By PAUL DONSKY
The Atlanta Journal-Constitution
Published on: 02/11/08
Beltline project, a potentially major blow to the effort to build a loop of transit, trails and parks around the city's core.
The unanimous decision is a victory for Buckhead lawyer John Woodham, who in 2006 filed a lawsuit claiming the Beltline's funding mechanism was illegal. He argued that the state constitution explicitly forbade school taxes from being used for non-educational purposes.
rulings, including a 1994 decision which held that DeKalb County school tax revenue couldn't be used to pay for a nearby road project.
So, the court ruled, "it follows that school taxes cannot be used to fund the Beltline Plan which provides a benefit to all citizens, and which has little, if any, nexus to the actual operation of public schools in the city of Atlanta."
More than $850 million in future school property taxes are projected to be spent on the Beltline during the next 25 years.
Lawyers for the city have argued the Beltline funding mechanism is legal, citing a different part of the state constitution that allows for the creation of tax allocation districts like the one funding the Beltline.
A Fulton County judge dismissed the case last February, but Woodham appealed to the state Supreme Court.
The case could have far-reaching implications.
Statewide, more than two dozen tax allocation districts, or TADs, similar to the Beltline's already are in place, including one that helped create Atlantic Station in Midtown.
TAD's allow future increases in school tax revenue that are generated by improvements to be used on projects within the district.