Local Government Fund

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Please read below a summary of one of the biggest problems facing our county today: The loss of over $20 Million Dollars that the State Owes (according to Statutory Law) Spartanburg County. Please Click HERE to read article and see Spreadsheet outlining the problem.  These are YOUR tax dollars that you pay to the State that are NOT coming back to Spartanburg to pay for your Court System, Detention System and much more.

When you're done, please take some time to contact your Representative and your Senator and let them know that you are tired of paying TWICE for the same service!  They have been involved in this issue and all seem very willing to help, but We The People need to let them know how we feel!

Thanks as always for Staying Informed & Involved!

 


January 24, 2014

OVERVIEW OF THE LOCAL GOVERNMENT FUND AND ITS’ IMPACT

ON SPARTANBURG COUNTY REVENUES AND EXPENDITURES

Historical Perspective:

Counties have dual roles: (1) as a local government providing basic, essential services, and (2) as an administrative arm of the state to assist the state in providing state agency support.


The State Aid to Subdivisions Act is part of the General Appropriations Act that allocates state shared revenue to local governments. The Local Government Fund (LGF) is the largest component of the State Aid to Subdivisions Act. See S.C. Code of Laws §§ 6-27-10 to -50.


To a large degree, State Aid to Subdivisions Act has always served the same purpose: to blunt the impact of property taxes, especially when local government is performing a state role.


Full funding of the LGF lessens the financial impact of state mandates on counties, and ultimately citizens.


State Statutory Formula for LGF Funding and Distribution:

The LGF is governed by a state statutorily created funding formula for both the amount distributed and the way it is distributed among counties and municipalities.


South Carolina Code § 6-27-30 provides that the LGF is to be funded in an amount equal to not less than 4.5% of general fund revenues of the latest completed fiscal year.


South Carolina Code § 6-27-40 provides that 83.278% of the LGF must be distributed to counties. Of the total distributed to counties, each county must receive an amount based on the ratio that the county’s population is of the whole population of the state according to the most recent U.S. census. The remaining 16.722% is to be distributed to municipalities in the same manner.


State Statutory Limitations on LGF Amendments or Reductions:

South Carolina Code § 6-27-20 restricts the legislature’s ability to impose mid-year cuts of the fund and requires a separate majority vote of the entire State Budget and Control Board. The cuts are permitted only to the extent the counties and municipalities do not receive less funding than received in the immediate preceding fiscal year.


South Carolina Code § 6-27-50 prohibits the legislature from amending or repealing a section of the State Aid to Subdivisions Act except in separate legislation solely for that purpose.


State Suspension of the Statutory Limitations on LGF Amendments or Reductions:

Since FY2009-10, application of the LGF statutory provisions has been suspended.


Summary of the Impact of the LGF on Spartanburg County:

With the decrease in the LGF, funding from County citizens is being redirected to cover the LGF shortfall, thereby reducing County funds available for services provided by the County to its citizens.


Even if LGF was at full funding levels, funding from County citizens must be used to supplement funding of state mandated agency support.


A summary of the fiscal impact on Spartanburg County’s revenues and expenditures is attached. (Revenue from Medicaid and mini-bottle sales is directed by the state and, therefore, those amounts are excluded from the summary.)

 


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