SC reaches deal with charter authorizer it accused of withholding key financial records
The South Carolina Department of Education has resolved its data sharing dispute with a charter school authorizer it had accused of violating the state’s closure protocol.
The state department on May 22 entered into a consent order with the Limestone Charter Association that resolved both its motion for a temporary restraining order and all claims laid out in a complaint the agency filed last month against Limestone, court records show.
Per the order, Limestone Charter Association, which is winding down operations following last year’s closure of Limestone University, has agreed to turn over all requested documents, with certain limited exceptions, and to refrain from spending any of its remaining funds without express permission from the department.
The charter district also promised to provide the agency any money remaining in its bank accounts after the completion of all preapproved disbursements.
The consent order, signed Monday by Richland County Circuit Court Judge Daniel Coble, comes after a month of mediation between the parties.
Their dispute stemmed from a disagreement over the level of operational control and responsibility Limestone should retain throughout the closure process.
The authorizer, which since 2021 had been charged with opening, closing and regulating charter schools in exchange for a portion of each schools’ state funding, objected to portions of the closure protocol the department developed at the request of the General Assembly.
While Limestone acceded to some of the department’s demands, it refused to comply with others it perceived as overreach or believed would expose the organization and its officers to legal risk.
In mid-March, with negotiations at a standstill, the department asserted operational control of the charter school authorizer, citing its broad authority under the state budget clause that directed it to develop a closure protocol.
The authorizer’s board subsequently voted to dissolve the Limestone Charter Association and assign to the department its responsibilities as a local education agency, effective April 15.
Limestone said, however, it could not abide by the department’s demand not to expend any more funds without the agency’s written permission.
The authorizer’s attorney argued the organization had already distributed all the money it owed its schools and asserted that everything remaining in its accounts had been earned in exchange for services.
Unsatisfied with Limestone’s response, the department filed suit against the charter school authorizer on April 22, arguing the department and South Carolina taxpayers would be “irreparably harmed” if the authorizer misallocated its remaining funds during the dissolution process.
In its request for a temporary restraining order, the agency sought to prevent Limestone from spending money without the department’s prior written approval; destroying public records or assets; and denying the department access to “property, assets, information, technology, accounting, records, or any other tangible thing.”
Following a closed-door meeting between attorneys for both parties April 24, Limestone agreed to temporarily cease all spending while working with a mediator to resolve the Department of Education’s compliance concerns.
The ensuing mediation process, which lasted roughly a month, appears to have satisfied the agency.
According to the consent order signed Monday, Limestone has fulfilled all the Department of Education’s documentation requests; provided the agency access to the necessary financial platforms and information systems; communicated all expenditures; and received prior written approval from the department for any urgent transactions.
The charter school authorizer, which paid its employees roughly $360,000 in late April to cover salaries and benefits, accrued leave and expense reimbursements, now has only legal fees and dissolution-related costs still outstanding. The organization had about $53,500 in the bank at the time of the agreement, the order stated.
This story was originally published June 1, 2026 at 3:58 PM with the headline "SC reaches deal with charter authorizer it accused of withholding key financial records."