The Orangeburg County School District says its priorities for the 2024-2025 fiscal year are to increase teacher salaries to the state mandated requirements, as well as to give all teachers a 2 percent pay increase.
The S.C. House Ways and Means Committee is proposing increasing the salary of starting teachers to $47,000 from the current $42,500.
“We are looking at teachers getting the 2 percent, plus they are getting the STEP,” Assistant Superintendent for Finance Gail Sanders told trustees during a budget workshop meeting April 9.
A STEP increase is a salary increase based upon qualifying experience.
The state's goal is to increase the minimum starting salary to $50,000 by 2026.
At the district's regularly scheduled March meeting, it was estimated that it will cost the district about $1.1 million to just meet the current proposed state-mandated minimum teacher salary increase.
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According to data provided by the district, under the state proposal, the district would have to increase the pay of about 329 of its 968 teachers.
The 329 teachers are making less than the state-proposed minimum salary at the current time. Of these 329 teachers, about 204 currently have a bachelor's degree.
The total salary impact is $817,353.90, with a benefit impact of $286,073.87 for a total impact to the district of $1,103,427.77.
In addition to proposed teacher raises, the district proposes:
• A 1.5 percent pay increase for bus drivers. School district bus drivers currently make between $18.94 and $24.19 an hour. The district would also give bus drivers a pay increase based on experience. The 1.5 percent increase is also the one proposed by the state.
• Increasing the pay of those who did not receive a pay increase in 2024.
• A $1,000 employee retention bonus paid in September using Elementary and Secondary School Emergency Relief funds, also known as ESSER.
The U.S. federal government's economic stimulus response bills to the coronavirus are winding down Sept. 30 and the district does not anticipate the funds being available in the coming 2024-2025 budget year.
• A $1,000 employee retention bonus paid in December before Christmas break that will come from the general fund.
Sanders said retention bonuses will only be given to employees paid by the school district. Substitute teachers for the district are employed by staffing agency Kelly Services and would not be included in the retention bonuses.
Some trustees expressed concerns that the district's substitute teachers and classified employees are not getting paid competitively with other neighboring counties.
“They are considering going other places where they can get paid more money,” trustee Betty Pelzer said.
District officials say they will show trustees the pay scales of neighboring counties.
“I think you guys will be shocked as to where we pay versus our neighboring counties,” Superintendent Dr. Shawn Foster said. “I don't think we are as bad off, as you will see.”
Foster said the information will be provided the board and public at a future meeting.
The first reading of the budget will be April 16; second reading, May 14; and final reading and public participation, June 11.
Taxes and debt
Financial advisor Bob Damron showed trustees that most of the district's outstanding bonds are going to mature and be paid off within the next couple of years. All debts from the previous three districts that combined to make up the Orangeburg County School District will be paid in full.
Paying off existing debt will allow the district to pay off the voter-approved $190 million district building and improvement plan.
“That is how the referendum is going to be able to paid for and maintain the 42 mills and not have a tax increase in your debt service,” Damron said. “Our goal is to keep it at the 42-mill figure each year.”
Damron noted the district has issued a $90 million bond anticipation note to borrow money to help kick off construction projects around the district.
He said the bond issue will come due in August 2024 and that the district will plan to renew the bond issue at that time by adding additional funds for more construction projects.
Damron said the district could probably issue enough to cover construction costs that will spent over the next year.
“You don't need to borrow money and pay interest on it and have it sitting in the bank,” Damron said. He believes the borrowed amount will be about $140 million.
In addition, Damron said the district in the coming year will plan to borrow about $13 million, which will keep the district within the 8 percent debt allowance, which will be equivalent to 42 mills.
“What we try to do is issue enough debt each year to keep that debt service payment that is required on those 42 mills and justifies it,” Damron said.
Damron said though the estimate is the district will borrow about $13 million, the bond issuance will be written to not exceed about $17 million just in the event the county has additional unexpected collections.
“You are all on schedule with everything we are doing,” Damron said. “Everything looks positive and our goal is always to not have a tax increase on your debt service millage.”
Contact the writer: gzaleski@timesanddemocrat.com or 803-533-5551. Check out Zaleski on Twitter at @ZaleskiTD.