Gov. Phil Bryant approved a bill Tuesday that creates a single countywide taxing authority and balances debt payments of the former Oktibbeha County School District and the former Starkville School District after the two systems’ July 1 merger.
As concurred by both the Miss. House and Senate, HB 572 creates the Starkville-Oktibbeha Consolidated School District’s countywide tax base — all taxable property within the entire county — and states both former systems’ outstanding debt “shall be assumed and become debt” of the newly formed district when they consolidate.
Action from the governor was due today, and the Legislature’s website showed Bryant approved the measure Tuesday.
Oktibbeha County has about $350 million worth of assessed property within its borders. An OCSD mill brings in about $70,000, while a city mill yields about $280,000.
OCSD operates a 58.92-mill budget in which 2.92 mills are allocated for debt services, while roughly 14 mills of SSD’s overall 66.57-mill rate are set aside for indebtedness.
Once the countywide mill is established, the consolidated district is expected to operate with a 63-mill rate, meaning residents within SSD’s territory will experience about a 3-mill decrease in taxes, while OCSD’s residents could see a 4-mill tax increase.
As filed, HB 572 originally was a merger bill for the upcoming Holmes-Durant Consolidated School District, but the Senate Education Committee, led by state Sen. Gray Tollison, R-Oxford, added the Oktibbeha-specific taxing instructions.
The House concurred with the Senate’s amendment by a 101-14 margin last week.
Debt sharing became a rallying cry for those who forced a proposed $13.2 million OCSD construction bond to a referendum earlier this year. Many who signed the petitions circumventing Conservator Margie Pulley’s ability to issue the bond said the debt burden should not fall entirely on the shoulders of residents within OCSD’s territory.
Calls for an election became moot when Pulley rescinded the intent notice in lieu of a voter base generally opposed to the measure — the bond was not expected to pass since 60 percent approval was needed to move it forward, and already 20 percent of the electorate called Pulley’s issuance into question.
Historically, OCSD’s electorate has not supported school bonds.
With the money, officials would have procured local funding for a one-of-a-kind demonstration school on Mississippi State University’s campus. The university previously pledged $5 million and 43 acres for the proposed 102,000 square-foot school that would have been a school for all grades 6-7 students in Oktibbeha County.
“Since all the kids (will eventually attend city school campuses, including Starkville High School), then everybody should be paying their fair share,” said state Rep. Gary Chism, R-Columbus, last week.
Chism represents a portion of Oktibbeha County and serves on the House Education Committee.
Consolidating debt service also eliminates a potentially convoluted process in which older debt would have been retired by separate taxing bases and rates in addition to a countywide levy.
“The county will help pay for ours, and we will pay for theirs,” said SSD Superintendent Lewis Holloway last week.
Holloway will become the consolidated school system’s superintendent July 1.
“It’s the right thing to do,” he said.
The combined school district could attempt a future construction bond in the future, one that would require a lower tax increase since the value of a mill increases with a countywide tax base and could find more support with the addition of the city’s voter base.
A referendum is not expected during this year’s county election cycle.
Carl Smith covers Starkville and Oktibbeha County for The Dispatch. Follow him on Twitter @StarkDispatch
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