Scott Couchenour has owned several businesses in Fort Mill over the years, including a small retail center he runs on U.S. 21 Bypass near Riverview Elementary. So Couchenour knows how South Carolina’s tax rules put the heaviest costs for school operations on businesses like his.
It’s a cost he’s willing to pay — as long as those taxes educate students who live here. “I am not in favor of property taxes on homeowners and small businesses going up to support where students from outside of our district can attend,” Couchenour said.
Business and home owners may not have a choice, once a new state law takes effect in the 2027-28 school year.
Gov. Henry McMaster signed a law last May that could lead to districts statewide accepting students who live outside their boundaries. New guidelines to meet the law haven’t been set yet, but they’re expected to provide state funding for in-state transfers.
It’s unknown how, if at all, changes might impact out-of-state transfers.
But the changes could impact schools across York County, where academic and athletic rankings often are higher than in neighboring counties, including in North Carolina. The Fort Mill and Clover school districts, in particular, have seen an influx of enrollment for more than a decade as they’ve routinely ranked atop state lists of test scores.
That growth has come from people moving into those districts, creating a larger tax burden on businesses to keep pace.
“The schools are expensive enough and important to our community,” said Lake Wylie Chamber of Commerce President Susan Bromfield, “without bringing in kids from other districts.”
Lake Wylie has been the highest-growth area in the Clover district for many years. Bromfield reached out to the school district last week for details on the transfer issue. But, for years businesses have stomached their share of taxes for schools because of the education it provides local students.
“You’ve got a community here with all the growth that is already paying, and the businesses are paying dearly,” Bromfield said.
Mayor Guynn Savage in Fort Mill shares that concern, as it’s taken generations to create public schools that are the envy of the state. “We pay higher taxes than other school districts,” Savage said. “I think it’s unfortunate that someone else thinks that it’s ok to give that away.”
Last week, Fort Mill Town Council unanimously voted to notify McMaster, state legislators and the Fort Mill School District of the town’s “strong opposition” to the state law, or any coming ones that would erode its ability to decide which students should attend.
Officials are hopeful that McMaster will reconsider the law, or at least factor local concerns into the policy being developed.
“It’s not that I don’t want other kids to have education,” Savage said. “But I do think it’s important that we value our taxpayers.”
SC rule changes for schools
Part of Act 11, or the Education Scholarship Trust Fund Act, requires the state Education Department to create model guidelines for how districts should accept students from outside their boundaries. School districts are required to form their own guidelines.
The state rule and funding that goes with it only relates to in-state students. Local district rules could include policies for out-of-state students, particularly in districts that border Charlotte and other North Carolina communities.
The idea is school districts would accept outside students if there is capacity for them. The state would provide funding to the districts for those students, similar to how districts get per-pupil funding now.
Fort Mill, Clover schools respond to SC changes
The new rules could impact Rock Hill area districts in different ways.
This month, Fort Mill schools approved a policy allowing full-time employees to enroll their students who live outside the school zone, for a fee. Board members labeled the move as a perk for teacher recruitment, but also said the pending state changes played a role.
“We can take care of our teachers and our staff by allowing them and their students to attend,” board member Michele Branning said prior to the decision, “or we can take neighboring district students.”
Clover schools have a similar policy, along with one that allows students from outside district boundaries if families own property in the district under the student’s name. It’s rarely been used in the past decade, according to a statement the Clover School District provided to The Herald.
Clover schools expect vouchers or other state funds under the coming rules to cover tuition or potentially travel expenses, making it easier for students to travel for school.
“The district expects changes in the new policy will raise the profile of interdistrict transfers with the increased publicity each district will be required to implement,” the statement said.
Rock Hill schools and enrollment
Not all schools have seen enrollment gains in recent years.
Rock Hill schools have had declining enrollment for about a decade. At least part of that is due to the growing number of charter schools in Rock Hill.
The new state rule presents opportunities and challenges, Superintendent Deborah Elder said in a statement to The Herald. “We ... welcome new students when our programs are the right fit,” Elder said, “while remaining focused on the students and families who are already here.”
York schools declined to comment on the state law changes.
Rock Hill area school bonds
New schools have come with buy-in from the community, through taxes and bonds that property owners elsewhere didn’t pay.
Fort Mill district voters approved seven school bonds since 2004, totaling more than $900 million in school construction. Many area homeowners have paid impact fees to build in Fort Mill, which are now at nearly $30,000 per home.
“We buy more expensive homes to be able to be in this district,” said Councilwoman Lisa Cook, referencing the state law change. “And to be able to live in a different community and then just pay $500 or $800 or whatever it may be to go to school here, it’s not fair and equitable.”
Building for Fort Mill students
Many districts, most recently in Lancaster and Chester counties, have voted down school bonds to meet capacity needs while Fort Mill voters continue to pass them. As the fastest-growing town in the Charlotte region, Fort Mill builds schools to keep pace with a population surge that’s now lasted decades.
A handful of current and former public officials The Herald spoke with see two major concerns with the new rule, in how it would impact future bond campaigns.
First, it could be harder to convince Fort Mill voters to pay more if they know that students are coming from other areas.
Second, bonds that build schools with growth in mind create capacity. So it could become difficult to build for people moving into Fort Mill, without students from other areas taking those seats the moment they become available.
Couchenour, the business owner and longtime resident, sees students coming from other areas as a business expense. He wonders if changes to impact fees or other funding sources would be needed.
“I know what my commercial property taxes are,” he said. “I spoke with a current school board member and a past school board member, and they both kind of think that our tax rates will be going up on small businesses. So I am completely against that.“
Like Couchenhour, Savage draws a hard line between paying for schools and paying for outside students to attend them. “We have an amazing school district,” she said. “And they work hard to keep it where it is. I’m proud of them and I don’t complain about paying those taxes, because I see the product.”
State funding makes up 33.4% of the revenue pie for districts statewide, according to the South Carolina Revenue and Fiscal Affairs Office. Another 13.2% comes from federal sources, with the rest a mix of local funds from property taxes, license, fees and charges.
The Fort Mill district gets 32.1% of its funding from the state, nearly $900 less per student than the state average. The argument for not allowing transfers from outside the Fort Mill district is financial, but so is the reason why local schools have become so desirable.
“It’s not that we’re totally financing the schools,” Savage said of local taxpayers. “But we are totally financing the difference in this school district.”
Reality Check reflects the Rock Hill Herald’s commitment to holding those in power to account, shining a light on public issues that affect our local readers and illuminating the stories that set the Rock Hill region apart. Email [email protected]