Gulf Shores - Orange Beach New School District ?

Published By Mobile Press Register
Thursday, February 15, 2007
By JOSH BEANStaff Reporter

Creation of a special tax district that includes Gulf Shores, Orange Beach and the unincorporated areas of Ono Island and Fort Morgan has been suggested as a compromise that would end the two cities' attempts to form a joint, independent school district.
Gulf Shores Mayor G.W. "Billy" Duke III, Orange Beach Mayor Pete Blalock and Baldwin County Public Schools Superintendent Faron Hollinger renewed negotiations this week in hopes of reaching a compromise and avoiding a split from the county system.
Attorneys are handling this newest round of talks, and officials stressed that no formal decisions have been made as they try to figure out the exact millage needed, as well as an educational "wish list" from Gulf Shores and Orange Beach.
A special tax district likely could be created through a local vote, according to county school board officials and state Rep. Steve McMillan, R-Gulf Shores. McMillan provided copies of the state code that shows that the County Commission and county school board could work together to set up a special tax district for schools.
Blalock and Duke, meanwhile, said they believe legislative approval would be needed to create a special tax district but the mayors admitted that attorneys for the two sides could may find a way to avoid that process.
Referendums on a 7.5-mill property tax increase to fund the new school system are scheduled for March 13 -- less than a month away -- and the votes have not yet been canceled.
Officials from both sides said they hope negotiations move quickly and that a resolution can be reached.
"Our desire is to have this concluded by the end of the week so we know where we're going," Hollinger said. "We know there are a lot of factors and a lot of players, but that's our desire."
The county school board has scheduled a closed-door executive session for tonight, when special counsel Matt McDonald is expected to bring the seven-member board up to date on this week's negotiations. The board also will conduct its monthly meeting in Bay Minette after the executive session.
The next face-to-face meeting that would include the mayors and Hollinger could be held as early as Friday, Blalock and Duke said. Leaders from both sides have been tight-lipped about the contents of the negotiations, and said they are cautiously optimistic that a compromise can be reached.
Last year, Hollinger proposed an alternative plan to the beach cities' movement to break away from the county school system. It involves creating a special tax district for schools, and the two sides agreed to return to the bargaining table and discuss the proposal this week.
In October 2006, Hollinger told the Press-Register that most areas of the county could levy an additional 3 mills of property tax for schools by creating a special tax district. No legislative approval would be needed for a 3-mill increase, he said.
On Monday, Gulf Shores Board of Education President Joe Tucker said the new round of negotiations would explore whether a levy of "somewhere between 3 and 7½" mills would be satisfactory for both sides.
Negotiations, however, have included how to accommodate a property tax increase of more than 3 mills without needing legislative approval, according to officials. One such scenario would be to create two or more special tax districts that would affect the same geographic area, but could be earmarked for different uses.
For example, one special tax district could be created for Gulf Shores, Orange Beach and surrounding areas that feed into schools in the two cities that would levy 3 mills for capital improvements and construction.
A separate special tax district, which would also be for Gulf Shores, Orange Beach and surrounding areas, would levy 2 mills for enhanced and expanded academic programs.
This proposal would likely be constitutional and only require local approval, McMillan said, although he stressed that each district would have to be voted on separately.
State Sen. Bradley Byrne, R-Montrose, said he would be willing to help the two sides reach a compromise.
Special tax districts can include areas inside and outside municipalities, something Hollinger has trumpeted as a major advantage over an independent school system.
For example, a special tax district could be created that would include Gulf Shores, Orange Beach and the unincorporated areas of Ono Island and Fort Morgan -- all areas whose students eventually feed into Gulf Shores High School.
In contrast, the 7.5-mill proposal would only affect residents in Gulf Shores and Orange Beach, not the neighboring areas that feed into the cities' schools.
Of greater importance, Hollinger said, is the fact that all funds generated by a special tax district would funnel directly into that area's local schools. A special advisory board could be created to help the elected school board decide how to use the additional money, Hollinger said.
"They get to keep all the funds," he said. "All of that money goes directly to those schools and programs for enhancements."
To set up a special tax district, the school system would work with the County Commission, county tax collector and Board of Registrars, said Jean McCutchen, the county school board's chief school financial officer.
First, the county school board must approve Hollinger's proposal and recommend that a local area vote on whether to create the special tax district. Then, the district must be identified, whether it's a municipality or an area served by one of the county's seven high schools.
The second step would involve the County Commission authorizing the vote, McCutchen said. If creation of the special district were approved by voters, she said, the tax collector would then be directed to levy the tax to be used only for schools in that area.