Memorandum from Mary Kay Murphy
Mary Kay Murphy, Ph.D. District 3  School Board Member

November 16, 2003

   In 2001, Gwinnett County voters approved a penny Special Purpose Local Option Sales Tax to raise $976.1 million between 2002 and 2007. The money was needed for a building program to accommodate 32,000 additional students in Gwinnett County Public Schools, for a total of 149,958 students, in FY 2007-08.
   The total program approved by voters in 2001 was $995 million over five years, with Gwinnett County targeted to receive $976.1 million, for about 98% of the County's students, and Buford City Schools receiving $18.9 million for the 2% of the County's students that it enrolls. 
   In 2001 when voters approved the plan, Gwinnett County Public Schools enrolled 118,000 students. The plan was based on projections of nearly 150,000 students to be enrolled by FY 2007-08. The building program addressed about 75 percent of the classrooms needed by 2007. 
   The School System expects that there will be a need to bring another five-year building program to the voters in 2006. The 2007-2012 building program will be necessary to provide adequate classrooms for the School System's future student population. 
   Since 1996 when Gwinnett County voters approved the $540 million SPLOST and 2001 when voters approved the $978 million SPLOST, several economic challenges have combined to limit the success of tax collections when stocks were high, budgets were fat, and workers were employed.
   The first of these economic challenges is record high unemployment in Gwinnett County. in 2002 and 2003. Combined with a national and a worldwide recession, unemployment in Gwinnett County has lowered worker confidence and limited spending on goods and services. 
   This, in turn, has reduced by $300 million to $360 million revenues that would have been available to fund the Gwinnett County Public Schools building program. According to the School System's Office of Business and Finance, these are revenues that can never be recaptured. 
   Several District III projects are included in the 2002-2007 building program. These include the four story addition to Duluth High School; construction of the new Duluth Middle School; construction of Chesney Elementary School, and computer upgrades for the 17 schools in District III, including those in the Norcross Cluster, the Duluth Cluster, and the Peachtree Ridge Clusters. 
   Several possible resolutions are being considered-and additional resolutions are invited. These include private financing, bonds, or other possible initiatives to complete the School System's portion of the $976 million building program. This includes almost 2000 classrooms, 17 new schools, three replacement schools, 40 additions, three renovations/facility upgrades, technology upgrades, and purchase of new school sites. 
   Another option would be assessment of impact fees for new schools. The law, however, does not allow the use of impact fees to pay for new schools. Even if the laws were changed, impact fees would not provide the relief that is possible through the sales tax. 
   Impact fees can only be used where new development has an impact on schools. There are many areas of the county, including District III schools, where classrooms are needed, but development is sparse. Impact fees would provide no relief for those badly overcrowded schools. 
   Also, anticipated revenue generated by the sales tax between 2002 and 2007 was estimated to be $995 million for both Buford City and Gwinnett County Public Schools. Impact fees from a major development would produce only a fraction of that amount. 
   A final option would be for Gwinnett County Public Schools to limit its 2002-2007 building program by approximately $300 to $360 million of a $976 million program.
   With these reductions and the School System's increasing student enrollment, Gwinnett County Public Schools would consider other options, including: 1) purchase additional trailers; 2) schedule classes on double or triple sessions; 3) provide Year Round School options; or 4) offer Distance Learning classes to students in their homes.
   District III has supported every Bond Referendum brought to it by Gwinnett County Public Schools. The Norcross Cluster received significant new schools, technology, and construction upgrades in the 1997-2002 building program. The Duluth Cluster is receiving significant additions and upgrades in the 2002-2007 building program. 
   District III is an active participant in Gwinnett County Public Schools achievements, including high test scores, strong college placement results, significant community leadership, outstanding fiscal stability, and academic and athletic visibility and leadership.
   As District III School Board member, I welcome the opportunity to discuss the impact of tax shortfalls on property owners and to involve community leaders in addressing the challenges facing public education in Gwinnett County Public Schools-one of the nation's twenty five largest and fastest growing public school systems. 

111603

Archives