SUMMARY:

            This bill would amend Chapter 2 of Title 20 of O.C.G.A. to change the definition of “guaranteed valuation school system” to revise the way equalization grants are calculated.

REQUIREMENTS:

• This bill would change the definition of “Guaranteed valuation school system” from the system at the 75^th percentile of property tax wealth per weighted FTE to the state average dollars of assessed valuation per weighted FTE.
• To be eligible for an equalization grant, a local system would have to have a property tax wealth per FTE lower than the state average.
• It would also change the number of mills eligible for equalization from 15 to 12 (over and above the required local five mills), and a system would have to levy over 8 mills to be eligible for any equalization.

NOTES:

• Note that mills 6, 7, and 8 after a system’s Local Five Mill Share would not be eligible for equalization funding.
• A system that currently levies 11 mills would lose 50% of its equalization grant (if it falls below the average property wealth per weighted FTE calculation), while an eligible system that levies 17 mills would lose 25% of its grant.
• This bill could easily force systems with lower millage rates to increase millage to make up the difference, once again causing local boards of education to shoulder the blame for rising property taxes when the state forced the issue.