Should SC change how it pays for its schools? Panel starts work

After years of criticism from education advocates, a special S.C. House budget panel began taking steps Tuesday to change the way that South Carolina pays for its schools.

That panel — appointed by the House’s chief budget writer, Ways and Means Committee chairman Brian White, R-Anderson — was told that major parts of state’s education funding formula have not been overhauled in 40 years.

The main formula the state uses to determine how much money schools get, based on their enrollment, is underfunded by about $500 million, according to the level set in state law. However, legislators, frequently criticized for shortchanging that formula, pointed Wednesday to other education dollars that are included elsewhere in the state budget.

“All of these (budget) lines developed over time, trying to meet the needs that the locals were sharing with their representatives,” said state Rep. Shannon Erickson, R-Beaufort. Now, however, money for the specially added programs possibly should be put into the main K-12 funding formula, she added.

Wide disparities in local funding of schools — varying from county to county — also have been the source of controversy.

About $3.2 billion of the money that schools get comes from county property taxes. Nearly half of that money comes from commercial and rental property, according to the state Revenue and Fiscal Affairs Office.

But the amount that individual school districts get from business property taxes varies dramatically from district to district.

For example, only 5 percent of the property taxes that go to Greenwood School District 52 come from commercial and rental property.

But in Horry County, where tourism attracts rental properties and businesses, 74 percent of school property taxes come from commercial and rental property, according to the revenue office.

This story was originally published August 30, 2017 at 5:18 PM with the headline "Should SC change how it pays for its schools? Panel starts work."