Charleston County School Board Approves $26 Million Budget Increase

Meeting the gap between project approval and rising costs

The Charleston County School Board approved a $26 million increase to its budget last week,  Charlestons News 2 reported. The increase is aimed at funding educational projects, including the construction of a new school and improvements across the district.

This budget adjustment follows a 2020 referendum designed to support capital education projects. Some approved construction projects include the new James B. Edwards Elementary School, upgrades to James Island Charter High School’s stadium, and renovations at Edith L. Frierson Elementary.

Aerial view of Edith L. Frierson Elementary, where the Charleston County School Board said renovations are planned. Image: Charleston County School District

Meeting the Gap 

The budget increase highlights a significant challenge faced by the board: meeting the gap between project approval and the rising costs of construction materials and labor. According to the News 2 report, the budget was initially based on pre-pandemic prices.  

Given the change in market conditions from when the plan was approved, the board unanimously approved the additional $26 million, recognizing the pressing need to adapt to the increase and ensure the execution of planned projects.

Construction Labor Cost Trends

Chief Economist Michael Guckes addressed the rising cost of construction labor in the November Construction Economy Snapshot. “Hourly wages and weekly hours worked continue to make construction an attractive industry for laborers,” Guckes said. He noted that the combination of higher wages and more hours worked by construction labor exceeded, by 25 percent, the average weekly earnings of nonfarm workers. The corollary is that construction labor costs are higher for owners and general contractors. 

Complexity of Project Funding 

The Charleston County School District budgetary decision underscores the complex dynamics of construction project funding in a changing economic landscape. When the gap between project approval and actual costs widens, stakeholders’ ability to deliver on their commitments may be impacted, and funding arrangements may be modified.

Jeff Browy, Charleston County School District’s chief operating officer, said project designs had not been finalized, and construction had not started.

According to administrators, the Charleston County School District is the second largest in the state, with over 51,000 students.

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