S.C. Supreme Court Rules State Owes School Districts Money

By: Associated Press | News Channel 7
Published: July 16, 2009

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(AP) A South Carolina senator says a ruling by the state Supreme Court would take a multi-million-dollar chunk out of a state budget already hemorrhaging money. Attorneys for six school districts say the high court's 3-2 ruling means the state must reimburse the districts roughly $6 million yearly under a 2006 law that took school operating costs off owner-occupied homes. The Department of Revenue argued the law that swapped some property taxes for a higher state sales tax excluded construction debt. But the court ruled that exclusion doesn't apply to districts' complicated rent-to-own funding for school renovation and construction. Republican Sen. Larry Martin of Pickens said Thursday he fears other districts will apply for similar reimbursements and could cripple the state.

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