Is E-Splost Legal?

Thu, 10/16/2008 - 1:05pm
By: Fayette Resident

In an article entitled "Overview of Special Purpose Local Option Sales Tax for Educational Purposes" published by Smith, Gambrell & Russell, LLP Attorneys at Law at

http://www.sgrlaw.com/resources/briefings/bond_practice/446/

"Projects Authorized

Education SPLOST can fund capital outlay projects for educational purposes. A “capital outlay project” is a major, permanent or long-lived improvement such as land, buildings and other structures and major items of equipment and vehicles, such as would be properly chargeable to a capital asset account as distinguished from current expenditures and ordinary maintenance, according to Official Opinion of the Attorney General of Georgia No. 97-7 (1997). As a result Education SPLOST may be used for building projects for educational purposes (whether by acquisition, construction or renovation), and also for school buses and equipment with an extended useful life and serving educational purposes. No express definition of “educational purposes” is provided, but building projects would not appear to be limited to school buildings.
Imposition of Education SPLOST for Debt Reduction

The retirement of previously incurred general obligation debt of the school system may also be described on the ballot as a purpose for the imposition of Education SPLOST, but only if that debt was incurred with respect to capital outlay projects for educational purposes. The debt must be general obligation debt, not lease-purchase obligations or COPs, and it must have been incurred “previously,” presumably prior to the resolution calling for the imposition of the Education SPLOST. "

Does this mean that the wording used on the ballot to ask Fayette County residents whether or not they wish to have an Educational SPLOST is legal? The wording includes "(iv) acquiring textbooks" which I do not believe is "a major, permanent or long-lived improvement such as land, buildings and other structures and major items of equipment and vehicles, such as would be properly chargeable to a capital asset account as distinguished from current expenditures and ordinary maintenance, according to Official Opinion of the Attorney General of Georgia No. 97-7 (1997)"

Would like your opinions.

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Steve Brown's picture
Submitted by Steve Brown on Thu, 10/16/2008 - 11:29pm.

Textbooks are allow as an exception.

The ESPLOST might be legal, but it is not warranted.

Fiscal accountability is not the hallmark of the current Board of Education. Thus, do not throw them any bones.


Submitted by Arf on Thu, 10/16/2008 - 2:04pm.

I believe that this is the whole point to the “SPLOST debate.” An E-SPLOST is designed and designated only to fund major capital improvements such as land, buildings, buses and other major long life property or to retire or issue General Obligation Bonds. Per the Georgia Department of Education website, a SPLOST “cannot be used for instructional or other operational costs.” An E-SPLOST is not eligible to provide day-to-day funding of the school system. An E-SPLOST cannot be used for salaries, teaching materials or arts, music, athletic or after-school programs. The FCBOE would have the voters believe that without the SPLOST, the Fayette County school system will fall apart and that the students’ education would suffer. Not true. What we are talking about with SPLOST is only new schools or classrooms and/or major long-life equipment.

If it should become necessary to build new schools in the near future, we may have to cut in other areas in order to provide the buildings and land, but given the current economic environment, that is a big, big if. We are certainly not going to continue to see the growth boom that we have experienced over the last twenty years.

In other discussions, we have seemingly already determined that we currently have enough schools, enough buses and enough football fields to support this county. If that is true, then we don’t need SPLOST, especially in light of decreasing enrollment and a very dim growth outlook for the future.

Whether the wording on the ballot throws out the SPLOST vote is certainly a consideration if it includes a purpose as "acquiring textbooks," which is not a SPLOST function.

Submitted by Just Saying on Thu, 10/16/2008 - 7:27pm.

Hey everyone,
It looks like the SPLOST failing is a certainty so maybe we should come up with a list of money saving suggestions for FCBOE. The best ideas will surely come from the teachers on the front lines. Any ideas?

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