COLUMBIA — A Senate Finance subcommittee advanced a revised school funding formula Wednesday that would direct a larger portion of South Carolina’s $1.4 billion revenue surplus toward rural and high-poverty school districts, setting up a contentious floor debate in the full Senate as the chamber begins formal budget deliberations.

The bill, sponsored by Sen. [Name] of Orangeburg, would modify the state’s Education Finance Act weighting system to increase per-pupil allocations for districts with concentrations of students living in poverty, English language learners, and students with disabilities — three categories where advocates say the current formula systematically underfunds schools in rural and Corridor of Shame districts along the I-95 corridor.

“The formula we have was written in 1977,” said the bill’s sponsor. “South Carolina looks completely different than it did in 1977, and the schools that are struggling the most are the ones the formula was never designed to reach.”

The subcommittee approved the bill 3-2 along party lines, with Republican members arguing that the redistribution mechanism would reduce per-pupil funding in suburban and growing districts that have built programs and staffing levels around current funding expectations.

“This isn’t about who deserves more,” said Sen. [Name] of Lexington County, who voted against the bill. “It’s about not robbing Peter to pay Paul when we have a surplus large enough to lift every district.”

The bill’s supporters have proposed partially offsetting the redistribution impact by drawing from the surplus to increase the overall education appropriation, rather than reallocating within a fixed pool. The State Superintendent of Education, who has endorsed the legislation, said a $280 million increase in the base education appropriation combined with the formula adjustment would allow most suburban districts to hold flat or see modest increases while significantly improving rural district funding.

The full Senate Finance Committee is scheduled to take up the bill next Tuesday. Gov. [Name]‘s office has not formally endorsed the legislation but said the governor “supports meaningful investments in education” as the surplus debate continues.

The state constitution requires a balanced budget signed by June 30.