Sanford may cost local schools $18M

Local school districts stand to lose an estimated $18 million if Gov. Mark Sanford doesn't accept $700 million in federal stimulus money.

If Sanford holds firm in refusing that portion of the state's stimulus package, which would mostly go toward schools' daily operating expenses, local officials say their employees and students will feel the financial pinch.

School budgets are made up mostly of employee salaries. So not getting the additional money may push some districts to employ fewer teachers, which could mean larger classes and less individual attention for students.

The $700 million in question is one of two pots of stimulus money for schools. School districts will get stimulus money from another pot specifically for low-income students and those with special needs because that money does not require Sanford's approval. Charleston area districts — Berkeley, Charleston, and Dorchester Districts 2 and 4 — are poised to bring in $47 million for low-income students and those with special needs.

But local school officials said additional operating money is essential if they're to continue properly educating South Carolina's children. Most, however, said they're in the early stages of developing next year's budgets, and can only estimate the amount they might gain from the stimulus.

Brantley Thomas, Berkeley County School District's chief financial officer, said the district started the current school year expecting to bring in about $192 million. For the 2009-10 school year, it expects only $184 million. The stimulus money would add an estimated $5 million to the cash-strapped district, he said, which would put a dent in the shortfall.

Berkeley school officials and board members are "still in the discovery stage" of planning for next year's budget shortfall, he said. The district avoided employee furloughs this year, he said, but they're an option for next year.

Charleston County schools would receive nearly $9 million more if the state accepts the stimulus money, but that wouldn't cover the projected $28 million operating budget shortfall for next year. Mike Bobby, the district's chief financial officer, has been preparing the budget based on a worst-case scenario, and he hasn't factored the stimulus money into that $28 million deficit.

"We've been very cautious about plugging those numbers in and making decisions on dollars that aren't here yet," he said.

Officials have been searching for ways to make up the funding gap for months, and they already plan to close five schools and increase class sizes to save about $9.2 million next year. If the district does receive the money, the priority would be to put as much money as possible into classrooms, beginning with teachers, Bobby said.

In Dorchester District 2, which includes the county's suburban schools, officials earlier this week said the stimulus would bring in an estimated $3.8 million, enough to take some of the sting out of next-year's $8.8 million budget shortfall.

Chief Financial Officer Allyson Duke said she doesn't expect the district to lay off teachers next year. But without stimulus money, the district won't be able to replace many who leave. That means class size will invariably grow, she said.

Marty Connolly, director of finance for Dorchester District 4, said the district, which has about 2,200 students, would likely get about $302,000 if Sanford accepts the stimulus money.

District officials and school board members are just beginning the budget process for next year, he said, so he can't yet say how the district would use stimulus money if it got it.

But, he said, "for a rural district like ours — we don't have a large tax base — it's extremely important. It would have a significant impact."

WHAT'S AT STAKE

Estimated amounts local school districts stand to gain if Gov. Mark Stanford accepts $700 million in stimulus money:

— $ 5 million
— $ 9 million
— $ 3.8 million
— $302,000

Amounts coming to local school districts for low-income students and those with special needs. This money does not require Sanford's approval:

— $11.2 million
— $28.3 million
— $6.2 million
— $1.3 million