Higher funding allows increased school spending, which has a positive effect on student outcomes. All of the results for school attainment (high school graduation, not dropping out, and continuing to college) are positive. In terms of how the money is spent, increased school spending by districts just used in ways they have done in the past will likely improve outcomes.
In most school districts in South Carolina, state government provides the largest per pupil amount of funding that helps pay for higher teacher salaries. In addition, state funding formulas have mechanisms that 1) help provide additional funding for school districts with high levels of certain types of students such as those in poverty, those with disabilities and those who are multilingual learners; and 2) help counteract the inequities in the ability to raise local revenue that exist across districts due to wide differences in a district’s property tax base. (For more information, go to “See More: Local Property Taxes for Operating Revenue” in the Finances section of “The Data.”)
Nationally, school districts and schools that serve large populations of students from low-income backgrounds, students of color, and multilingual learners receive less funding than districts with smaller populations of these students. Local revenue for districts is mainly derived from local property taxes, which is inherently inequitable. State funding formulas usually have mechanisms that help counteract the inequities in local revenue that exist across districts due to wide differences in a district’s property tax base.
Along with some other factors, teacher job satisfaction is linked to their sense of being respected. However, there is a growing perception among teachers that the general public does not understand or appreciate their work.
Increases in instructional expenditures appear to be the input associated with the largest consistent boost in student performance. The estimated impacts are not driven by any single group of students or districts nor confined to a single outcome. Rather they reflect a general pattern that school spending matters. For student success instructionally focused dollars matter more than others.
Operations Rate. The system of funding the operations of public schools in South Carolina (and in many other states) has evolved into a combination of state, local, and federal funding to help address the widely different circumstances in which school districts operate.
Among other things, school districts and schools with high levels of students in poverty, students with disabilities, and students who are multilingual learners need additional resources to help these students achieve.
To raise needed local revenue for operational costs, the only funding tool that school districts have in South Carolina is a local property tax for school and district operations. However, a district’s ability to raise revenue from a property tax varies greatly due to the value of the property they can tax (represented by the county mill value shown in the above dashboard). Those with lower overall property value in their district must impose a higher property tax rate than others to collect the same amount of revenue. Funds raised from this tax cannot be used to pay for school construction and renovation.
Debt Service Rate. In South Carolina, a separate local property tax is the primary source of revenue that school districts have to pay the debt service (principal and interest) on bonds that fund the cost of school construction and renovation. Again, districts with lower overall property value must impose a higher property tax rate than others to collect the same amount of revenue. Funds raised from this tax cannot be used to cover operational costs.
Additionally, school districts that meet state criteria are able, through referendum, to assess an Educational Capital Improvements Sales and Use Tax. This additional one cent in county sales tax is to be used to reduce the property tax rate for school construction debt service and can also fund specific, additional school district capital improvement projects. (See list of counties with this tax.)
In certain circumstances in the recent past, state government has provided significant funds to districts for school construction and renovation such as with the merging of school districts or schools.
The system of funding the operations of public schools in South Carolina (and in many other states) has evolved into a combination of state, local, and federal funding to help address the widely different circumstances in which school districts operate.
Among other things, school districts and schools with high levels of students in poverty, students with disabilities, and students who are multilingual learners need additional resources to help these students achieve.
To raise needed local revenue for operational costs, the only funding tool that school districts have in South Carolina is a local property tax for school and district operations However, a district’s ability to raise revenue from a property tax varies greatly due to the value of property they can tax. Those with lower overall property value must impose a higher property tax rate than others to collect the same amount of revenue. Funds raised from this tax cannot be used to pay for school construction and renovation.