S.94 would prohibit the governing board of any school district from issuing general obligations bonds for the purpose of general operating expenses. The effect of a school district defaulting on obligations could be harmful to all the children in that district. This reform is a sensible clarification that will make school district defaults less likely by preventing the unwise and potentially disastrous fiscal policy of financing day to day operations with debt.
School Districts may not Issue General Obligation Bonds for General Expenses
BySouth Carolina Policy Council
Jan 20, 2015
By South Carolina Policy Council
Since 1986 the South Carolina Policy Council Education Foundation has advocated innovative policy ideas that advance the principles of limited government and free enterprise. The Policy Council is the state’s meeting place for business leaders, policymakers, and academics – as well as engaged citizens – who want to see South Carolina become the most free state in the nation. For questions or comments on the articles on this website, please email Research Director Jamie Murguia.