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Issues of Efficiency and Accountability Relating to School Districts
September 2004

FOLLOW-UP (PDF)     REPORT (PDF)     SUMMARY (PDF)

The General Assembly requested an audit of the State Department of Education (SDE) and other issues in K-12 education. This report follows the May 2004 publication, A Review of the State Department of Education and Issues of Efficiency and Accountability in K-12 Education, and addresses objectives relating to the operations of the school districts. Our findings are summarized below.

  • South Carolina does not have an adequate statewide process for measuring school district financial management. Such a process could determine whether a district is achieving its objectives and managing resources in an effective and efficient manner. Other states conduct detailed performance-based reviews of their school districts that have resulted in cost savings and improved performance.
  • We reviewed the expenditures of South Carolina school districts and found that they do not vary significantly from those of other states. Although there is no uniformly accepted definition of which expenditures are "dollars to the classroom," there is a wealth of information available about expenditures for K-12 education. Analysis of school spending patterns is a useful first step in reviewing operational efficiencies.
  • We reviewed the issue of school district consolidation to determine whether there would be cost savings if more districts consolidated. South Carolina’s school districts are relatively consolidated compared to those of other states. While there is evidence that per pupil costs tend to be higher in small districts, it is unclear whether and how soon significant savings would be realized from widespread consolidation. Consolidations are more likely to be successful if undertaken on a case-by-case basis, with community support and identified benefits.
  • Many streams of state funding for K-12 education are disbursed to the 85 school districts in separate allocations. The State Department of Education identified more than 100 state funding sources. A more consolidated funding mechanism would have the advantage of simplification and perhaps more efficient and effective use of resources. However, any simplification would have to be accompanied by adequate accountability controls to ensure that funds are used effectively in accord with the intent of the General Assembly.