By AMY RILEY
One Citizen's Perspective

In taking a closer look at the Fayette County Board of Education's bond issue as it is expected to appear on the Nov. 7 ballot, it seems the board has produced a referendum which is friendly to everyone.

In a feat many would have called impossible, the board has put together a package that will allow the school system to get needed funds up front, take on a relatively short-term debt, and keep the schools' portion of our tax bills relatively stable for the next 10 years.

Demonstrating finesse, creativity, and a refreshing take on the pulse of the people, the school board has created a funding package which is sure to be a vote-getter.

In what initially seemed a shocking move, the Board of Education has elected to fund the proposed bond referendum for a 10-year term. By rolling in existing indebtedness, capitalizing on the lower rates for shorter term borrowing, and factoring in the expected increase in the tax digest, if the bond passes in November, our school system will receive the funds it needs to build three new elementary schools, one new high school, and provide $8.8 million in improvements to existing facilities.

What does all of this really mean to you and me? In the simplest of terms, your total school tax will represent a slight increase over its 2000 level.

According to figures calculated by Claude Paquin, a tax attorney, interested citizen, and proponent of bonds for school construction, your tax bill will approximate the dollar amount you were paying in 1998. Mr. Paquin reports that the minimal increase in your overall expense is achieved primarily through an “absence or delay in scheduled decreases” in the tax you pay.

Rather than experiencing a slow and steady decline in your school tax bill over the next ten years, made possible by expected growth in the tax digest, your bill will go up just slightly, and then remain stable for the next ten years.

According to Jim Stephens, director of finance for Fayette County schools, some of the slight increase may even be offset by a possible roll back in the Maintenance and Operation (M&O) millage.

Add to that the fact that many of you can take an income tax deduction on a portion of your property taxes, you're looking at a practically painless referendum that promises a great return on your investment — schools less crowded, low student to teacher classroom ratios, and a lot less disruption for Fayette families with school-aged children who would otherwise face double sessions.

I know — you want the bottom line. Jim Stephens estimates that the tax increase on a $100,000 home would be approximately $60 per year. “On a $250,000 home, the increase would be $100 per year.” That's $1.92 a week — a mere 27 cents a day on a home valued at $250,000.

Considering that a portion of that may be tax deductible, and that some portion may be offset by an M&O millage rate reduction, this is a small sacrifice for a worthy cause. It's one of the few times that we actually get to see, and more personally benefit from, our tax dollars at work.

There are added advantages to the 10-year payback. According to Mr. Stephens, “current market rates indicate that the 10-year bond [rate] would be approximately 1/2 percent lower than a 20-year bond [rate].” We will probably see an interest rate somewhere in the neighborhood of 5 percent. With the 10-year payback plan, we will be much better equipped to deal with any future growth needs without creating mountains of overlapping debt.

This funding package represents compromise in the truest sense of the word. We will pay far less than we would have paid for a SPLOST. Many retired citizens will pay nothing. The school system gets the money up front so projects can begin immediately. And those who feared long-term debt can be satisfied with the 10-year term for payback.

The Board of Education has shown remarkable ingenuity. They've given us a referendum that is taxpayer friendly. It's up to us to give them a referendum that is uniformly successful. See you at the polls.

[Your comments are welcome: ARileyFreePress@aol.com.

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