Aiken County Faces Budget Crunch for 2025-2026 School Year

News Summary

Aiken County Board of Education revealed a concerning $5.3 million budget deficit for the 2025-2026 school year. Superintendent Corey Murphy emphasized the need for viable budget options and projected potential tax increases. With salaries and benefits comprising 90% of the budget, tough decisions lie ahead as the board aims to maintain educational quality and engage the community in upcoming budget meetings. The budget proposal stands at $286,275,711, marking an 8.49% increase from last year.

Aiken County Faces Budget Crunch for 2025-2026 School Year

In a recent budget workshop held on April 15, 2025, the Aiken County Board of Education unveiled some concerning news regarding its financial future for the upcoming academic year. The preliminary budget estimates a hefty deficit of about $5.3 million, prompting discussions about potential adjustments and the need for innovative solutions.

Balancing Act for Administrators

Superintendent Corey Murphy emphasized the importance of crafting viable budget options to present to the board, given this significant shortfall. The chief officer of finance, M.O. “Tray” Traxler III, took center stage during this meeting, providing a thorough overview of the district’s budget priorities, which spanned nearly two hours and included nearly 50 informative slides to help illustrate the financial landscape.

The budget’s outlook hinges on the finalization of the state budget by the South Carolina Legislature. With the state budget conference committee slated to meet from April 30 to May 2, a report will be prepared for Governor Henry McMaster between May 6-8. As the legislative session wraps up on May 8, school officials are keenly awaiting these developments to better gauge their financial plans.

Identifying Opportunities

Traxler shared insights on how the district might bridge the budget gap. He indicated that through programmatic adjustments and changes to expenditures, the board could address some of the challenges ahead. An anticipated increase in healthcare premiums is alarming, as it may raise costs for the district by nearly $2 million.

Despite the challenges, the board has shown commitment to enhancing student success. They previously allocated funding for high-priority initiatives, such as hiring additional personnel to boost academic performance in middle schools, which costs around $2.61 million.

Salaries and Future Projections

In looking at the budget closely, it’s noteworthy that salaries and fringe benefits account for about 90% of the general fund budget. This means that any adjustments to salaries could have a significant ripple effect on the overall budget. The board approved a salary study in late 2024, and if the recommendations are implemented, this could lead to an additional $12.2 million in expenses, which would likely necessitate a tax increase.

Potential Tax Increases Ahead

The board is considering a possibility of a 7.5 mil tax increase for the 2025-2026 school year, with additional increments of 5 mils over the subsequent three years to sustain funding. The district contributes nearly 25% to the state retirement system for salaries, and any pay raises could further push these contributions higher.

Aside from salaries, there are still additional high-priority needs totaling $3.91 million, which include teacher pay raises and continued remediation programs for schools. Notably, the school operating millage has not been raised in a decade and currently stands at 134.2 mils, leaving the board with the authority to increase it to the threshold set by the S.C. Revenue and Fiscal Affairs Office.

Keeping Aiken County Competitive

Traxler highlighted that even with a 20 mil increase, Aiken County’s millage would remain below regional averages. The estimated millage rate in 19 other districts within the region is approximately 225.38 mils, making this adjustment all the more necessary to keep up.

Act 388 protects primary residences from property tax increases, yet other property types will likely see hikes based on their assessed value. If a 20 mil increase gets approved in 2025-2026, followed by 5 mil increases in subsequent years, total school millage would rise to 169.2 mils.

Next Steps and Community Engagement

Despite the uphill journey, Traxler believes that closing the budget gap is achievable, but it will take additional funding. The first reading of a balanced budget is on the agenda for the board’s meeting on April 22, followed by a public hearing on May 13 to gather community input. Final budget approval is set for May 27, and the submission deadline is June 10, ensuring payroll requirements are met.

The 2025-2026 budget proposal stands at $286,275,711, marking an 8.49% increase from last year, indicating that while challenges loom, Aiken County is committed to making strides towards an improved educational experience for all its students.

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Additional Resources

• Aiken Standard: School Board Budget Workshop Deficit
• WRDW: Aiken County Ranks Near Top SC Schools Without Full-Time Officers
• World Atlas: 9 Affordable Destinations in South Carolina for Budget Travelers
• WFXG: Augusta Commissioners Suggest Cuts to Meet Needs for 2025 Budget
• WJBF: Athletic Complex Construction on Time and Under Budget at North Augusta High School
• Wikipedia: Education in South Carolina
• Encyclopedia Britannica: School
• Google Search: Aiken County Budget
• Google News: Aiken County Education
• Google Scholar: Aiken County Budget Deficit