School board votes to boost taxes for second home and commercial property owners

The Beaufort County Board of Education voted 8-3 Wednesday to raise taxes on commercial property and non-owner occupied homes to make up for an anticipated $2.4 million budget shortfall.

Non-resident homeowners would pay about $22 more on a $200,000 home, said Phyllis White, the district's chief operational services officer. Taxes for resident homeowners would remain unchanged.

Beaufort County Council must approve the tax rate before it takes effect. A public hearing on the tax rate is scheduled for Sept. 28, White said.

Although the County Council approved the district's $171.4 million budget in June, overestimated tax collections from May and June means the school district will take in less than expected.

The district's budget would have shrunk by $2.4 million -- or 1.4 percent -- without a tax increase, White said.

Board members spent about an hour discussing ways to reconcile the shortfall during their regular meeting Tuesday, then reconvened Wednesday, spending the majority of its two-hour meeting debating various tax options.

The approved proposal -- presented by vice chairman Bob Arundell -- raises taxes for school operations and keeps taxes for school debt service flat. Resident homeowners don't pay property taxes for school operating costs. Those who own second homes here but live elsewhere do pay for operating costs, as do commercial property owners.

Board members Jim Bequette and George Wilson voted against Arundell's proposal because they supported another option. Only board member Joan Deery suggested the board try to search for deeper budget cuts before raising taxes during a recession.

Although the board voted in January to avoid increasing taxes if possible, members said they didn't think they could trim the budget two months into the fiscal year and maintain the quality of schools.

Board chairman Fred Washington Jr. said district administrators spent months this spring searching for ways to cut costs and developed a lean budget. The current budget eliminates 74 positions through attrition.

Washington said the state might cut its funding to the district later this year, so the board can't afford to shrink its budget now.

"If we make cuts now, we're going to really hurt ourselves going forward," he said.

Board member Michael Rivers said cutting the budget instead of increasing taxes would be a politically motivated decision and harm children.

"There's going to be a point where you can't cut anymore," he said. "... If you want to have a good, educated community of students, you need to be able to raise taxes."

Board member Earl Campbell agreed.

"When we talk about cuts, let's think about who it's going to hurt," he said. "I don't mind having some of my taxes go up to educate children."