Sanford: Budget deficits violate the law

Gov. Mark Sanford said that a proposed state budget that would likely force two agencies to run deficits next year could violate the state constitution requiring a balanced budget.

The Department of Corrections estimates it will run a $4.3 million deficit in the current year's budget, a problem that will only worsen for the budget year beginning July 1. Likewise, the State Department of Education said a $9 million cut to school bus fuel and maintenance will likely force the agency to run a deficit beginning early next year.

"That's not a balanced budget," Sanford said. "We are shirking that which we are constitutionally required to do."

The deficit, Sanford said, could open the state up to a lawsuit challenging the budget.
The State Budget and Control Board deferred a decision at its meeting today about Corrections deficit, opting to let state budget officials work with the agency to use other sources of revenue -- such as sales at prison stores -- to close the agency's budget gap.

Sanford: Cigarette tax faces a veto

Gov. Mark Sanford today said he would veto the Senate's cigarette tax hike if it comes to his desk in its current form.

Sanford said the state should not raise any tax without an offsetting tax cut.

He criticized the Senate plan as a "double tax increase" for the way it increases taxes immediately, but will also mean having to raise taxes later on to cover future growth in the programs it seeks to expand.

The Senate approved a 50 cent a pack tax increase to the cigarette tax, which would generate $158 million a year.

House won't debate budget until Wednesday

The House will likely not discuss amendments to the Senate budget today, saving that debate for tomorrow.

State economists cut revenue projections after the House passed the budget, forcing the House to cut $240 million in spending.

With so little money available, Ways and Means chairman Dan Cooper said, there may be less than a dozen differences for House and Senate lawmakers to resolve in conference committee.

Earmarks bill approved by House

The House has approved a bill that would end the practice of lawmakers being able to make anonymous budget requests known as earmarks.

The bill would require lawmakers to fill out a form when making budget requests, thus identifying which lawmaker is asking for money.

Earmark reform had been a priority for the General Assembly coming into this session as a means of limiting the number of pet projects lawmakers can work into the budget.

Sanford takes to the road to decry budget

Gov. Mark Sanford will visit small businesses in Florence and Greer Thursday to discuss the the state budget, according to a news release from Sanford's office.

Sanford said the release lawmakers have "proposed taking money from the Medicaid program, economic development efforts, money set aside for retirees, and the Department of Corrections -- all while keeping a legislative slush fund in place."

State employees get 1 percent raise under proposal

The state Senate has proposed a 1 percent pay raise for state employees.

The amendment, sponsored by a number of Senate leaders, will be debated later. The Senate taps $20 million meant to pay down the cost of retirement benefits to fund the raise.

The Senate cut a proposed 2 percent raise last week when state economists lowered revenue estimates.

Sanford: Tax day is a good time to hold spending

As people across South Carolina filed their taxes today, Gov.  Mark Sanford issued a reminder to the Senate "to keep present and future taxpayers in mind as they contemplate the state budget."

The Senate is debating its budget plan today.

Senate to take up budget today

The S.C. Senate will take up a $7 billion spending plan that has been pared back by $90 million over the past month.

Sliding revenue estimates have forced lawmakers to pull back on spending after cutting most state agencies by between 2.5 and 5 percent.

Last week, the Senate Finance Committee held a special meeting after government revenue forecasters predicted tax collections would soften.

The committee decided not to give state workers a pay raise, saving the state $40 million.

This week the Senate will debate the voluminous budget and determine if cuts are needed elsewhere or if some cuts proposed in committee can be restored.

Sanford issues plan to balance budget

Gov. Mark Sanford proposed a three-pronged plant to ease the impact of cuts the House and Senate spending plans include in a year where revenues are down $90 million.

Senate will take on budget before cig tax

Senate lawmakers are content to tackle the budget before taking up the cigarette tax.

Sen. Thomas Alexander said he is still working on a compromise about how to spend the $158 million a 50-cent increase would raise.
The Senate passed the cigarette tax last week, but the state budget takes precedence over all over legislation.

The Senate expects to begin budget debate Tuesday.

Boost to retirees, lawmaker pay stalls in House

The House has failed to give final approval to a bill that would have boosted lawmaker pensions, instead sending the bill back to committee.

The pension increase was attached to a bill giving state retirees a guaranteed 2 percent cost-of-living increase.

A handful of lawmakers organized a revolt against the bill overnight. Typically the third and final vote on a bill is a formality, but those lawmakers rounded up just enough votes to send the bill back to committee, a rarely used tactic,  on a 58-51 vote.

Those lawmakers hope to remove the lawmaker pension boost and pass the bill.

State employees won't get raises under new budget

State employees will not see a pay raise this year, according to a spending plan approved Tuesday to deal with an unexpected revenue shortfall.

The raises cost an estimated $40 million, nearly exactly the hole created when state economists lowered budget projections Monday.

Lawmakers were split over the decision.

Sen. Kay Patterson, D-Richland,  urged the Senate not balance the budget on the backs of employees.

But others said state agencies could not absorb any more cuts.
Why give raises, Sen. Larry Grooms, R-Berkeley, asked, if the cuts result in furloughs?

Dems: Cut endowed chairs, give 1% pay raises

Democrats in the General Assembly are proposing the following to make up for a $40 million funding shortfall lawmakers found out about on Monday.

The state Board of Economic Advisors projected a total of $90 million less in state revenues than anticipated. A Senate budget passed in committee last week had already trimmed $50 million from the state's $7 billion spending plan.

Democrats, discussing the budget in their caucus meeting, proposed the state can make up the remaining $40 million by:

• Taking $10.5 million from the state's tuition prepayment plan that allows families to pay for future tuition at today's rates.
  
• Taking $20 million of the proposed $30 million funding to the state's endowed chairs program that underwrites research at the state's research institutions.
• A 1 percent pay raise for state employees.

School buses, tourism ads face state cuts

The Senate Finance Committee is considering their options in how to trim a total of $130 million from this year's and next year's budgets.

The current year's $90 million hole will be plugged with the $124.5 million capital reserve fund. To do so, the Senate will have to trim down a list including new school buses, tourism advertising money, a high-speed data connection at state research universities and more.

BEA cuts budget projections by $90 million

The state's board of economic advisors today predicted South Carolina will take in $90 million less than expected for next year's budget.

The S.C. Senate last week passed a budget that contained a $50 million cut from the $7 billion House budget passed last month for the next fiscal year.

Gov. Mark Sanford issued a statement that the projections confirm his concerns about softening revenues back in February. 

"We've said for months that this year's projections for budget growth were far too optimistic, and unfortunately today those concerns were shown to be founded," Sanford said.

Senate focuses on budget this week

The full Senate will work a short schedule this week to allow the Finance committee to finish work on the budget.

Despite a number of bills that have been holding up the calendar, the Senate adjourned quickly today and will do so again on Thursday.

The Finance committee will continue debate on the budget this afternoon. Chairman Hugh Leatherman, R-Florence, expected the first numbers will be released tomorrow.

House passes spending plan

The House has passed a $7 billion spending plan that will cut most state agencies by 2.5 percent and will take more than $100 million for a Medicaid reserve account to balance the budget.

House adds money to budget for rural roads

The House has approved its first major change to the state budget, shifting $1 million to help build roads, utility lines and other rural infrastructure.

Confederate flag, Tillman in budget debate

The House has begun debate again this afternoon on the $7 billion state budget, after moving through much of the spending plan with little controversy this morning.

Among the big items that Republican and Democratic leadership are expecting are separate amendments that would raise the state's cigarette and gasoline taxes.

In addition, members are expecting proposals that would remove the Confederate Battle flag and the Ben Tillman statue from the State House grounds.

Sanford to comment on budget, swear in Lloyd

Gov. Mark Sanford will discuss the state budget and swear in new SLED chief Reggie Lloyd at his monthly cabinet meeting Tuesday.

Sanford: Budget cuts will hurt Medicaid

Gov. Mark Sanford says the House Ways and Means Committee's draft budget could limit the state's ability to pay for health care for its poorest citizens.

Sanford will visit two hospitals Tuesday -- one in Greenville and one in Charleston -- to underscore his concern.

The House Ways and Means Committee passed a budget last week that cut most state agencies by 2.5 percent, but also drew more than $100 million from a Medicaid reserve account.

The money is held in reserve to keep the program solvent during lean budget years and during economic downturns, when more people are typically made eligible for Medicaid coverage.

Bill would require Web reporting of local government budgets

Bill would require Web reporting of local government budgets

A group of senators has introduced a bill to require local governments to report their spending online.

The bill would require credit card statements, check registries and all expenses of more than $100 be posted with an explanation of the expense.

The bill would allow the state Budget and Control Board to post the spending of towns and school districts with no Web site. State Sen. Larry Grooms, R-Berkeley, said other states already require the information be posted online.

"It's just one more small step they could take," Grooms said. "We found out the cost there has been very minimal."

House committee approves $7 billion spending plan

The House Ways and Means committee this morning approved a $7 billion spending plan for the state for its fiscal year that starts July 1.

In addition, the committee laid out how it would spend the $124.5 capital reserve fund left over from last year.

Among the biggest expenses:

• $48.7 million to buy, maintain and operate state school buses.
• $10 million for tourism advertising
• $7 million for the state Commerce Department to help close deals with companies expanding in S.C.

The spending plan still has a long way to go before it becomes final. It must be approved by the full state House of Representatives and the state Senate; many changes could be made during that process. The plan then would go to Gov. Mark Sanford for his signature or veto.

Budget passes first test

The House Ways and Means committee has approved a $7 billion state spending plan this morning.
In addition, the committee laid out how it would spend the $124.5 capital reserve fund left over from last year. Among the biggest purchases are $48.7 million to purchase, maintain and operate state school buses. Tourism advertising will receive $10 million while Commerce will receive $7 million to help close deals with companies expanding in S.C.

The budget also includes a 2.5 percent cut for many state agencies that will mean colleges and prisons will get less money and state workers would get a 1 percent pay raise, a third of what state workers have gotten the past two years.

Sanford to talk about budget's impact on Medicaid

Gov. Mark Sanford will meet with members of the media this afternoon to discuss the first draft of the state budget lawmakers unveiled Wednesday that would take more than $100 million from a Medicaid reserve fund.

Sanford, according a release from the governor's office, will discuss how the nearly $7 billion spending plan will "take money from the Medicaid program -- as well as a number of other reserve funds." Sanford wants to discuss how the budget would impact Medicaid and the state's financial health in general.

The budget, which also includes a 2.5 percent budget cut for most state agencies, might make it difficult for the state to provide healthcare for its neediest citizens, according to the state Department of Health and Human Services. 

Sanford will meet with the media at 1 p.m.

Budget cuts would hurt Medicaid

The House Ways and Means Committee's draft budget will cut agency funding and use agency reserves to cover the state's projected revenue shortfall this year.

The House has balanced its draft budget, in part, by using $105 million in Department of Health and Human Services savings.

The agency has said spending that money leaves the agency with very little money to add new Medicaid patients, as could happen if South Carolinians lose their jobs during a recession.

The agency has said its $120 million in savings amount to less than a month of reserves. By contrast, the state health insurance plan is required to maintain enough money to cover 45 days of expenses.

Higher education takes hit in House budget

The state budget is a mixed bag for education in the state.

The state Department of Education escaped the 2.5 percent across-the-board cuts in the House draft budget, but will see little new money this year. In addition, lawmakers expect to collect less from a special sales tax and had to trim bonuses for teacher certification.

For colleges, those cuts will mean millions less. The University of South Carolina, for example, was cut by $4.3 million.
Rep. Chip Limehouse, R-Charleston, said Clemson University would likely raise tuition.

"I would expect it to increase a good bit," Limehouse said.

State workers get reduced raises under budget plan

State employees will feel the pinch of the state's sluggish economy. According to the House's draft budget, state workers will see just a 1 percent raise for next year. The last two years, state workers have received a 3 percent raise.

Ways and Means wants to cut spending 2.5 percent

The House Ways and Means committee has released a draft budget that includes a 2.5 percent cut for most state agencies.

The cuts were needed, budget writers said, because state revenue growth has flattened over the past year.

In addition to the cuts, the House plan also introduces a number of savings by reducing costs for travel and information technology.

Ways and means hunting for cash from reserves

House Ways and Means Committee is set to take up state spending again today with an eye on state agencies' reserve funds.

Chairman Dan Cooper, R-Anderson, said the state will fall at least $200 million short of funding basic needs, such as state employee raises, new law enforcement officers and more.

Besides considering across-the-board cuts for state agencies, possibly three to five percent, the committee will also look at the reserve funds held by agencies like the Department of Health and Human Services.

Those agencies have said the money on hand is needed in case of emergency, or has already been committed to programs.

Lawmakers are expected to take an accounting of how much money each agency has in reserves and determine if any can be used to cover the expected revenue shortfall.

Cooper: State is $200 million short of funding basics

The House Ways and Means committee has begun a week's worth of debate in drafting the state's $7 billion spending plan.

Lawmakers will have little money to work with, and chairman Dan Cooper, R-Anderson, said the state will fall at least $200 million short of funding basic needs, such as state employee raises, new law enforcement officers and more.

The committee is considering across-the-board cuts for state agencies, possibly three to five percent. But some agencies, such as the Department of Health and Human Services will be asked to spend reserve funds.

Those agencies have said the money on hand is needed in case of emergency, or has already been committed to programs.
A group of advocates for the blind greeted the committee, urging lawmakers not to cut funding.

New Web site tracks federal spending in S.C.

A new Web site will allow residents to better track federal spending, including which states and companies receive the most federal contracts and grant awards.

The site, USAspending.gov, was required by a 2006 law.

South Carolina was in the middle of the pack of federal grants received, ranking 25th in the current budget year with a total of $3.7 billion. Over the last eight budget years, South Carolina has received $278.8 billion in federal grants and assistance.

The Second congressional district, represented by U.S. Rep. Joe Wilson, was the highest-ranking in the state, coming in 110th nationally with $1.9 billion in government contracts from fiscal 2004 through the first two quarters of the current budget year. U.S. Rep. Jim Moran's northern Virginia district came in first, with $61.3 billion in government contracts over the same period.

Sanford agrees state should disband Budget and Control

Gov. Mark Sanford said Monday he agrees with a lawsuit that seeks to disband the State Budget and Control Board.

Sanford, who was named as a defendant in the suit by Change SC Now, submitted a response to the suit basically agreeing with its claim that the Board is unconstitutional.

In a State House news conference, Sanford said the Board undermines the separation of government powers and contributes to inefficiencies in government.

The S.C. Supreme Court has yet to decide if it will hear the case.
The governor's office has hired Nelson Mullins law firm to represent Sanford and will pay for its services through an insurance policy.

Sanford nominates Walldorf for Budget board

Gov. Mark Sanford said today he will nominate Chad Walldorf, his former deputy chief of staff, to lead the State Budget and Control Board.

Walldorf, 39, most recently chaired the Government Efficiency and Accountability Review (GEAR). That panel authored a study of state government that claims S.C. could save more than $500 million by changing the way the Budget and Control Board does business.

The GEAR report also "highlighted the need to address the $20 billion in unfunded retirement and retiree health-care liabilities facing the state," according to a Sanford news release.

Sanford said in the news release Waldorf's recent work examining the Budget and Control Board's operations make him the ideal candidate for the job.

"What has again been highlighted in the GEAR report is that the antiquated and chronically unaccountable structure of the Budget and Control Board is costing taxpayers in very real terms,"  Sanford said in the news release. "Based upon the work he did with the GEAR report, I don't think there's anyone better qualified than Chad to take the reins of this agency and work toward addressing these much-needed reforms.

Walldorf co-founded Sticky Fingers Restaurants in 1992, which over the past 15 years has grown from one location to 19 and employs over 1,100.

Walldorf would succeed Henry White, another Sanford favorite and a former chief of staff, who resigned two weeks ago, hours prior to the General Assembly's election of a new Treasurer. The treasurer is one of five voting members of the Budget and Control Board, which hires the executive director of the agency.

Sanford says budget growth unacceptable

Gov. Mark Sanford, on a tour of small businesses in Florence, Charleston and North Augusta Tuesday, spoke out against what he calls unacceptable spending growth in the sate.

Sanford said runaway spending hurts the state's finances in the long run.

Lawmakers last week passed a $7.4 billion spending plan that spends roughly $1.5 billion more than what was spent last year - a growth in new revenue higher than the entire budget of five other states, according to a Sanford news release.

The state's budget is poised to grow anywhere from 11 percent to 16 percent this year -- depending on how growth is calculated -- which is two to three times as fast as the average increase in citizens' personal income of about 6 percent growth.

This year's budget will mark the third straight year of double-digit government growth, nearing a 40 percent growth clip over that time period.

The governor is currently considering which items to veto from the budget. The governor said unless spending is controlled, the state could face future cuts to some of the most critical government services like education, healthcare and law enforcement.

"While I would give real credit to the General Assembly for a number of good things that have happened this year, the final order of business is going to be how we choose to deal with this budget," Gov. Sanford said. "Even though more money has come into Columbia this year than ever before, we think in some cases a couple of ideas have been pushed aside to make way for more spending.

Sanford to issue vetoes Wednesday

Governor Mark Sanford will release his budget vetoes for the state's 2007-2008 budget on Wednesday. Sanford will meet with the media at 2:30 p.m. in the Governor's Office of the S.C. Statehouse.

DOT, budget passes; General Assembly adjourns

The House passed the state's $7.4 billion budget, approved $220 million in tax cuts and gave final approval to Transportation Department reform.

The budget eliminates the tax on groceries, includes money to buy hundreds of new school buses and gives state employees a 3 percent pay raise.

The Legislature has adjourned for the year. Left still is a one-day session next week where lawmakers will take up any vetoes by Gov. Mark Sanford.

Harrell appeals to Democrats to pass DOT reform

House speaker Bobby Harrell, in an unusual move, addressed the Democratic Caucus this morning in an attempt to pave the way for a budget agreement on the Legislatures final day.

House Republican and Democratic caucuses met this morning, trying to work out differences that have held up final approval of budget and Transportation Department reform.

Democrats remained resolved to vote on the budget, with most members still opposing the bill restructuring the Transportation Department.

Then Harrell, R-Charleston, spoke to the group.

"I think it's a mistake to go home without a DOT bill," Harrell said.
"Let's get everything done and let's please go home by lunch."

Harrell also apologized for his tone in addressing House Democrats yesterday about their desire to allocate $50 million for rural roads, water, sewer and other infrastructure.

Democrats were also upset with House leadership, blaming Harrell and Rep. Annette Young, R-Dorchester, for tying the Transportation Department reform to a budget vote.

"If we tried to force the issue right now," Harrell said, "I think it's an incredibly difficult row to hoe."

Democrats were ready to approve the budget, and voted against the Transportation Department bill because House Republicans would not allow a budget vote first.

"The reason we did it," Rep. Doug Jennings, D-Marlboro, said to Harrell, "is because you insist that we do it your way."

Republicans, gathering in a publicly-owned State House auditorium, closed their meeting and removed reporters from the room while discussing their strategy for approving state policy.

Tax cut bill falls through this morning

The House and Senate failed to reach an agreement on cutting income and grocery taxes at their meeting this morning, keeping the state budget in limbo until the issue is resolved.

House Ways and Means chairman Dan Cooper, R-Anderson, could not accept a Senate proposal to eliminate the 3 percent state sales tax on groceries as well as eliminating the lowest income tax bracket. That would total $221 million in tax cuts, with all state income tax payers saving an estimated $67.50 on their next tax return.

Cooper said the House still wants to apply tax cuts top-down, giving the most benefit to those who pay the most taxes, and did not counter the Senate offer. Negotiators said they will meet again this morning.

Workers' Comp deal imminent

Sen. Glenn McConnell, R-Charleston, said a committee report on worker's compensation reform is expected today at 3:00 p.m.

A bill that would lower premiums business pay for workers' compensation insure and disqualify some workplace injuries for benefits has been one of the issues lawmakers needed to resolve in order to pass a state budget.

House Democrats sound off on budget, DOT, income tax cut

House Democrats are pulling for the Senate today, particularly on the state budget.

Democratic lawmakers expressed buyer's remorse in their return to the State House Tuesday.

They berated House Speaker Bobby Harrell, R-Charleston, and their Republican counterparts for leading the state into the budget crisis it faces.

Then they turned on themselves.

Comments from the House Democratic Caucus meeting today got caustic at times, as Democrats returning from a couple weeks at home realized they are being smeared by a process over which they have almost no control.

Some comments made today:

"I'm disappointed we left here a week ago without a budget," said  Rep. Harry Ott, D- Calhoun, who is the House Minority Leader.

He strongly criticized a recent opinion piece by Harrell in which he said working from last year's budget could be an acceptable option this year.

"That is a slap at every person's face who voted for that budget," Ott said.

"We ought to all be embarrassed to go back home without a budget," said Rep. Doug Jennings, D-Marlboro, "all over a petty game. We have dropped the ball -- the House, the Senate, Democrats, Republicans. When rich and poor, black and white look us in the eye and ask why, what are you gonna say to them?"

Another hot issue is income tax cuts. A House measure would cut the income tax for the wealthiest South Carolinians.

"We can't allow income tax cuts from the top down," protested freshman Rep. Bakari Sellers, D-Bamberg. "Here is where we have to make our stand. We have to be the party of injured workers."

Rep. David Mack of Charleston found little he liked about what's before the General Assembly.

"Every one of those bills (the budget, worker's comp, DOT reform) is a bad bill. This is (the Republican's) ballgame."

Fireworks over budget at Democratic Caucus meeting

Rep. Ken Kennedy, D-Williamsburg, lit a fire at the Democratic Caucus meeting today over the state's $7.4 billion budget. Kennedy opposes the budget and urged more Democrats to join him.

"I saw this coming," said Kennedy, who is the only member of the House of Representatives to have voted against the House budget. "The Republican leadership set this up just like they wanted. I was hoping you guys would look around and see what the hell was going on."

Kennedy, in an impassioned plea, admitted he has not attended many caucus meetings this year. "I was (angry) at what was going on," Kennedy said. "It ain't a good bill. Why did they vote for this? All of us should have voted against it."

His comments touched off a debate.

Rep. Harry Ott, D-Calhoun, Rep. Joe Neal, D-Richland, and some others took Kennedy to task.

"At the end of the day, we're the minority, not the majority," Neal said, explaining that he voted for the $7.6 billion budget because it had elememnts of health care provisions such as increased funding for children's medical care that he thought were important.

Some members strongly agreed with Kennedy though.

"Even when Republicans were in the minority, they certainly were not as docile as we have been," said Rep. Jerry Govan, D-Orangeburg. The House vote on the state budget was 112-1.

Democrats say they expect to get a detailed briefing on where DOT reform stands during their luncheon today.

House GOP says its remains determined

As the House and Senate prepare for the final day of the 2007 legislative session, House leaders said they are committed to leaving at 5 p.m. without a final state budget.
While House Majority Leader Jim Merrill, R-Charleston, said the House has committed to funding state government at current levels, along with planned increases for education, pay raises for state employees and other "essential services."
Merrill said that was different than saying the Legislature was "going home without a budget."
"We are ending this session and funding government services at 2006 levels," Merrill said. "We are spending a dollar more than last year, and saving taxpayers more than $1 billion, while insisting the Senate approve two essential conservative reforms that our constituents want."
The House and Senate remain deadlocked over plans for changes at the Department of Transportation and the state's workers compensation system.

Workers comp meeting canceled

A morning meeting to debate workers compensation changes was canceled, which means a key piece of legislation is still unresolved in the session's final two days.
Though a budget deal was struck Tuesday, House members said they will not give final approval until work is completed on workers compensation and on Transportation Department reform. It is unclear when lawmakers might meet again to discuss worker's compensation and if it will delay budget approval.
House and Senate negotiators will meet to discuss Transportation Department legislation later this morning. They made little progress yesterday, with the major issues remaining whether or not to budget more money for road and bridge construction and maintenance, and how a seven-member oversight board would be chosen.

Senate crashes Sanford-House party

A joint news conference of Gov. Mark Sanford and the House of Representatives turned into a debate with the Senate, as both sides argued their case for the standstill that has held up the state budget, Transportation Department reform and worker's compensation changes.
As Sanford and House Speaker Bobby Harrell, R-Charleston, urged the Senate to approve a budget with more tax cuts, senators showed up to defend themselves.
"It seems to me from the Senate side," Majority Leader Harvey Peeler, R-Cherokee, said to Sanford, "that you've been trying to build a wall between the House and the Senate."
Sanford countered that lawmakers have run out of time for rhetoric with Thursday's scheduled end of the session. These issues, as well as additional tax cuts, Sanford said, were too important to wait another year.
One holdup over DOT is the House's insistence that the state add $40 million -- eventually increasing to $200 million -- for new construction and road and bridge maintenance. The state needs to make road construction a priority, and the only other way to fund it is to raise the gas tax. With a $1.5 billion surplus, Harrell said, road money should come from the budget.
Budget negotiators are scheduled to meet this afternoon, and DOT and worker's compensation committees will also likely meet.

House considering temporary budget

The House of Representatives is working on a second emergency state budget that would fund core new services, including a pay raise for state workers, expanding health insurance for poor children and formula-based increases for K-12 schools.

The proposal, said House Speaker Bobby Harrell, R-Charleston, is an admission that negotiations with the Senate on Transportation Department reform and worker's compensation changes are not progressing.

"If we don't (approve DOT and worker's compensation)," Harrell told the House Republican Caucus, "we're going to have to make a decision whether we want to accept a budget."

The House has refused to meet with Senate negotiators on the budget while the other issues are outstanding. A budget meeting is scheduled for 3 p.m. today, and House negotiators plan to attend.

Worker's compensation and DOT negotiators will also meet this afternoon. This morning, both bills gained little ground.

On DOT reform, the House and Senate are split on whether to add $40 million, increasing to $200 million in five years, to the Transportation Department budget. The Senate wants a one-time boost to road and bridge maintenance. The House prefers money be split among new projects and maintenance, and that it be funded annually off the top of the state budget.

Senate budget negotiators mock absent House counterparts

Senate budget negotiators met again this morning, but — unlike Monday — House negotiators joined them this time.

Sort of.

Senate staffers blew up head shots of state Reps. Dan Cooper, R-Anderson; Tracy Edge, R-Horry; and Denny Neilson, D-Darlington, put them on sticks and placed them in their chairs. The senators then "discussed" the proposed state budget with the representatives.

The House has refused to meet with the Senate until it compromises on Transportation Department reform and worker's compensation changes.

This is the second day in a row that the Senate budget negotiators have met without the House.

The legislative session is scheduled to end Thursday. However, key issues remain unresolved, increasing the odds legislators will be forced to return to Columbia later this month.

Senate to discuss budget, but House will be no-show

Senate budget negotiators will meet this afternoon to discuss the state budget, but House Ways and Means chairman Dan Cooper said the House will not be there to listen.

The proposed $7.3 billion state budget has been tied up for two weeks, as the House has waited to see compromises on Transportation Department reform and worker's compensation changes, as well as include an income tax cut for the state's highest earners. The Senate has said the income tax cut should be applied bottom-up, shared by all income tax payers.

There have been no meetings to discuss the state spending plan in nearly two weeks, and the House announced earlier that today's 4 p.m. meeting was canceled. But Senate negotiators said they will show up to talk about the budget.

In addition to the budget meeting, negotiators will be meeting at 3 p.m. to work on final compromises for DOT reform and worker's compensation changes.

Thursday is the final scheduled day of the legislative session, though lawmakers will likely come back the third week of June to override gubernatorial vetoes, if any.

Sanford, Ryberg say state budget is too fat

Gov. Mark Sanford and Sen. Greg Ryberg, R-Aiken, said Thursday the state's budget, which is being negotiated, should be scaled back. Sanford and Ryberg said the General Assembly should hold the line on spending and return all or part of the additional $1.5 billion they plan to spend this year to taxpayers.

The state budget will likely be more than $7 billion.

"With the money coming into Columbia this year, we have a real opportunity to uphold a number of key principles of conservative budgeting," Gov. Sanford said in a news release. "One is the principle of first things first. Good times won't last forever, and the fact is that our state has $9 billion in unpaid for political promises that we ought to do more toward addressing this year.

"Two is the principle of looking out for the taxpayer, which the Senate is clearly not doing by planning to send less than two percent of this new money as a dividend back to taxpayers. Three is the idea of sustainable spending, so that government doesn't grow faster than people's ability to pay for government, and we end up with cuts to the services that hurt the people who need them most. The good news is that it's not too late to change the course we're on, and I'd ask the House and Senate conferees to put the taxpayers first as they continue work on the budget."

Sanford going to Aiken to rail against spending

Gov. Mark Sanford and Sen. Greg Ryberg will be in Aiken Thursday to urge "taxpayers to make their voices heard" on the state budget, according to a release from Sanford's office.  The House and Senate are in negotiation on $7 billion budget that includes more than $1 billion in new spending. Sanford and Ryberg want the new spending to be "returned to taxpayers, rather than being spent in Columbia," according to the release.

Budget writers play waiting game

House and Senate budget writers must wait on a number of bills affecting state spending as the end of session looms.

House and Senate negotiators still have question marks about substantial parts of the budget. Legislation on Transportation Department reform and increasing the state cigarette tax -- and cutting grocery or income taxes - is still pending.

Negotiators will likely meet again today, and could begin to approve funding. Negotiators believe they could finish work this week, but may take longer if worker's compensation, DOT reform or other bills stall.

Sanford urges lawmakers to focus on DOT, workers' compensation, tax cuts

If the Senate and House are unable to reach a compromise on the budget, Gov. Mark Sanford Tuesday urged legislators to turn their attention to three other important issues: finishing up DOT and workers compensation reform and adding more tax cuts.

During a morning news conference in his office, Sanford scolded the Legislature for its plans to spend most of a $1.5 billion projected budget surplus, rather than rather than fulfilling unmet existing commitments on programs such a $41 million tuition grants program and individual tax relief.

"If they're gonna take a pause on the budget, let's go ahead and concentrate on DOT and workers' comp," Sanford said, referring to Rep. Tracey Edge's declaration Monday during a conference committee meeting that House and Senate conferees had reached an impasse.

The Senate and House appear far apart on all three issues. On tax relief, for instance, the House  plan returns $81 million in relief to taxpayers, while the Senate  plan returns $23 million.

Sanford said the Legislature has undermined its own credibility on fiscal responsibility.

"We've had brand erosion by saying one thing and doing another," the governor said.

Confederate holiday makes for short week in the Legislature

It will be a short week for thee General Assembly, as both the House and Senate will not meet on Thursday, Confederate Memorial Day.

The Senate typically takes the holiday off, but this is the first time in recent years that the House will not meet. Confederate Memorial Day is a state holiday, and other government offices will be closed.

House set to take up budget, coastal insurance

House leaders said Tuesday they will likely take up a bill to help coastal homeowners find insurance, as well as voting whether or not to accept the Senate's $7.4 billion budget. The House will also deal with two gubernatorial vetoes, including one expanding the amount of money Clemson and USC can borrow for athletic facilities.

Lawmakers passed a bill that allow Clemson and USC to borrow up to $200 million to build athletic facilities. 

House may hold up work on budget

House Speaker Bobby Harrell, R-Charleston, and Ways and Means Chairman Dan Cooper, R-Anderson, said they may hold up final budget negotiations in an attempt to get the Senate to deal with Transportation Department reform and a cut in the state income tax rate.

Last year, the House stopped conference committee talks until the Senate approved property tax reform.
Both Harrell and Cooper said DOT reform and the income tax cut are important enough to members to take the action.

The House-passed budget drops the top income tax rate to 6.83 percent, down from 7 percent. The Senate-passed budget leaves the income tax rate alone but trims the sales tax on groceries.

On DOT changes, the governor would appoint the executive director under the House plan. In the Senate plan, a committee of lawmakers would have to approve the person and other policy matters.

Sanford rips Senate budget

The draft budget the Senate is debating this week is digging a hole the state may not have enough money to cover next year, Gov. Mark Sanford said this morning.

The concern, Sanford said, is the use of one-time money to pay for programs that need to be funded every year. Known as annualizations, Sanford said the Senate budget spends $267 million of one-time money on these recurring programs.

That means that the budget beginning July 1, Sanford said, would spend nearly every new dollar that state economists project the state will collect for the 2008 budget.

If state revenues decline or slow down, as they did during the early part of this decade, Sanford said the quickly-growing budget might need to be cut.

Sanford campaigned last week to include more tax relief in the budget, and said he was disappointed to learn Tuesday that the additional cuts to the state sales tax on groceries would be funded from state agencies' budgets.

"The good news is that they're responding to pressure," Sanford said, "the bad news is that their responding to pressure in a way that creates a bigger hole."

Sanford was joined this morning by four Senators who opposed the Senate budget.

Sanford unveils 'spending clock'

The computer-animated counter outside Gov. Mark Sanford’s office is keeping tabs on  lawmakers upstairs — counting dollars spent as the Senate begins budget debate this week.

The clock is displayed on a computer screen. It features a man throwing money toward the viewer. It was unveiled by Sanford on Monday to try to stir up public pressure on the Senate to increase tax relief and reduce spending in their draft $7.4 billion budget.

Their budget, Sanford said, spends $1 billion on new programs while returning only 3 percent to taxpayers.

The clock is designed to illustrate that extra spending over a year-long period. It has been running since Friday and, at $33 per second, had counted up to $6.7 million by noon on Monday.

“People will have that conversation with kinfolk, with friends, with co-workers,” Sanford said of how he thought residents would react to the clock. “I think you have to prioritize to those core needs of government.”

Budget faces changes to tax proposals

The House has finished work on the first half of the state budget, finalizing how much money state agencies and programs will receive.

But representatives have yet to begin the second half, which spells out how the money must be spent, and likely will work late tonight to finish.

House leaders say they are behind schedule from previous years and hope to take a key vote tonight.

Democrats have proposed a wave of amendments that would redirect the proposed $81 million income tax cut to road construction, economic development grants and other projects.

Those proposals have been rejected each time, but debate slowed to a crawl this morning.

This afternoon lawmakers expect a handful of proposals to raise the state's lowest-in-the-nation cigarette tax rate. The plans could range from a quarter per pack to as much as 93 cents per pack.

At least two proposals would use the money to lower other taxes, with one cutting the sales tax on groceries and another further trimming the income tax.

Sanford threatens to veto his own budget priority

Gov. Mark Sanford has told House Republicans he could veto an $81 million income tax cut because it would write a permanent law into the state budget.

Known as a "Part II proviso," House and Senate budget writers abandoned the practice because other legislation - including video poker - often was tacked on to the budget.

Sanford has opposed the practice of adding unrelated amendments to legislation.

Sanford says he is struggling with the decision to veto his top budget priority, one he's pushed for since taking office in 2003.

House leaders don't know whether they will change the way the tax cut is written.

Leatherman blasts insurance director's salary

Senate Finance chairman Hugh Leatherman, R-Florence, says state agency heads' salaries generally are set by an independent agency "unless you are a friend of the governor."

Leatherman said today he will make sure that next year's state budget mandates that former Sen. Scott Richardson's salary be set at $112,000. Richardson was named state insurance commissioner by Gov. Mark Sanford this year.

The Agency Head Salary Commission, of which Leatherman is a member, recommended Richardson's starting salary be set at $112,000.

But yesterday, when that recommendation came to the State Budget and Control Board, of which Leatherman and Sanford are both members, the governor rejected that and proposed Richardson be paid more than $137,000, the maximum for the position.

The board voted 3-2 to approve the higher salary.

Leatherman says it's "foolhardy" for the agency salary board to study and make a recommendation only to have the budget board "run roughshod" over that recommendation.

Leatherman says no new employee had ever been hired at the maximum salary and that it's difficult to justify the salary when compared to those of other state agency heads who have larger and more time-intensive agencies.

Sanford orders review of State Budget and Control Board

Gov. Mark Sanford ordered a review of the State Budget and Control Board Monday, naming a nine-member committee to review the umbrella agency that handles much of the day-to-day operations of state government.

Sanford has advocated rolling much of the agency's duties into a Department of Administration within his cabinet. The goal of the review, he said, is to "look under the hood" of state government to identify duplicate and less-efficient services, or duties that can be privatized.

The nine-member committee has five members appointed by Sanford, and one each from treasurer Thomas Ravenel, comptroller general Richard Eckstrom, Senate Finance Chairman Hugh Leatherman, R-Florence, and House Ways and Means Chairman Dan Cooper, R-Anderson.

Sanford and the other four people make up the five-person board.

The committee will report its findings by June 17. Any changes to the agency must be approved by the Legislature.

Last month, the Senate rejected a Sanford-supported push to ask voters whether statewide officials should be appointed by the governor rather than elected.

Teacher bonuses debated among budget writers

The House Ways and Means Committee has wrapped up work for the day, and teacher bonuses was the hottest topic this afternoon.

Rep. Gilda Cobb-Hunter proposed requiring National Board Certified teachers who receive a state salary bonus to work in poorer and lower-performing school districts. She says the certified teachers mostly worked in the wealthiest districts.

Others opposed the idea, noting the state didn't ask those teachers to move before they earned certification.

The idea will be further debated later.

Tomorrow, the committee likely will work late allocating money for state programs.

Budget writers get down to work

The House Ways and Means Committee is beginning the week-long work of writing a state spending plan, setting out much of how state agencies must spend money.

Tomorrow, the committee will see how much of the estimated $1.35 billion surplus will be allocated for new programs, expansions, construction projects or other one-time costs in 2007-08.

Also looming is what role Gov. Mark Sanford will play in the debate. Last year, Sanford sent the House back to the drawing board after he and representatives complained about the size of the proposed spending plan.

The Ways and Means Committee likely will wrap up their work by Friday, with the full House debating the budget in two weeks.

House approves spending cap

The House has given key approval to capping how quickly the state budget can grow.

The bill limits spending increases to the lesser of 6 percent or the rates of population growth plus inflation. Money remaining above the cap would be put in a savings account and could only be spent on roads, school buses or one-time tax cuts.

Panel would study school funding

Rep. Jeff Duncan, R-Laurens, is proposing a resolution to create a statewide committee to study the best way to get education dollars into classrooms.

Duncan and House Speaker Bobby Harrell, R-Charleston, introduced the plan today. It comes among increasing calls from the governor to eliminate the dozens of criteria that are used to determine how money is spent and move toward what is known as single weighted pupil funding.

The Senate is working on a similar plan.

Deal expands health coverage for poor children

House Democrats say they have reached an agreement with Republicans that the state health program for poor children should be raised to cover those at 200 percent of poverty level.

The program presently extends only to those at 150 percent of the poverty line.

Raising the level would ensure medical coverage for about 70 percent of the eligible children in the state, up from 60 percent.

Many details must be worked out in order for the proposal to become part of the 2007-08 budget.

Republicans want to create a new, stand-alone program under Medicaid's Children Health Insurance Program to accommodate the increased coverage, which would be privatized and administered by HMOs.

Also, federal legislation allows for a premium to be imposed and a co-payment of up to 5 percent to be assessed to Medicaid recipients, if the poverty level is raised.

"If this allows us to get to 200 percent of poverty, it's worth it," said Rep. Joe Neal, D-Richland, as long as the added coverage isn't too expensive for recipients.

"It's the perfect time to do this," said Rep. Tracy Edge, R-Horry and chairman of the Ways and Means health subcommittee, which oversees Medicaid spending.

A House panel may take up the Medicaid proposal this afternoon. Edge says he expects the measure to pass quickly.

House members ready for debate

House leaders expect a busy week on the floor this week, as committees have begun approving bills for debate.

Included are measures capping state spending, increasing college scholarships for math and science students and changing the way the state selects judges.

Many of those bills will likely be debated tomorrow, but House Speaker Bobby Harrell, R-Charleston, said they should clear the calendar this week.