State places Richland County School District One under elevated level of fiscal concern

COLUMBIA, S.C. (WIS) – Following an investigation that found Richland County School District One broke the law and wasted money on a controversial construction project, the district finds itself one step closer to the threat of having its finances being taken over by the state.

The South Carolina Department of Education elevated the level of fiscal concern that Richland One is under, according to a letter S.C. Superintendent Ellen Weaver sent Friday afternoon.

The letter said due to financial missteps found by the S.C. Inspector General, made public in a report last Thursday, Richland One would be under fiscal caution.

The three levels of budgetary concern under S.C. Law.(WIS-TV)

Fiscal caution is the second of three levels of budgetary concern that the state can apply to a district. Once a district reaches the third and highest level of budgetary concern, fiscal emergency, the state can take over the district’s finances.

“It would be horrible for our schools to be taken over by South Carolina Department of Education, but unless this school district gets off the road to disaster, that’s exactly what’s going to happen,” said Rep. Heather Bauer, D-Richland, who called for the state to investigate the school district’s spending.

When district officials began the construction of the Vince Ford Early Learning Center, the district was under the first level of fiscal concern after allegations the district was abusing purchase cards.

The inspector general’s report found Richland One wasted more than $350,000 while starting the construction of the early learning center. The project was put on hold during the investigation, and so far, two nearby property owners filed a lawsuit alleging the project caused flooding on their property.

BREAKING: @EducationSC has elevated the level of fiscal concern for Richland One.

State Spt. Ellen Weaver placed the district under “fiscal caution” following an IG investigation that found procurement issues and violations of state law. @wis10

MORE: https://t.co/FerkdSMg58

— Nick Neville (@NickNeville_) August 2, 2024

“The findings of significant and unremedied procurement deficiencies require me to escalate your district to a fiscal caution,” Weaver’s letter said.

The letter was sent Friday to Richland One Superintendent Craig Witherspoon, Board Chairman Aaron Bishop, and the district’s Chief Financial Officer Sherri Mathews-Hazel; however, one board member told WIS News that the district had not informed them of this elevated status when a reporter called on Friday afternoon.

Richland One is required to submit a plan on how its going to correct its financial mistakes identified in the inspector general report within 60 days, according to the letter.

SCDE denied an appeal from Richland One of their fiscal watch status in December 2022, and a plan to fix financial issues in the district was approved by SCDE in March. It’s unclear exactly what that corrective action plan said or if Richland One made any of the required changes.

The S.C. Governor’s office said in a statement they appreciate Weaver’s work.

“Governor McMaster appreciates Superintendent Weaver’s leadership and efforts to bring fiscal transparency and accountability to school districts where none has previously existed,” the statement said.

Local lawmakers are reacting to the SC Inspector General’s report into Richland School District One’s controversial Vince Ford Early Learning Center project.

A Friday statement from a Richland One spokesperson said: “We have received the letter, and we will review it and determine next steps.”

The school district is currently in the process of finalizing its budget, increasing teacher pay and cutting summer programs. District leaders have 60 days to submit a financial recovery plan to the state, which will “inspect” the department during this period, according to Weaver’s letter.

The SCDE can also institute another audit during the fiscal caution period, the letter said.

After the findings from the inspector general were released last Thursday, Witherspoon held a press conference where he disagreed with the inspector general’s characterization that the district was wastefully spending.

“We are committed to the facility,” he said at the news conference. “There is a need for it and we want to do it correctly and make sure permit-wise and all of those things, given the report, that all of those things are in place so that we can finish the facility.”

Board members are expected to discuss whether or not they will appeal this decision, which they have 10 days to do.

There is not a scheduled board meeting before that time.

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