The Carrollton Board of Education is considering opting out of a new statewide homestead exemption.

Carrollton City Schools leaders, in addition to other state school officials, have voiced concern about the new "floating" exemption, which creates a potential financial burden on school districts through a state-mandated reduction in local property tax revenue. 

Officials say not only does this cut in revenue jeopardize funding for academic programs and other critical needs, but it also constrains future school boards through a one-time opt-out provision. This strips away the community’s control by shifting decision-making from local elected officials to the state level. As a result, school boards would have less flexibility to address their community’s specific needs. 

Currently, school boards have the authority to lower taxes by adjusting the millage rate. This provides a crucial tool for balancing the budget while considering the financial burden on taxpayers. Additionally, homeowners age 65 and older in Carroll County are exempt from paying school taxes. The exemption aims to provide financial relief for senior citizens.

Carrollton City Schools Superintendent Dr. Mark Albertus said the referendum might initially seem like a good idea to homeowners. However, when looking closely at its financial effects on the community, it’s clear why governing agencies are concerned.

"The new statewide exemption caps homestead property assessed values to the inflation rate set by the state Revenue Commissioner instead of using traditional market values. As a result, school district revenues will decrease significantly over time because of this cap," he said.

Based on the district's calculations using the real data from the official tax digest, Albertus said Carrollton City Schools would have lost more than $4 million in revenue if this method were applied over the past six years.

"That reduction translates to significant cuts in our teaching staff and essential educational programs, especially since the cost of goods and services continues to increase," he said.

Carrollton City Schools has started the process and will hold three public hearings on Jan. 8, 2025, at 6 p.m.; Jan. 9, 2025, at 8 a.m.; and Jan. 14, 2025, at 6 p.m. The board of education will make a decision during the regular monthly board meeting in January. All meetings will be held at the district office at 106 Trojan Drive. The public is invited.