Beaufort County schools staff will have raises restored after COVID budget freeze
This story was updated April 7 with more details on the South Carolina legislation to restore step increases and how Beaufort County may implement it.
The details of Beaufort County School District’s 2021-22 budget are still fuzzy, but there are three pieces of good news in it.
Teachers and other employees are getting their annual raises restored. They’re also getting back pay for raises that were frozen last year.
And the district’s multimillion-dollar borrowing plan, the result of the county’s delayed tax bills, will cost taxpayers much less than originally predicted.
In May 2020, S.C. Gov. Henry McMaster signed a $155 million COVID-19 relief package that froze annual teacher salary “step increases” to the past year’s levels.
These step increases give all district employees a raise every year, based on their years of experience and education level. For most Beaufort County teachers, this is an $800 to $1,500 annual raise.
While every district employee was affected by the freeze, beginning teachers were hit especially hard. The district does not have a “step” for second-year teachers, so third-year teachers were paid their starting salary for the third year in a row.
On March 11, McMaster signed a bill restoring step increases for teachers and certain other employees, like school nurses, and promising that by June 15, teachers would get back pay for last year’s “steps” in a lump sum.
District spokesperson Candace Bruder said the board would discuss step increases at its April 20 meeting. The meeting could provide more details on the funding source for the increases and the date teachers will receive their back pay.
Tonya Crosby, the district’s chief financial officer, said Tuesday that the state has mandated the “step” restoration only for teachers and some other employees. However, she said she’s proposing April 20 to restore it for all district employees who receive a step increase. That proposal will require a board vote.
The board is also slated to approve a COVID hazard payment to employees April 20. In February, the board’s finance committee unanimously recommended a one-time bonus of $1,000 for full-time employees and between $250 and $500 for part-time employees.
However, the board voted to make the final decision on the amount and timing of the payments after March 31, when the district expected to receive revenue from Beaufort County’s delayed tax bills.
Millions borrowed due to late tax bills
The tax bills have been a major source of consternation for the district, which relies on the county to approve its $250 million-plus annual budget every year and to provide the tax money to pay for it.
Tax bills are normally due by Jan. 15 but were delayed this year because of an ongoing legal battle between the Beaufort County Council and Auditor Jim Beckert.
By Feb. 28, 2020, the district had received $140.5 million — 93.9% — of its expected tax income from the county according to Tonya Crosby, the district’s chief financial officer.
But by Feb. 28 of this year, the district had received $88.8 million, which accounts for only 59.3% of its expected income.
In January, the school board approved borrowing up to $100 million in a tax anticipation note to “keep the lights on” and cover an anticipated debt payment of $67 million in February, along with the repayment of last year’s $14.3 million tax anticipation note.
Bruder said Tuesday that the district borrowed $80 million and expected to repay the tax anticipation note “around June 30.”
The borrowing is expected to cost the district $153,393 in interest and fees, Bruder said, which is a sharp decrease from the $350,000 estimate Crosby gave for out of pocket costs in January.
The board also voted in January to pursue legal action to recoup the cost of this borrowing when the lawsuit between Beckert and the County is completed.
Richard Geier, who made that motion, said in January that legal action could take several forms ranging from a demand letter to a lawsuit, though he added “I don’t think it will come to that” and that if he were on county council he would increase the district’s tax rate next year to make up the amount.
Next budget steps
Beaufort County Council has final approval over the district’s budget, using a three reading process that typically takes place in May and June.
Crosby presented a tentative budget schedule to school board members at their March 20 workshop. Superintendent Frank Rodriguez will present a preliminary budget to the board on April 23, and school board members will certify a budget on May 18.
The board-certified budget will then go the County Council for readings on May 24, June 14 and June 28.
This story was originally published April 1, 2021 at 1:08 PM.