No teacher salary increases planned as Horry Schools unsure of COVID-19 financial impact
Planned salary increases for Horry County Schools teachers and staff appear to be on hold due to financial uncertainty caused by the coronavirus pandemic.
The district board approved its preliminary 2020-21 budget, set at about $712.9 million, during Monday’s virtual meeting.
The total budget represents an increase of about $28.4 million compared to the 2019-20 budget, with increases owed to a projected increase of 841 students and added positions, including special education teachers and principal specialists.
Not included in the budget are planned staff STEP increases and a planned increase in employer contribution rate for retirement, both of which are suspended until the state passes its 2020-21 budget. HCS had previously expected those increases to cost about $8.3 million combined.
South Carolina legislators have passed a continuing resolution to keep current year budget allocations going, but deliberations on the coming year’s budget have been delayed as lawmakers stay home to prevent the spread of COVID-19.
Also absent from the HCS preliminary budget are any staff salary increases resulting from the district’s comprehensive employee compensation study.
The district contracted Management Advisory Group to study its compensation compared to similar districts to help improve employee retention, but the pandemic may prevent the board from acting on that study’s recommendations.
The study was completed at the end of April, and board members had previously discussed the importance of having those results in time to implement recommendations in its 2020-21 budget.
But Board Chairman Ken Richardson told The Sun News before Monday’s meeting that he doesn’t see any way they can act on that study without clarity on the future of the district’s financial situation. The study itself hasn’t been mentioned at any board meetings during the past few months.
The Sun News has submitted a Freedom of Information Act request to the district seeking the results of the study.
The preliminary budget projects a $4.7 million decrease in education capital improvement sales tax revenue, which Chief Financial Officer John Gardner explained is a 15 percent reduction anticipated as a result of COVID-19.
Some board members have previously expressed concerns that the 15 percent anticipated reduction may be too conservative, and the actual loss of sales tax revenue could be much greater.
Gardner is projecting an approximate $11 million shortfall in revenue compared to expenses in the general fund, and he recommended the board use its fund balance to fill that shortfall.
He pointed out that the board consistently utilizes fund balance to balance the budget, but they rarely end up actually using it because of savings the district finds throughout the year, primarily due to unfilled staff vacancies.
Gardner also noted the district is expecting to receive up to $14 million from the federal CARES Act, but the administrative team is working on a proposal for those funds.
This story was originally published May 18, 2020 at 9:48 PM.
