SB 38: Development Impact Fees; provide for education

Georgia already allows cities and counties to charge development impact fees under the Georgia Development Impact Fee Act (O.C.G.A. Chapter 71 of Title 36), which make new construction pay a share of the cost of public facilities needed to serve growth. This bill would extend that idea to public schools. It adds a new article letting a local board of education in a 'high growth school system,' defined as one with at least 20 percent enrollment growth and $250 million or more in new school construction spending over the prior ten years, adopt a resolution to impose these fees in fast-growing parts of its district. Before charging the fee, the school board must form an advisory committee, calculate the fee based on projected students from different housing types, and adopt a public fee schedule. Local governments would collect the fees alongside other development impact fees, keeping 3 percent for administrative costs. The fees last ten years and can be renewed in five-year increments if growth continues. The whole bill only takes effect if Georgia voters approve a related state constitutional amendment in the 2026 general election; otherwise it is automatically repealed on January 1, 2027.

• Creates a new type of fee, called an educational development impact fee, that high-growth local school systems can charge new development to help fund new school construction.
• Defines a 'high growth school system' as one with 20 percent or more student enrollment growth and $250 million or more in new school construction spending over the prior ten years.
• Requires a local board of education to adopt a public resolution and create an advisory committee before imposing the fee.
• Directs local governments to collect the fees using the same process as existing development impact fees, while keeping 3 percent of collections for administrative costs.
• Sets a ten-year limit on the fees, renewable in five-year periods if enrollment keeps growing by at least 3 percent in one of the prior five years.
• Makes the entire law contingent on voters ratifying a related state constitutional amendment in the 2026 general election, with automatic repeal on January 1, 2027 if that fails.

Local boards of education in fast-growing Georgia school districts, city and county governments that collect development impact fees, homebuilders and developers of new housing, and residents and families who buy or rent homes in areas experiencing rapid enrollment growth.

If enacted, growing school districts could shift some of the cost of building new schools onto new housing development rather than existing taxpayers, potentially raising costs for builders and new homebuyers while giving school boards another funding tool tied directly to enrollment growth.

• Section 1 revises the Code's statement of intent (O.C.G.A. § 36-71-1) to add local school systems alongside municipalities and counties as entities that can require growth to pay its share of new facility costs.
• Section 2 adds new Article 3 (O.C.G.A. §§ 36-71-20 through 36-71-23) creating educational development impact fees for 'high growth school systems.'
• Section 2 requires the school board to form an advisory committee modeled on the existing committee structure in O.C.G.A. § 36-71-5 before adopting a fee.
• Section 2 requires fee calculations to follow the existing methodology in O.C.G.A. § 36-71-4, factoring in projected students from different housing types.
• Section 2 lets local governments retain 3 percent of collected fees for administrative costs before forwarding the rest to the school board.
• Section 2 sets a ten-year validity period for the fees, renewable in five-year increments tied to continued enrollment growth.
• Section 3 makes the entire Act contingent on a 2026 constitutional amendment being ratified by voters, with automatic repeal on January 1, 2027 if it is not.

1. 2025-01-29Senate Read and Referred (Senate)
2. 2025-01-28Senate Hopper (Senate)

• Greg Dolezal (R, SD-027)Primary sponsor
• Shawn Still (R, SD-048)
• Jason Anavitarte (R, SD-031)

• development impact fees
• school funding
• education construction
• property development
• school enrollment growth