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Anderson School District One outlines budget options as teacher-pay, health and leave costs rise
Summary
District officials told the board they expect roughly $118.8 million in revenue next year with about $3.7 million of discretionary capacity before raises, and that mandatory steps, a proposed $1,500 state pay increase and health insurance increases would consume much of that room, leaving options of using fund balance, deeper local raises, personnel trims, or a millage increase.
Anderson School District One officials presented a preliminary operating budget showing roughly $118.8 million in expected revenue and about $3.7 million in discretionary funds before accounting for raises, steps and health-insurance cost increases.
Finance staff warned the board that mandatory step increases would cost about $724,000, a proposed $1,500-per-cell teacher increase would add roughly $1.4 million, and higher employer health-insurance premiums would add about $300,000. That combination, they said, would consume most of the district’s available flexibility without further action.
"We've got limited room to maneuver without using fund balance or changing revenue," said Travis (finance presenter). He and Mr. Thomas laid out the district’s options: trim positions through attrition (staff cited roughly 17–18 FTE lines trimmed already), share roles across schools, cut low-attendance after‑school bus runs to save an estimated $40,000–$50,000, draw from the fund balance, or consider a millage increase as a last resort.
The presenters reviewed the state funding mechanism that limits operating growth to a mix of consumer-price-index and population factors under South Carolina Code 6-1208, noting that replacement of older property-tax methods with a penny sales tax has left Anderson One roughly $13 million short compared with the pre-2006 funding method.
Officials provided a numeric example of a typical homeowner tax bill to explain how state tax credits reduce the visible operating-school portion of taxes for many households, and they identified specific line-item revenue changes expected next year (property/auto taxes, a state education allocation increase of roughly $436,000 tied to the current state budget, merchant-inventory and retiree‑insurance revenue increases).
Board members and administrators discussed multiple pay scenarios. Staff estimated that increasing district pay beyond the $1,500 per-cell raise being debated in Columbia (for example, moving to an additional $1,500 locally for a $3,000 increase, or a $3,500 total step) would cost approximately $1.4 million to $1.88 million depending on the option chosen. Staff emphasized protecting salary competitiveness for early-career teachers while noting that, because the district invested extra years in its salary schedule, more experienced teachers are competitive with nearby districts.
Superintendent and budget staff said they expect to hold a budget workshop later in the week and will return with updated figures and recommendations for final action. They reiterated that auditors recommend keeping a fund-balance target between roughly 17% and 25% of operating expenditures, and that drawing heavily down on reserves should be weighed against that guidance.
Next steps: staff will refine numbers and present specific raise scenarios and a recommended path at the upcoming budget workshop. The board did not take a final vote on raises or millage during the meeting.
