Ad Valorem Referendum Frequently Asked Questions
Q: Why is the Autauga County Board of Education asking for more money?
A: Autauga County Schools has become skilled at doing more with less, but with the expiration of COVID funding, the inability to continue borrowing funds, and the rising cost of goods and services, Superintendent Woodfin and the Autauga County Board of Education are at a crossroads where expenses exceed revenues under the district’s current financial model.
“This is a crucial moment for our district,” expressed Lyman Woodfin, superintendent of Autauga County Schools. “We’re okay right now, the true question is going to be when the 2025-2026 school year hits. We play the three shell game really well here. We are known for doing a lot with very little, but the reality is that there is coming a time when we will not be able to play it quickly enough to keep up with the expenses under the system’s current model.”
Currently, Autauga County Schools collects only the required minimum. Any additional funding allows for flexibility beyond the mandated threshold, providing a source of funding that can be used at the discretion of district leadership.
Q: How does the school district spend its money now?
A: Autauga County Schools’ FY2024 budget totals $103,000,000. “Of that total, approximately $90 million (or 87%) is allocated for specific use, meaning when you pay state or federal taxes for the benefit of our school district, those funds are sent to us with stipulations on what they can and can not be spent on,” stated Lesley Poe, chief school financial officer, during the 2024 budget video posted on the district’s Business & Finance Department webpage at acboe.net/bf.
The $90 million of designated funding includes expenses such as employee salaries and benefits, classroom instructional support, student materials, technology, textbooks, libraries, transportation, career tech programs, and general administrative items. “We have to be very careful to ensure that these specified use funds are spent correctly to avoid misappropriating funds, which is against state and federal law,” said Poe during the same video overview.
The remaining $13.5 million, or 13% of total revenues, is unallocated funding that allows for the purchase of anything not covered in the categories above. Purchases that typically fall into this category include facilities upkeep, basic maintenance, new facilities, office & cleaning supplies, utilities, transportation & special education expenses not covered by state or federal funds, technology licenses, the district’s financial system, and personnel costs not fully funded otherwise.
Funding Breakdown
State: 65% - Funds include state tax appropriations not related to local tax funding.
Local: 23% - Funds include sales tax, community grants, ad valorem, and the Helping Tags tax.
Federal: 12% - Funds include the Child Nutrition program paybacks, grants, and local school funds which includes fundraisers and fees.
Q: How much of an increase is being requested?
A: Autauga County Schools is pursuing an additional 7 mills of local funding which is approximately a 20% increase. This increase in ad valorem school taxes would increase local funding by approximately $7,000,000 per year.
Q: Why is the Autauga County Board of Education requesting additional funding even though more revenue is being collected with new housing developments?
A: The district currently collects the state-required minimum of 10 mills. Regardless of the increase in value of existing homes or the addition of new homes in the county, the ad valorem tax dollars collected are required to be spent in particular areas as a part of the Alabama State Department of Education (ALSDE) match program. Based on a formula provided to school districts, ALSDE provides match funding on the basis that 10 mills are already earmarked at the local level for specific uses. Essentially, to participate in this program, Autauga County Schools must set aside 10 mills of funding regardless of the dollar amount collected from valuation increases or new construction - all 10 mills must be earmarked for state-dictated use.
Q: What communities will benefit from this referendum request?
A: The Autaugaville, Billingsley, Marbury & Pine Level, and Prattville communities will benefit from a favorable vote. The local teaching units, security enhancements, and employee incentive program will impact all school campuses. Reducing the district’s debt will also improve cash flow for additional opportunities in the future.
Q: How much will my property taxes increase if the referendum is approved?
A: According to the Alabama Department of Revenue, property taxes are estimated to increase $10 per $100,000 in assessed value for each additional mill. The proposed 7-mill increase would cost an additional $70 per year in taxes per $100,000 of value for owner-occupied residential property resulting in an approximate 20% increase. However, there are Alabama Department of Revenue exemptions that include age, disabled status, and current use policy for large landowners that property owners can apply to receive.
Estimated Home Value // Annual Proposed Tax Increase (for owner-occupied residential property)
$500,000 >> $350 increase
$400,000 >> $280 increase
$300,000 >> $210 increase
$200,000 >> $140 increase
$100,000 >> $70 increase
$50,000 >> $35 increase
According to the Alabama Department of Revenue, a mill is one-tenth of one cent. The number of mills an agency charges for taxes is multiplied times the assessed value of the property, and the result is the tax amount due.
To find out what a home is worth in Autauga County, visit the county's Citizen Access Portal to input the owner’s name and locate the record. After locating the “market value” of the property, use the chart above to determine an estimate of the projected increase in property taxes for residential homes claiming a homestead exemption.
Q: What is the benefit to me if I don’t have children in the system?
A: Strong schools equate to strong communities! When a community has a thriving school system, the community benefits by attracting additional business and industry. When businesses and industries compete for thriving communities, wages increase, home values increase, and the competition to live in the desirable community generates additional revenue that can be put back into the area for continued improvements for citizens.
Q: How do I vote for or against this referendum?
A: Autauga County residents will have the opportunity to vote on an ad valorem school tax increase designed to add an additional $7 million annually to the school district’s local funds on November 5, 2024. Act 2024-257 will be included as a constitutional amendment on the general election ballot with all registered voters in Autauga County choosing to vote yes or no for the amendment - voting yes to be in favor of the tax increase or voting no to oppose the tax increase.
Q: Where can I get plugged in to make my voice heard?
A: Autauga County Schools is hosting tax referendum presentations in each of the district’s four communities so residents can ask questions and share concerns as well as speaking to various groups throughout the county. Please make plans to attend any events that work best for your schedule. For a list of upcoming events, click here.
Q: How will the additional dollars be spent if the referendum is approved?
A: A successful referendum would allow for the school system to have access to additional funding that is not state or federally earmarked, allowing the Autauga County Board of Education and district administrators the ability to meet immediate needs designed to stabilize the system. These needs were clearly articulated by Superintendent Woodfin during his State of the Schools meetings during the spring semester of the 2023-2024 school year, including:
- Hire additional teaching units and support staff,
- Purchase security enhancements,
- Create performance-based employee incentive program directly tied to schools’ state report card data
- Renovate aging and outdated facilities, and
- Reduce debt
“Systems that make it happen in terms of facility upgrades, additional teacher units, and things that make your system great often come out of your local funds,” stated Superintendent Woodfin. “When we pay all of our bills there’s just not a lot of local dollars left, so this increase in ad valorem would help us have a bigger pot of money to spread out in our district to make our teachers’ jobs better and give our students a better quality education.”
At this time, Autauga County Schools will not use the increased funding to construct new facilities; however the district hopes to renovate some of the most outdated facilities with any additional funds.
Q: What will the school district do if the referendum is defeated?
A: An unsuccessful referendum would require a significant reduction in the FY2025 budget, with impacts beginning in the 2025-2026 school year. At this time, the immediate cuts are those areas that are largely funded by local dollars - those programs that Autauga County Schools receive little to no funding for from state or federal coffers. These budgets reductions could include, but are not necessarily limited to:
- Closing of multiple county and city schools,
- Reduction of the already limited support of school athletics, fine arts, and extracurricular options,
- Closing of the district’s Second Chance Alternative Program using the base schools’ current disciplinary model to create behavior change,
- Indefinite suspension of the district’s free breakfast and lunch program for students,
- Major decrease in funding for the system’s career tech education program,
- Major decrease in funding for the system’s pre-K program, and
- Possible employee layoffs
Q: This is going to significantly affect land owners in the rural parts of the county. Will the funds be evenly distributed? Or will they all go to updates at Prattville?
A: The revenue will go into the district's local funds, so they will be evenly used throughout all schools in Autauga County. All schools will benefit from the funds, if approved. The proposed funds will not be earmarked for construction projects at any specific schools.
Q: Will the money be earmarked for only public schools in the County?
A: Yes, only schools that fall under the jurisdiction of the Autauga County Board of Education will benefit if the proposed constitutional amendment passes.
Q: How do I register to vote?
A: The last day to register to vote is 15 days before Election Day, which is October 21, 2024. Those interested in registering to vote can click here to register online or visit the Board of Registrars office located behind the Probate Office near downtown Prattville.
Q: Does the property that keeps appreciating in value not provide the additional funds needed so a tax increase is not necessary?
A: The district currently collects the state-required minimum of 10 mills. Regardless of the increase in value of existing homes or the addition of new homes in the county, the ad valorem tax dollars collected are required to be spent in particular areas as a part of the Alabama State Department of Education (ALSDE) match program. Essentially, to participate in this program, Autauga County Schools must set aside 10 mills of funding regardless of the dollar amount collected from valuation increases or new construction - all 10 mills must be earmarked for state-dictated use.
Q: Does the district have access to the information that states where Autauga County ranks in ad valorem taxes in the state?
A: Yes, a comparison of various school district's across the state is available by clicking here. The second column from the left shows the local collection according to the school system.
Q: Can someone explain how the proposed property tax calculations are made in relation to the ballot? When I figure my potential increase it comes to a lot more than what is being advertised?
A: The Autauga County Revenue Office collects property taxes based on the assessed value which is 10% of the market value. The proposed millage increase on $200,000 is estimated at $140 following the logic below:
$200,000 market value is 2,000 hundreds
2,000 hundreds x 0.70 (proposed increase) = $1,400
$1400 x .10 (assessed value) = $140
Q: If the ad valorem school tax referendum passes, can the school district institute another increase without the public's consent?
A: No. Subsequent ad valorem school tax increases must be voted on before being enacted.
Q: Can the ad valorem referendum be added back for a future vote if it doesn't pass this time?
A: Technically, yes; however, Superintendent Woodfin has been clear during his community meetings that another campaign would not be in the works for the foreseeable future if this attempt is voted down.
Q: How did the Autauga County Board of Education arrive at a seven mill increase proposal?
A: This proposal was created as a happy middle ground from previous attempts. It was an increase that was agreeable to all legislative parties involved that added necessary funding to stabilize the budget without asking for an exorbitant amount from the community.
Q: How do I learn more about this referendum?
A: All Autauga County residents are encouraged to get involved. The district is working to ensure that every voter has access to the information necessary to make an informed decision. To learn more, please visit acboe.net/advalorem for additional information, to watch previous presentations about the district’s current financial status, calculate an approximate increase for your property, see Superintendent Woodfin speak at an upcoming event, and more.
Q: Will people who rent also be exempted even though they have kids in Autauga County Schools?
A: The proposed referendum is a request to increase ad valorem taxes. Ad valorem taxes are collected on property which includes land and possibly vehicles. Renters do not pay property taxes directly, so that would be at the discretion of the homeowner as to whether or not the amount of rent changes based on the referendum proposal.
Q: Why is there no way to opt out of the free lunch program? The school paying for my child’s food when her parents make a good income and then you ask to raise my taxes doesn’t make sense.
A: The CEP program that the Autauga County Schools participates in is a district program; not an individual one. There is not a way for students to opt out. ACS isn't requesting a school tax referendum for this program specifically, but because participating in the program resulted in reduced funding in other areas due to families not completing the free & reduced lunch forms (the forms aren't required when participating in the CEP program), local funding was necessary to make up the difference. Anything funded by local dollars was included as a possible cut if the referendum isn't successful. Superintendent Woodfin has stated that he hopes to make as few cuts as possible, but wants the community to know the areas that could be in jeopardy without additional funding.
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