Schools deserve support, but with the bond referendum

The Beaufort County Board of Education has two questions on the Nov. 8 ballot:

1. Sales tax referendum, which I oppose.

2. Bond referendum, which I support.

There are four possible outcomes:

1. Both fail and the district receives nothing.

2. Both pass and the district receives $367 million in sales taxes to be collected over the next 10 years and the authority to bond up to $217 million of the $367 million to fund capital projects.

3. Only the sales tax passes, in which case the district would still receive the $367 million, but have to delay new construction to match collections, which is manageable.

4. Only the bond referendum passes, in which case the district would be authorized to bond $217 million to be paid for from property taxes, the conventional method of funding new schools.

The $367 million is the current collection level of $32 million per year increasing at 3 percent annually, our population growth. Unlike typical referenda, there is no cap that terminates collections once a designated amount has been collected.

The $217 million is the district’s identified needs: $173 million for land, two new schools and additions at nine schools; $44 million for roof and HVAC repairs at 22 facilities.

First, let’s give credit where credit is due, to the teachers, administration, superintendents, and the board. The district’s academic progress is outstanding. Ten years ago, few of our schools were rated good or excellent by the state. Now, only a few are not rated good or excellent. The district is well managed and financially sound.

Second, the administration and the board, with the support of the voters, have managed the enrollment growth very effectively, bringing new schools online as needed. Enrollment is growing at about 400 per year, which equates to a new school every second year. Districtwide enrollment is at about 80 percent of current school capacity, positioning the district to absorb the continuing growth. The Hilton Head schools are at about 90 percent of capacity, which is acceptable since the island is effectively at “build out” with the more immediate need being in Bluffton at the elementary and middle school levels. The district’s plan for accommodating growth is comprehensive and well thought out.

Thus, I support the bond referendum to provide the needed $217 million.

Third, at issue is why raise $367 million in new taxes, which is $150 million greater than the $217 million in identified needs?

I oppose the sales tax referendum, arguing that:

1. There is no compelling reason to approve tax increases for unspecified future schools (beyond the two highlighted in the referendum) that may or may not be required sometime in the future. It is preferable for the voters to approve tax increases, if and when needed, rather than providing a blanket approval years in advance.

2. Any suggested property tax reduction is purely discretionary, at the will of the school board. Since it cannot be codified or guaranteed, it is short-sighted to assume that future boards will use the excess collections to actually reduce taxes rather than spending it.

3. The better alternative for new bricks-and-mortar is the time-proven property tax referenda where the new schools are justified and generally, but not specifically, located for voter consideration.

4. The premise that visitors pay the majority of sales tax is false.

A straightforward comparison for the voters (who are the primary residents) is to look at their cost in the early years: $21 million annually, with a $367 million sales tax as the visitors pay only a third of sales taxes; or $5 million annually, with a $217 million property tax, taking advantage of bonding, low interest rates, and the fact that the primary residents pay about a third of property taxes (which are also tax deductible).

Citizens need to support the district’s immediate needs, but not write a blank check for $150 million.

For those upset with the superintendent, let’s not penalize the kids. He works for the school board, which works for the voters. Any frustration is better directed at the board at the ballot box.

This story was originally published November 1, 2016 at 2:04 PM with the headline "Schools deserve support, but with the bond referendum."