SCJET: a plan to restructure education funding

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As a package plan only, SCJET will:• Equalize, simplify state K-12 spending in

reasonable, realistic manner• Level and stabilize the tax burden playing field• Strengthen the state-local education

partnership with greater transparency and accountability

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How it works:

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Sources of Funding -- Actual2011* 2010 2009

Local Property Taxes $1,896,464,399 $1,856,021,823 $1,786,841,664

FILOT $109,584,910 $104,292,403 $96,551,259State Rollup $1,854,501,337 $1,927,656,820 $2,327,978,167Tiers 1, 2 & 3 $911,692,309 $939,530,057 $913,906,540Other Reimbursements $47,097,560 $47,443,880 $54,989,490 Subtotal $2,922,876,116 $3,018,923,160 $3,393,425,456

Total Revenues $4,829,678,215 $4,874,944,983 $5,180,267,120

EOC WPU 922,215 920,624 920,609 DOE WPU 861,039 863,148 863,217

ADM 687,446 688,012 686,608

BSR Per WPU $5,237 $5,295 $5,627

* Note: 2011 Data have not been verified as of 11.14.12

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reduces about 70 separate state funding sources to 12

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additional state dollars needed to balance the difference between what current millage rates generate statewide and what the 100-mill levy would generate

Est. $611,646,420

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additional state funding to ensure no district gets less funds than what it currently receives – “hold harmless”

Est. $334,946,457

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all other funds for programs not distributed to districts on per pupil basis such as:

»transportation related»national board certification»palmetto priority schools»retiree insurance»4K programs

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local school board authority to levy millage of up to 8% of the assessed value of taxable properties

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local school boards can use either 8% flexibility or voter approval. If approved, funding applies to all property including homestead

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local district examples…

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Kershaw County School District

actual FY 2009-10 funding $ 63,362,433

EOC WPU 13,380

est. funding based on BSF $5,295 $ 70,852,479

additional funds (phase-in over 3 years) $ 7,490,046

local taxpayer savings (154 to 100 mills) $ 6,652,938

school board 8% authority $ 8,847,235

*non-rolled up state revenue will be added to the figures above

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Georgetown County School District

actual FY 2009-10 funding $ 71,914,493

EOC WPU 12,792

est. funding based on BSF $5,295 $ 67,737,754

transitional funds (phase-out over 25 years) $ 4,176,739local taxpayer savings (99 to 94 mills) $ 3,319,032school board 8% authority $ 32,437,517

*non-rolled up state Revenue will be added to the figures above

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other major provisions…

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»manufacturing assessment ratio from 10.5% to 6%

»annual inflation factor:state salary schedule, step and benefits increases

»reserves: state – 5% district – 15%

»EOC WPU: 1.0 with add-ons poverty limited English remediation gifted and talented

disabilities adult (17-21) vocational/career

»transition new revenue to low revenue districts – phase-in over 3

years transition funds –phase-out over 25 years (4% per year)

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what it will cost to make SCJET a reality …

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$334,946,457

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$ 611,646,420 balancing funds$ 946,542,877 total additional state funds

needed to …

grant $604,481,375 in tax relief for all business, industries ,vehicles and all other property taxpayers

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“the longer we wait, the wider the spread of

inequity”

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