Few issues in Hamilton County garner more universal agreement than the urgent need to address more than $1 billion in school maintenance and construction requirements. The sheer magnitude of this “to-do” list naturally leads to a consensus that spans party lines, neighborhood boundaries and municipalities.
There has been much discussion on how to tackle our school facilities crisis. However, agreement on the problem does not always translate to agreement on the solution. Last year, a school facilities working group selected by the county mayor announced a set of recommendations at a $200 million price tag, far short of the $1 billion needed.
Currently, the mayor is proposing that the county borrow $250 million by issuing bonds to be repaid over the next 15 years. The goal is to create a one-time cash infusion to finance new school buildings.
I agree with the goal of rebuilding and replacing crumbling school buildings, but this approach does not eliminate the backlog of construction and repair needs, nor does it ensure we won’t end up in the exact same situation 15 or 20 years from now. The proposal also comes at a steep cost to Hamilton County taxpayers.
Under the mayor’s proposal, taxpayers will be responsible for an estimated $125 million in interest payments. This means the public will be on the hook for a total of $375 million over the next 15 years but will only have $250 million to invest in school facilities.
It’s hard to see how this math makes sense for the people of Hamilton County. Committing taxpayers to pay one-third of the total bond issue in interest is financially untenable. This approach is economically unfeasible and doesn’t solve the long-term problem.
If given no other option, some action is better than no action, but there are much better options available, and we are doing a disservice to taxpayers and students by not discussing all of them.
Rather than accruing massive debt or increasing property taxes, we must examine viable alternatives that provide sustainable funding for current and future needs. One such option, which can be enacted directly by the voters of Hamilton County, is a Special Option Local Sales Tax (SPLOST). There are several reasons why SPLOST is worth considering.
First, SPLOST is a more sustainable “pay-as-you-go” approach that does not require massive interest payments. It would generate an estimated $51 million per year, directly funneled into school construction and renovations. This approach allows for a steady accumulation of resources, projecting up to $385 million over five years (with revenue from other municipalities), specifically aimed at rebuilding and enhancing our school infrastructure.
Second, by leveraging a modest half-cent per dollar sales tax increase, the financial responsibility for our schools is shared more broadly among all who benefit from our local economy, including tourists and visitors. This shift alleviates pressure on property owners and ensures that visitors contribute to the maintenance and improvement of the facilities that serve the community.
I understand that some elected officials will go to great lengths to avoid being labeled “pro-tax increase.” However, if the choice is between securing sustainable revenue for school buildings or repeatedly burdening taxpayers with massive interest payments while constructing very few new school buildings, which is the more fiscally responsible decision?
The decision to adopt a SPLOST (or any new revenue source or tax increase) should not be made lightly or without public input. This is why a referendum is ideal — to give you, the voters, the power to decide the best path forward for funding our school infrastructure. The Hamilton County Commission can place a SPLOST referendum on the ballot with a majority vote on a simple resolution.
This is a pivotal moment for our community. The decisions we make now will impact generations of Hamilton County students and their families. We need safe, modern school facilities that will last for decades, but we won’t get there by borrowing our way. A choice is necessary, and I trust the voters of Hamilton County to make the right one for our future.
David Sharpe, a Democrat, has served on the Hamilton County Commission since 2018.