At a time when cuts are being threatened left and right to core services, South Carolina’s local school districts and municipal governments could be hanging onto fund balances in excess of $2 billion, according to an independent accountant who is studying local financial data for FITS.
Earlier this week, FITS exclusively broke the news that as of a year-and-a-half ago, S.C. school districts were carrying forward over $700 million in surplus funds from previous budget years.
And based on a scattering of more recent school board numbers, this total could go even higher for 2008.
Then there are South Carolina’s numerous municipalities, which also appear to be squirreling away surplus funds at an increasing pace.
For example, in 2007 Florence County had a fund balance of $14.5 million. That total increased to $18.1 million in 2008 – a jump of 25%.
In Greenville County, their 2008 fund balance grew 17% from the previous year – from $41.2 million to $48.1 million.
Our accounting analysts are waiting on additional data from numerous local districts, which we will continue to provide you with as we receive it.
In the meantime, it remains to be seen how the always cash-hungry S.C. General Assembly will react to the news that local governments in this state are sitting on more than $2 billion in surplus funds.
By Mab January 15, 2009 at 5:20 pm
Sprinkle, sprinkle…may the bean counter genies arise from their slumber…may the math work…may the people’s fortunes be restored!!!
Hoorah!
By James the Foot Soldier January 15, 2009 at 6:58 pm
These slush funds aren’t restricted to school districts.
At a time when Medicaid is the sacred cow – we don’t dare cut payments for medical care for the poor – many hopsitals in our state are sitting on HUNDREDS OF MILLIONS in slush funds also.
By BIN News Editorial Staff January 15, 2009 at 8:07 pm
sic(k) willie, “…you ignorant slut.” :)
Again, we explain that phrase is a classic from a Saturday Night Live skit (also sketch) that is famous the world over. Our use of that phrase is not intended to reflect on sic(k) willie’s manhood or his lack of intelligence.
It is intended to reflect on his professionalism, if he has any.
will, again, all you broke was wind. Howie must really be turning the screws to get you to dream up new ways to attack our public school system.
School districts (the ones that can afford it) have for years been following the law which allows them to maintain reserve funds. You know that!
Those funds are not slush funds. School districts who can’t afford a rainy day fund are being scr@wed. Want details? We have them. And they point to…
……..carpetbuggers like you!
BIN News Editorial Staff
Flair and Balanced
By Steve January 15, 2009 at 10:40 pm
Will,
Any data on how much of the surplus may be related to carry forward funds due to property taxes coming in once per year or related to restricted funds? The raw numbers certainly suggest excess surpluses in there but some of that amount (assuming the data is from June 30th end of fiscal year reports) would have to be operating fund balances plus savings to carry them through until November when taxes come in so they can avoid tax anticipation note borrowing. Schools have sales tax revenue, though not as much as promised by the Legislature as evidenced by plans to suppliment that amount, plus some property tax but cities and especially counties are still largely property tax funded. Also, some fund balance could be related to bond projects, where bond revenues are carried forward but restricted for specific purposes. I am not saying there are no excess surpluses, they almost certainly exist, but raw numbers with no data on other factors would not tell the entire story.
By the right side January 15, 2009 at 11:27 pm
Foot soldier: Medicaid is 230 million dollars under 2 years ago. Thats not what anyone would call a sacred cow. HHS was sitting on 270 million dollars a year ago while threatening to cut programs so it could keep money in the bank. Yes, Sanford HHS agency director wanted to slash medicaid while keeping 270 million in reserve.
By male sapphist January 16, 2009 at 12:21 am
If these feeders off of taxpayer largess have surplus cash then, I think, it means the actors did not follow the direction of the legislature and its command to spend the funds on programs. The legislature and the governor should authorize the budget and control board to seize surplus funds and then re-appropriate the cash into public safety and programs that are constitutionally supported.
Each agency and every organ of the state needs to justify, by sc constitutional cite, their ‘right to exist’. If you were to pare the leviathan down to a role supported by the constitution we would have no crisis.
By James the Foot Soldier January 16, 2009 at 11:44 am
What’s wrong with HHS wanting to build a slush fund?
Everyone’s done it.
I for one don’t see how “not-for-profit” hospitals can squirrel away HUNDREDS of MILLIONS of dollars and not get a knock on the door from the tax exemption police….oh right, McMaster is too busy demonstrating his pathetic lawyering skills and losing slam-dunk kidnapping cases.
The sacred cows in the upcoming budget cycle are K-12 and Medicaid – which means the rest of gov’ment program REALLY get the shaft – which actually trend lines us to a more sustaninable level of spending had our “republican” legislators governed with a spine over the past four years.