2023 CODE OF GEORGIA › Title 20 - EDUCATION (§§ 20-1-1 — 20-18-7) › Chapter 2 - ELEMENTARY AND SECONDARY EDUCATION (§§ 20-2-1 — 20-2-2140) › Article 6 - QUALITY BASIC EDUCATION (§§ 20-2-130 — 20-2-329.2) › Part 10 - CAPITAL OUTLAY FUNDS (§§ 20-2-260 — 20-2-263) › Section 20-2-262 - Low-wealth capital outlay grants to local school systems; criteria for eligibility

(a)
The General Assembly finds that many local school systems in Georgia have relatively weak local tax bases and are unable to raise revenues sufficient to meet their facility needs. The General Assembly further finds that even with current levels of state capital outlay support, these systems must wait for years before they can accumulate funds to initiate construction projects that are needed immediately. For some systems, the availability of the local option sales tax does not resolve their problem, because their commercial tax base is as meager as their property wealth. It is the intent of the General Assembly to provide for state capital outlay grants specifically targeted to low-wealth school systems, on a short-term basis, in order to help such systems initiate what they have been unable to accomplish with existing revenue sources.
(b)
As used in this Code section, the term:
(1)
"Equivalent millage" means, for a local school system that is eligible to receive local option sales tax proceeds for maintenance and operation purposes, the combination of property tax revenues and sales tax revenues representing the amount that would be generated by a designated rate of mills.
(2)
"Full-time equivalent student count" shall have the same meaning as provided in Code Section
20-2-260
.
(c)
The State Board of Education shall provide eligible local school systems with low-wealth capital outlay grants as provided for in this Code section, subject to appropriation by the General Assembly. Such grants shall provide sufficient funds to cover 92 percent of the state eligible cost of the local school system's first priority project in the five-year facilities plan, as contained in the system's most recently approved local facilities plan. In addition, for each mill over 12 mills levied by the local school system or over an equivalent millage of 12 mills, the state board will authorize an additional 1 percent of the state eligible cost of the local school system's first priority project in the five-year facilities plan, as contained in the system's most recently approved local facilities plan, up to a maximum of 8 additional mills.
(d)
Except as provided for in subsection (d.1) of this Code section and subject to available funding, local school systems which meet the following criteria shall be eligible for a low-wealth capital outlay grant:
(1)
(A)
(i)
The amount of sales tax revenues per unit in the full-time equivalent student count of the local school system is currently ranked in the bottom 25 percent of local school systems for sales tax revenues per unit in the full-time equivalent student count or was so ranked during any of the three most recently completed school years; and
(ii)
The value of property per unit in the full-time equivalent student count of the local school system is currently ranked in the bottom 25 percent of local school systems for value of property per unit in the full-time equivalent student count or was so ranked during any of the three most recently completed school years;
(B)
For local school systems in which the amount of special purpose local option sales tax revenues is ranked in the bottom 25 percent of eligible local school systems receiving such sales tax revenues, such systems may submit a request to the department for consideration; provided, however, that the local school system shall be required to commit the equivalent of five years of such revenues for the project. The department shall consider factors such as the high cost of a project, the local school system's ability to manage the project on its own, and the needs of the local school system, in determining whether to approve a project pursuant to this subparagraph; or
(C)
For local school systems that are consolidating educational facilities that are more than 35 years old in accordance with a local facilities plan, the amount of special purpose local option sales tax revenues for a local school system over a five-year period would not generate the required local contribution, as determined pursuant to subsection (c) of this Code section;
(2)
The local school system's millage rate for maintenance and operation is at least 12 mills or an equivalent millage thereof;
(3)
A special purpose local option sales tax is in effect in the local school district or the local school system has in place a millage rate for debt service on bonds, or both; and
(4)
The local school system uses prototypical specifications as defined by the State Board of Education for the project.
(d.1)
If the Department of Education determines that a local school system's system-wide eligible need has been met as a result of such local school system having received a capital outlay grant pursuant to subparagraph (d)(1)(B) or (d)(1)(C) of this Code section, then such local school system shall not be eligible to receive another capital outlay grant pursuant to subparagraph (d)(1)(B) or (d)(1)(C) of this Code section for a period of ten years from the date such grant was received.
(e)
No local school system qualifying for a low-wealth project pursuant to this Code section shall have a required local contribution, as determined pursuant to subsection (c) of this Code section, that is greater than the revenue generated by the applicable special purpose local option sales tax revenue over its five-year period. In the event that the sum of such required local contribution and the low-wealth capital outlay grant determined pursuant to subsection (c) of this Code section is less than the state eligible cost of the project, the state shall provide funds to make up the difference; provided, however, that the local school system shall repay the state such difference through future earned regular entitlements.
(f)
In the event of destruction or damage to an educational facility caused by a fire or natural disaster in which the majority of the facility is destroyed or damaged, a local school system which meets the eligibility criteria in subsection (d) of this Code section shall be immediately qualified for and may receive low-wealth capital outlay grants pursuant to this Code section for the concurrent update, repair, or replacement of the portion of the facility that was not destroyed or damaged so long as the facility is 20 years old or older.
(g)
The State Board of Education shall establish rules and regulations to implement the provisions of this Code section. Such rules shall provide for, but shall not be limited to, the following:
(1)
The prioritization of eligible local school systems in the event that available funds are not sufficient to cover the full amount of capital outlay grants provided for in this Code section. In such event, eligible local school systems with lesser amounts of special purpose local option sales tax revenues shall be prioritized over eligible local school systems with higher amounts of such revenues; and
(2)
The manner and method by which the Department of Education shall determine whether a local school system's system-wide eligible need has been met as a result of such local school system having received a capital outlay grant pursuant to subparagraph (d)(1)(B) or (d)(1)(C) of this Code section.
Amended by 2024 Ga. Laws 459,§ 1, eff. 7/1/2024.
Amended by 2019 Ga. Laws 318,§ 2, eff. 7/1/2019.
Amended by 2012 Ga. Laws 602,§ 18, eff. 7/1/2012.
Amended by 2010 Ga. Laws 385,§ 3, eff. 5/20/2010.
Amended by 2001 Ga. Laws 29, § 14, eff. 4/9/2001.
See 2001 Ga. Laws 29, § 23.