Fulton tax chief appeals school funds ruling

Fulton County Tax Commissioner Arthur Ferdinand went to the Georgia Supreme Court on Monday to appeal a lower court ruling that ordered his office to continue turning over school tax money for redevelopment projects.

The issue involves a Supreme Court ruling last February that prohibited school tax funds from being tapped for redevelopment projects. The court, however, did not address whether the ruling was retroactive, leaving up in the air the status of existing redevelopment projects such as Atlantic Station, where bonds have already been sold and validated on the assumption that school taxes would cover about half the cost.

Ferdinand determined the ruling meant he could no longer divert school property tax money from the Atlanta and Fulton County school systems — about $30 million a year. Without the school tax money, the bonds could go into default, tax attorneys have said.

Ferdinand’s lawyer, Samuel Woodhouse, argued that Fulton County Superior Court Judge Craig Schwall denied Ferdinand his due process in issuing a permanent injunction during a hearing that was called to discuss a temporary injunction.

“This amounted to the trial judge in effect sticking his thumb in the eye of the judicial system,” Woodhouse told the justices. Woodhouse said Ferdinand was entitled to a jury trial before any final decision was made.

Lawyers for the city of Atlanta say the Supreme Court’s decision cannot be made retroactive. The state Constitution says bonds, once validated, are “incontestable and conclusive,” the lawyers cited.

Ferdinand’s fight could be moot should voters on Tuesday approve a referendum to change the state Constitution to allow school tax money to be used for redevelopment projects.