Gov. Nathan Deal signed a hotly contested bill Monday that will prohibit Fulton County from raising property tax rates for the next two years — if a court doesn’t overturn it.
House Bill 604 also will require approval by a supermajority of county commissioners for tax increases after January 2015. Supporters hailed the measure as a overdue check on Fulton County spending.
“Hopefully the county commissioners will get the message that freewheeling spending is coming to an end,” said Michael Fitzgerald, co-founder of the North Fulton & Friends Tea Party.
Fulton County Commission Chairman John Eaves said the legislation may force spending cuts to Grady Hospital and other popular services. He said the legislation is an illegal intrusion into local government affairs and the county may challenge it in court.
“It’s bad public policy. It’s a bad precedent,” Eaves said Monday. “It’s a clear violation of home rule, in my opinion.”
The governor declined to comment on his decision Monday.
Republicans have long complained that Fulton spends too much, given that most county residents live in cities. They say the property tax cap will force county commissioners to make difficult spending choices.
“I am grateful to Governor Deal for his support of legislation that will benefit every citizen of Fulton County,” said Rep Lynne Riley, R-Johns Creek, one of the bill’s sponsors.
Fulton Democrats say the legislation is unnecessary because they’ve cut spending and haven’t raised property taxes since 1991. Opponents - including some Republican commissioners from other counties - also say state lawmakers are too eager to meddle in the affairs of local government.
“Governor Deal’s signature on HB 604 opens the door to more micromanagement of local governments by the Legislature and creates a serious dilution of home rule,” said Fayette County Commission Chairman Steve Brown, a Republican.
In addition to the tax cap, north Fulton Republicans also proposed doubling the county’s property tax homestead exemption. That would have given tax relief to tens of thousands of homeowners, but would have cost the county about $48 million in revenue. That proposal passed the House of Representatives but stalled in the Senate, which could take it up next year.
Fitch Ratings recently cited both bills — along with Fulton’s reliance on dwindling reserve funds — when it decided to lower the county’s credit rating. The agency said the bills would reduce the county’s financial flexibility and signified a troubling lack of cooperation among state and local officials.
Republicans also pushed a series of other bills affecting Fulton County operations through the General Assembly. Among other things, they would redraw County Commission districts and make it easier to fire county employees. Deal’s deadline for acting on those bills is today,May 7.
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