Bankruptcy

If You Live In Clayton County, Georgia, Watch Your Home Values Plummet

By Scott Riddle

The disaster that is the Clayton County School Board has struck again.  On the verge of being the third school district in the United States to lose accreditation in the last 20 years (see the report here), they struck again last night.  In a non-public session, and in apparent violation of the open meetings law, they hired a "corrective superintendent."  It just happens that this candidate had previously withdrawn his name from consideration, and has been  deemed unqualified by state and accreditation officials (yes, that would be the officials who determine whether the schools are accredited).

The board voted 5-1 to hire John W. Thompson, who state and accreditation officials said is not qualified. ....  Thompson's $285,000 contract runs until to June 30, 2009, and has an option to be extended, Schwartz said. It also includes a car and security, if needed. Thompson initially requested a $275,000 salary, 24-hour access to a car and driver, 24-hour security and $2 million for consultants. It's unclear if he will have a consultant budget.

"His demands are appalling," said Winnie Thomas, whose daughter is a junior at Lovejoy High School. "The fact that Mr. Elgart from SACS and the governor's liaisons disapproved is alarming. For a board to pass an offer to this man is ridiculous. In what world do they live?"

Excellent question, Winnie!  They live in a world where they, the School Board, value their own positions and power more than the condition of the schools or welfare of their neighbors.

Even better, the attorney they hired to represent the Board during the troubling times, Glenn Brock, resigned, stating -

"I fired the school board because of deceptive and unethical behavior," said board attorney Glenn Brock. "Their behavior demonstrated last night is what SACS has been criticizing all along."

What does this have to do with a Bankruptcy Blog? The end result of losing accreditation is that students are ineligible for the Hope Scholarship, and will have a difficult time getting into a decent college.

Clayton County residents can expect plummeting home values as parents (or anyone who might be  a parent in the next few years) move out of the county so their kids get in college and they are eligble for the Hope Scholarship.   Homebuyers with school-age kids, or who may have school age kids in the future (i.e, most younger couples) will avoid the county like the plague.  The housing market in Clayton County will be a disaster, and the tax base will decrease dramatically.  Refinancing will not be possible because the equity in homes will simply disappear.  Companies and industries considering Clayton County will immediately strike them off of their list because employees will not want to move there.  Some businesses will move, or perhaps even close, because of a decrease in business and an inability to keep qualified employees. 

According to a realtor association official ...

"All the board members need to resign. We need to have a special election and start over with qualified candidates," said David Barton, Vice President of the Metro South Association of Realtors. He said that during the last four years of turmoil in the Clayton County schools, property owners in the county have lost a half billion dollars in value.

This quote was in February, when there still might have been a chance for remedies.  That chance seems to be over, so expect much higher losses in value for Clayton homeowners.  If you have school-age kids, or think you might have them in the next few years, stay way from Clayton County.

Full post as published by Georgia Bankruptcy Blog on April 24, 2008 (boomark / email).