Berkeley County Schools’ Interim Superintendent Makes Statement at Berkeley County Council Meeting

MONCKS CORNER, SC – Dr. Mike Turner, Interim Superintendent of Berkeley County School District, made a statement at the Berkeley County Council meeting regarding the proposed ordinance to change the formula for fee-in-lieu of taxes revenue. His statement is below.

“Good Evening Supervisor Peagler, Members of County Council, Citizens of Berkeley County:

My name is Mike Turner. I am the Interim Superintendent of Berkeley County School District. I am speaking tonight about the proposed ordinance to “reset” the formula for fee-in-lieu of taxes revenue that further reduces the school district’s already unfair share of these funds.

We have 41 schools and 32,000 students– the fourth largest school district in South Carolina. Our schools open in just a few weeks for another school year. To properly staff and operate, these schools cost a lot of money — money that comes from state appropriations, federal allocations, local property taxes on 6% assessments (and that does not include primary residences or homesteads) and, lastly, a portion of the discounted fees that certain large companies pay instead of the usual 6% assessment property tax rate that smaller businesses pay. These large corporations are paying discounted fees instead of taxes as part of the economic development package negotiated with them to locate in Berkeley County– they are sometimes referred to as multi-county park companies.

Over the last fifteen years, these fee-in-lieu of taxes revenues have grown to amount to $31 million dollars in Berkeley County for the 2014-15 year. Because these discounted fees are replacing what would be property taxes, you would think that the school district would receive a share in those fees according to the proportion of regular property taxes that are levied in the county. The School District is not receiving that fair share. 

The County has been taking money “off the top” of the fee-in-lieu of taxes fund for a number of years. Out of the $31 million dollars collected of these discounted taxes fees this year, the school district received just $19,473,933, which is 62% of the collected funds — $5 million dollars less to the school district than if the funds were distributed like ordinary taxes.

The proposed ordinance to change the distribution percentages would further reduce the school district’s portion of these funds. After taking money for county functions “off the top” amounting to nearly a quarter of the funds available before distribution, further reduction of the proportion to the school district from 80% to 70% from the distributed funds  would result in the school district’s portion of the total amount collected to only 57% —  that’s right 57%!!

It is our position that after the required 1% distribution to Williamsburg County for the multi-county park designation, the entire balance of money paid by companies through the multi-county park system must be divided proportionately by millage, the County getting and using its portion and the school district its portion.  Otherwise, the school district is subsidizing the county, and the citizens are not able to understand the true cost of economic development, County operations, and school district operation and capital needs.

If the projections of the County officials are correct, they have said that the school district’s portion next year will only be a reduction of $561,780. What is not being said is that we would lose $2.2 Million dollars during the next year of the fund’s growth, and that $2.2 Million dollars will not be available the next year, or the year after that. What they are not saying is that they would rather take the $2.2 Million from the school district than raise the millage for County Operations.

What this proposal would mean is that the County will not have to raise taxes by 3 mills and they can tell the tax payers once again —   we didn’t raise your taxes, the school board did!!

The truth is that while economic growth increases opportunities for current residents of the county, the growth also causes increases in population, requiring new roads, water and sewer services, storm water systems, law enforcement, fire protection, and other types of services the public demands and expects from County Government.  The same goes for schools.  The growth requires new buildings, additional personnel and increased operating cost to meet the needs of new residents.

Both the county and the school district face enormous challenges caused by explosive economic growth.  Instead of a “reset” of the fee-in-lieu formula, we need a “reset” of the relationship between the county and the school district.  We need cooperation between us and have transparency and openness in our discussions.  We do not need this kind of blatant “back door” maneuver, especially after the school district has already finished its budget.

Please do not take this $2.2 Million away from the school district this year and the increased amounts that a 10% shift will mean in each of the years ahead.

Thank you for your attention.”