It was terrible timing for the school system. The week voters began going to the polls for the latest extension of the education sales tax referendum (E-SPLOST), news broke that in 2019, the city of Jasper/Pickens County failed to file an important piece of paper relating to their sales tax collections. It was a straightforward agreement where both parties agreed to divide the sales tax and collect it for six years rather than five.
The one-cent sales tax generates roughly $700,000 a month. If Pickens/Jasper can’t find a sympathetic ear at the state revenue department, a lot of revenue will be missed.
This colossal oversight on the part of the county and city shouldn’t cause voters to balk at the school’s sales tax referendum. Nor should general anti-government sentiment running high nationwide be taken out on the school board and their E-SPLOST. Ultimately, schools must do what is required. Taking away a funding stream doesn’t eliminate their duties; it only forces them to operate lesser facilities and older buses or to push more burden on the property taxes.
For those unfamiliar with sales tax collections, the E-SPLOST is a one percent sales tax collected for five years to fund what we call “things you can build or buy.” A government can’t cover operating costs or salaries with it. In this case, the school board is looking at a new college and career center for Pickens High, renovating campuses, adding technology, and replacing school buses. The E-SPLOST could produce up to $70 million over five years but that is an intentional overestimate. The previous referendum sought $35 million over five years but the cap was reached a year ahead.
We would note our schools’ solid track record and SPLOST usage. They have been good stewards of the sales taxes collected. Running schools is expensive, but Pickens has balanced their checkbooks well.
Looking at the ballot language (Sample Ballot Page 6B), you may be surprised to see the mention of a bond. Don’t let this throw you; the schools do not anticipate using this and have historically not used borrowing. Their CFO explained the provision is added as protection against unforeseen shifts in the economy and the bond amount would be capped at half the amount of collections. Even if it were to be used, it wouldn’t create any long-term debt in a school system that prides itself on running debt-free for many years.
We currently have a 7 percent sales tax for Pickens. Of the 159 counties in the state, 48 are either 6-7 percent; continuing the E-SPLOST holds us at 7 percent. The majority of counties are at 8 percent. Continuing the education sales tax still leaves Pickens in the bottom third of sales tax rates in Georgia with their 7 percent.
There is no denying that a sales tax is definitely a tax. Economists can debate the finer points of using a sales tax versus a property tax. In our view, it is advantageous to the people of this county and a very fair way to fund our system.
We like that, unlike federal income tax, everyone pays their fair share with a sales tax. People who buy expensive stuff spend more and pay more; people who pinch pennies will pay less.
A big bonus of the sales tax is that all those folks heading north to the mountains help us fund schools when they stop for gas, meals, or something at Ingles. When Publix opens, their sales will help pay for new computers and other things for the students.
We encourage voters to view the ESPLOST as a fair way to continue funding community schools and give it an approving nod on Election Day. (Poll information, Page 12A).
Still have questions? The school board will host an E-SPLOST Q & A Thursday, March 6 at 5 p.m. at the board offices.
