By Robert G. Priest
This is the story of two local government bond issues. One with a very successful outcome. The other, a sad journey with no end.
Our first example is the 2018 Penny Sales Tax (TST 3) which was approved by voters for improvements to roads and transportation infrastructure throughout Beaufort County. Today, eight years later, just two of 11 road projects and only four of 18 sidewalk/pathways are complete.
One project, Donnie Beer Drive, across from Walmart on Lady’s Island, has no real transportation safety value, serving merely to access a privately owned landlocked parcel. The other, the right-hand turn lane at Walgreens on Lady’s Island, is the ONLY project completed adding a real return to taxpayers, as measured by improvements to safety/traffic flow.
Contrast that with Beaufort County’s school construction program. In 2019, voters approved a $344 million bond issue to fund a set of capital improvements for the Beaufort County School District (BCSD). Today, seven years later, all projects are complete and paid in full. The entire program was completed exactly on budget. So successful that on Nov. 7, 2023, voters approved a new $439 Million bond issue for a new set of BCSD capital improvements. While still in progress, all projects are on schedule and within budget.
What an amazing contrast between two seemingly similar capital expenditures of taxpayer monies. But why? In a word – management, or in the case of the TST, a lack thereof.
The BCSD approach has been highly successful for several significant reasons.
Foremost, proper planning. Years prior to their bonding requests, BCSD engaged all stakeholders to identify and prioritize those projects offering the greatest educational benefits. Real preliminary cost calculations were obtained based on advanced engineering and architectural design work. Inclusion of realistic inflation estimates are reflected with contingencies built in to both the individual project level and the full program level.
Recognizing very early on that BCSD did not have sufficient and appropriately qualified personnel to implement these plans, budgeting included retention of specialized construction management professionals.
The BCSD Superintendent thoughtfully selected a Citizen-led Oversight Committee (CLOC) composed of various professionals with relevant expertise in areas of accounting, engineering, construction, and education. This BCSD-CLOC reports directly to the voters of Beaufort County and to Beaufort County Board of Education, free from political influence.
Collectively, the above approach has been considered so very successful that among the education community in South Carolina and beyond it is now known as the “Beaufort Method.”
Presently, Council is asking voters to approve a new $780 Million spending program funded by a “so called” Penny Sales Tax (TST) – actually a 16.7% sales tax increase over up to nine years, along with potential bonding of up to $450 Million to upfront fund these projects. Sadly, Council has failed to read the room … or the voters.
There is as massive lack of public trust and confidence in County’s ability to successfully implement this new proposal. Beaufort County voters rejected TST proposals in 2021 and 2024. “Doing the same thing over and over, all the while expecting a different result.” Einstein.
In the face of all this the County’s “ask” is for a ridiculously large amount of money despite the failed results of these past eight years. The project request is massively oversized, not right sized. County does not need a $780 Million referendum to begin fixing our most dangerous roads and intersections. With improved priority management County staff could focus on engineering the most dangerous locations now, with existing funds, rather than spending a vast number of staff hours and funds on such foibles as Reimagine Ribaut.
The proposed question does not provide any assurance at all to voters that the work will actually be undertaken … or completed … or when. It lacks provisions for qualified project management expertise. Also lacking are provision for fees, and debt service on the proposed bond.
The entire proposal is the epitome of political pork. Fixing dangerous roads and intersections must be the primary priority. Rather, the project list is prioritized by political influence, not those projects that will most improve safety and efficiency.
In fact, one County Council Member stated publicly that re-paving work is to be prioritized to create the public perception of progress. All the while significant amounts of taxpayer funds have been spent to advertise and promote approval. Unlike the BCSD-CLOC, the proposed TST-CLOC would be composed of seven political appointees that will be subject to political influence by their respective constituents. Absences are requirements for the necessary functional skills.
Although Council has attempted to create the patina of public cognizance, zero recognition of public input has been observed. Properly adopted and rigorously adhered to, BCSD’s Beaufort Method for Capital Expenditures would result in a right-sized, well-planned, responsibly budgeted, and effectively managed program to repair and upgrade Beaufort County’s most dangerous and congested intersections and roads. Until then voters and taxpayers of Beaufort County need to vote no on the 2026 Penny Tax ballot initiative.
Robert G. Priest is a 10-year resident of Dataw Island, with more than 50 years of experience in finance, commercial real estate, construction and management. He holds a B.S in Economics from Rutgers University and an MBA in Finance from New York University. He resently servies on the Board of The Citadel’s Baker School of Business, and, since April 2024, he has been serving on the Beaufort County School District’s Citizen-led Oversight Committee.
