State cuts erase tax rollbacks
Loss of grants will raise bills at local level
By Sylvia Cooper| Staff Writer
Thursday, August 07, 2008

Augusta leaders expressed alarm Wednesday at Gov. Sonny Perdue's decision to freeze $428 million in state grants targeted this year for homeowner property-tax relief.

For the city of Augusta and Richmond County, the loss of tax revenue traditionally rolled back would total more than $6 million and would result in higher tax bills, said City Administrator Fred Russell.

A homeowner with a home valued at $32,500 or greater would pay $84.45 more in city taxes in the suburban area and $135.98 in the urban area. That homeowner also would pay $154.74 more in school taxes this year, according to city tax officials.

Gov. Perdue announced the freeze Friday as part of a series of moves to mitigate a $1.6 billion deficit in the state budget. City officials have yet to be officially notified what to do, Mr. Russell said, and state Revenue Department officials say they are not authorized to speak on the matter.

Mr. Perdue's spokesman Bert Brantley said the governor will consider releasing the grants if the economy improves.

"Through the media we've been informed at this point the governor is placing on hold these grants that have about a $6 million impact on our community," Mr. Russell said. "If it's not paid for by the state as it has been in the past, it's got to be made up by some local tax dollars. What this money is for is to help roll back our property taxes. Without it, we've got an additional hole in the budget we're going to have to look at."

The Richmond County school system also would be short more than $3 million.

"That $6 million is total between us and the schools, but it's unfortunate the state's going to try to balance their budget woes on the back of the localities," he said. "And it's not only here, but it's every locality in the state."

Association County Commissioners of Georgia Executive Director Jerry Griffin has advised counties to hold off on printing and mailing property-tax bills. He said the media was told of the governor's decision Friday, but the association was not given any warning.

"We are currently working with the governor's office to determine the options for counties," he states in an urgent message to county officials.

Columbia County Commission Chairman Ron Cross said Wednesday that officials there plan to meet with the county's tax commissioner next week to discuss figures and how many homes could be affected by the change.

However, he said he doesn't expect the change would require a millage increase, adding that the county could turn to its "good operating reserve."

"It would have to be very drastic for us to consider that (a millage increase)," he said.

Mr. Russell said city officials had planned to send out tax bills around Sept. 15 or earlier but now don't know what to send out.

"We need to make a decision on whether or not we add that, which would increase taxes tremendously for individual homeowners to make up that money," he said. "It's advertised as part of the tax bill itself. The rollback is played in there. If that rollback doesn't exist, I think we're cutting new cloth. I'm not sure anybody knows what we're supposed to do at this particular point in time."

Night City Editor Preston Sparks contributed to this report.

Reach Sylvia Cooper at (706) 823-3228 or sylvia.cooper@augustachronicle.com.

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