Charleston Co. School District Tackles Financial Challenge in Budget Workshop
The Charleston County School District, grappling with a sudden $50 million increase in operating expenses, organized a budget workshop to address these looming financial challenges.
Addressing The Rising Cost of Living
The District has urged for teachers and classified staff to get salary increases. This step is deemed crucial as the cost of living continues to rise. It has asserted that these salary adjustments are a priority in this budget cycle. For fiscal year 2025, it plans to implement a 2% cost of living adjustment, including a step or increase for its workforce. The estimated cost of these improvements, including benefits, is a significant $5.9 million. The district plans to extend this increment to non-teaching staff in the ensuing years of 2025, 2026, and 2027.
Financial Status and Projections for Fiscal Year 2024
During the workshop, the finance committee concisely laid the groundwork for the District’s current financial status and projections for the fiscal year 2024. Based on these evaluations, they expect the fiscal year’s revenue to approach $720 million, while the outlay is estimated to near $711 million. They also considered the addition of an extra $8.5 million to the fund balance.
Despite budgeting $2.4 million over two years for financing, the committee believes it may not need the entire amount as per current estimations. However, they reckon that this could change pending the completion of the January and February updates plus the availability of more intricate details.
New Measures to Meet Increased Expenses
In an attempt to combat the increase in expenses, the district intends to increase property taxes. The expected consequence of this move will directly impact landlords and businesses.
There is still much data needed for the fiscal year 2025 budget development process. Foremost among these is the local tax revenue change assessment from the county auditor, expenditure increases for the PEBA employee insurance program and surcharge, and state revenue changes on Tier III property tax relief. The district anticipates receiving these reports by the end of February.
They also await state revenue changes from the house projection, predicted to be available by mid-March. Following these, the District plans a second budget workshop for March 11, followed by a third workshop on April 15. It has scheduled the first reading of the budget for May 13, with a second reading slated for June 10.
