School spending debate continues

A short-term plan to give South Carolina's 85 school districts wide latitude on how to spend state aid -- and the ability to cut employees pay temporarily -- will require more debate at the State House next week.

State senators rejected a House proposal that does not prioritize who should be furloughed first -- administrators or teachers. A Senate version of the "spending flexibility" measure requires school boards to withhold pay from administrators for at least five days before trustees could do the same to teachers.

A committee of members from both chambers will meet to settle the differences.

In both versions, school systems must demonstrate in writing to state government that furloughs are the last option available to avoid insolvency.

S.C. can get $9 million for homeland security

About $9 million has been made available to South Carolina to help law enforcement prevent, prepare and respond to terrorism, the federal Homeland Security Department announced Friday.

Homeland Security Secretary Tom Ridge wrote to Gov. Mark Sanford on Monday, instructing him on how to file the grant application. Sanford has until April 22 to submit the application.

In late January, Sanford put State Law Enforcement Division Chief Robert Stewart in charge of the state's homeland security. Sanford eliminated the state homeland security office, which was created by former Gov. Jim Hodges after the Sept. 11, 2001 terrorist attacks, to save money, said Sanford spokesman Chris Drummond.

Schools, Counties Debate School Sales Tax

A bill to let counties use a local sales tax to build schools would help ease the budget pinch on districts -- especially those in rapidly growing areas, supporters say.

But, opponents of the "Property Tax Relief Act" told a Senate Finance subcommittee Thursday that the measure would not provide long-term tax relief and would increase inequity in school funding statewide.

Scott Price, a lobbyist for the state School Boards Association, said the measure would give districts the opportunity to sell their needs to their communities.

Voters in each county would decide in a referendum whether to impose the seven-year tax on nonfood items. All the school districts in a county would have to agree to seek the referendum, and the tax would be applied countywide based on average daily student populations.

"This bill is something we're seeing as a means to provide some help for schools, some relief for property-tax payers and as a stimulus for the state economy," Price said. "The coastal counties, especially, should jump all over this."

Spokesmen from the S.C. Association of Counties and the state merchants association said the bill could hinder efforts by counties to garner public support for a local option sales tax to reduce property taxes.

Tim Winslow, a lawyer with the association of counties, said the legislation would not offer long-term property tax relief.

"You build new schools, your operating costs go up," he said. "So your local effort goes up, and it can never come back down. That is what drives the millage rates for school districts."

Winslow said a more equitable way to increase school money would be to impose a statewide school tax or eliminate some sales tax exemptions.

Subcommittee Chairman Wes Hayes, a Republican senator from Rock Hill, said the panel would meet again soon to work on the bill. "In concept, I like the idea," he said. "But the proposal needs some work."

A similar bill is under consideration in the House Ways and Means Committee.