Greenville County Council approves FY2026 budget at second reading after amendment; schools held harmless for one year

Greenville County Council on June 3 approved the countyfy2026 budget at second reading after adopting an amendment that reduces infrastructure-bank transfers and retains current FELO (fee in lieu of taxes) distributions to schools, cities and fire districts for one year.

The amendment, offered by Councilor Bradley and approved by roll call, reduces the infrastructure bank FELO revenue estimate by $12,000,000, reduces transfers from the infrastructure bank to road programs by $8,500,000 and lowers road-program expenditures by $4,000,000. Councilors who spoke in favor said the change preserves school and municipal funding this budget year while shifting how the county will handle FELO revenue from new projects going forward.

The vote on the amendment was recorded as 8 in favor and 3 opposed; the FY2026 budget as amended passed second reading with a roll call of 7 in favor and 3 opposed. Council members asked for and the chairman scheduled further workshops and authorized amendments at third reading.

Why this matters: County FELO distributions are a major recurring revenue path to schools, fire districts and municipalities. Altering how the county retains or distributes FELO proceeds affects local school and municipal budgets, road programs and county priorities such as public transit and affordable housing.

Council discussion and staff direction Councilors emphasized that the amendment was intended to "hold the school district and cities harmless this year" while giving the council time to consider longer-term FELO policy changes. Councilor McGavin told colleagues the amendment "takes the budget back to what it was last year as far as the FELO payments go" and said future FELOs from newly approved projects would be treated differently so the county could prioritize road safety and other county needs.

Councilor Bradley moved the ordinance adopting the FY2026 budget at second reading and stated the specific reductions; he also said a separate ordinance being drafted would affect future FELO distributions but had not been finalized by county attorneys. Council members agreed to schedule workshops before third reading and to allow amendments at that later vote.

Public comments: transit, schools and housing During the public hearing on the budget, speakers urged the council to protect funding for public schools, maintain or increase funding for Greenlink public transit, and restore proposed reductions to workforce and affordable housing funding.

• James Bowers, a Greenville resident who said he has Down syndrome, asked the council to "keep money for our buses" so he can use public transit independently.

• Dorothy Waldrop said "Approximately 300 bus stops can be improved" and urged higher frequency and expanded weekend service for Greenlink to avoid long waits that jeopardize riders' employment and housing.

• Rebecca Howard, a nurse, summarized the connection between transportation and county health: "Transportation is circulation for our county," she said, and asked the council to invest in transit to preserve independence for seniors and workers.

• Multiple speakers from housing organizations urged restoration of a proposed cut in county affordable-housing funding. Joshua Good of Greenville Housing Fund said the county's proposed cut from $3,000,000 to $1,000,000 would reduce a flexible local funding source that often unlocks state and federal dollars. Latonya Phillips, president and CEO of Habitat for Humanity, and Sheila Dogen of Beyond Housing urged reinstating the funds, arguing that local matching dollars are often decisive for developments.

Formal actions taken • Amendment to FY2026 budget (mover: Councilor Bradley): Reduce infrastructure bank FELO revenue by $12,000,000; reduce infrastructure bank transfer out to road programs by $8,500,000; reduce road-program expenditures by $4,000,000. Outcome: approved (vote 8-3).

• Ordinance adopting FY2026 budget (second reading; mover: Councilor Bradley): Approved as amended. Outcome: approved at second reading (vote 7-3). Council directed staff to prepare workshops and allowed amendments at third reading.

Distinction between discussion and decision Councilors repeatedly distinguished the short-term decision to hold existing FELO distributions harmless for this fiscal year from a separate policy decision about how future FELO revenue tied to newly approved projects will be apportioned. Several councilors described further changes as prospective and contingent on future council action, not enacted policy for existing FELO agreements.

Clarifying details • Amendment amounts recorded in the meeting: $12,000,000 reduction in infrastructure-bank FELO revenue; $8,500,000 reduction in infrastructure-bank transfers to road programs; $4,000,000 reduction in road-program expenditures (as stated by Councilor Bradley).

• Council comment: current county share of FELOs cited in discussion as 31% (as referenced during debate); councilors said the amendment leaves existing FELO receipts for schools, cities and fire districts unchanged for FY2026 but that the county would retain a larger share of future FELOs from new projects.

Next steps Councilors scheduled budget workshops before third reading and specifically allowed amendments at third reading. Council members and staff said they would provide further detail on any ordinance to change future FELO distributions before that vote.

Speakers quoted in this article spoke during the June 3, 2025 Greenville County Council meeting and are listed in the article's speaker section below.