Does a reduction in the Education Finance Act's base student cost qualify as a hardship or emergency allowing a school district to raise millage by two additional mills without a referendum?

Plain-English summary

The Attorney General did not decide whether a reduction in the Education Finance Act's base student cost, from $2,201 to $1,643 per student, was an emergency or hardship. Act No. 581 allowed a school district's millage to increase by an additional two mills without a referendum when the county board of education determined that a hardship or emergency existed and did not require a recurring allocation of funds. The office said the statute did not define those terms and assigned that determination to the county board on a case-by-case basis.

Currency note

This opinion was issued in 2003. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Historical summary

County board of education

The county board had to assess the district's claimed hardship or emergency under Act No. 581. The office identified no statutory definition or prior opinion that would resolve the particular funding reduction.

School districts

The statute described an additional two-mill increase, to a total of ten mills, without a referendum if the county board made the required determination and the need did not require recurring funds.

Common questions

Did the AG say the base student cost reduction qualified?
No. It left that factual determination to the county board of education.

Who determines whether there is a hardship or emergency?
The county board of education, case by case.

Background and statutory framework

The request concerned the millage rule in subsection (D) of Act No. 581 of 1994. The opinion quoted the eight-mill limit without a referendum and the conditional authority for two additional mills.

Citations and references

The opinion quoted Act No. 581 of 1994, subsection (D).

Official title

Asking, in a year of reassessment, does reducing the base student cost from $2,201 per student under the Education Finance Act (EFA) formula down to $1,643 qualify for an emergency hardship for up to 10 miles under Section (D) of Act 581.

Requester

The Honorable Ronald P. Townsend, Member, House of Representatives

Source

• Landing page: https://www.scag.gov/opinions/opinions-archive/september-3-2003/
• Original PDF: https://www.scag.gov/wp-content/uploads/2013/03/03sept-3.pdf

Original opinion text

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The State of South Carolina

OFFICE OF THE ATTORNEY GENERAL
HENRY McMAsTER

September 3, 2003

ATTDRNEY GENERAL

The Honorable Ronald P. Townsend
Member, House of Representatives
P. 0. Box 11867
Columbia, South Carolina 29211

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Dear Representative Townsend:
In a letter to this office you raised a question regarding Act No. 581 of 1994 which provides as follows:

(D) The tax millage for each district may not increase more than eight mills in a fiscal year without the prior approval of a majority of the qualified electors of the district in a referendum. However, the millage for a district may be increased by an additional two mills to a total of ten mills without the requirement of a referendum if the county board of education determines that the district has demonstrated a hardship or emergency situation and the hardship or emergency situation does not require a recurring allocation of funds. (emphasis added). You asked the following question: In a year of reassessment, does reducing the base student cost from $2,201 per student under the Education Finance Act (EF A) formula down to $1,643 qualify for an emergency hardship for up to 10 mills under Section (D) of Act 581 .

The terms "emergency situation" or "hardship" are not defined by Act No. 581. I am also unaware of any similar use of the terms in other statutes which would provide guidance in responding to your question. Similarly, I am unaware of any prior opinions of this office which are responsive to your question. As a result, I can only advise that it would be a matter for the board of education to determine on a case by case basis as to what constitutes an "emergency situation" or "hardship" for purposes of the legislation. As set forth by the legislation, the determination of such is a matter for the county board of education.

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Charles H. Richardson
Senior Assistant Attorney General
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c. D ENNIS BU!WING • POST O FFICE Box 11 549 • COLUMBIA, S.C. 292 11-1 549 • TELEPHONE: 803 -734-3970 • FACSIMILE: 803-253-6283

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