Desperate Measures

Friday’s lead editorial describes the difficult position of public schools, as illustrated by Georgetown’s unsuccessful recent bid to expand its borrowing powers.

It’s difficult to argue with the narrow point of Gov. Mark Sanford’s reason for vetoing a bill that would allow Georgetown Schools to borrow money in case of a shortfall: “An absolute rule of finance is that you do not fund short-term operations with long-term debt,” Sanford said.

From a purely accounting standpoint, Sanford is correct: If you put your recurring household expenses on your credit card, you are simply ignoring the reality that you are living beyond your means. Georgetown schools haven’t gotten to that point yet; district finance director Lisa Johnson said the coming year’s budget will be balanced without any borrowing. The loan idea was in anticipation of the shortfalls the entire state is certain to face next year, and on that point, the local school district is not the irresponsible party – the Statehouse is.

First, unlike a household, the school district has no way to raise revenue, as among its many sins the notorious Act 388 tax swap also prevents schools from raising taxes for operating expenses. The district has already made deep cuts in recent years, cutting $3.2 million this year alone by shrinking programs for gifted students and furloughing teachers.

Second, the district has reason to fear much deeper cuts next year. The state general fund has already shrunk from its bubble-era high of more than $7 billion to $5 billion this year and – once the stimulus money dries up next year – will fall another $1 billion.

These cuts will wreak havoc across every service South Carolinians expect from their government, including K-12 schools, so Georgetown is right to be looking now for any possible solution. Ultimately, this situation speaks not to any poor financial stewardship in the school district, as Sanford and the anti-government crowd would suggest, but instead to South Carolina’s general lack of commitment to public education.

 

First, unlike a household, the school district has no way to raise revenue, as among its many sins the notorious Act 388 tax swap also prevents schools from raising taxes for operating expenses. The district has already made deep cuts in recent years, cutting $3.2 million this year alone by shrinking programs for gifted students and furloughing teachers.

Second, the district has reason to fear much deeper cuts next year. The state general fund has already shrunk from its bubble-era high of more than $7 billion to $5 billion this year and – once the stimulus money dries up next year – will fall another $1 billion.

These cuts will wreak havoc across every service South Carolinians expect from their government, including K-12 schools, so Georgetown is right to be looking now for any possible solution. Ultimately, this situation speaks not to any poor financial stewardship in the school district, as Sanford and the anti-government crowd would suggest, but instead to South Carolina’s general lack of commitment to public education.