Cherokee County School Board faces $58M decision on homestead exemption impacts

During a recent public hearing held by the Cherokee County Board of Education, significant discussions centered around the implications of a statewide exemption opt-out for local school funding. The meeting, which took place on February 5, 2025, highlighted the financial decisions facing the school district as it navigates changes in property tax assessments and potential budget impacts.

One of the key points raised was the projected growth rate of the county's net digest value, which is expected to stabilize at just over 6% for 2024, down from previous highs. Historically, Cherokee County has seen an average annual increase of about 7.85% over the past 30 years. This trend is crucial as it informs the school board's financial strategies moving forward.

The board faces a critical choice regarding the floating homestead exemption, which allows for a one-time opt-out. This decision could lead to either a permanent reduction in school district expenditures, estimated at over $58 million over the next three years, or an increase in the millage rate to compensate for lost revenue. The implications of these choices are significant for local residents, as they directly affect funding for schools and educational programs.

Additionally, the current inflation rate in Georgia, reported at 2.9% as of December 31, 2024, plays a role in these discussions. However, the Department of Education recently decided not to apply an inflationary factor to the exemption for this year, which means the value of the digest will remain unchanged from 2024 to 2025.

As the school board weighs its options, the estimated growth in the real estate market in Cherokee County stands at about 5.6%, reflecting ongoing fluctuations. The decisions made in this context will have lasting effects on the community, shaping the future of education funding and resources available to local schools. The board's next steps will be closely watched by residents, as they seek to understand how these financial strategies will impact their children’s education and the overall quality of schools in the area.