Greenville County Schools is taking a formal step toward addressing rapid regional growth by exploring a one-time impact fee on new residential construction. The district's Committee of the Whole has approved a proposal to fund a comprehensive study, costing just under $60,000, to evaluate how such a fee could help finance new schools and expansions needed to accommodate a growing student population.
Key Takeaways
- Greenville County Schools' committee has voted to fund a study on implementing an impact fee for new homes.
- The proposed fee is a one-time charge on new construction, not a recurring property tax.
- Revenue would be legally restricted to funding new school construction and facility expansions.
- Trustees are debating the potential effects on housing affordability versus the need for school funding.
- The final decision to implement any fee rests with the Greenville County Council, not the school board.
District Considers Impact Fee Amidst Rapid Growth
Greenville County continues to be one of the fastest-growing areas in South Carolina, a trend that places significant pressure on public infrastructure, including schools. As new housing developments attract more families, the school district faces the challenge of ensuring adequate classroom space for an increasing number of students.
To manage this demand, Greenville County Schools is revisiting the idea of an impact fee. This financial tool is designed to shift some of the cost of new infrastructure from existing taxpayers to the new development that creates the need for it. The district previously considered a similar measure two years ago, but the discussions did not advance at that time.
According to Trustee Chuck Saylors, the timing for this new effort is more aligned with broader county-wide discussions. "The county is facing the same exact conversation," Saylors noted, explaining that while the school district's focus is on educational facilities, the county government is simultaneously grappling with how to fund infrastructure like roads and bridges to support the same growth.
What Is an Impact Fee?
An impact fee is a one-time charge levied by a local government on a new or proposed development project. The purpose is to pay for all or a portion of the costs of providing public services to the new development. Unlike property taxes, which are paid annually by all property owners, an impact fee is paid only once by the developer or the initial homebuyer of a new property.
Details of the Proposed Impact Fee Study
The Committee of the Whole's recent vote authorizes the expenditure of nearly $60,000 for a detailed analysis of an impact fee structure. If the full school board grants final approval at its upcoming meeting, the study is expected to take approximately four months to complete.
The primary goal of the study is to provide data-driven recommendations on whether an impact fee is a viable solution for the district. It will determine the appropriate fee amount based on the actual impact new residential units have on school capacity needs. This ensures the fee is proportional and legally defensible.
Officials have been clear that this is not a new tax on existing residents. "Impact fees, again, are not a tax. And again, it does not affect every homeowner," a district representative explained. "So you won’t see it on your property tax bill. It will only affect the person that’s buying a new home or property."
How the Revenue Would Be Used
A critical aspect of the proposal is the strict legal limitations on how the collected funds can be used. State law dictates that revenue from school impact fees can only be allocated for capital projects that increase capacity.
This means the money could be used for:
- Constructing entirely new schools.
- Building additions onto existing schools to create more classrooms.
- Acquiring land for future school sites.
However, the funds are explicitly prohibited from being used for operational expenses. This includes teacher salaries, routine maintenance, utility bills, or the replacement of existing facilities. The revenue must directly address the new demand created by population growth.
Funding for Growth, Not Maintenance
Impact fee revenue is legally firewalled for capital expansion projects only. It cannot be used to cover day-to-day operational costs or to repair aging school buildings, ensuring the funds directly address the needs created by new development.
Debate Among Trustees: Affordability vs. Funding
The proposal has sparked a debate among school board trustees, highlighting the complex balance between funding essential services and maintaining housing affordability. Trustee Lynda Leventis-Wells voiced concerns that adding a fee to new homes could negatively impact the local housing market.
"It makes homes less affordable, so you’ve got the one, and then you have the effect," Leventis-Wells stated. "Then, it may slow down the development."
Her position reflects a common concern that such fees could increase the final price of new homes, potentially pushing them out of reach for some buyers and discouraging construction.
Conversely, Trustee Chuck Saylors argued that developers should contribute to the infrastructure their projects require. "They need a little skin in that game," Saylors said, while also clarifying, "We're not asking dollar for dollar. We don't know if we're going to move forward to the impact fees."
Saylors also addressed the affordability issue, suggesting that mechanisms could be put in place to mitigate the impact on lower-cost housing. "In most places, in most communities where impact fees have been put into place, there has been a set aside or a carve-out related to affordable housing," he explained.
The Path Forward and Final Approval
The school board's role in this process is to study the issue and, if deemed appropriate, formally request that the county implement the fee. The ultimate authority to enact an impact fee does not lie with the school district.
If the study's findings support the implementation of an impact fee and the full school board votes to proceed, the proposal will be sent to the Greenville County Council. The County Council holds the final legislative power to approve, modify, or reject the ordinance that would put the fee into effect.
This multi-step process ensures that the decision will be subject to further public review and debate at the county level. The completion of the four-month study will be the next major milestone, providing concrete data to inform the decisions of both the school board and the County Council as they navigate the challenges of managing growth in Greenville County.