The Gifting of Public Funds

Dr. Gregory GeerEDAD

Coastal Carolina UniversityBillie Sirignano-Wharton

Public Funds-aka Your Tax Dollars

Federal-Washington, DCState-Columbia, SCLocal-Georgetown County

The term public funds is applied to any monies belonging to a government, or anydepartment of it, in the hands of a public entity or official.

Public Funds

Sources of Revenue for South CarolinaFederal- $711 million – 9.4%State- $3.8 billion - 49.8% $2.8 billion from state’s general fundLocal- $3.9 billion - 40.8%

http://www.budget.sc.gov/OSB-faq.phtm

• Public Funds are meant for Public Good • The Gifting of Public Funds is Illegal.

Public Good…

does not have to benefit all of the people in order to serve a public purpose.

Public Good: The promotion of the public health, safety, morals, general welfare, security, prosperity and contentment for all inhabitants or residents, or at least a substantial part thereof…

http://www.scattorneygeneral.com/opinions/pdf/2005/05feb3-Ramsey.PDF

Fiscal Authority is the power to set the budget and the mill rate. Some school districts have full fiscal authority, while in others this power may belong to the county council, a county board of education, or the legislative delegation.

Governance of School District Funding

23 districts in 13 counties have full fiscal authoritywhich include Georgetown and Horry School Districts

Fiscal Authority

There are various safeguardsin place to ensure that public funds are used for their intended purposes.

Fuzzy FundingUse of Public Funds in Schools

• Rewards• Incentives• Public Good• Grants

SCHOOL DISTRICTS– SCHOOLS – PUBLIC FUNDS – Constitutionality of using school district funds to pay for the cost of providing meals in a school breakfast program where not all participating students meet federal income eligibility requirements.It would not be unconstitutional for a school district to operate a school breakfast program in such a manner that public funds are used to pay the difference between the amount reimbursed by the federal government for providing meals to eligible students and the total cost of the program where (1) federal eligibility is based on income status; (2) districts would save substantial administrative costs in federal reporting requirements by using such a system; and (3) the school education program benefits where students are properly fed.

It’s OK if…1) federal eligibility basedon income status;2) districts save in administrative costs; and3) the school program benefits.

http://www.atg.wa.gov/AGOOpinions/opinion.aspx?section=topic&id=6730

Annual Sick Leave-Vacation Leave

In the event of catastrophic illness or injury, employees who have exhausted their vacation and sick leave may apply to the sick leave bank for additional leave.

1) Sick leave donated and not compensated for;2) Leave paid (gifted) is not compensation earnable; and3) Receiving employee does not repay4) The leave was accrued by the donating employee

•Use of Title I Funds-Attract and Retain Effective Teachers*

•Up to 5% of total funding to districts to provide financial Incentives & Rewards • attract and retain qualified & effective teachers.

* Title II, may be used with approval of the Title II staff.

Attract and Retain Effective Teachers-

• Attend in-state and out-of-state recruitment fairs to compete in salaries with other school districts• Offering an additional $3,500 above state’s state’s investment to teachers with National Board Certification• A $2,000 signing bonus for teachers in hard to fill subject areas• $1,500 to teachers that are in good standing

Incentives and Rewards to Attract and Retain Effective Principals

• to enhance existing recruitment efforts• incentives and awards to retain qualified and effective principals• do not need to be included in the 5% limitation for teachers• Title 1, Part A funds may be used to recruit principals in non-Title I schools

Student Incentives and Rewards

• The district approves clearly established school criteria• The total cost does not exceed 1% of the school’s Title 1 allocation • Incentives are supplemental in nature• Incentives are awarded for academic progress in core subjects (and may include attendance and/or behavior

Student Incentive and Rewards

Allowable• Non-monetary rewards of nominal value• Books• Instructional supplies and

materials• Plaques• Gift certificates for pizza,

etc.

Unallowable• Cash awards• Gift Cards• Items advertising a

company product or brand• Incentives to participate in a

program

Is the gifting of public funds illegal?Really?

WHAT IS A GRANT?Grants are not benefits or entitlements. A federal grant is an award of financial assistance from a federal agency to a recipient to carry out a public purpose of support or stimulation authorized by a law of the United States. Federal grants are not federal assistance or loans to individuals.

http://www.grants.gov/

Works Cited

Favors, Paul. (eHow Contributor). “About Federal Funding for Education”. Retrieved on18 April 2011 from: http://www.ehow.com/print/about_4881143_federal-funding-education.html

“Public Official’s Guide to Compliance with South Carolina’s Freedom of Information Act”. Retrieved on 18 April 2011 from: http://www.scattorneygeneral.com/newsroom/pdf/foia.pdf

The Office of the South Carolina Attorney General. Letter dated February 3, 2005. Retrievedon 18 April 2011 from: http://www.scattorneygeneral.com/opinions/pdf/2005/05feb3-Ramsey.PDF

Saltzman, Ellen W. & Ulbrich, Holley H. Financing education in south carolina: A citizen’s guide. Jim Self Center on the Future: Clemson University. PDF retrieved on 18 April 2011 from: http://selfcenter.clemson.edu/pdf/Financing_Education.pdf Washington State Office of the Attorney General. “AGO Opinions With Topic: Public Funds”.

Retrieved on 18 April 2011 from: http://www.atg.wa.gov/opinions.aspx?section= topic&topic=PUBLIC%20FUNDS