Understanding How Georgia Funds Its Public Schools, Millage Rates, and Property Taxes
- richardsond
- Mar 30
- 4 min read
Property taxes are one of the most important — and most confusing — parts of how our schools are funded. Many homeowners open their tax bill each year and feel surprised by the numbers they see. That reaction is common, and it usually comes down to one thing: how property values and millage rates interact with Georgia’s school‑funding system.
Recently, a Henry County resident asked for clarity on this topic, and I want to share the explanation here because it’s something many families wonder about.
How Georgia’s Public Schools Are Funded
Georgia’s public schools are not private businesses — they are public institutions, and their funding comes from three main sources. Understanding these sources helps explain why property taxes play such a large role in school funding.
Local Funding (Property Taxes) — The Largest Share
Local school districts in Georgia rely heavily on property taxes to fund day‑to‑day operations. This is the portion of your tax bill that most directly affects your schools.
Local funding pays for:
teacher salaries
school staff
transportation
classroom resources
utilities and maintenance
safety and support services
How much a district collects depends on two factors:
the millage rate set by the Board of Education
the tax digest (the total taxable property value in the county)
This is why rising property values can increase tax bills even when the millage rate stays the same. When the digest grows, revenue grows — and homeowners feel it.
State Funding (QBE Formula)
Georgia uses a formula called QBE — Quality Basic Education to distribute state dollars to school districts.
State funding supports:
instructional programs
special education services
gifted programs
transportation support
partial salary funding for teachers
However, QBE has been underfunded for many years, which increases pressure on local property taxes to fill the gap.
Federal Funding (Targeted Programs)
Federal dollars make up the smallest portion of school funding and are restricted for specific purposes.
Examples include:
Title I (schools with higher poverty rates)
IDEA (special education)
school nutrition programs
safety and mental‑health grants
Federal funds cannot be used for general operations.
Millage Rates in Henry County
Henry County Schools kept its M&O (Maintenance & Operation) millage rate at 20.00 for 17 straight years (2007–2023) — one of the most stable rates among large Georgia districts.
In 2025, the Board reduced the rate from 20.00 → 19.80, marking the first decrease since 2007.
The Bond millage — listed separately on your tax bill — remained at 3.628 mills for about a decade until a major reduction in 2024. The drop to 2.000 mills for 2024–2025 reflects early debt payoff and strong digest growth.
So if the millage rate stayed the same or even decreased, why did many homeowners still see higher tax bills?
The answer is property values.
Why Tax Bills Went Up
The biggest driver of rising tax bills has not been millage increases — it has been changes in property values:
2016–2019: steady growth of 4%–7% per year
2020–2022: rapid appreciation of 15%–20% (a pandemic‑era anomaly)
2023–2025: a cooling period with values adjusting –2% to –6%
When property values rise, the tax digest rises with it. Even if the millage rate stays the same, a higher digest means higher tax bills.
Understanding this distinction is essential for homeowners trying to make sense of their annual tax statement.
How My Real Estate Background Strengthens School Board Leadership
As a Real Estate Broker, I work every day with the financial systems that determine how communities grow, how property values shift, and how tax burdens impact families. That experience directly translates into stronger, more informed decision‑making on the Board of Education.
I work daily with:
property valuations and assessment methods
market appreciation and depreciation trends
tax digest growth and its impact on revenue
millage rate calculations and homeowner impact
sales ratios, exemptions, and assessment accuracy
This means I understand not only what homeowners are paying, but why they’re paying it — and how those dollars flow into school funding.
Because of my background, I can:
ask focused financial questions
spot inconsistencies in projections or assessments
evaluate recommendations with a tax‑savvy lens
translate complex financial concepts into plain language
advocate for transparency so taxpayers understand where their money goes
balance student needs with homeowner realities
This is also why having leaders who understand property values, assessments, digest growth, and tax impact brings real value to the Board of Education — because these financial systems directly shape school funding.
A Commitment to Transparency and Accountability
At the end of the day, we all want:
excellent schools,
a strong community, and
confidence that our tax dollars are being used wisely.
My goal is to help bridge the gap between educational priorities and financial accountability — making the process more understandable and more transparent for everyone.
Vote Dan Richardson for Henry County School Board District 2. Early Voting begins on Monday April 27th the Election Day is Tuesday, May 19th.
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