Tax digest numbers are already looking worse than Hall County officials predicted three weeks ago.
Finance staff at the city, county and school levels continue to crunch numbers as they plan budgets for the 2012 fiscal year, and updated numbers this week show they must plan for the worst.
"The test digest was already trending downward for all governing authorities, and the preliminary digest figures are showing that even more," said Scott Martin of the Hall County Tax Commissioner's Office.
"We still don't know the loss we'll take on property tax appeals, so it will drop even further, but how much is anyone's guess. It's up to the taxpayers as to how many will respond."
Due to a new state law, counties are required to send an assessment notice to every property owner notifying them of the value of their property, regardless if it has changed.
The higher volume of notices likely will generate a higher number of people appealing their property values, which will continue to drive down tax digest numbers.
"I felt like the Grim Reaper when I was updating everyone that the numbers dropped further than we had thought," Martin said. "We were thinking 3 percent, finance was saying 5 percent, and it's hard to guess. It's going to be a tough year."
At the end of March, the Hall County Board of Commissioners called a public meeting at the Mulberry Creek Community Center in Flowery Branch to bring together city officials, the Hall County Board of Assessors and the Hall County Tax Commissioner's Office to talk about the digest numbers.
At the meeting, net taxable projections showed Hall County's digest at minus 1.09 percent. This week, the prediction shifted to minus 4.38 percent. That means $1.88 million in actual tax dollars lost.
"We were already calculating 5 percent, so we weren't overestimating that loss. Now we'll probably have to increase the deficit gap," said Lisa Johnsa, Hall County's interim finance director. "We'll re-run the numbers, but it still doesn't account for any loss on appeal. It's safe to say we've lost at least this much and it only gets worse from there."
The recent numbers show a 4.11 percent decrease in Gainesville, 4.22 percent decrease in Oakwood and 4.47 percent decrease in Flowery Branch. Buford will see a 0.83 percent decrease.
"They're not dropping like everyone else because the portion of the city in Hall County is mainly commercial properties," Martin said. "That's why they're not getting hit so hard."
On the other hand, Hall County Schools will see a 5.2 percent decrease, which equates to a $4.1 million loss.
"A big reason for that is that as the population ages, they're filing for school tax exemptions," Martin said.
"That increased drastically this year, not as much as last year, but it still hits hard."
Hall County Schools Superintendent Will Schofield sent an email to community members Friday morning, outlining how to address the news while crafting the budget.
"Monday, Mr. (Deputy Superintendent Lee) Lovett and I will begin yet another review of every position in the system that is not a regular classroom teacher," he wrote. "All expenditures, from cell phones to system vehicles, will yet again be re-evaluated for absolute necessity."
No new positions will be offered without consent from Schofield and the personnel department, he added.
"We will continue to explore every avenue that will allow us to meet the needs of our students in the most efficient and effective way possible," he said. "It is during times like the present that individuals and organizations rise to their true potential."
The state board of education decided school systems will not issue salary contracts until May 15.
"That's helpful because we're just now getting information to create a clearer picture," Gainesville City Schools Superintendent Merrianne Dyer said. "With personnel as 89 percent of expenditures, issuing contracts before having budget information is dangerous."
She noted the need to approach the budget carefully.
"We are adjusting the budget, and there's just not going to be a lot of certainty about that," she said. "We knew it would be bad and planned for bad. If it's just bad, we're in line with our plans, but if it gets worse, we have to make some more adjustments."