Why is the Thomaston-Upson Board of Education proposing an increase in the millage rate?
O.C.G.A. §20-2-165 (9)(c) states that [effective July 1, 2019] a school district must maintain a millage rate or an equivalent millage rate of 14 mills to qualify for Georgia’s equalization grant funds. To ensure that theThomaston-Upson County School System does not lose equalization grant funds, which totaled $4.5 million dollars in FY22 and $4.1 million in FY23, the Thomaston-Upson Board of Education is conducting public hearings to increase the school millage rate from 13.21 mills to 14.01 mills based on the recommendation of the Superintendent. This increase of 0.8 mill over the current 13.21 millage rate and 1.791 mills over the computed rollback rate of 12.219 mills will protect equalization funding, which, at $4.1 million, equates to 5.32 mills of tax at the current 1 mill value rate of $768,495. Before the Board of Education may finalize the tentative budget and set a final millage rate, Georgia law requires three public hearings to be held to allow thepublic an opportunity to express their opinions on the increase.
What is the “equivalent millage rate”?
The equivalent millage rate includes the amount of revenue received from the school millage rate, title ad valorem taxes, railroad tax, real estate transfer, and intangible tax fees. Revenue obtained from title ad valorem, railroad, real estate transfer, and intangible taxes are volatile and unpredictable. The only constant that the Thomaston-Upson Board of Education can control in this calculation is the school millage rate.
What are equalization funds?
The amount districts can raise through property taxes varies significantly depending on the value of property. Equalization grants are Georgia’s constitutional mechanism to provide financial assistance to districts who have lower tax digests to “equalize” funding in support of comparative educational opportunities in Georgia regardless of property wealth. Currently, school districts are required by state law to have a minimum millage rate or an equivalent millage rate of 14 mills to qualify for Georgia’s equalization grant funds. Calculations for equalization funding runs on a 2-year lag with the Thomaston-Upson County School System receiving an FY2023 QBE Equalization allotment of $4.1 million, a decrease of $387K from the prior year. The calculation for FY2023 was based on the 2020 millage rate of 13.73 mills. Losing $4.1 million in equalization funding would equate to approximately 5.32 mills of tax at the current $768,495 value of a mill.
How does the Thomaston-Upson Board of Education use those funds?
Thomaston-Upson County School System uses equalization funds to meet the shortfall in Quality Basic Education (QBE), federal, state, and local funding and ensure that our students receive quality, equitable education when compared to counties with a larger tax base.
How will a loss of equalization funds impact the Thomaston-Upson County School System?
The loss of approximately $4 million in annual funds could result in a loss of educational opportunities for our students, larger class sizes, and reduction in staff. Restrictions on the use of specific funds, such as federal funds, American Recovery Act (COVID-19) funds, and SPLOST funds, limit districts from using certain funds in areas allowable for equalization funds.
How much additional money will the increased property taxes bring to the Thomaston-Upson County School System and for how long?
The proposed millage rate increase provides the Thomaston-Upson County School System with net increase of $1,586,190, after the 2.5% collection fee, for the remainder of the year.
What will the impact of a 0.80 mill increase mean to a taxpayer?
The impact on a taxpayer with NO property tax exemptions would be:
Home/Property | $100,000 | $150,000 | $200,000 | $250,000 | $300,000 | $500,00 |
Value | $32 | $48 | $64 | $80 | $96 | $160 |
The impact on a taxpayer with the standard $2000 homestead property tax exemptions would be:
Home/Property | $100,000 | $150,000 | $200,000 | $250,000 | $300,000 | $500,00 |
Value | $30 | $46 | $62 | $78 | $94 | $158 |
Why does the Thomaston-Upson Board of Education have a fund balance?
● A fund balance is necessary to adequately serve the children of our community both short termand long term against any type of disruption.
● The general fund balance is used to compensate for the delay in the flow of property tax revenue from July to October.
● A fund balance provides a way to set money aside for scheduled, unforeseen or unscheduled expenses, or near catastrophic events.
● Without a general fund balance, districts may have to borrow funds to meet insufficient cashreserves.
● The establishment of sufficient and stable fund balance reserves is considered a prudent business practice and demonstrates solid financial planning, sound fiscal management, and a strong fiscal position to remain solvent.
If Thomaston-Upson Board of Education has a fund balance and American Recovery Act (COVID-19) funds, why can’t those funds be used to meet the Georgia state code requirement for 14.00 millage rate to receive Equalization Funds?
The Georgia Department of Education calculates eligibility for equalization funds without district input. School districts cannot use general funds, SPLOST funds, state funds, federal, or American RecoveryAct (COVID-19) funds to offset the requirement to meet the 14.00 millage rate requirement of GeorgiaCode O.C.G.A. §20-2-165 (9)(c).
How is the Thomaston-Upson Board of Education using the American Recovery Act (COVID-19) funds? Are there any restrictions on how districts use that money?
This grant provides federal funding for the purpose of providing emergency relief funds to address the impact COVID-19 has had on elementary and secondary schools across the nation. Unlike the general funds, federal funds, including the American Recovery Act (COVID-19) funds, are not allowed to carry a fund balance into the next year.
Thomaston-Upson County School System has used the American Recovery Act (COVID-19) funds to:
● Support at-risk student populations
● Offset increased operational costs associated with the pandemic
● Supplement Learning for Learning Loss
● Literacy (resources, professional development)
● Continuity of Core Staff and Services
● Professional Development
● Technology
● Safety and sanitation efforts
● Social and Emotional Learning
● Continuity of Core Staff and Services
● Professional Development
● Technology and Software
● Safety and sanitation efforts
● Purchase Buses and School Nutrition vehicle
● Building Construction – Upson-Lee Elementary addition ARP application for funds is posted on District website
For further information regarding the American Recovery Act (COVID-19) funds, click the following link: https://www.georgiainsights.com/cares-act.html
How does the Thomaston-Upson Board of Education spend the 1 cent per dollar SPLOST funds?
SPLOST funds, as approved by the voters and as written in the referendum, have been used for:
● Safety and Security
● Technology/Communication
● Athletic/Fine Arts/P.E. Improvements
● School-wide HVAC
● Paving
● Building Upgrades
SPLOST funds cannot be used to pay for salaries of faculty and staff.
Explain the recommendation for $4,000 raises for district office employees.
Since 2019, the Thomaston-Upson Board of Education, upon recommendation of the Superintendent, has increased salary scales for all employees to remain competitive, not only within the county, but with surroundingareas. During the FY23 budget discussion, the recommendation was made to increase central office administrative and support staff salary scales by $4,000. After further discussion, the recommendation was rescinded by the Superintendent prior to the Thomaston-Upson Board of Education work session on June 28, 2022.
How does the Upson County school millage rate compare to surrounding districts?
2021 MILLAGE RATE COMPARISON
Butts | 15.08 |
Fayette | 20.43 |
Henry | 23.62 |
Lamar | 17.60 |
Meriwether | 17.98 |
Monroe | 15.22 |
Newton | 18.28 |
Pike | 18.05 |
Spalding | 16.74 |
Upson | 13.21 |
How can the public be assured that the school district is spending funds as required by federal, state, and local policies?
The district’s financial data and audits are fully available to the public on its Finance Department webpage. The Thomaston-Upson County School System is audited annually by the Georgia Department of Audits: Education Division. In the last twelve years, Thomaston-Upson County School System has received a “clean” audit with zero findings. In addition to the annual state audit, the district is audited by federal and state programs monitors every four years with the exception of the most recent monitoring delayed by the COVID-19 pandemic.
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