Finance committee advances superintendent—s 2025-26 budget amid pending state funding changes

The Horry County Schools Finance Committee voted to forward the superintendent—s proposed 2025-26 general fund budget to the full school board, with the committee stipulating that the recommendation is subject to several pending state provisos and bills that could alter revenues and employer costs.

Committee staff summarized pending state actions and budget updates for members and noted both potential revenue increases and new employer costs that are not included in the proposed budget. "The state's only gonna pick up 75% of it," a committee presenter said in describing how state aid to classrooms is calculated under current provisos.

The presenter identified Proviso 1.3 (state aid to classrooms) as the mechanism that sets how statewide average daily membership and weighted pupils are converted into teacher funding. He said conference committee proposals include a change to the weighting for virtual charter schools (from 0.65 to 0.35), a change that statewide associations estimated shifts roughly $18 million in funding toward charter schools and away from some brick-and-mortar districts. The presenter said that, based on numbers shown to the committee, Horry County Schools (referred to in the discussion as HCS) "could receive an additional over a million dollars" for the general fund if some changes pass in conference committee; that figure was not included in the current budget projections.

Committee staff also reported several other pending or proposed state items with budget impact: Proviso 08.6 (the PEBA state health plan) would increase employer costs; the presenter identified a $1,308,649 increase that is not yet included in the proposed 2025-26 general fund budget. House Bill 3645 (paid parental leave) was described as not currently moving forward this session but, if implemented, could add about $878,726 in costs. House Bill 3858 (a measure to provide a 50% fair-market-value exemption on watercraft) was shown as reducing funding by $982,576 in the presenter—s materials.

The presenter walked members through recent revenue updates: the Ways and Means version of state aid to classrooms used a 45-day ADM figure (reported as $175,283,788 in the materials), while the Senate Finance update used the 135th-day ADM and increased that line to $176,351,986. Health-insurance revenue estimates used by the committee were $7,556,962 in the earlier version and $8,491,193 in the Senate Finance update, an increase the presenter said improved projected new revenue but still leaves an employer-cost increase to be accounted for. After factoring the reported health-insurance increase and the reported employer-cost increase, the presenter summarized a net benefit to the district of roughly $700,000 compared with the earlier submission.

On the proposed general fund totals shown to the committee, revenues were listed at $647,375,046 and expenditures at $679,323,961, with a proposed use of fund balance of $31,948,915. Committee members asked staff to continue monitoring conference committee actions and to update the district—s public-facing budget materials as state figures change.

The committee made a formal motion to forward the superintendent—s comprehensive budget to the full board "subject to the Provisions 13108.6 and House Bill 3645 and House Bill 3858," and the committee chair called the motion and a second; the motion passed. The committee chair said the item will move to the full board for consideration.

The presenter and members emphasized the provisional nature of the numbers while state lawmakers continued conferencing; staff said updated documents would be placed on the district—s public website when new conference figures are finalized.