Rex Hopes Federal Judge's Ruling will Lead to Faster Decisions on Stimulus Suits

June 3, 2009

COLUMBIA, SC – June 2, 2009 – State Superintendent of Education Jim Rex expressed hope today that returning two lawsuits to the South Carolina Supreme Court would lead to a faster resolution of issues surrounding federal stabilization funds opposed by Governor Mark Sanford. 

Although Sanford had wanted both state lawsuits moved to federal court, U.S. District Court Judge Joe Anderson today remanded both to the state Supreme Court, where they were originally filed.  Anderson retained jurisdiction over a third lawsuit filed by Sanford in federal court, although he isn’t likely to hear that case until the state’s top court makes a decision on one or both of the two state cases.

The Supreme Court said today that it would hear oral arguments Wednesday morning, and Sanford told news reporters that he would not appeal a ruling that he anticipates will go against him.

It’s gratifying to hear that the governor doesn’t plan to delay a resolution by filing an appeal, Rex said.  We need to resolve this fiasco in a way that doesn’t hurt kids.  Every other state and governor is getting this done, and we need to get it done here, too.

Rex has completed and signed South Carolina’s application, which now requires only Sanford’s signature.  If that should occur, Rex said the federal funds could be made available in two to three weeks.

At this point, every day counts, Rex said.  The deadline to apply is July 1, which also is the first day of the new fiscal year.
Many school districts have put their budget processes on hold because they don’t know how many positions they’ll be able to afford.  But if they know the money is coming, they won’t have to eliminate as many positions.  They can avoid their worst-case scenarios.

A South Carolina Department of Education survey of school districts indicated that about 2,600 jobs, including 1,500 classroom teaching positions, will be eliminated next year unless the state receives the first half of stabilization funds.  If South Carolina draws down the money, an estimated 700 jobs could be saved, including 500 teaching positions.

South Carolina schools have been hit with nearly $400 million in cuts this year, and absorbing those midyear reductions has left many districts with few alternatives except to consider cuts to their most important assets – their classroom teaching positions.  Eighty to 90 percent of a typical school district’s budget is salaries, with most of those salaries going to classroom teachers.

At stake in the court battle is $700 million in federal stabilization funds that Sanford has refused to draw down unless the General Assembly agrees to devote an equivalent amount of money to reducing state debt.

The White House Office of Management and Budget has twice told Sanford that such a move would violate the intent of the federal stimulus law.