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Educators form plans in response to tax swap
What does the law mean?
By Karen Bair · The Herald - Updated 10/20/06 - 1:15 AM
A united front. Presentations to legislators. Continued collaboration. Tact and diplomacy.

Those were ideas that came from what could be termed a first-of-its-kind York County education summit Thursday, the four area school boards and superintendents brainstormed on how to present concerns about the state's new tax swap law to legislators.

The law essentially replaces homeowners' property tax for school operations with a new 1-cent sales tax that goes into effect June 1, 2007. Many homeowners' property tax bills will be cut approximately in half beginning with the January 2008 tax bill.

In many ways, the law was designed to help schools in South Carolina's poverty pockets. But York County officials are concerned it will pull the area's quality schools down to the state average.

School officials Thursday concluded they must draft joint resolutions and present them with testimony to the local legislative delegation and to education and finance committees in Columbia.

Their resolutions will seek allocation formulas that account for the special financial demands of growing districts and other funding methods that would relieve the tax burden on businesses. Under the law, payments to districts beginning in 2008-2009 would be increased based on the Southeastern consumer price index and state growth. Local property taxes for school operation basically can only be levied against business and industry under the new law.

They will seek similar districts statewide to join them in the campaign and meet together every three months to map progress. The school officials also want to educate the public on the new law, which they view as preventing public schools' ability to keep pace with rising academic standards, particularly in growing areas.

"We are with the school districts 100 percent," Rob Youngblood, president of the York County Regional Chamber of Commerce, told the crowd of about 35 officials who met at the Rock Hill school district office. He was one of several representatives from each of the chambers in York County who promised support to the schools' efforts.

"We have fought this legislation from the very start," he said. "You have our pledge to do whatever we need to do."

State Sen. Wes Hayes, R-Rock Hill, advised school officials to "get your facts together and invite the delegations for an informational meeting" and to "present a united front." Hayes sits on both the Senate finance and education committees and is part of a Senate committee studying the state's school finance laws, which have not kept pace with more recent demands on educators.

"Try to keep it low-key," he advised the group. "Talk about what you perceive happening if there aren't some solutions. Make it nonconfrontational, nonjudgmental."

Hayes pointed out the sales tax does not go into effect until June 2007. "We've got a little bit of time," he said, "none which can afford to be wasted."

During a meeting break, Hayes said perhaps future formula allocation increases could be based on district, rather than state, growth. Hayes said legislators might also be able to revise state education funding formulas other than the sales tax to include considerations for staffing and equipping new schools.

However, he predicted it will be more challenging in the future for schools to finance "innovative things."

Bob Norwood, Rock Hill school board chairman, who has been on the board for a decade, said this was the first meeting of the four school boards and superintendents that he could recall. The group plans next to meet in January in Fort Mill, possibly with the York County delegation included.

The four superintendents will meet Tuesday to discuss this and other state and countywide education issues.

Hayes told the group at the session's conclusion, "This is a good meeting to build from."

What does the law mean?

• Eliminates school operation property taxes for owner-occupied homes

• Replaces residential property taxes for schools with a 1-cent sales tax, excluding food and accommodations. Sales tax on groceries is reduced from 5 percent to 3 percent.

• Sales tax becomes effective June 1, 2007. Property tax reduction will show up on bills due in January 2008.

• Districts will be reimbursed dollar-for-dollar for tax year 2007. Beginning Jan. 1, 2008, distribution will be dollar-for-dollar based on the previous year's millage and a growth factor.

• Payments to school districts in fiscal 2008-2009 will be increased based on the Southeastern consumer price index plus the state's population growth. It will be weighted for numbers of students in poverty.

• It also guarantees a minimum $2.5 million per county to replace the home property tax.

-- Staff reports

Karen Bair • 329-4080 | kbair@heraldonline.com

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