The House and Senate differed over which local governments would be affected and over whether to impose the tax caps on local governments without the voters' approval in a local referendum. The Senate proposal also would have required a statewide referendum on the question of increasing the state sales tax to six percent, with the increase used to finance specific tax relief programs, such as an expansion of the homestead exemption for owner-occupied residential property and elimination of income taxes for senior citizens and an income tax credit for other South Carolinians. In the end, a compromise was not adopted by both bodies before adjournment on June 13. While school operating costs comprise the heart of the 1995 property tax relief initiative, the issue of how best to fund much needed renovation and expansion of school facilities took center stage as the General Assembly determined how to disburse revenues expected from last year's extension of operations at the Barnwell Low-Level Radioactive Waste Facility. Funds are disbursed to each district according to the number of its free and reduced-price lunch students.
Participation is optional for both school districts and parents.
While public education saw expansion during the 1996 session, lawmakers also emphasized ways in which schools might make better use of existing resources. Falling short of statewide standards could have jeopardized certain funding as well as the jobs of teachers and administrators. However, the task of formulating benchmarks which would be sufficiently strict and fair proved to be complex enough for H. 4957 to be set aside for the remainder of the 111th General Assembly. This act defines and clarifies the missions for each type of institution of higher learning and enhances the powers of the Commission on Higher Education to ensure that these missions are strictly and successfully pursued without unnecessary duplication of services. To guarantee overall quality, the Commission will reduce or expand an institution's funding according to whether certain performance indicators are met.