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Atlanta Wants More of Your Money
The Atlanta Journal-Constitution
Atlanta school officials want to raise taxes.Here’s an excerpt of the story:
“The city school system followed the Fulton County school district in breaking the news to taxpayers that they need more money to run schools next year. But unlike Fulton, which expects 6,000 more students next year, Atlanta’s enrollment is declining. This year, Atlanta has just under 50,000 students, down from 57,000 in 2001. The city system also benefits from a wealthy tax base and rising property values. Atlanta spends far more per student - $11,215 a year - than neighboring districts. (Cobb, for example, spends about $7,200, according to the state.
Atlanta is facing a $37.3 million shortfall, officials said. Teacher raises, state cuts and ongoing shortfalls in a pension fund are the big problems, they say.
It looks like they’re going to seek from the board a millage of 22.72, up 2.3 mills from last year. Based on my Charlie Brown calculations, which don’t take into account homestead and other exemptions, that would mean about $180 more a year on a $200,000 house (fair market value.)
Does it seem crazy for a school system with declining enrollment and rising property values to need a tax increase? Or are you sympathetic to the myriad of issues districts including Atlanta are facing this year: rising utilities, gas prices etc.?





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Comments
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By Robert
April 27, 2006 12:56 PM | Link to this
This is crazy!
Atlanta citizens already pay a premium in property taxes. Now, they want to increase it even more? And, with all of these condos going up, the city should already being seeing an increase in revenues (more units mean more property taxes).
Where is all of this money going? There must be major mismanagement of funds in APS. As a teacher in another school system, I have felt this all along.
Citizens of Atlanta must revolt and demand for the entire layer of APS system administrators be investigated/fired for mishandling the money. People cannot continue to pay more and more because incompetent idiots, or worse (crooks) are in APS!!!
By SNY
April 27, 2006 01:16 PM | Link to this
I’m with Robert. That is ridiculous. Although, Gwinnett County spends over $13,000 per year on students.(Editors note: Gwinnett spends $7,216 per student, per the state department of education Web site.) They better not even think about asking for more money. I am an accountant and I would love to get a hold of the books for APS. It would be interesting to see what is going on over there. I bet people would be sweating for days if someone probed into their books.
By SET
April 27, 2006 01:49 PM | Link to this
Eventually your state will have a tax revolt like our did and a Prop 13 will be placed on the ballot to amend the state consitution to rollback and freeze property taxes.
In the very early 1980’s the municipalities went too far on property tax increases and some retired people faced being forced out of their homes by the tax increases. Property taxes were rolled back and frozen with small cost of living adjustments permitted. Only new purchases result in property taxes being calculated at a current value and that tax basis is fixed at the purchase price plus small COLA increases.
You can’t increase taxes enough to spend your way out of financial demands of these bureaucracies. And it’s worse when you have a occupation of the region by Mexico in progress.
We solved the (property tax) problem with a Tax revolt. Now the financial struggle shifts to sales taxes and income taxes. What will GA do? I know in WA state a house once purchased for less than $100k and lived in for over 25 years by the same family now has more than $12,000 a year in property taxes. The assessed value is still increasing every year and the family will soon face having to relocate primarily because to the property taxes, because upon retirement you cannot handle these increasing property taxes (as well as the medical expenses, etc).
By Patti
April 27, 2006 01:58 PM | Link to this
In Georgia, we do have a cap of 20 mills on property taxes for schools. Some districts, including Atlanta, have a long-held exemption, but most metro districts are at or just below 20 mills. (On a $200,000 house, the Atlanta school tax bill is less than $1,700.)
The complicating factors in Atlanta are the declining enrollment and the rising tax digest. They have more money coming in to educate fewer kids.
By SET
April 27, 2006 02:11 PM | Link to this
School taxes were just one component of the CA Property Tax bill. The annual bill may have 10 lines of assessments from City, County, Jr College District, Mosquito Abatement, Flood Control Districts, and more. I’m not clear exactly how the Prop 13 rollback affected each district but it now takes a supermajority vote to increase a property tax levy. On occasion that vote has been accomplished and certain components of the tax bill did increase.
Generally our real estate owners can rely on stability in property taxes and not see an increase because the neighbors sold their houses at huge profits.
The downside is that identical houses next door to each other can have huge differences in property taxes depending on when they were last purchased. And the lower tax basis is transferrable from parent to children and grandchildren. Smart (rich?) families are keeping houses and the lower tax basis in the family now.
By V for Vendetta
April 27, 2006 02:23 PM | Link to this
All of yall are right. This is just plain silly. I agree with SNY; who is in charge over there!?!?!?
I don’t think I could BURN money as fast as they seem to go through it (and need more of it).
By MMM
April 27, 2006 02:30 PM | Link to this
School finance is insanely complicated. I think that this is intentional as a way for the “experts” to say—“you can’t posibly understand this, just trust us.” This adds to how hard it is to accomplish meaningful reform.
By Ernest
April 28, 2006 08:46 AM | Link to this
All should remember that personnel costs make up between 89-93% of a school systems budget. Given the reduction in students, I wonder if there has also been a similar reduction in personnel? Sounds like a RIF may be needed for APS.
BTW, is there budget online?
By SNY
April 28, 2006 08:59 AM | Link to this
Ernest makes a good point! Maybe the citizens that support APS should look online and see their budget. They have a right to know where their money is going. Trust me, I’m sure most of it is going into some superintendent’s pocket.
Plus, if the student population is being reduced, shouldn’t the workforce be reduced as well? Even if they don’t reduce the teacher workforce maybe they should look at the cafeteria staff or the amount of Assistant Principals they have at each school. Keep the people in the classrooms that are getting the job done and get rid of the dead weight. i.e. - extra secretaries and counselors. May sound harsh but there should be no need to ask for more money with less children enrolled. Period.
By Lee
April 28, 2006 09:58 AM | Link to this
Every time I hear a politician talking about reforming education, I just curl up in the fetal position.
It’s very easy to pass a law limiting class size, mandating testing, inclusion, or teaching every non-English speaking illegal alien under the sun. Guess what? There is a price tag to all that.
When I was in school some thirty years ago, my high school had one principal and two secretaries. Same school today has a principal, two assistant principal, and about ten secretaries. Not to mention coaches hired to “teach” ISS.
But hey, the football team made the playoffs…
By Dan
April 28, 2006 10:17 AM | Link to this
I dont know where you live SET but the days of having your taxes stay flat as long as you don’t sell are long past, I bought a house in Dekalb (Tucker) 7 years ago and my taxes have gone up due to reassessment every year but 1 I have a 50 year old ranch and they just keep comparing it to the new houses simply based on number of bed and bath. When you try contesting the increase, you can’t even get a response at the county office. It is a huge scam
By Dan
April 28, 2006 10:19 AM | Link to this
MMM you are right on the money, school finances are no more complicated than any other business or they shouldn’t be. If there was a proper accounting of the spend heads would roll. Politicians and administrators both. We have public schools paying more per child than private with less equipment and teachers claiming they are supplying pens paper tissues etc to the kids!! What is wrong with this picture
By Patti
April 28, 2006 10:42 AM | Link to this
Hi Ernest,
In 2003, the district had 7,204 employees and in 2007 it is expected to have 6,050. Atlanta has some unique circumstances…I’m planning to meet with the CFO soon and get some answers/clarification beyond what was presented at the budget hearing.
By Ernest
April 28, 2006 11:21 AM | Link to this
Thanks for the research, Patti! At a glance, this looks like a 17% Reduction in Force (RIF). I’d be also curious to see if their consultant fees went up or down orver the same period. I would also be interested in whether they are outsourcing any of their operations.
I’m very curious about their ‘unique circumstances’. It’s easy for me to sit here and pass judgement. I believe most of us are aware that APS has an aging infrastructure (especially their schools). Perhaps the increase can be explained. Bringing transparency to the process will help stakeholders evaulate and determine whether that is the case. Please find out if they post their budget online.
By Patti
April 28, 2006 03:03 PM | Link to this
Hi Ernest, the most unique aspect of Atlanta circumstances in my view is the erratic housing patterns. Entire housing projects get mowed down. New housing that spouts up in its place may or may not have a lot of kids. I don’t know of any district that has as great a challenging in predicting enrollments. So when I see very small schools with so few students it seems ineffective to operate, I take into account how quickly that could change.
Other Atlanta issues: the extreme level of poverty, the tax allocation districts, the pension fund for nonteaching employees etc.
By Privateschoolguy
May 1, 2006 01:04 PM | Link to this
Funding for APS should be tied directly to student population. If student numbers drop so should the taxes. Pressure should be put on the board to tie the two together and offer to fund the same dollar amoung per student over the next five years. So If the student population goes down taxes go down, if they go up taxes go up. Vote out the board if they don’t promise to do this.
By Ernest
May 3, 2006 03:53 PM | Link to this
Good article in today’s AJC (5/3) on the situation for APS, Patti. If there taxpayers believe it is beneficial for smaller schools, then so be it. City of Decatur residents pay more it taxes for their smaller schools and it seems to work for them.
By Patti
May 3, 2006 04:04 PM | Link to this
Thanks, Ernest!