Beaufort County approves $274M schools budget with tax hike for rentals, businesses
Beaufort County School District’s $274.2 million annual budget for 2021-22 was approved Wednesday afternoon, with a $20 million increase in school funding and a higher tax rate for secondary residences in the next year.
Beaufort County Council voted 7-4 to approve the budget, with Logan Cunningham, Brian Flewelling, Chris Hervochon and Larry McElynn voting no.
In the budget, the district asked the county to increase the tax rate on secondary residences, such as apartment buildings or vacation homes — along with businesses, vehicles and other properties — from 114 mills to 121.6 mills. That’s a $114 tax increase for the owner of a second home worth $200,000.
The budget’s detractors said that increase would harm Beaufort County’s renters, especially when compounded with the district’s new impact fee for homebuilders in unincorporated southern Beaufort County, which the council approved Monday.
“The very teachers we worry about not being able to live up to the standard of living in Beaufort County, they have to pay an increased rent in order to cover this tax increase,” Flewelling said.
“I own a rental property, and I can almost guarantee that there will be a rent increase this year to cover ... the additional taxes that are necessary.”
Council member Stu Rodman proposed passing the budget using last year’s tax rate, leaving the option for the district to come back and ask for a higher tax rate in a few months. That motion failed 4-7, with Rodman, Cunningham, Flewelling and McElynn voting yes.
“We know that we have the ultimate say over their budget, but for us to keep insisting the school district present a budget to our liking, I think we’re overstepping,” council member Gerald Dawson said, adding that any potential windfall the district got could be factored into next year’s budget process.
What’s in the budget?
The new budget goes into effect Thursday. For the past year, the district has operated on a “temporary” $254 million budget, adopted during the pandemic from the 2019-20 budget.
The largest chunk of the $20 million increase is $7.8 million in federal and state mandates, including back pay for annual raises that were frozen during the pandemic and a 5% raise for bus drivers.
The district expects about a $7 million increase in state funding this year, district chief financial officer Tonya Crosby told school board members in May.
Another $4.2 million is directed at restoring an annual raise step for second-year teachers and increasing the maximum number of years employees can work and get an annual raise from 24 to 25.
One of the other large increases is $1 million to hire 15 private security guards for the district’s elementary schools.
To fund these increases, the district suggested raising the tax rate on secondary residences.
For the owner of a second home worth $400,000, it’s a $182 increase.
This story was originally published June 30, 2021 at 4:58 PM.