How will coronavirus impact Horry County Schools’ budget and teacher salaries?
Reductions in revenue due to coronavirus could impact Horry County Schools’ teacher salaries and future building plans.
During Monday’s virtual board meeting, HCS Chief Financial Officer John Gardner noted that state officials have advised districts to suspend planned annual staff salary increases, known as STEP increases, until the General Assembly passes a budget, which could be delayed until the fall due to meeting restrictions.
State Sen. Greg Hembree, who chairs the Senate Education Committee, said they’re going to have to consider their revenues when they go back to work on the budget, and suspending those pay increases is a possibility, albeit an undesirable one.
“It’s something we might be forced to do just based on the financial realities our state is facing,” he said.
Those salary increases were projected to add about $4.6 million to the district’s budget, according to a preliminary budget analysis. Planned retirement increases, which Gardner also stated would be suspended for the time being, were projected to cost about $3.7 million.
Gardner noted that additional initiatives may be postponed or reduced to lessen the impact of future potential state budget restrictions as needed.
The district is currently in the midst of a comprehensive compensation study expected to recommend wide-scale staff increases, which will be complete April 30, according to Human Resources Director Mary Anderson. Board members have previously expressed interest in implementing those suggested increases in the coming budget, but there was no discussion about whether that’s still the plan.
During the earlier Facilities Committee meeting, Gardner spoke about local sales tax revenue, which was projected to be nearly $69 million this year and $70 million next year before coronavirus began forcing mass business closures.
Gardner noted that a 15 percent reduction in sales tax collections, which would be about $10.5 million less, would not impact annual appropriations for building modifications, sustainment projects, technology and emergency repairs scheduled for the 2020-21 school year, but projections for total penny sales tax through 2023-24 will likely need to be adjusted.
Board members Sherrie Todd and John Poston both expressed concern that a 15 percent reduction was a low estimate for revenue being lost right now, but Gardner advised that the committee can always delay projects if necessary.
Public K-12 schools in South Carolina have been closed since March 16 via executive order from Gov. Henry McMaster, and those closures will continue through the end of the school year, which is June 3 for HCS.
The school board voted to meet again next Monday, May 4, and they’re expected to primarily discuss options for graduation ceremonies.
Superintendent Rick Maxey initially announced those ceremonies would be held virtually, but the district quickly changed course after widespread public criticism, and they’re now considering other options such as outdoor celebrations or postponing in-person ceremonies.
Maxey suggested inviting principals from all the high schools and program schools to the next meeting to discuss options, while advising board members to contact April Scott, the district’s executive director of high schools, with suggestions.
This story was originally published April 27, 2020 at 8:56 PM.
