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Lee County schools flag potential tax‑digest error and warn HB 581 could deepen funding shortfall
Summary
District finance staff told the board an apparent issue with the SY26 tax digest may reduce state equalization funds and that House Bill 581—if enacted as described—would leave school systems at a disadvantage by preventing them from using an extra sales‑tax penny to offset millage impacts; staff said they will meet the Georgia Department of Revenue to seek guidance.
Gary Kelly, Lee County Schools’ executive director of finance and operations, told the board on April 20 that the district is working with the Georgia Department of Revenue and legal counsel after identifying questions with the SY26 tax digest (PT‑31 form) provided by the county tax assessor’s office.
Kelly said the district does not generate the digest and relies on county data; any errors would originate with the assessor. He told the board the district expects to present updates following a meeting with the Department of Revenue set for the next day. “We are in contact with the department of revenue and legal counsel for guidance on the best next steps to resolve the current issue,” Kelly said.
In his presentation Kelly outlined several budget pressures: the state set employee health‑insurance increases lower than earlier estimates (reducing the projected cost from $1,800 to $600 per employee, which he estimated lowers the district’s cost exposure to about $350,000), but property valuation changes and digest recalculations together would reduce state equalization funds by roughly $2.9 million. Kelly described an example in which a township’s decision not to opt into a sales‑tax provision known as House Bill 581 could affect the district’s options to offset millage impacts.
Board members asked for clearer verification procedures and whether formal steps could be added to confirm digest data. Kelly said the district will explore verification during talks with the Department of Revenue and continue to update the board and the public.
The board received the budget timeline and was told the tentative budget will be presented in May followed by three public hearings. Officials said final state allotments remain unofficial until the governor signs the state budget.
