2017 South Carolina Code of Laws
Title 59 - Education
CHAPTER 20 - EDUCATION FINANCE ACT OF 1977
Section 59-20-40. Determination of annual allocations.
The annual allocation to each school district for the operation of the foundation program as it relates to the school district shall be determined as follows:
(1) Computation of the basic amount to be included for current operation in the foundation program:
(a) Each school district shall maintain a program membership of each school by compiling the student membership of each classification. The cumulative one hundred thirty-five day average daily membership of each school district by program classification will determine its monetary entitlement. The district's average daily membership (ADM) will be computed, currently maintained, and reported in accordance with the regulations of the State Board of Education. Funds for the state's portion of the per-pupil cost of the foundation program shall be disbursed monthly to the various school districts. End-of-year adjustments in state funds shall be made based on the one hundred thirty-five day student average daily membership in each classification.
(b) The base student cost shall be established annually by the General Assembly. The base student cost shall be established in such a manner that five years after July 2, 1978, the funding level shall approximate the cost of the defined minimum program as set forth by the State Board of Education.
Each year the Office of Research and Statistics of the Revenue and Fiscal Affairs Office shall submit to the Legislature an estimate of the projected rate of inflation for the fiscal year to be budgeted, and the base student cost shall be adjusted to incorporate the inflated cost of providing the Defined Minimum Program.
(c) Weightings, used to provide for relative cost differences, between programs for different students are established in order that funds may be equitably distributed on the basis of pupil needs. The criteria for qualifications for each special classification must be established by the State Board of Education according to definitions established in this article and in accordance with Sections 59-21-510, 59-35-10, 59-53-1860, and 59-53-1900. Cost factors enumerated in this section must be used to fund programs approved by the State Board of Education. Pupil data received by the Department of Education is subject to audit by the department. Cost factors or weightings are as follows:
Pupil Classification Weightings (1) Kindergarten pupils 1.30 (2) Primary pupils (grades 1 through 3) 1.24 (3) Elementary pupils (grades 4 through 8) base students 1.00 (4) High school pupils (grades 9 through 12) 1.25 Special Programs for Exceptional Students Weightings (5) Handicapped 1.74 a. Educable mentally handicapped pupils b. Learning disabilities pupils (6) Handicapped 2.04 a. Trainable mentally handicapped pupils b. Emotionally handicapped pupils c. Orthopedically handicapped pupils (7) Handicapped 2.57 a. Visually handicapped pupils b. Hearing handicapped pupils c. Pupils with autism (8) Speech handicapped pupils 1.90 (9) Homebound pupils 2.10 a. pupils who are homebound b. pupils who reside in emergency shelters Career and Technology Technical Programs Weightings (10) Pre-career and technology 1.20 (11) Career and technology 1.29 Add-on Weights for Early Childhood Weightings Development and Academic Assistance (12) Early childhood assistance 0.26 (13) Grades 4-12 academic assistance 0.114 Adult Education (14) Adult Education 0.15
No local match is required for adult education and the number of weighted pupil units funded depends on funding available from the general fund of the State and the Education Improvement Act of 1984 Fund.
Each student in the State must be counted in only one of the first eleven pupil classifications. Students shall generate funds for early childhood assistance and grades 4-12 academic assistance in accordance with Section 59-139-20. The State Board of Education must determine the qualifications for each classification in accordance with Sections 59-21-510, 59-35-10, 59-53-1860, 59-53-1900, and Chapter 30 of this title. The program for each classification must meet specifications approved by the State Board of Education.
School districts may count each student who is instructed at home under the provisions of Section 59-65-40 in the district's weighted pupil units at a weighting of .25 for supervising, overseeing, or reviewing the student's program of home instruction. No local match is required for students instructed at home under the provisions of Section 59-65-40."
(d) The basic amount for the foundation program for each district shall be computed as follows:
(1) The calculated average daily membership in each student classification shall be multiplied by the weighting factor for that respective classification.
(2) The subtotals (totals in each student classification) in all classifications shall be added to get the district's total weighted pupil units.
(3) The district's weighted pupil units shall be multiplied by the base student cost figure as established annually by the General Assembly.
(e) Computation of the required local revenue in support of the foundation program.
The amount that each school district shall provide toward the cost of the South Carolina foundation program shall be computed by determining the total statewide collective local share (approximately thirty percent) of the total cost of the foundation program, and multiplying this by the index of taxpaying ability of each district as defined in Section 59-20-20.
(f) Computation of the required state effort.
The amount that the State shall provide to each school district toward the cost of the foundation program shall be the difference between the district's basic amount as computed in subsection (d) minus the required amount raised locally as computed in subsection (e).
Notwithstanding the provisions of this section, state aid to any school district shall be reduced in proportion to the ratio that its local school tax effort falls below that required by subsection (2) of Section 59-20-50.
(2) Reserved.
(3) Provisions for a phase-in plan of implementation
(a) As a result of the cost of implementing the foundation program at both state and local level as calculated in this section, there will be a phase-in implementation period of five years to assist in implementing the education finance program.
(b) Each year of the phase-in period the General Assembly shall specify the base student cost and the percentage of the difference between current funding and full funding of the defined minimum program which shall be achieved each year. It is the intent of this chapter that the full implementation of the foundation program from present funding level in present financing plans, in terms of real dollars, be achieved in substantially equal annual intervals over a period of five years; provided, that if a district increases its local effort annually by at least five percent in real dollars, the period of time for full implementation may be extended five years. However, it is recognized that, during periods of abnormally low growth in state revenue, appropriations may necessarily have to be reduced below the anticipated trend and that during periods of abnormally high revenue growth an effort would be made to restore progress in funding to achieve full implementation during the five year phase period. It is recognized further that, should the trend of growth in state revenue diverge substantially from historical experience, then the length of the phase period might be increased or decreased accordingly. Each local school district shall progress annually in eliminating the difference between its current funding and full funding of the defined minimum program at the same percentage as mandated by the General Assembly for statewide progress toward full funding; provided, that each district shall increase its local effort annually by at least the amount required in this section or by five percent in real dollar terms, or shall increase its millage for the local share of expenditures under the foundation program by at least two and one-half mills. Any district failing to make either the required local effort or the five percent increase in real dollars terms or the two and one-half mill increase will have its entitled increase in state aid reduced by the proportion that its actual increase in local effort falls below its required increase of five percent in real dollars, or two and one-half mills, whichever is less.
(4) Impact aid revenue shall be counted as local effort for purposes of computing actual local effort, in order to meet requirements of Section 59-20-40(3) (b). Provided, however, that should the degree of equality achieved under this chapter prove insufficient to qualify South Carolina for utilizing impact aid in the school finance equalization plan, then impact aid would not be counted as local revenue.
(5) To qualify for funds provided in this chapter, each district must attain an average pupil-teacher ratio based on average daily membership in the basic skills of reading and mathematics in grades one through three of 21:1.
Provided, That any local district may apply to the State Board of Education for approval of a waiver to this subsection by submitting and justifying an alternative educational program to serve the basic skill needs of average daily membership in grades one through three.
The State Board of Education shall approve or disapprove of such waiver forty-five days after receipt of such application. Provided, Further, That beginning with Fiscal Year 1978-79, if a school district violates the provisions of this subsection, the state aid for the ensuing fiscal year to such school district shall be reduced by the percentage variance that the actual pupil-teacher ratios in such school district has to the required pupil-teacher ratios mandated in this Subsection.
Provided, That notwithstanding the provisions of this Section, the State Board of Education is authorized to waive the pupil-teacher requirements specified herein upon a finding that a good faith effort is being made by the school district concerned to comply with the ratio provisions but that for lack of classroom space which was beyond its control it is physically impossible for the district to comply for the Fiscal Years 1978-1979 and 1979-1980 and the cost of temporary classroom space cannot be justified.
It is the intent of the General Assembly that the average daily membership pupil-teacher ratio for grades 1 through 3 stipulated in the chapter be implemented to the extent possible on an individual class basis and that the pupil enrollment in these grades should not exceed twenty-eight pupils in each class.
(6) No district shall be required to increase local revenue if combined state and local revenue exceeds the amount necessary to meet the base student cost of the minimum foundation program at full implementation.
(7) [Deleted]
(8) The General Assembly shall annually provide the portion of the local required support of the foundation program required by the South Carolina Education Improvement Act of 1984 on the basis of the district's taxpaying ability in the annual general appropriation act.
HISTORY: 1977 Act No. 163 Section 4; 1978 Act No. 644 Part II Sections 14, 22, 28; 1979 Act No. 199 Section 30; 1983 Act No. 151 Part II Section 2; 1984 Act No. 512, Part II, Section 9, Division II, Subdivision B, SubPart 3, Sections 2, 3; Subdivision C, SubPart 3, Section 6; 1985 Act No. 201, Part II, Section 9(I); 1987 Act No. 170, Part II, Sections 24 and 28; 1988 Act No. 522; 1988 Act No. 593, Section 2; 1988 Act No. 658, Part II, Section 10; 1989 Act No. 194, Section 4; 1993 Act No. 135, Sections 9, 10; 1994 Act No. 497, Part II, Section 15G; 1996 Act No. 429, Section 1; 2003 Act No. 92, Section 9, eff January 1, 2004; 2005 Act No. 49, Section 8, eff May 3, 2005.
Code Commissioner's Note
In the 2005 amendment of paragraph (1)(c), subparagraphs a. and b., added in 2003 dealing with homebound pupils, were inadvertently deleted from item (9) of the weightings table. They have been restored at the direction of the Code Commissioner.
At the direction of the Code Commissioner, references in this section to the offices of the former State Budget and Control Board, Office of the Governor, or other agencies, were changed to reflect the transfer of them to the Department of Administration or other entities, pursuant to the directive of the South Carolina Restructuring Act, 2014 Act No. 121, Section 5(D)(1).
Effect of Amendment
The 2003 amendment, in subsection (1)(c)(9), added items a and b.
The 2005 amendment, in subsection (1)(c), substituted "Career and Technology" for "Vocational" in the heading preceding item (10); in item (10), substituted "Pre-career and technology" for "Pre-vocational", and in item (11) substituted "Career and Technology" for "Vocational".
