Tax money root of re-negotiations

Atlanta school leaders are re-negotiating with the city about how much school property tax money should be used to support such community redevelopment projects as the Beltline.

Staff members from the school district and the Atlanta Development Authority will sit down this week to discuss letting the school system keep some of the $18 million that is supposed to help fund various projects, including the Beltline, a 22-mile loop of transit, trails, parks and development around the city.

The $18 million was raised through tax allocation districts (TADs), which funnel a portion of school tax money to developmental improvements in a set geographic area.

School board chairwoman LaChandra Butler Burks said the school system wants to continue supporting the city’s programs but can’t afford now to give away as much because of state funding cuts and reductions in local property tax revenue. The district’s proposed 2010 general fund is about $653 million, about $9 million less than this year’s total.

“We need to recoup some of our lost money and we hope to reach a good agreement for everyone involved,” Butler Burks said.

If an agreement can’t be reached by the school board’s June meeting, the system plans to keep the entire $18 million, she said.

The authority will meet with the district and expects agreement, spokeswoman Sonya Moste said.

“Even good marriages have to re-negotiate sometimes to become great marriages,” Moste said, declining to make additional comments.

TADs redirect future increases in property tax collections to help pay for projects within a set area. School taxes typically make up more than half of all property tax revenue.

While TADs have been a popular funding tool for developers and politicians they have been controversial. Opponents said money raised for schools and education should not be diverted. Proponents say the program is a way to renovate run-down neighborhoods that would pay off in the long run because of increased taxes on higher-end development.

The Georgia Supreme Court last year banned cities and counties from using public school taxes for the subsidies. A bill passed by the Legislature this session makes the TAD money legal again, but allows school districts to opt out if they previously agreed to participate.

Butler Burks said the district isn’t walking into negotiations with a set dollar figure as to how much the city should get. She said the school board’s first responsibility must be to local schools and students, not the city’s redevelopment projects.

“We’re all hurting in this economy and we’re just looking for a solution that is fair,” Butler Burks said.