Here's a full explanation on school funding and your tax bill

In just a few days you will receive your annual tax bill as processed by Berkeley County Government (BCG). At a cost to taxpayers of $5,000, County Council voted unanimously to provide information in your tax bill about the history of millage increases made for Berkeley County School District (BCSD) and for Berkeley County Government, along with the contact information for any Board member who voted for a millage increase.

The budget picture for each entity is far too complex to be reduced to a simple line graph showing the history of one source of revenue -- millage rate. In fact the tax insert combines millage for operations (163.8) and millage approved by the voters through referendum (75). The referendum millage is for school construction and renovation debt service and is not a part of the BCSD operating budget. BCSD and Berkeley County Government have access to different sources of revenue and have different rules for raising revenue. I believe the public deserves the benefit of a page 2 explanation of the budget.

Let’s look at how BCSD is funded. There are two primary sources of operating funds: state per-pupil allocation and property taxes. State per-pupil funding is below the funding level of 2006, at $2,350 per student. Based on the SC Budget Control Board Office of Revenue and Fiscal Affairs’ calculation, BCSD is underfunded by $19 million per year in this category. School District property tax assessments are governed by Act 388, passed by the Legislature in 2006. Act 388 removed owner occupied homes from the property tax rolls for schools and replaced it with a statewide one-penny sales tax which has resulted in a loss of $11 million a year for BCSD. Financially not a good trade for schools!

BCG has more and different ways to increase their operating budget in addition to increased millage. Other options include increased assessment value of owner occupied homes; local option sales tax; increase in fees, fines and permits. Growth in the population resulting in more owner occupied homes generates tax revenue for the county but not for BCSD. Many business and industry properties receive tax advantages to locate in Berkeley County. They negotiate a Fee in Lieu of regular taxes which is significantly less that the true tax value of the property. The school district must rely on the county to establish our fair share of taxes generated by Fee in Lieu agreements.

County Council exercised the option to change the Fee in Lieu as recently as the summer of 2015. At that time, the Council reduced Berkeley County School District’s portion of the fees by 10 percent (from 80 percent to 70 percent) amounting to a loss of half a million dollars in anticipated revenue in its first year of implementation. The change came after 10 years of an 80/20 split. Did the County Council elect to increase their operating funds by changing the fee distribution to their advantage rather than increasing millage? It is a question that merits consideration.

Now, back to the line graph in your tax bill. The entities are so different that a comparative is difficult at best. A better option is a graph of revenue from all sources for the County and BCSD.

Over the 10-year period 2006-2016, BCSD operational funds increased 43.3 percent and student population increased by 30 percent. BCG operational funds increased by 34.5 percent and population increased by 13 percent. The revenue increases represent all revenue options available to each entity – not just assessed millage. Taking care of the population growth in the community and in the schools requires increases in funding.

Rather than stuff inserts in tax notices, it is time to work together to celebrate our successes – County and BCSD! Great schools are essential to a great community and critical to economic development.

The reality is BCSD operates financially soundly. Our finance records are transparent. Check them out at www.bcsdschools.net, and select Finance under the Department tab. We are the 64th lowest of 83 school districts in per student expenditures – only 19 districts spend less per pupil than BCSD. In student achievement, we are 24th from the top in the state – only 23 of 83 districts exceed our student achievement outcomes.

Our bragging rights include a SC rating of Excellent; since 2012, a 9.4 percent increase in graduation rate rising to 83.8 percent in 2015; financial audits with the highest possible opinion; 209 National Board Certified Teachers; a Moody’s Bond Rating of Aa2; 70 Career Academy Business Partners; the Advanced Placement Honor Roll District designation; four National Blue Ribbon Schools; and Accreditation of our 44 schools by AdvancED, an internationally recognized accrediting body.

Next year, let’s skip the tax bill insert and spend the $5,000 on our children.