Law much change or district will pay heavy price

Published Saturday, October 10, 2009
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The Beaufort County School District has set as one of its goals rapidly closing the performance gap of our students compared with state and national averages.

We are nearly halfway along our five-year time line to show significant improvement, and we are starting to see positive results. But the task is becoming increasingly difficult due to the restrictions and unintended consequences of Act 388, the Property Tax Reform Act of 2006.

Act 388 exempted owner-occupied homes from paying school operating expenses. Additionally, increases in assessed value are limited to 15 percent over five years. A 1 percent sales tax was supposed to offset the loss of owner-occupied property tax revenues.

That amount was set in 2007 and annual increases are limited to the increase in the Consumer Price Index, plus the percentage increase in state population. Annual increases in tax rates for school operations are capped using the same type of limits. This encourages school boards to increase rates to the maximum allowed in order to maximize the base against future needs. More importantly, the law encourages homeowners who can qualify to change their residence from the 6 percent assessment rate to 4 percent, thus realizing a significant tax saving. This loss in revenue cannot be recovered by the local school taxing district under current laws.

In 2006 about 25 percent to 30 percent of the homes in Beaufort County were owner-occupied. That number is now more than 40 percent and increasing. It is easy to see why homeowners are making the change. An actual 2008 example illustrates the point: A home with a value of $557,500 paid $6,803 in property taxes, with $3,432 for school operations. The change from 6 percent to 4 percent status would reduce that total to $2,247.

The tax savings, and corresponding losses in school operating revenue, are sizable. In addition, we were the only district in the state to receive no Education Finance Act funding.

This year, the district's approved budget is basically flat even while opening a new elementary school, two new early learning centers and a charter school. We cannot continue this way indefinitely without seriously hurting our ability to continue to improve. We will have to cancel programs that are working, and it will become more difficult to hire and retain good teachers and school leaders who are critical to our success. This will be made much worse as more homeowners change from the 6 percent to 4 percent status. Eventually this will bankrupt the district; the only question is when. We are then faced with the distasteful situation of suing the General Assembly, charging that they have prevented us from carrying out the responsibility to provide even a minimally adequate education for all of our students.

We must get legislative relief, and soon, in order to avoid the ugly situation described above.

The inequities in the statewide funding allocations must be addressed and the unintended consequences of Act 388 must be remedied. It is telling that the General Assembly has created a commission to study overall tax system reform, but key provisions of Act 388 are off the table. An election year is coming, so I'm sure the candidates will all say how important education is to our residents and the state's economic future. It is time for lawmakers to step up and put their money where their mouths are.

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Your Elected Officials

U.S. Congress
State Government
  • Gov. Mark Sanford (R)
    Governor’s Office, State House, P.O. Box 12267, Columbia, S.C. 29211
    Office: (803) 734-2100 Fax: (803) 734-5167
  • Senator Tom Davis(R-District 46)
    P.O. Drawer 1107, Beaufort, 29901-1107
    (843) 252-8583
    602 Gressette Bldg., Columbia, 29201
    Bus. (803) 212-6008
  • Rep. Curtis Brantley (D-District 122)
    194 Bees Creek Rd., Ridgeland, 29936
    (843) 726-5998
    314D Blatt Bldg., Columbia, 29201
    (803) 734-2965
  • Rep. Richard Chalk (R-District 123)
    326C Blatt Building, Columbia, S.C. 29211-1867
    Office: (803) 734-3067; Home: (843) 842-5985
    15 Goldfinch Lane, Hilton Head Island, S.C. 29928
  • Rep. Shannon S. Erickson (R-District 124)
    (843) 986-1090
    306A Blatt Bldg., Columbia, 29201
    (803) 734-3261
  • Rep. Bill Herbkersman (R-District 118)
    P.O. Box 11867, Columbia, S.C. 29211
    Office: (803) 734-3063; Home: (843) 757-5424
    151 Gascoigne Bluff, Bluffton, S.C. 29910
  • Rep. Kenneth F. Hodges (D-District 121)
    PO Drawer 355, Green Pond, 29446
    (843) 525-9006 Home (843) 844-8756
    434B Blatt Bldg., Columbia, 29201
    (803) 734-3062
Beaufort County
  • Rick Caporale (R-District 1)
    17 Salt Wind Way, Hilton Head Island, S.C. 29926
    Office: 680-9999; fax: 681-6700
  • Steven Baer (R-District 2)
    10 Heather Lane, Hilton Head Island, S.C. 29926
    Office: 689-3570; fax: 689-3569
  • Stu Rodman (R-District 3)
    27 Baynard Park, Hilton Head Island, S.C. 29928
    Office: 363-470; fax: 363-6472
  • Weston J. Newton chairman (R-District 4)
    P.O. Drawer 7049, Hilton Head Island, S.C. 29938
    Office: 842-6111; fax: 706-9981
  • William McBride (D-District 5)
    P.O. Box 77, St. Helena Island, SC 29920
    Fax:(843)838-8303
    Home:(843)838-2264
  • Gerald Dawson (D-District 6)
    64-A Horace Dawsone Drive, Seabrook, SC 29940
    Fax:(843)846-4738
    Office:(843)846-4830
  • Paul Sommerville vice chairman (R-District 7)
    1509 Pigeon Point Road, Beaufort, SC 29902
    Fax:(843)379-7115
    Office:(843)379-7114
  • Herbert N. Glaze (D-District 8)
    P.O. Box 4053, Burton, SC 29903
    Fax:(843)846-3601
    Home:(843)846-2845
  • Brian Flewelling (R- District 9)
    25 Petigru Drive, Beaufort, SC 29902
    Fax:(843)379-9806
    Office:(843)379-9805
  • Jerry Stewart (R-District 10)
    11 Teaberry Lane, Bluffton, S.C. 29909
    Office: 705-4753; fax: 705-4723
  • Laura Von Harten (D-District 11)
    166 Fuller Parkway, Beaufort, SC 29902
    Fax:(843)379-1380
    Office:(843)379-1367
Beaufort County School District
  • District Office: 1300 King St., P.O. Drawer 309, Beaufort, SC 29902
    Office: 322-2300; fax: 322-2371
    Hilton Head Island office, 689-4635; fax: 689-4617
  • Beaufort County Board of Education members:
    • Fred S. Washington chairman (District 11)
      PO 325, 804 West Street, Beaufort, SC 29901
      (C) 843-524-8404
    • Bob Arundell vice chairman (District 2)
      198 Woodlake Villas, Hilton Head, S.C. 29926
      Home: 681-8502; work: 7855-8040; fax: 785-3056;
    • Joan Deery (District 1)
      5 old Fort Drive, Hilton Head, S.C. 29926
      Home: 681-8968
    • Wayne Carbiener (District 3)
      Home: 843-363-2113
    • Laura Bush (District 4)
      P.O. Box 172, Bluffton, S.C. 29910
      Home: 757-2638; fax: 757-2638
    • Michael F. Rivers, Sr. (District 5)
      734 Seaside Road, St. Helena, SC 29920
      (H) 843-838-2277
      FAX 843-838-1192
    • Earl Campbell (District 6)
      93 Bruce Smalls, Grays Hill, P.O. Box 768, Lobeco, SC 29931
      (H) 843-846-4531
      (C) 843-476-7512
      FAX 843-846-1373
    • Jim Bequette (District 7)
      4 Broomfield Lane 2532, Beaufort, SC 29907
      (H/C) 843-263-8327
    • Herbert Burnes (District 8)
      95 Pine Grove Road, Beaufort, SC 29906
      (H) 843-846-445
      (C) 843-263-2776
    • Ronald Speaks (District 9)
      3121 Palomino Dr., Burton, SC 29906
      (H) 843-525-1163
      (W) 843-525-8277
      FAX 843-525-1163
    • George Wilson (District 10)
      20 Osprey Circle, Callawassie Island, S.C. 29909
      Home: 987-1234; cell: 812-9870
City of Beaufort
Town of Hilton Head Island
  • Town Hall: One Town Center Court, Hilton Head Island, SC 29928; 341-4600
  • Town Council
    • Mayor Thomas D. Peeples
      4 Hartford Place, Hilton Head Island, SC 29928-3922
      Home: 686-4138; office: 681-2600; fax: 689-3229
    • Bill Ferguson (Ward 1)
      634 William Hilton Parkway, Hilton Head Island, SC 29928
      Home: 686-2863
    • William Harkins (Ward 2)
      3 Old Fort Lane Hilton Head Island, SC 29926
      263-3261 - cell
    • Drew A. Laughlin (Ward 3)
      5 McIntosh Road, Hilton Head Island, SC 29928
      Home: 689-5723; work 689-5700; fax 689-9300
    • John Safay (Ward 4)
      19 Starboard Tack, Hilton Head Island, SC 29928
      Home: 785-4489; work: 785-4696; fax: 785-4696
    • George Williams (Ward 5)
      8 Braddock Cove, Hilton Head Island, SC 29928
      Home: 363-6601; fax: 363-6604
    • Ken S. Heitzke (Ward 6)
      3 Audubon Place, Hilton Head Island, SC 29928
      Home: 681-8182; fax: 681-9864
Town of Bluffton