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Lawmakers: Road work funding bill will help
bill hitchens
State Rep. Bill Hitchens talks about his support for the transportation funding bill, HB 170. Gov. Nathan Deal signed it into law Monday. - photo by Photo by Pat Donahue

Though it won’t provide money for new road projects, the passage of HB 170 is critical for the state’s transportation needs, state lawmakers said last week.

State Sen. Jack Hill and state Reps. Jon Burns and Bill Hitchens told the Effingham Chamber of Commerce’s Eggs and Issues Review breakfast that the transportation funding bill doesn’t solve all of the state’s woes — but it does relieve some of the pressure.

“The bill only applies to existing maintenance,” Hitchens said.

The bill, passed by a 129-41 vote in the House and by a 42-12 margin in the Senate, was withdrawn twice, and House members disagreed with Senate revisions on March 24 before conference committees approved the final version March 31. Gov. Nathan Deal signed it into law Monday morning, and the law’s provisions will go into effect July 1.

“It was a hard choice and there were some hard feelings,” Hitchens said. “Easy decisions are easy to make. Sometimes you have to make difficult decisions. I just don’t know that we could have done without it.”

The transportation funding bill is expected to raise between $900 million and $1 billion, and the state needs at least $1 billion a year to maintain its existing roads and bridges.

“We’re behind,” Burns said. “We need to catch up.”

The state’s shortfall has gotten to the point, Hitchens said, that the state Department of Transportation only has the money to pave state roads once every 50 years. Ideally, the paving should occur every 15 to20 years.

Under its provisions, the 4 percent sales tax on gasoline and excise of 7.5 cents per gallon will be abolished. In their stead, the state will enact a 26-cent excise tax on gasoline and a 29-cent excise tax diesel. The bill also includes a $200 annual fee for alternatively-fueled vehicles, such as electric cars. Commercial electric cars will pay a $300 annual fee.

“I think that’s fair,” Burn said of the fee charged to electric vehicles. “We used some common sense, I believe.”

Also, tractor-trailers and other big vehicles will be assessed a fee from $50 to $100, enabling the state to be compensated for the potential damage resulting from the travel on state roads, according to Burns.

By going to excise taxes rather than sales taxes on motor fuel sales, the state also expects to get credit back from the federal government, perhaps as much as $60 million, Burns said. The state also could be less dependent on the federal highway trust fund, and that could mean other benefits.

“That will speed up the rate of construction,” Burns said. “We don’t have to deal with the bureaucracy that bogs down everything we do. It shows we are taking care of our own issues in this state.”

Hitchens advocated the Transportation Investment Act, or T-SPLOST, that failed in the 12-county Coastal Region. He said he continues to get complaints about congestion at I-95 and Highway 21, and when the Savannah harbor deepening finishes in a couple of years, that will mean more trucks coming out of the port.

“We’re going to double the volume coming out of the port,” Hitchens said, “and you know what a problem it is already.”

Hitchens added he got a list of the bridges in Chatham County — his House district includes west Chatham — and the number of bridges listed as deficient comprise three pages.

“I ride on all of them,” he said.

Burns said his focus on HB 170 was based on finding adequate funding to keep the state economically competitive, but he also was concerned about safety. Burns added the state DOT does a good job, based on the number of fatalities per road miles traveled. But on a rainy morning of the Eggs and Issues Review, Burns said he would not venture into South Carolina to drive on its roads and warns his family to avoid driving in South Carolina when it rains.

“To be kind to my friends just over that way,” he said pointing toward the state line, “it’s absolutely abysmal and a disgrace how they’ve let their infrastructure deteriorate. I will not travel in South Carolina on a day like this because of the rutting in the roads.”

HB 170 also has a provision to allow counties and regions to explore establishing their own group sales tax to fund transportation needs. Hill said he would have state DOT representatives come to Effingham and explain the process, if needed.

“It’s going to be more and more important that local governments put up a share of those (construction) costs,” he said.

Hitchens said passing HB 170 was “the most important thing we did this year.”

“Somebody’s got to do something,” he continued. “We can’t keep kicking this can down the road for years and years and let our roads and our bridges deteriorate. I hate it; I like to think I’m an anti-tax. I had a choice to make — I could vote to keep my job or I could vote to do what I thought was right for the people I represent, and I did the latter.”

Effingham Schools Approve Property Tax Rate Increase
School Property Tax Rate Increase
Comparison of the property tax impact for Effingham County homeowners under the approved millage rate increase, showing the difference from fiscal year 2025 to 2026.

SPRINGFIELD, Ga. — The Effingham County Board of Education unanimously approved raising the property tax rate from 16.5 to 18.45 mills. For a homeowner with a $350,000 property, that’s about $22 more per month. The vote was 5-0.

Why the Increase is Needed
District officials said the adjustment is necessary to cover rising costs and remain competitive in attracting and retaining teachers and staff. More than 87% of the district’s budget goes to salaries and benefits for employees ranging from classroom teachers to bus drivers, nurses, counselors, paraprofessionals, and administrators.

Most of the increase is tied to an $8 million spike in required contributions to state benefit plans.

The state’s health and retirement benefits for certified employees — teachers — are going up 7% in 2026, finance director Lauren Cain, said. Benefits for non-certified employees — staff — are rising 36%. That’s a total of $8 million more in health and retirement benefits the district will have to cover.

Although the state is increasing funding to Effingham schools by $4 million, it will cover only about half the benefits hike, she said.

As of July 1, premiums for the State Health Benefit Plan (SHBP) have nearly doubled since FY2023, jumping from $945 to $1,885 per month per employee. In addition, the district’s contribution rate to the Teachers Retirement System (TRS) has increased from 20.78% to 21.91%.  

To help offset those rising costs, the district voted to raise the millage rate.

Millage Rate

Balancing Costs & Education
Superintendent Yancy Ford previously called the increase “an investment in every child’s future.” He said, “Smaller class sizes, highly qualified teachers, and strong support staff are all proven to raise student achievement. This millage rate increase allows us to continue building on our successes and to make sure every child in Effingham County has the opportunity to reach their fullest potential.”

Ford also acknowledged the strain on taxpayers. “We don’t want to put the taxpayers in this position next year,” he said. He promised to “dissect the budget” and search for ways to “lower costs” while still doing what’s best for students. “We know people are feeling it,” he added.

Fiscal Accountability & Academic Record
While the millage rate itself rises about 11.5%, higher property values mean overall revenue collections will increase nearly 26%. School leaders say the additional funds will help preserve Effingham’s strong academic record, which includes a 90.7% graduation rate, above-average reading scores in elementary grades, and SAT results that top both state and national averages.

Ford  emphasized accountability in managing taxpayer funds. Every dollar from this millage rate increase is an investment directly tied to student learning, he said.

Effingham Schools recently earned a 4.5 Financial Efficiency Star Rating from the Georgia Department of Education, ranking fourth out of 180 school systems statewide.

Public Concerns
About 20 residents attended the final public hearing before the vote. Several property owners, retirees on fixed incomes, and business owners voiced frustration over rising appraisals, cost of living increases, and tax abatements for industry.

Historical Millage Rate Chart

Looking Ahead: ESPLOST Vote

Looking ahead, the district is preparing to ask voters in November to approve another ESPLOST (Education Special Purpose Local Option Sales Tax). If passed, funds would go toward capital projects such as facility upgrades and technology improvements.