Greenville School Board votes to file lawsuit

     The Greenville School District Board of Trustees voted Tuesday night to file what they call a “friendly” lawsuit against ths State and County Auditor’s Office in an attempt to clarify a -2007- tax law.  The Board wants a judge to determine how much the District can raise taxes every year.  In a statement given by Board Chairman Dr. Keith Ray, he says the district currently has to comply with a -15- year old law that puts a cap on only the Greenville School District - regardless of inflation or an increase in the student population.  He says State law allows districts to use those factors to determine increases.
 
 
Statement from Board Chair Keith D. Ray II
PUBLIC STATEMENT
 
 
                        The local tax rate for Greenville County Schools is a vital component of the School District's ability to meet academic performance goals and provide our students with a quality education for the twenty-first century. 
                        Most people in the county are probably unaware that the tax rate for school operations must comply with and avoid conflict among a maze of laws that has been developed over the past thirty years. Unlike other South Carolina school districts, we must also comply with a fifteen-year-old law (Act 602 of 1992) that applies only to Greenville County Schools, is confusing, and has been interpreted in different ways.  
                        The Education Finance Act of 1977 and the Education Improvement Act of 1984 established a statewide funding system that shares responsibility for school operation funding between the state and local districts and imposes minimum legal requirements for local property tax revenue and rates. Act 388 of 2006 and Act 57 of 2007 impose a general statewide limitation on tax rate increases, applying a formula using an inflation factor and population growth. This formula was designed to apply to all South Carolina school districts, counties, and cities. 
                        Act 602 is "special, local" legislation adopted by the South Carolina General Assembly that applies only to Greenville County Schools. This Act has an unusually complicated, unique formula that has been erroneously interpreted, at least at times, to impose a strict four-mill property tax rate cap on our School District, regardless of inflation and/or student population growth. 
                        The Board of Trustees and Superintendent believe that our schools should be governed by the same statewide legislation as other South Carolina school districts. In other words, we should be subject to the statewide tax rate cap that takes into account inflation and student population growth. 
                        In summary, in order to meet increasing mandatory standards for academic performance, Greenville County Schools must be on an equal footing with other South Carolina school districts. 

                        In order to clarify the maze of applicable laws dealing with the local tax rate for Greenville County Schools, the Board of Trustees has authorized the School District's attorneys to file a declaratory judgment action to clarify the law where there is confusion and/or uncertainty as to the law's meaning.
                        Court procedures provide that declaratory judgment actions (sometimes known as friendly lawsuits) may advance on the court docket. This procedure will hopefully provide a clear answer in a short timeframe to important financial questions affecting our students. 
                        We will keep the public informed concerning these procedures and make additional public announcements as new information develops.
                                   
                                                                                                                        Keith D. Ray II
                                                                                                                        Board Chair