Valdosta school board explores HB 581’s impact in open hearing

Published 9:25 am Monday, January 20, 2025

VALDOSTA— The Valdosta Board of Education held a public hearing on Thursday to discuss House Bill 581, a statewide homestead exemption that could significantly impact local tax revenue and education funding. 

The meeting, led by Acting Chief Finance Officer Kiley Cashwell, included a detailed presentation outlining the legislation’s implications and the board’s considerations regarding whether to opt out of the measure.

House Bill 581 introduces a uniform statewide homestead exemption, which would lock property tax assessments to a base year value adjusted annually for inflation. The bill includes a provision allowing school districts a one-time opportunity to opt out, enabling local communities to maintain greater control over their tax revenue. If the Valdosta City Schools System does not opt out, the legislation could lead to a permanent reduction in local funding.

Email newsletter signup

The presentation highlighted the potential consequences of remaining under HB 581. These include increased tax burdens on businesses, rental property owners, and new residents, while long-term homeowners benefit from locked assessments. The legislation could also force school districts to increase millage rates to make up for revenue shortfalls, a move capped at 20 mills that could be insufficient to keep pace with inflation and rising costs in the long term.

Valdosta City Schools has historically provided generous homestead exemptions, offering $6,000 above the state’s $2,000 exemption, with an additional $4,000 exemption for senior homeowners. These exemptions would remain unaffected if the district opts out. However, Cashwell pointed out that failure to opt out would shift the tax burden to other property categories, potentially affecting local businesses and industries and diminishing the district’s ability to fund educational resources.

Cashwell emphasized the financial risks associated with HB 581, pointing to historical austerity cuts and the unpredictability of state and federal funding. Over the last six years, Cashwell estimated that Valdosta City Schools would have lost $1.3 million in local revenue if HB 581 had been in effect. Such losses could jeopardize the district’s ability to maintain competitive educational offerings without resorting to unpopular millage rate increases, she said.

According to Cashwell’s presentation, opting out of HB 581 would allow the community to retain decision-making power over its tax structure, safeguard local resources, and ensure financial flexibility to address future challenges. The board underscored that this decision could have lasting implications for generations, as the new legislation would impose a permanent framework for property tax assessments.