Spartanburg 7 Chief Financial Officer Missy Campbell led a Finance 101 workshop for Lexington County School District Five on Oct. 27, explaining how local and state revenue streams combine to fund schools and why year‑to‑year unpredictability complicates budgeting. The presentation, part one of a two‑phase series, covered Act 388, the State Aid to Classrooms funding model, tier and homestead reimbursements, and the timing of federal and state restricted funds.

Campbell told the board the State Aid to Classrooms “pie” is set by the number of teachers funded multiplied by an assumed average teacher salary; the district’s share of that pie is determined by its weighted pupil units and an index of tax‑paying ability. She said Act 388 limits local millage increases to CPI plus growth except in certain circumstances — such as correcting prior deficiencies, a business closure that reduces tax base by more than 10 percent, or unfunded state or federal mandates — and that the law has made revenue planning harder for fast‑growing districts.

Campbell emphasized timing and predictability as a core problem. State allocations are recalculated after the 45th and 130th school‑day enrollment counts. “That pie is going to stay the same size. Your slice might get larger. Your slice might get smaller, depending on neighboring school districts,” Campbell said. She told trustees the Revenue and Fiscal Affairs Office had recently produced a report of nine recommendations about the State Aid to Classrooms model, and she warned legislative action will determine whether those recommendations change funding practice.

The presentation also reviewed other revenue categories: the two‑part State Aid to Classrooms appropriation (general fund and EIA), tier 1–3 homeowner relief and homestead reimbursement timing, EIA restricted funds and federal grants (which are reimbursed after expenditure), debt‑service millage (not subject to Act 388), and capital/bond restrictions and arbitrage considerations. Campbell said the district’s Food Service Fund had about $8.7 million on hand — roughly nine months of operations — and that industry benchmarks for that program are roughly 40 percent labor, 40 percent food cost and 15 percent other costs.

Campbell told the board she had tailored the workshop to Lexington 5’s 2024 CAFR figures so the discussion would be “real to you,” and she previewed the second workshop, scheduled for November, which will focus on building the district budget, debt management and financial practices.

Trustees asked several technical questions about the district’s average classroom ratios, how growth affects operating versus capital funding, and whether other states use models like Act 388. Campbell said class‑size ratios reported in the State Aid to Classrooms calculation include a range of instructional positions beyond classroom teachers, which helps explain why a statewide “11.2 to 1” figure looks very different from the district policy of 25 to 1 for classroom teacher assignments. The board also discussed the practical challenges of midyear funding shifts and the value of maintaining healthy fund balances to absorb true‑ups.

Campbell’s slides and comments made the timing issue central to trustees’ budget planning; the superintendent told the board the district will wait on the November 21 45th‑day allocation before bringing any major budget amendment to a vote.