Rep. Rick Quinn, R-Columbia, recently came to the Grand Strand in
hope of persuading local leaders to support his proposed
transformation of S.C. school finance. It's a better deal for Horry
County than local skeptics think, Quinn said.
After careful analysis, we respectfully disagree.
Essentially, Quinn's plan, House Bill 4411, co-authored by Rep.
Vincent Sheheen, D-Camden, and co-sponsored by Rep. Tracy Edge,
R-North Myrtle Beach, would phase out school property taxes
statewide. School districts, cities and counties would lose the
power to implement 1-cent local-option sales taxes. The S.C. sales
tax would increase from 5 cents to 7 cents. The personal property
taxes on cars and trucks would end, but the sales tax on car and
truck sales would go up. Dozens of sales-tax exemptions would go -
but, interestingly, dozens more would remain in place. The sales tax
on food would drop to 2 cents per dollar. In a bid for the support
of Gov. Mark Sanford, state income taxes would drop an average 15
percent.
Quinn and Sheheen would set a state budget of $5,000 per pupil,
with extra weighting for kids in special-education classes. They
would set up a school trust fund from which the state would dispense
school aid to local districts and on which the state could earn
interest. S.C. teachers would get an immediate $100 million
raise.
Why this plan now? In part, Quinn and Sheheen are anticipating an
unfavorable verdict from Clarendon County Circuit Court, where a
lawsuit challenging the current S.C. school-finance law, the
Education Finance Act, is at trial. A group of impoverished S.C.
school districts argues that the EFA accords them too little money
to guarantee their students the legally required minimally adequate
education. Their case is strong.
It would be appropriate for the General Assembly to address this
problem in advance of a verdict. But as an analysis of the
Quinn-Sheheen bill by Horry County Schools shows, this approach to
school-finance repair is really about shrinking, over time, the
state's financial commitment to public education.
Within only a few years, the Horry school district budget would
shrink more than $20 million - and the Horry County Board of
Education would have no way to make that money up. Gone would be the
board's ability to sustain Horry County's incredible school quality
improvements with timely expenditures of local money.
The loss of the 1-cent local option sales tax also could be
locally disastrous. Consider just one example how: If Horry County
wanted to extend Road Improvement Development Effort road building
to new projects, one possible source of income, a local sales tax
that sunsets over time, would be gone. There are few other options
for raising local money necessary to extend RIDE.
Last but not least, there's tourism damage. Most hotels,
attractions and restaurants would enjoy property-tax cuts (as would
owners of all taxable property). But adding 2 cents to the sales tax
would increase the cost of a Grand Strand vacation, making our venue
less attractive than competing destinations in other states. This
strikes us as a bad idea. Besides, the Grand Strand already
contributes a disproportionate share of the state's sales tax
revenue.
Read as charitably as possible, this bill amounts to a killer for
Horry County. Our legislative delegation would be well-advised to
oppose it
vehemently.