Operational FundsOperational funds are used to pay for recurring costs such as salaries, electricity, supplies, books, etc.
Operational funds come from a combination of local property taxes, federal funding, and state funding.
In 2008 Act 388 was passed that exempted Owner Occupied residences from paying school operations tax and replaced it with a funding source that has not kept up with residential growth in Fort Mill. This has resulted in massive operational funding challenges for our district as growth in student enrollment has drastically outpaced state funding.
The school board is very limited in their ability to increase operational revenues, only having the ability to increase the budget by 2%-5% a year (based on a state formula). This isn't able to keep up with 7% - 10% growth.
By law operational funds can be used to purchase capital items, however this is not traditionally done in Fort Mill because we are so limited with operational dollars to pay teachers.s