Press Release from Greenville County Schools below:
The Second Reading of the FY 21 budget closely mirrored the First Reading in which Greenville County Superintendent W. Burke Royster described this budget cycle as “a year of great uncertainty.” He went on to recommend a General Fund budget with no millage increase, in recognition of the challenges facing local businesses, and reductions to spending that include allocation freezes totaling $5.6 million, a delay to the planned CTE Innovation/Incubation Center ($10 million), and a slight change in the teacher allocation formula for grades 2-5. In all, the administration identified $55.6 million to be reduced or held in anticipation of potential revenue reductions this year and next.
As a result of the State’s continuing budget resolution, per pupil funding levels for South Carolina’s public schools will remain the same as the current year. Despite this, because of student growth that was higher than expected this year and expectations of 1,000 additional students next year, the District expects an approximate increase of just under $10 million in state revenue through the Education Finance Act (EFA) formula, Employer Fringe Benefits, and State Aid to Classrooms. The district is also expecting an increase in local revenue due to the increased value of the operational mil. As a reminder, the operational millage no longer includes owner occupied homes since the passage of Act 388 in 2006.
New expenditures for FY 21 mandated by the State totaling $4,354,000:
- $1.5 million salary increase for teachers who upgrade their certificates (i.e. move from Bachelor’s to Master’s),
- $674,000 mandated to re-enroll working retirees in the District’s PEBA health insurance coverage,
- $1.5 million in a required State Health Employer contribution increase, and
- $755,000 to increase working retirees salaries from 95% of the posted salary schedule to 100%, if the scheduled ending of SC Statute 59-25-57 is upheld.
Additional identified increases based on local needs totaling $8,289,000:
- $4 million to meet projected student growth
- $502,000 to hire 6.5 special education teachers to meet the regulations of IDEA
- $867,000 to complete Rudolph Gordon School’s expansion from a K-5 school to K-8
- $295,000 to hire new positions needed to prepare for the opening of Fountain Inn High School in the fall of 2021
- $155,000 to hire two positions to meet growth in career and technical programs in the areas of mechatronics and machine tool
- $193,000 to hire positions needed to open Roper Mountain Science Center’s new Environmental Science and Sustainability Center
- $75,000 for additional instructional materials
- $334,000 to restore working retirees’ negotiated salary – support personnel
- $46,000 to hire Roper Mountain Science Center Animal Caretaker and additional Security
- $252,000 Increase in SRO’s contracts (based on hourly rate change implemented last year by Sheriff’s Office)
- $1,500,000 projected cost of additional cleaning related to COVID-19 (both time and supplies)
Preparing for Potential Revenue Reductions totaling ($55,600,000):
- $5,600,000 Items in the budget will be held or frozen (not distributed) in case the money is needed for other priorities.*
- $17,600,000 CARES Act one-time funding
- $15,000,000 General Fund - Fund Balance (planned expenditure to maintain high bond rating)
- $10,000,000 Delay the Innovation and Incubation Center
- $6,800,000 Estimated Additional Fund Balance Available at close of FY 20
- $695,000 Shift in allocation formula at which class are added in grades 2-5 (from 2 over to 2.3-2.5 over)
The legislature has suspended step increases for teachers due to both the significant decline in revenue and concerns about the depth and length of the economic impact. As a result, the FY 21 GCS budget does not include a salary increase for any employee groups, except those mandated when teacher certificates are upgraded. GCS is also taking steps now to ensure a strong financial posture in anticipation of a lean FY 22 fiscal year, when the State budget surplus are no longer expected to be available to backfill the South Carolina budget.
*As a show of solidarity, the GCS Board of Trustees requested that 30% of their Professional Development budget also be frozen for the FY 21 budget year.
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