Chatham County voters to decide on school-tax homestead exemption in November

SAVANNAH, Ga. (WTOC) - Voters will decide whether to pass the Chatham County Schools Tax Relief Act, also known as House Bill 782, in November.

The bill would establish a homestead exemption when it comes to taxes that go towards the Savannah Chatham County Public School System. It’s identical to what homeowners already have when it comes to city and county taxes.

The bipartisan bill, supported by five local Republicans and three local Democrats, would apply a homestead exemption to homeowners as it relates to school taxes, meaning their current assessed tax value would be the number used to calculate their property tax bill.

“This is about fairness, predictability, and protecting the taxpayers while fully funding education,” says Republican Representative Ron Stephens, who represents the 164th District in Georgia.

Data provided by the legislators shows school taxes account for two thirds of Chatham County homeowners’ property taxes, and that over eight years the taxes have increased 87%. In that same time frame, enrollment has dropped by 5% and administrative costs have increased 65%. Republican Representative Jesse Petrea says the costs needs to be managed.

“You build a budget based on what your expenses are, and then you discover, ‘I need revenue to meet these expenses.’ I don’t think that’s happening, quite frankly. I think they discover, ‘Okay, this is going to be our revenue, let’s build a budget to meet this revenue,’” says Petrea of the 166th District.

We reached out to the school system for an interview. A spokesperson declined, saying the district doesn’t comment on political matters.

They then sent a lengthy statement, saying the 65 percent increase in administrative costs accounts for mental health support, special education services, nurses and counselors.

The statement also says if the bill passes, it “could result in funding shortfalls that jeopardize teacher salaries, classroom resources, and student programs—especially as inflation and population growth continue.”

Setting the Record Straight on House Bill 782 and School Funding in Chatham County

We appreciate the community’s interest in the upcoming ballot referendum regarding House Bill 782, the Chatham County Schools Tax Relief Act. However, it is critical to clarify several points and provide a fuller picture of the realities facing our public schools.

1. Tax Increases Reflect Investment in Students, Not Waste

While it’s true that school tax revenue has increased over the past eight years, this growth is largely driven by rising property values—not by increases in the millage rate, which has decreased over the past two years as a priority of District Administration and with support of the Board.  Any revenue increases that have been realized have been reinvested into our classrooms, teachers, and support services to meet the evolving needs of our students and community.

2. Enrollment Decline Is a National Trend, Not a Local Failure

Enrollment in Savannah-Chatham County Public Schools has declined since 2019, consistent with national trends caused by lower birthrates, increased school choice, and the lingering effects of the COVID-19 pandemic.

Despite this, projections show a potential rebound in enrollment as major employers like Hyundai bring thousands of new jobs—and families—to our region.  Expansive growth in western Chatham County continues and the District is investing in this area with planned construction to bring a new high school to Pooler.  

In addition, while enrollment has declined, the needs of our students have not. In fact, they have grown more complex. We are serving more students with special needs, more English language learners, and more children who require unique support and wraparound services.

3. Rising Costs Are Driven by Student Needs and Increases in Operational State Driven Expenses

The 65% increase in administrative costs cited in the press conference fails to account for the expanded services now provided to students and state mandated funding increases. Our investment in services includes mental health support, special education services, school nurses, and school counselors.  The District’s budget also represents operational needs including technology upgrades and funding that supports the safety and security of our 5,600 staff and more than 35,000 students —all essential in today’s educational landscape.  Funding resources must also be allocated to offset state mandated increases including increases in Teacher Retirement and State Health Benefit plans.  Still, in the face of increased cost, the district has implemented cost-saving measures such as vacancy factors and central office reductions to ensure fiscal responsibility. 

4. House Bill 782 Could Undermine School Funding Stability

While HB 782 may sound appealing as a tax relief measure, it could introduce significant uncertainty into school funding. By capping property tax assessments at a base-year value, it disconnects school revenue from actual property growth. This could result in funding shortfalls that jeopardize teacher salaries, classroom resources, and student programs—especially as inflation and population growth continue

5. Transparency Already Exists

Contrary to claims of “back-door” tax increases, the district’s budget process is transparent and includes multiple public hearings, detailed presentations, and board oversight. We welcome community input and strive to balance fiscal stewardship with educational excellence.

Conclusion

The District supports ongoing transparency and openness in the budget process and works to carefully balance revenues that fund educational services, staffing, and the daily operations of our school system.  While we support efforts to provide tax-relief measures, we must also ensure the fiscal strength of the school district and avoid long-term financial implications that could have negative impacts on the educational services provided to the children of Chatham county.  While it is true that the total school tax levy has increased, we remind - this is not due to increases in the millage rate. In fact, the Board has reduced the millage rate in recent years—from 17.631 in FY24 to 17.331 in FY26. We encourage voters to learn more about House Bill 782 and its potential long-term impact. While the idea of a “floating” homestead exemption may sound appealing, it could significantly limit the district’s ability to respond to inflation and growth.

Savannah Chatham county Public School System

Stephanie Campbell, who serves on the school board, is in favor of the bill.

“We’re already doing the work of figuring out where we can cut, and where we can use less money to do more things, but mostly more effectively. So I think this pairs well with what the vision is, from my standpoint,” says Campbell.

Petrea and Campbell added they don’t think the school system has done anything with nefarious intentions- but taxpayers need relief.

This measure has not passed yet but will be on the Chatham County ballot in November.

An identical bill, the Bryan County Schools Tax Relief Act, has also passed. Bryan County voters will decide whether to enact it in November.

Watch our coverage of Wednesday’s press conference from WTOC+ below: