOTs) and abatements currently lower school revenue by millions and named several local employers whose abatements will expire on staggered schedules, including Georgia Power and Georgia Pacific. He said the school district does not control those abatements.

Board leaders described internal cost-control steps, including reviewing vacancies before refilling positions. Kane said the finance team has already reduced other expense lines by about $810,000. Board members also reiterated statutory and accounting separations between maintenance-and-operations funds and capital-sales-tax funds, noting auditors review them separately and that the district received a 4.5 financial rating last year (4th of 180 districts).

During public comment, Mister Cook said he was concerned about repeated tax increases tied to local development and asked whether dollars would be used for board-office spending or personnel. "I'm just concerned that all the increase in development ... we seem to be having a big tax bill increase every year," Cook said. Dr. Ford responded that the board is continually looking for cuts and reiterated that some costs—particularly state-directed benefits—are outside local control.

No formal vote on the millage rate was recorded during the meeting; the board opened the discussion, received public comment and adjourned without taking a final vote on the proposed rate.

The board did adopt the meeting agenda earlier in the session. The board did not set a final millage rate at this meeting; next steps or a formal millage-setting vote were not recorded in the transcript.