ESPLOST: Pennies at Work


Dr. Joe Buck
Dr. Joe Buck

I n September of 2006, ESPLOST was approved by the citizens of this area and the power of pennies went into effect supporting facilities growth throughout Savannah- Chatham Schools. Since its inception, ESPLOST has generated more than 300 million dollars, funds used to pay down bond debt and support the construction of new schools, significant renovation projects, and technology upgrades. And while the expansion of schools is great for the educational success of students, what does it really mean to all citizens living in Chatham County? Soon the educational penny sales tax will expire and residents will be left to determine if the one-cent sales tax is worthy of a continuation. Before you head to the polls and cast your vote, you’ll want to have the most up to date information on the topic. How has the money been spent?

How does a sales tax impact the local economy? Is it an additional tax? What does ESPLOST mean to the millage rate? The President of the Savannah-Chatham School Board, Dr. Joe Buck, provides answers and insight to those questions.

Dr. Buck, can you describe for us what an Educational Special Purpose Local Option Sales Tax is? JB: An Education Special Purpose Local Option Sales Tax is the option that a local school district has to call for a referendum to approve a one percent sales tax to help fund school facility improvements. It can be used to pay for school construction, equipment and/or to retire debt, but cannot be used to pay operating expenses, such as salaries. If the next ESPLOST is approved, does this mean we’ll have an additional sales tax? JB: No, an approval of the next ESPLOST would provide for a continuation of the current penny sales tax for education. It will not change the existing sales tax for Chatham County. If the ESPLOST is continued, what will be accomplished? JB: Money raised from ESPLOST will be used to upgrade existing facilities, provide improved technology and equipment and build new schools. Specifically, we will build 9 new elementary school facilities for students at Hodge, Haven, Spencer, Bartow, Juliette Low, Hesse, Isle of Hope, May Howard and Port Wentworth. Additionally, the extension to our current ESPLOST will pay for the continued expansion of Woodville-Tompkins Technical and Career High School so that we can add modern facilities for the automotive and construction programs that are in place. How is ESPLOST different than property tax? JB: The ESPLOST is not a property tax. It provides a method of funding the cost of educational improvements that everyone pays, not just property owners. This is important because sales tax is paid by everyone who shops or stays in Chatham County including our numerous visitors and tourists. Approximately 40% of the sales tax is paid by people who live outside Chatham County. Would the continuation of the ESPLOST increase my property tax? JB: No. The penny sales tax shifts some of the responsibility of providing quality educational facilities from property owners to all citizens (and visitors/tourism) of the community. ESPLOST actually helps lower property taxes by paying previously incurred bond debt from the 1990’s which would otherwise be paid by property taxes. What does ESPLOST mean for people who do not have children in the public school system? JB: The ESPLOST extension keeps ad valorem taxes stable. Additionally, the children are not the only ones who benefit from building new schools. The ongoing construction projects provide a major boost to our local economy and additional job opportunities for many citizens, which is especially important as unemployment continues to be a significant issue in our community. Over $100 million will have been spent with local companies in the first ESPLOST and we plan to increase that with the second ESPLOST, specifically among local minority and women owned businesses. The social and economic strength of a community are greatly influenced by the school system. Good schools mean well prepared citizens, a strong labor market, and an inviting atmosphere for both living and working. Given the current state of our economy, why consider building projects? JB: Slow economic times actually provide an excellent opportunity to build projects. Construction costs are projected to be down considerably and the lack of construction in other sectors leads to more competitive bids for the school system. The construction also provides job opportunities for Chatham County citizens. What happens if the continuation of ESPLOST does not pass? JB: Without the extension of the current ESPLOST, property taxes would probably need to be increased to pay previous bond debt from the 1990’s. Also, other facility or equipment improvements would not be accomplished and this would result in lost opportunities for Chatham County students. Is this ESPLOST different from the Chatham County Commissioners SPLOST? JB: Yes. The ESPLOST is a special purpose tax approved by the citizens for improvements of school facilities and equipment. The County SPLOST is a special purpose tax designed to fund county and municipal government projects identified by the Chatham County Commission and the other municipalities. How much money would be raised and how long would this sales tax be in place? JB: The ESPLOST extension is for a $330 million limit or 5 years, whichever comes first. When is the ESPLOST vote? JB: The election is Tuesday, November 8, 2011. The polls will be open from 7 a.m. to 7 p.m. How can I learn more about the next ESPLOST and the planned projects? JB: Individuals can go to our website at www.sccpss.com and click on the ESPLOST tab for a wealth of information about the current ESPLOST and the plans in place for the next ESPLOST. Once on Board Docs, simply search “Meetings” and review the August 3rd, 2011 Regular Board Meeting. There you will find item Education Special Local Option Sales Tax II (ESPLOST) Resolution.


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