Published Tuesday, April 15, 2008 8:29 AM
Updated Tuesday, April 15, 2008 8:29 AM
Legislative Happenings
What will make for an interesting budget conference committee came with disturbing news to the Senate Finance Committee that the Board of Economic Advisors (BEA) had reduced revenue estimates by $90 million for this budget year after they had passed their budget just last week.
The Senate Finance Committee called an emergency meeting to deal with this crisis.
After hours of deliberations, it was decided by a one-vote margin to cut out the two percent raise for state employees, which filled the void by $40 million.
The other $50 million was to eliminate some projects from the reserve fund of $124.5 million. The reserve fund can only be spent if revenues meet projections. The list of projects cut will have an enormous impact to agencies and citizens of South Carolina.
A total of $19.7 million to purchase new school buses, which was approved last year, will not be spent. Ten million dollars was eliminated from the advertising of one of our number one revenue sources – tourism.
The Department of Corrections will get $7.5 million less to purchase new vehicles and communications equipment, and the Commerce Department will not receive $7 million to seal relocation or expansion deals with businesses. Also the state research universities will lack $4.5 million for a high-speed data service.
Additionally, a decline in sales-tax revenue means school districts will receive $60 million less this year and the budget year beginning July 1.
None of this is good news and this year and next year will be extremely hard as our slow economy is expected to continue. We have gone in a matter of a year’s time from $1.5 billion in new money last spring to $140 million this year. A slow economy and several years of tax credits will make our decisions harder than ever in the next few years.
State employees will suffer the most. This will be the third time in 10 years that state employees have not received a raise. However, the Senate’s proposed budget does pay the $35.7 million additional cost of health care for state employees. The new bill will now go to the Senate floor for debate next week. Members say they hope to restore some or all of the raises.
Thank you for allowing me to represent you in Columbia. Your comments and suggestions are always appreciated. Your comments and suggestions are always appreciated. Please feel free to contact me at my home address, 1145 Highway 402, Moncks Corner, S. C. 29455 - 843-899-1744, or at my legislative office in Columbia, Post Office Box 11867, Columbia, S. C. 29211, 803-734-2946, or through my email address - umphlettd@scstatehouse.net.