Board wrestles with tax dilemma

The Charleston County School Board doesn't want to raise taxes, but it also doesn't want to compromise the education it's providing.

Whether both can be accomplished in the same budget remains to be seen, but that was the motion unanimously approved Tuesday night by the nine-member board during the first reading of next year's budget. The board asked district staff to return with an operating budget that doesn't have a tax increase and doesn't negatively affect the district's educational quality.

District staff presented the board with a $320.5 million operating budget that would increase taxes about 5 percent for those who own rental properties, second homes and cars. Despite the tax increase, the operating budget, which goes to classroom expenses such as teachers' salaries, is about $2.9 million smaller than this year's. The debt service budget, which pays for capital projects, would increase $14.2 to $75 million and cause taxes to increase about 15.5 percent. A second and final reading of the budget is scheduled for June 16.

Although the board decided to close five schools and increase class sizes, the district still faces a projected $9.4 million shortfall for next year. Among the ways proposed to make up that shortfall are using some of the district's rainy-day fund or, if the district doesn't receive federal stimulus money, requiring teachers to take three furlough days and administrators to take six.

The board would need to find nearly $9 million more to cut from its budget to be able to pass one that didn't have a tax increase. One area board members suggested was not budgeting for the $2.7 million more Drayton Hall Elementary would receive if it wins its court appeal to become a charter school next year. District Chief Financial Officer Mike Bobby said he'd need to do more research to find out whether that would be feasible for the district's final budget.

The most vocal opponent to raising taxes was board member Arthur Ravenel Jr., who spent more than 30 minutes questioning Bobby on proposed expenditures for next year and trying to find areas to cut. Every time Ravenel suggested an area, Bobby provided a justification for the expenditure.

"A really severe recession year is not the time to raise taxes," Ravenel said. "We're so close to passing a budget with no tax increase. We're so close to not dumping more taxes on taxpayers in this county. I think we should try. I know you can do it if you really want to."

Board Chairwoman Toya Green brought up the board's decision earlier this school year to eliminate the use of short-term substitute teachers to save money and the harsh reaction that followed. She said that was an example of the public saying it didn't want a reduction in the quality of services offered to children.

"I remind everyone of that because it was a big issue at the time, and I think it goes to the importance of us funding this budget," she said.

She also defended the district's conservative approach to its budget by saying that the budget affects its bond financing and its ability to maneuver in a financial crisis.

Board member Gregg Meyers said he'd like to see the district explore the possibility of opting out of the state funding system because the state continues to reduce the amount of money coming to Charleston despite the increasing amount the country contributes.

A few board members talked about how they liked the transparency of this year's budget and the thorough manner in which it was presented.