--- title: SB 44. Equalization Grants, Annual Calculations, and Allocation; the definition of the term "qualified local school system" by reducing the minimum required millage rate; revise collection: bills id: 2025-2026/sb44 cite_as: SB 44, 2025-2026 Regular Session (Ga.) canonical_url: https://georgiacommons.org/bills/2025-2026/sb44 md_url: https://georgiacommons.org/bills/2025-2026/sb44.md text_url: https://georgiacommons.org/bills/2025-2026/sb44/text source_url: https://www.legis.ga.gov/legislation/69581 date: 2025-05-14 status: passed corpus_version: bills-2026-08-28 license: Public record of the Georgia General Assembly, via LegiScan; see about.md publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice. up: https://georgiacommons.org/bills/2025-2026.md previous: https://georgiacommons.org/bills/2025-2026/sb43.md next: https://georgiacommons.org/bills/2025-2026/sb45.md index: https://georgiacommons.org/bills/index.md omitted: votes and history omitted_chars: 1093 omitted_url: https://georgiacommons.org/bills/2025-2026/sb44.md?full=1 bill_number: SB 44 session: 2025-2026 Regular Session session_slug: 2025-2026 chamber: Senate bill_type: bill status_date: 2025-05-14 last_action: Effective Date 2025-07-01 sponsors: - Sam Watson - Russ Goodman - Carden Summers - Chuck Hufstetler - John Kennedy - Jason Anavitarte - Charles Cannon text_version: Enrolled has_text: true legiscan_url: https://legiscan.com/GA/bill/SB44/2025 upstream_id: 1945123 summaries_model: claude-sonnet-5 topic_tags: - school funding - property taxes - equalization grants - education policy - local school systems --- # SB 44. Equalization Grants, Annual Calculations, and Allocation; the definition of the term "qualified local school system" by reducing the minimum required millage rate; revise ## Text 25 SB 44/AP Senate Bill 44 By: Senators Watson of the 11th, Goodman of the 8th, Summers of the 13th, Hufstetler of the 52nd, Kennedy of the 18th and others AS PASSED A BILL TO BE ENTITLED AN ACT To amend Code Section 20-2-165 of the Official Code of Georgia Annotated, relating to1 equalization grants, annual calculations, and allocation, so as to revise the definition of the2 term "qualified local school system" by reducing the minimum re quired millage rate or3 effective millage rate from 14 mills to 10 mills; to provide fo r a 25 percent reduction of4 equalization grant awards for local school systems whose millage rate or equivalent millage5 rate does not meet the minimum requirement; to require annual reporting by the Department6 of Education; to repeal conflicting laws; and for other purposes.7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 SECTION 1.9 Code Section 20-2-165 of the Official Code of Georgia Annotated, relating to equalization10 grants, annual calculations, a nd allocation, is amended by revi sing paragraph (9) of11 subsection (a) and adding two new subsections to read as follows:12 "(9) 'Qualified local school system' is defined as any local school system:13 (A) Having an assessed valuation per weighted full-time equivalent count for the year14 of the digest which is below the guaranteed valuation;15 S. B. 44 - 1 - 25 SB 44/AP (B) Having an effective millage rate greater than the millage rate applied to calculate16 the local five mill share pursuant to subsection (a) of Code Section 20-2-164; and17 (C) Beginning July 1, 2015, having a millage rate or an equivalent millage of at least18 12 mills; beginning July 1, 2016, having a millage rate or an equivalent millage of at19 least 12 1/2 mills; beginning July 1, 2017, having a millage ra te or an equivalent20 millage of at least 13 mills; beginning July 1, 2018, having a millage rate or an21 equivalent millage of at least 13 1/2 mills; beginning July 1, 2019, and thereafter,22 having a millage rate or an equivalent millage of at least 14 m ills July 1, 2025, and23 thereafter, having a millage rate or an equivalent millage rate of at least 10 mills."24 "(d.1) If, after a local school system's equalization grant has been calculated for the25 ensuing fiscal year as provided for in subsection (b) of this Code section, such local school26 system decreases the actual or equivalent millage rate levied a gainst its digest for27 maintenance and operation to an amount below the minimum amount required in28 subparagraph (a)(9)(C) of this Code section, a midterm adjustme nt in such local school29 system's equalization grant shall be made such that the total e qualization grant amount30 awarded to such local school system is reduced to an amount equ al to 75 percent of the31 initial equalization grant amount."32 "(f) Each year, the Department of Education shall prepare a rep ort of each local school33 system that received an equalization grant the previous fiscal year. Such report shall34 include for each local school system the initial equalization g rant amount, the midterm35 adjustment to the equalization grant, and the total amount of equalization grants received36 in the previous ten years. Such report shall also identify eac h local school system that37 received an equalization grant during the previous fiscal year while having a millage rate38 or an equivalent millage rate of less than 10 mills for the per iod of time upon which the39 calculation of such equalization grant was based. Each year, no later than September 1, the40 Department of Education shall provide such report to the chairp ersons of the House41 Committee on Appropriations, the Senate Appropriations Committe e, the House42 S. B. 44 - 2 - 25 SB 44/AP Committee on Education, the Senate Education and Youth Committee, the director of the43 Office of Planning and Budget, the director of the Senate Budget and Evaluation Office,44 and the director of the House Budget and Research Office."45 SECTION 2.46 All laws and parts of laws in conflict with this Act are repealed.47 S. B. 44 - 3 - ## Summaries written by Georgia Commons The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary. Senate Bill 44 lowers the minimum local property tax rate school districts must levy to qualify for state equalization grants, from 14 mills to 10 mills, while cutting grants for districts that fall short. ### Plain-language summary Georgia's equalization grant program (O.C.G.A. § 20-2-165) sends extra state money to local school systems that have a lower property tax base but tax residents at a certain minimum rate. Under prior law, a district had to levy at least 14 mills (a unit used to calculate property taxes) to count as a 'qualified local school system' eligible for these grants. This bill lowers that minimum to 10 mills, starting July 1, 2025. The bill also adds a penalty: if a district's equalization grant has already been calculated for the year but the district then cuts its tax rate below the 10 mill minimum, the state will claw back the grant to 75 percent of the original amount through a midterm adjustment. Finally, it requires the Department of Education to report each year, by September 1, on grant amounts, midterm adjustments, and any districts that received grants despite taxing below 10 mills, sending that report to legislative budget and education committees. ### What it does - Lowers the minimum millage rate (a property tax rate measure) a local school system must levy to qualify for state equalization grants, from 14 mills to 10 mills, effective July 1, 2025. - Cuts a district's equalization grant to 75 percent of its original amount if the district lowers its tax rate below 10 mills after the grant was already calculated for the year. - Requires the Department of Education to issue an annual report on equalization grants, including any midterm reductions and districts that received grants while taxing below 10 mills. - Directs that this annual report go to House and Senate Appropriations Committees, House and Senate education committees, and state and legislative budget offices by September 1 each year. ### Who it affects Local school systems and school boards that receive or seek state equalization grants, especially lower property tax base districts near the millage threshold, along with the Department of Education, which must calculate grants and produce the new annual report, and state and legislative budget offices that receive it. ### Why it matters Districts that previously fell short of the 14 mill requirement may now qualify for state equalization funding at 10 mills, while districts that cut taxes below that new minimum after receiving a grant would see their funding reduced by 25 percent, affecting school budgets statewide. ### Key provisions - Section 1 revises paragraph (9) of subsection (a) of O.C.G.A. § 20-2-165, lowering the millage rate threshold from 14 mills to 10 mills starting July 1, 2025. - Section 1 adds subsection (d.1), requiring a midterm reduction to 75 percent of the original equalization grant if a district's millage rate drops below 10 mills after the grant calculation. - Section 1 adds subsection (f), requiring the Department of Education to prepare an annual report on grant amounts, midterm adjustments, and ten year grant totals for each recipient system. - Subsection (f) requires the report to flag any system that got a grant while taxing below 10 mills, and to deliver it to House and Senate Appropriations, House and Senate education committees, and budget office directors by September 1. - Section 2 repeals conflicting laws. ## Status - Status: Passed (2025-05-14) - Last action: Effective Date 2025-07-01 (2025-05-14) - Sponsors: Sam Watson, Russ Goodman, Carden Summers, Chuck Hufstetler, John Kennedy, Jason Anavitarte, Charles Cannon - Official page: https://www.legis.ga.gov/legislation/69581 > The history, votes, and amendments (1,093 characters) are at https://georgiacommons.org/bills/2025-2026/sb44.md?full=1