LETTER TO EDITOR: Dougherty County faces fiscal crisis: Tax increase or service cuts looming

The financial warning signs in Dougherty County became unmistakable during last Monday’s Finance Committee meeting when staff reported that the County’s tax digest declined by 1.4%. While a small number on paper, its real-world impact is severe. The county will need the equivalent of a 3-mill tax increase just to maintain current operations.

In practical terms, Dougherty County is now confronted with two immediate options:

1. Raise the millage rate (significantly) A 3-mill increase would push Dougherty’s millage rate into one of the highest in Georgia, placing additional burden on homeowners at a time when household budgets are already strained.

2. Reduce services: This would almost certainly require a reduction in force, leading to job losses and cuts to public safety, public works and general county operations.

Neither option is politically pleasant, but the county’s fiscal position has reached a point where inaction is no longer possible. A declining digest is an unmistakable indicator that property values are falling, economic activity is slowing, and long-term sustainability is at risk.

A declining digest does not correct itself. It signals a community in need of new investment, new construction, new jobs, business recruitment and redevelopment of underperforming areas.

Without real economic development, the county will remain locked in a cycle of higher taxes, shrinking services, and continued erosion of its tax base. Growth is not optional at this point — it is essential for survival.

A major point of misunderstanding within the community has been the role of the floating local-option sales tax (FLOST), which has been referenced as a potential financial solution. To be clear: FLOST cannot and will not address the county’s revenue losses caused by a shrinking digest.

Here’s what is required for a FLOST to be implemented:

1. All jurisdictions in the county must opt in to the HB 581 floating homestead exemption (which Dougherty has done).

2. The County must negotiate and sign an intergovernmental agreement with the city of Albany.

3. The measure must be placed on the ballot and approved by voters.

4. The sales tax can only be levied in increments up to 1%.

5. All revenue collected must be used exclusively to reduce or roll back millage rates.

What FLOST cannot do:

It cannot be used for general operations.

It cannot pay for public safety, EMS, roads, or staffing.

It cannot replace revenue lost because the digest is shrinking.

It cannot stabilize the general fund.

It cannot prevent layoffs or service reductions.

Even if a FLOST is approved and generates significant revenue, the county is legally required to use all of it to rollback millage — not to fund operations. This means a FLOST would actually reduce property tax collections even further.

In other words, FLOST cannot stabilize the County’s financial position. It only shifts the burden from property taxpayers to sales taxpayers, but it does not increase total available revenue. With a declining digest, the County will still need to raise the millage rate or cut services, or both.

By opting in to HB 581, Dougherty County placed itself in a position where the growth of its tax base is capped, but its costs continue to rise. When the digest is shrinking, HB 581 compounds the problem because the county cannot benefit from future rebounds in residential value the way it traditionally would.

The decision to opt in may have been well-intentioned, but the fiscal pressure it creates is now undeniable. Monday’s staff briefing made clear that the county’s financial trajectory is unsustainable without significant corrective action.

Based on current data and state law, a substantial millage rate increase is likely unavoidable, or major service reductions — including potential layoffs — may be necessary.

The community is approaching a difficult period, and the decisions made in the next few months will shape the financial health of Dougherty County for years to come.

Name withheld on request