Скачать или смотреть [EdTalks] SC School Funding 101 Part 2: How Act 388 Changed Everything

In 2006, a law was passed that promised property tax relief to homeowners but ended up costing South Carolina schools over a billion dollars annually. This is the story of Act 388 South Carolina, a complex piece of legislation that fundamentally reshaped how public education is funded in the state, creating enormous challenges that school districts grapple with to this day. Why did a well-intentioned tax swap create such a massive financial gap, and what does it mean for teacher pay, school construction, and your community?

In this deep dive, Catherine Schumacher (Public Education Partners) is joined by Derek Lewis, Executive Director of Greenville First Steps and a former Greenville County Schools trustee, to unpack the complicated legacy of Act 388. They break down how the shift from stable property taxes to a less reliable sales tax has left districts like Greenville County short by over $93 million a year. This episode provides a masterclass in South Carolina school funding explained, exploring everything from the initial "lunchroom trade" gone wrong to the ripple effects on local budgets. You'll learn how school boards are forced to make tough decisions on millage rates, often with incomplete information from the state legislature, and how unfunded mandates South Carolina—like new paid parental leave policies—add millions in costs without providing the money to cover them. We also demystify the purpose of a school district fund balance, explaining why this crucial financial tool isn't a "piggy bank" but a vital safeguard that protects districts during economic downturns and saves taxpayer money in the long run by securing better credit ratings. Finally, we explore potential solutions to fix the flaws of Act 388, including a discussion on implementing impact fees for new construction SC to ensure that rapid community growth helps pay for the new schools it requires.

Timestamps / Chapters:
(00:00) A Flawed Funding Formula
(02:50) What is Act 388? The Shift from Property to Sales Tax
(04:26) The "Lunchroom Trade" Analogy: How the Funding Swap Failed
(06:30) The Billion-Dollar Gap: The Financial Fallout for SC Schools
(09:15) Unfunded Mandates: The Hidden Costs Passed to Local Districts
(12:35) The Local Millage Dilemma & Teacher Pay Competition
(13:45) School District Fund Balance Explained: Why It's Not a "Piggy Bank"
(17:40) Fixing the Flaws: How Act 388 Unfairly Affects Renters
(19:43) A Proposed Solution: Impact Fees for New Construction

What are your thoughts on how South Carolina funds its public schools? Have you seen the effects of Act 388 in your community? Let us know in the comments below, and don't forget to like this video and subscribe for more episodes of Simple Civics!

#act388
#southcarolina
#schoolfunding
#educationpolicy
#greenvillecounty
#propertytax
#unfundedmandates
#publiceducation
#simplecivics
#southcarolinapolitics


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