Below are some of the arguments for and against school districts possessing fiscal autonomy, compiled over the course of this issue in Oconee County.
Pros
• The school board has ability to respond directly to state mandates and any financial demands placed upon it by state and national governing authorities;
• Act 388 actually places limitations on the authority of local school boards to raise taxes beyond set limits, which is a function currently held by county council;
• Research indicates that fiscal autonomy does not necessarily lead to higher tax rates; and
• A match should be made between accountability measures. The school board is responsible for student performance, as measured on many accountability measures, and the same board should be accountable to voters based on the use of locally raised tax funds.
Cons
• Creates another taxing authority;
• Possible decrease in checks and balances between local governments;
• Legislators have claimed the atmosphere in the General Assembly has shifted away from granting fiscal autonomy and districts with autonomy are unhappy with system; and
• Some have argued that the current system isn’t broken. Legislators say it also requires belt tightening, as is expected of any other business entity during tough economic times
Click on photo to enlarge
State Rep. Bill Sandifer, of Seneca, center, discusses his opposition to fiscal autonomy while State Rep. Bill Whitmire, left, and State Sen. Thomas Alexander, both of Walhalla, listen in. All three legislators had an opportunity to express their opposition to the issue during a legislative breakfast with Oconee County School Board and other elected officials Wednesday morning at the Oconee Educational Services building.
Click on photo to enlarge
Oconee County School Superintendent Mike Lucas, right, explains his support for fiscal autonomy. Lucas, shown with Assistant Superintendent for Operational Services Michael Thorsland and Finance Director Gloria Moore, said Oconee faces state cuts that could lead to increases in class sizes, closing of schools and teacher and staff reductions if fiscal autonomy is not granted.
WALHALLA — School District of Oconee County Board of Trustees Chairman Harry Mays Jr., who is entering his final weeks in office, said his lone remaining goal since being elected in 1982 is for the district to achieve fiscal autonomy.
Three members of the state delegation indicated Wednesday they don’t see much merit in autonomy.
Still, Mays made it clear during a breakfast meeting with the group that the current funding system is in need of an overhaul. Delegation members in attendance were Sen. Thomas Alexander and Rep. Bill Whitmire, both of Walhalla, and Rep. Bill Sandifer of Seneca.
“In South Carolina, the educational funding program is broken, and it’s up to you guys under the copper dome to make sure it’s fixed,” Mays said. “The funding process is not equitable for some of those districts that are fast-growing or in the situation of not being able to fund education as we are in Oconee County with our tax base.”
Fiscal autonomy would give the school board authority over its budget without the oversight of County Council. Among 85 school districts, Oconee is one of 26 that do not possess some form of fiscal self-governance. Officials say that puts the district at a disadvantage in a time of state budget cuts and talks of eliminating local maintenance of effort requirements.
“We’re asking for the school board to have the ability to control local taxes because they know what is best for the school system,” Superintendent Michael Lucas said.
Vice Chairman Ken Poston said the board attempts to treat the school district’s 1,600 employees and $100 million payroll as a business and that fiscal autonomy is needed to control its budget.
However, Alexander, a local business owner himself, turned Poston’s analogy and said business owners realize there are limited funds available and must act accordingly.
“You can’t just go out and raise prices simply because you don’t have the income you want,” Alexander said. “You’re committed to the amount of income you have.”
Alexander strongly disagreed with Lucas’ argument that Act 388, which limits the ability of all local governments to increase property taxes on owner-occupied homes, will harm the district’s funding mechanism.
“Act 388 was about the taxpayers. It doesn’t have anything to do with the school districts,” he said. “You’ve got every penny, and you will continue to get every penny you did before Act 388 because the penny sales tax is taking care of all of that money. I think we’re mixing apples and oranges here.”
Sandifer also dismissed concerns by school officials about the elimination of maintenance of effort, a program designed to prevent a taxing authority, Oconee County Council in this case, from arbitrarily lowering school budgets.
“What you have heard is a proposal, and in a legislative year, we probably see over 1,000 proposals and fewer than 40 percent become law,” Sandifer said. “I think you have to take the proposals you hear with a grain of salt.”
He also said he didn’t understand the school’s concern about losing county funding.
“They gave you more this year ($455,000 which was used to fund teacher salary increases), even though the law did not require it,” he said. “So, I don’t see exactly what the fear factor is.”
Sandifer said he believes the current system, where school district budgets are presented to county council, is one that isn’t broken and needs no fixing.
“My belief and the belief of many, many constituents who have contacted me over the last month is that we should not create another ability to tax,” Sandifer said.
Whitmire agreed, adding, “We are all elected officials, and we have to respond to the public.”
Despite the banter, school district officials said they appreciated the support they receive from their legislative delegation.
“We don’t want to be adversaries; we want to work with you,” Lucas said. “Our goal as a district is to be lean and efficient.”
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Legislative Delegation mixed on advisory referendum for fiscal autonomy
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September 25, 2008
8:23 a.m.Report inappropriate content
Yet another reason to eliminate property taxes and go to a consumption tax (Fair Tax, sales tax) based funding system. All we need is a bunch of parents with the ability to raise taxes so that their children can have gold plated faucets in their schools. And to take it a step further, yet another reason for government to get out of the education business and for parents to take responsibility for educating their own children either through home schooling or private schools. If government wasn't taking our money through taxes everyone would have money to pay to their children's education.
September 25, 2008
8:33 a.m.Report inappropriate content
Terrible idea.
September 25, 2008
10:53 a.m.Report inappropriate content
Have you read the Fair Taxbook? What is so terrible about it? By reducing the power of elected officials to tweak the tax code you transfer power back to the consumer to vote with their pocketbooks. If you gave your friends access to you credit card how fast do you think they would max it out? How many times have you heard "it's for the children"? How can we not raise taxes if "it's for the children"?