The longstanding debate over school funding between the beach cities of Gulf Shores and Orange Beach and the Baldwin County School System has reignited, as the parties grapple over the distribution of millions of dollars in annual sales tax revenue. The disagreement highlights ongoing tensions rooted in the cities’ decision to break away from the county school system.
At the heart of the issue is the one-cent sales tax revenue that Baldwin County Schools have received for decades.
Gulf Shores and Orange Beach, which formed their own city-operated school systems in 2020 and 2022, believe they are entitled to a portion of this revenue, arguing that it would be a fair reflection of their contribution to the county’s economic output. The Baldwin County School System, however, maintains that the current distribution was established long before the cities separated from the county system and should remain intact.
According to AL.com, the division of tax revenue dates back to 1983, when a portion of the county’s sales tax was designated to support Baldwin County Schools. The allocation was adjusted in 2017 when the Baldwin County Commission agreed to permanently extend a penny sales tax, dedicating 40% of its revenue to the county school system. At the time, the beach cities were not independent school districts.
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Gulf Coast Media reports that Gulf Shores and Orange Beach, which generate a significant portion of the county’s tourism revenue, currently receive no share of the one-cent sales tax despite contributing about 17% of the $28 million generated annually. Advocates for the beach cities argue that the current funding model does not adequately account for these areas’ economic contributions.
There are now legislative efforts currently underway to address the matter.
State Sen. Chris Elliott (R-Josephine) introduced two state bills, SB 135 and SB 136, reallocating the tax revenue between the two city schools and Baldwin County. State Representative Frances Holk-Jones (R-Foley) introduced HB420, addressing the same topic. These bills argue that Gulf Shores and Orange Beach should receive a share of the funds to support their school systems.
Baldwin County School Superintendent Eddie Tyler, however, has opposed these changes, suggesting that revisiting the agreement after the separation could undermine the county’s education funding stability.
The potential implications of redistributing the sales tax revenue extend beyond educational funding. Lawmakers and community members have expressed concerns that shifting the allocation could lead to further divisions within the county.
Additionally, some legislators worry that the lack of resolution may affect other local legislative priorities and lead to potential political gridlock in Montgomery.
There has also been talk of the beach cities forming a separate county, although state officials and local leaders have downplayed this possibility.
Sherri Blevins is a writer for Mountain Valley News and a staff writer for Yellowhammer News. You may contact her at [email protected].
