Monthly Archives: December 2015

Education Reform Commission – Final Report


Stan Jester
DeKalb County
Board Of Education

In January 2015, Governor Nathan Deal created an Education Reform Commission (ERC) with 30+ members consisting of teachers, superintendents, principals, state legislators, and heads of various education related firms.  Governor Deal charged this commission with reshaping and revolutionizing Georgia’s education system.
On December 15, the ERC presented its .pdf link icon Final Recommendations to Governor Nathan Deal.

How best to transform education is a familiar topic for state leaders.  Education spending is that largest single expenditure of the state budget and Georgia’s achievement levels affect economic development opportunities. Many believe that more funding is the answer and, in fact, from 1970 to 2010 education spending increased 185 percent nationwide. Funding for Georgia’s K-12 education has increased 21 percent since 2011. But, Georgia has not reaped the benefits of a 21 percent increase in student performance during this same time.
The commission formed five subcommittees focused on innovative  strategies for how Georgia can best fund schools, retain, recruit and pay educators, educate early learners, provide educational options for families and ensure that all students can achieve at the rate and on the pathways most appropriate for them.
Funding Subcommittee: Transform Georgia’s outdated K-12 funding formula
Teacher Recruitment, Retention and Compensation Subcommittee: Revolutionize the way Georgia recruits, retains and compensates K-12 educators
Early Childhood Education Subcommittee: Afford every Georgia family the opportunity to access high-quality early childhood education
Move On When Ready Subcommittee: Develop a system allowing students to progress and learn at their unique pace
Expanding Educational Opportunities and School Choice Subcommittee: Explore innovative strategies aimed at increasing K-12 options for Georgia families
Teacher compensation is the most philosophically charged and has received the most attention.  The ERC reports

“The current salary and career advancement structures in Georgia inhibit recruitment and retention. Teachers generally improve the most during the first five to seven years of teaching, yet in general, teacher pay is relatively flat for the first five years of a teacher’s career. Further, earning an advanced degree is one of the primary drivers of teacher salary growth in Georgia, yet there is no consistent relationship between holding a graduate degree and teacher effectiveness. Teachers also generally have few opportunities for career advancement without leaving the classroom, resulting in burnout, stress, and dissatisfaction among mid-career teachers. This narrow career ladder, coupled with a rigid salary schedule, inhibits Georgia’s ability to attract and retain effective teachers.”

The ERC recommends
1. Provide the opportunity for teacher involvement in the creation of strategic compensation models at the district levels;
2. Allow currently employed teachers to opt in to the new compensation systems OR remain on the current state salary schedule;
3. Refrain from using degree level as a significant determinant of compensation increases. Instead, consider reimbursing teachers for the costs of pursuing advanced degrees;
4. Provide additional pay and/or signing bonuses for high needs subjects and hard-to-staff schools;
5. Provide additional pay for accepting additional responsibilities;
6. Provide additional compensation for teachers who complete the requirements for Teacher Leader Certification;
7. Provide opportunities for teachers to earn higher salaries earlier in their career.

DeKalb Schools – Not a Fan of the TAD


Stan Jester
DeKalb County
Board Of Education

The City of Doraville has embarked upon a major redevelopment opportunity to create a regional mixed-use employment and activity center at the site of the old General Motors plant. The Doraville TAD Bleakly Report outlines the rationale, boundaries, fiscal data and potential projects for the City of Doraville Tax Allocation District (TAD).
A Tax-Allocation District (TAD) is a defined area where real estate property taxes gathered above a certain threshold for a certain period of time (typically 25 years) is used for a specified project improvement. These improvements are typically for revitalization, especially to build the public infrastructure necessary for the development – roads, water and sewer lines, bridges, etc.
Once any TAD obligations of the district are retired, the City, County and Schools will receive the full property tax increment from the accelerated pace of new development created. Throughout the TAD period, the proposed redevelopment will generate additional retail sales with increased sales tax and ESPLOST revenues.
The city, county and school district are each taxing authorities over that property.  In July, the Doraville City Council voted to approve and adopt the Redevelopment Plan and TAD.  Yesterday, the DeKalb County Commissioners unanimously passed the TAD .
.pdf link icon   Intergovernmental Agreement (IGA) with Doraville and DeKalb County
.pdf link icon  Doraville TAD Bleakly Report (outlines the rationale, boundaries, fiscal data and potential projects for the TAD)
Potential benefits to DeKalb County Schools
•  The TAD will accelerate future growth in DeKalb County Schools’ Tax Digest.
•  DeKalb County Schools will continue to receive the estimated $936,000 in property tax revenue currently generated in the TAD Redevelopment Area over the term of the TAD.
•  The proposed redevelopment will have the potential to generate an additional $18 million in new DeKalb County Schools property tax revenue, which will revert to DeKalb County Schools upon the termination of the TAD.
•  If DeKalb County Schools participates in the TAD, DeKalb County Schools would receive $113 million more (over the first 25 years) from ESPLOST revenue and in personal property taxes from participating in the TAD, than it would receive if it did not participate in the TAD.
News Release
STATEMENT REGARDING PARTICIPATION OF THE DEKALB COUNTY SCHOOL DISTRICT IN THE DORAVILLE TAX ALLOCATION DISTRICT (TAD)

Superintendent Stephen Green

Dr. Stephen Green
CEO & Superintendent, DeKalb County School District

“The DeKalb County School District has been asked to consider partnering with the DeKalb County Government and the City of Doraville to create a Tax Allocation District (TAD) that includes the former GM assembly plant and portions of the City of Doraville. The TAD would produce approximately $247 million in tax revenues that would be used to fund infrastructure improvements such as roads, a tunnel, and other public projects. The debt including debt service of approximately $600 million for these improvements would be paid for with tax revenue above what is collected currently in the area.
I have several serious reservations about committing school resources over the course of the 25 years of the TAD for this project.

  1. Our core business is teaching and learning, not speculative, unpredictable real estate projects.
  2. Two of the three current TADs in DeKalb County have not succeeded in meeting their tax revenue projections. The Kensington and Briarcliff TADs have decreased in tax digest value since their inception with Kensington showing a decrease in excess of 20 percent.
  3. After several years, the ongoing inability of the City of Atlanta and the Atlanta Public Schools to fulfill their intergovernmental agreement based on a TAD for the financing of the Beltline project demonstrates how unforeseen pitfalls can be costly to the local school system.
  4. The school tax digest for the Doraville TAD would be fixed for 25 years with a best case scenario of nine more additional years before the School District would recoup taxes that had been given up.

We are expected to be good stewards of our resources and I think making a 25-year commitment to freezing the school tax digest does not fulfill that commitment.”
— Dr. Stephen Green, Superintendent DeKalb Schools

 


  Superintendent: DeKalb Schools won’t be part of Doraville TAD
By Marlon A. Walker – The Atlanta Journal-Constitution
Jan 10, 2016 – Superintendent Steve Green said DeKalb County Schools would not contribute financially to what could be one of Atlanta’s most significant mixed-use developments since Atlantic Station, saying he would not gamble with millions in tax dollars meant to educate children.
  DeKalb adds safeguards to public investment in GM site
By Mark Niesse – The Atlanta Journal-Constitution
Dec 24, 2015 – DeKalb won’t contribute any tax money to $247 million worth of infrastructure upgrades unless the county school system signs on. DeKalb also added a clause to the deal that ends its participation in the redevelopment plan after 10 years — on Dec. 31, 2025 — unless the county votes to continue its investment.
  DeKalb backs development of GM factory site, awaits schools’ support
By Mark Niesse – The Atlanta Journal-Constitution
Dec 15, 2015 – Ambitious plans to rejuvenate a closed-down General Motors factory site cleared a major hurdle Tuesday when the DeKalb County Commission unanimously agreed to invest in the redevelopment effort.
DeKalb school district voices concerns over Doraville-backed project
By Brent Barron – NeighborNewspapers.com
Dec 23, 2015 – “We are expected to be good stewards of our resources and I think making a 25-year commitment to freezing the school tax digest does not fulfill that commitment,” DeKalb County School Superintendent Stephen Green said.
“I have seen the statement from the superintendent, but that is not necessarily a reflection of the entire board — we have not been given an opportunity to make a proper case,” Doraville Mayor Donna Pittman said. “The facts are compelling, so we feel confident if given an opportunity to make the case.”

Commissioner Nancy Jester

Doraville Tax Allocation District
By Nancy Jester
Dec 22, 2015 – Every dime of property taxes for this property must be paid. The TAD does not change that. The business community and investors have expressed their concerns about DeKalb’s business climate. The GM site redevelopment is one of the largest projects in the Southeast. Successfully redeveloping this area will improve DeKalb’s reputation, bring thousands of jobs to the area, and improve land value; resulting in a larger commercial tax base for everyone.