Amendment II
We continue today with an analysis of the second of three amendments Georgia voters will decide come Nov. 4.
Amendment II
To authorize local school districts to use tax funds for community redevelopment purposes.
“Shall the Constitution of Georgia be amended so as to authorize community redevelopment and authorize counties, municipalities, and local boards of education to use tax funds for redevelopment purposes and programs?”
School systems have traditionally been avid participants in local redevelopment projects because gentrification raises the property tax base of the surrounding area, which means increased funding for school districts. A suit challenged the constitutionality of such involvement, saying that school systems could only use funds for educational purposes. The Georgia Supreme Court agreed. Amendment II would overturn this decision.
Proponents argue that school systems are in a unique position to invest in the community. If passed, Amendment II would allow property values in “blighted” areas to be frozen for a 20-30 year period. By issuing bonds for infrastructure, the idea is to attract developers and subsequently increase the local property tax base. The idea is that the school districts will not only recoup what they spend, but they will also see a return on their investment. That new funds can then, in turn, be pumped into building new schools and providing more resources for students. Participation in redevelopment projects will be voluntary, and school districts will have to determine the merits of each project on a case-by-case basis.
Critics note that there is no guarantee that the cost of involvement in redevelopment projects will be recouped. They question the subjective use of the term “blighted” to define what areas need redevelopment, and wonder if growth, through private industry, isn’t likely to come anyway.
There are also serious concerns and reservations about the lack of public input involved in such redevelopment projects. Finally, if the redevelopment areas are turned into mixed-use developments, not all of the property taxes will be directed to fund local schools, yet the school districts will be responsible for covering the educational costs of all children living in those areas.
To read more about Amendment II from the Secretary of State’s office, go here.
Georgia Weekly has a nice analysis of all the amendments. Go here to watch the video. Discussion of the amendments with Georgia Public Policy Foundation’s Kelly McCutchen begins at 13:17.
You can also read more from advocates for Amendment II by going here.