Mediation between Cobb County government, schools over administrative fees fails to reach agreement

An attempt to mediate an argument between Cobb County's government and its school district over withheld funding has failed to reach a positive resolution, county officials say.

In June, the Cobb County School District filed a lawsuit against the Cobb County Board of Commissioners in what school officials said was an attempt to stop the board from taking money away from the county's teachers and students.

At the center of the dispute is administrative fees to reimburse the county for it work collecting school taxes. School officials say that they have been charged over $130 million in fees since 2011 and that this fiscal year's fees will be more than $13 million - about 130 teachers' salaries and benefits.

"This lawsuit is about the hundreds of teachers and thousands of students who would be affected. Strong public education benefits every Cobb homeowner, business owner, parent, grandparent, and student," Board Vice Chair David Chastain said in a statement after the lawsuit was filed. "The Commission is attempting to remove millions from our classrooms through a tax increase disguised as 'administrative fees.' Cobb families want smaller class sizes, not more fees."

The board says it has followed Georgia law, which allows a commission of 2.5% to be withheld, higher than the 1.6% rate has been for decades.

"The school district alleges that Cobb County has been unlawfully charging this 1.6% commission rate, and it should have been zero since 2011. This assertion has not been raised in the last fifteen years," the Cobb County government wrote on its website. "Cobb County contends that, due to no current local legislation setting the commission rate lower, the commission rate should be 2.5%."

The county says it attempted to reach a compromise during a mediation session on July 31, but that it was unsuccessful. That means the lawsuit remains moving through the court system.

"While Cobb County mediated in good faith, a resolution was not reached," the county government wrote. "Our responsibility is to protect the taxpayers of Cobb County and maintain the level of services that they have come to expect."

In a statement following the mediation, John Floresta, Cobb County School District's chief strategy and accountability officer, stood by the lawsuit.

"Whether it's $13 million or $20 million, and whether it's called a tax on top of taxes or a 'fee,' taking even one dollar that taxpayers intended for students doesn't work for our Board or our Superintendent. This week, our teachers and staff welcomed students back to school, and our focus remains where it belongs—on educating children. That same focus drives this lawsuit," Floresta said. Our teachers already serve students at one of the lowest per-pupil costs in the metro area, and we're committed to protecting the taxpayer dollars intended for their classrooms."