An executive order issued by Gov. Henry McMaster on Dec. 3 ordering state agencies to halt future spending, procurement and contract decisions based on race has prompted Lexington County School District One to question what actions it should take.

“Nowhere should any person be treated differently because of their race,” McMaster said in a statement. “State government spending and procurements should be awarded based on merit and value to the taxpayer, not on set-asides or quotas. This order ensures that until South Carolina’s procurement process complies with the United States Constution and treats every individual equally under the law, contracts will not be executed.”

The executive order affects Minority Business Enterprises, or MBEs, which are designed to ensure minority-owned businesses are offered the opportunity to fully participate in the procurement process. 

“Efforts will be directed towards establishing procedures designed to result in awarding contracts and subcontracts to minority businesses in order to enhance minority capital ownership, overall State economic development, and reduce dependency on the part of minorities,” the district’s current MBE plan for the 2025-26 school year says.

Jennifer Miller, the district's chief financial officer, said the current procurement protocol may be in conflict with the new executive order.

“We unfortunately have not received a lot of guidance,” she said at the meeting. “I think this is something that came out quickly and everyone is trying to determine what’s going to happen here.”

The administration recommended board members suspend district procurement protocols related to preferences for minority businesses until further clarification is received. Some board members, however, said they need more information before making a decision. 

“I almost feel like we’re kind of making a knee-jerk reaction right now to an executive order that came out that we’re not even sure is really going to apply to us,” board member Christopher  Rice said.

Board member McKenzie Flashnick agreed, adding if other districts aren’t making changes, they should “hold tight until there’s a little bit more information.” 

Superintendent Keith Price said that if the district were to move forward and award a bid with the current criteria, it could potentially violate the executive order.

Mercedes Pinckney Reese, director of legal services, said that the state of South Carolina must approve the district's procurement code, and does so only when it's substantially similar to the state’s procurement code. She said nearly 90% of the district’s code mirrors the state’s.

“An argument to be made is that if we vary from this, then our code may not be considered substantially similar,” she said. “I cannot say for 100% certainty right now that it actually does apply to us. There’s a strong argument that it does, but there’s nothing concrete that says it does.” 

The new executive order applies only to future contracts and projects. Those awarded before the executive order can continue. Clark Cooper, chief operations and student services officer, said projects in limbo could be delayed and hinder completion timelines.

Board member Beth Shealy said the risk of moving forward without suspending the current procurement protocols could be that the executive order applies to the district, and they would be required to rebid projects, starting the process over again.

After discussion, board members Flashnick, Mike Anderson, Rice and Elizabeth Shealy voted to table the motion until January. Kathryn McCown abstained, and Kathryn Henson voted against the motion.