District finance officer warns of slower collections, flags teacher pay increase and proposed tax changes
March 10, 2026 | Lexington 04, School Districts, South Carolina
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District financial staff briefed the board on February collections, expenditures and state proposals that could affect local budgets.
The presenter said year-to-date revenue collections were a little over $29.5 million, representing about 66.4% of the annual revenue budget, down from a prior-year average of roughly 71.9% for the same point. Year-to-date expenditures totaled about $28.7 million (about 59.3% of the annual expenditure budget), though that figure declines to roughly 51% when a $4 million transfer to capital projects is excluded.
The presenter said discussions with other Lexington County school CFOs indicate similar collection patterns and that appeals from the reassessment year may account for part of the variance; staff will continue to monitor March collections to see if appeals roll over.
On state-level items, the presenter said House Ways and Means appears likely to include a $2,000 step for the teacher salary schedule (raising the state minimum toward about $50,500), additional funding for instructional materials, bus leases and school safety grants, and that the district expects revenue projections from the State Department of Education by the end of the week. The presenter cautioned those items could change as full legislative action continues.
The presenter also flagged a proposed watercraft property tax relief measure that was described as removing roughly 43% of fair market value from taxation for watercraft; applying that figure to last year’s watercraft revenue would translate into an estimated $75,000 loss. The presenter noted a related homestead exemption proposal with state revenue intended to offset losses, but said the net local effect remained uncertain.
Board members asked clarifying questions and were reminded that roughly 26% of the district’s revenues come from local taxes, 72% from state funds and 2% from other sources; salaries and fringe benefits account for the majority of expenditures (about 85.4%, or ~87% when including contracted services). The presenter emphasized that mandated step increases and salary-schedule changes are the primary cost drivers the district must plan for in the coming budget cycle.
No budget decisions were finalized at the meeting; staff will bring updates once state revenue projections are available.
The presenter said year-to-date revenue collections were a little over $29.5 million, representing about 66.4% of the annual revenue budget, down from a prior-year average of roughly 71.9% for the same point. Year-to-date expenditures totaled about $28.7 million (about 59.3% of the annual expenditure budget), though that figure declines to roughly 51% when a $4 million transfer to capital projects is excluded.
The presenter said discussions with other Lexington County school CFOs indicate similar collection patterns and that appeals from the reassessment year may account for part of the variance; staff will continue to monitor March collections to see if appeals roll over.
On state-level items, the presenter said House Ways and Means appears likely to include a $2,000 step for the teacher salary schedule (raising the state minimum toward about $50,500), additional funding for instructional materials, bus leases and school safety grants, and that the district expects revenue projections from the State Department of Education by the end of the week. The presenter cautioned those items could change as full legislative action continues.
The presenter also flagged a proposed watercraft property tax relief measure that was described as removing roughly 43% of fair market value from taxation for watercraft; applying that figure to last year’s watercraft revenue would translate into an estimated $75,000 loss. The presenter noted a related homestead exemption proposal with state revenue intended to offset losses, but said the net local effect remained uncertain.
Board members asked clarifying questions and were reminded that roughly 26% of the district’s revenues come from local taxes, 72% from state funds and 2% from other sources; salaries and fringe benefits account for the majority of expenditures (about 85.4%, or ~87% when including contracted services). The presenter emphasized that mandated step increases and salary-schedule changes are the primary cost drivers the district must plan for in the coming budget cycle.
No budget decisions were finalized at the meeting; staff will bring updates once state revenue projections are available.
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