News Summary
Greenville County has reversed its plan to divert funds from public schools for road improvements due to public opposition and financial concerns.
Greenville County, South Carolina – Greenville County has decided to abandon its controversial plan to divert millions of dollars from public schools to fund necessary road improvements. This change in direction comes after significant public opposition and new financial assessments that predicted adverse outcomes resulting from the proposed reallocations.
The county remains committed to increasing its spending on road infrastructure, aiming to boost expenditures to over $40 million. Rather than diverting funds from the education sector, county council members are exploring new economic growth agreements to cover the costs associated with road improvements.
Initially, the plan would have redirected approximately $14 million from the school district, an adjustment that could have severely impacted the school system’s ability to maintain a balanced budget. Additionally, smaller fire departments within the county would have faced similar financial shortfalls, with some departments potentially losing up to $500,000.
Officials from the school district expressed surprise at the proposal, which surfaced amid ongoing budget discussions. Although Council Chairman Benton Blount initially supported the idea of fund diversion, he later recognized the potential disruptions it could create within the educational infrastructure and beyond. An alternative proposal that aimed to take a reduced sum of $5 million from the school district was also put forward but was quickly dismissed.
In light of these developments, the county plans to utilize future tax incentives, known as FILOTs (Fee in Lieu of Taxes), to generate revenue for road improvements without adversely affecting existing public services. Historically, Greenville County has allocated about 31% of FILOT revenue to local entities. FILOTs are strategically designed to attract companies to invest in the area, although their use has become a topic of political contention since recent elections. The current council has only approved three FILOT arrangements this year, a significant drop from the more than a dozen approvals in previous sessions.
The county council is scheduled to discuss its budget for the 2026-27 fiscal year in November. At this time, there is no indication that the earlier proposal to divert educational funds will be revisited. A recent public referendum on a penny sales tax, intended to generate funding for transportation infrastructure, was narrowly defeated, prompting county leaders to seek alternative funding sources for an estimated $2 billion in road repairs.
Opponents of the penny sales tax, including newly elected council members, campaigned against it, a measure that could have raised over $1 billion over eight years to support needed infrastructure upgrades. Nevertheless, some council members, including Councilman Alan Mitchell, have suggested revisiting the penny tax proposal in the future, citing the misinformation that circulated during the previous vote as a significant factor in the rejected measure.
Chairman Blount has expressed a willingness to explore all funding options available to the county, emphasizing a commitment to addressing transportation needs and ensuring that residents feel confident in the county’s dedication to improving infrastructure. As the county moves forward, the focus will remain on finding viable alternatives that do not compromise funding for public education and essential services.
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