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Article published May 20, 2004
Senate approves bill to reduce state's debt
ROBERT W. DALTON
Staff Writer
COLUMBIA -- The state
Senate on Wednesday gave Gov. Mark Sanford another mark on his "Checklist for
Change."The Senate gave final approval to the Fiscal Discipline Act, a bill
designed to pay off a $155 million debt from 2001-02 and to prevent any future
deficits. The measure was one of 16 items on Sanford's checklist of his top
legislative priorities."The governor is obviously pleased that his core agenda
items are beginning to move through the Senate," Sanford spokesman Will Folks
said. "We commend the Senate for taking this step toward fiscal discipline."The
proposal requires $50 million to be transferred at the end of the fiscal year
(June 30) to pay down the lingering debt. It also limits growth in general fund
appropriations to 3 percent for 2004 through 2009, and requires the Budget and
Control Board to address any subsequent deficit within 60 days of it being
reported.Sen. John Hawkins, R-Spartanburg, said the plan would prevent the
Legislature from spending money that it doesn't have."That's a good policy for
families, businesses and for government," Hawkins said.House Speaker Pro Tem
Doug Smith, R-Spartanburg, said he's pleased that the bill passed, but
disappointed that the 3-percent growth limit ends after five years."I'll take
it, but it needs to be permanent," Smith said.Smith has been campaigning to
limit growth for six years. He said getting this bill through the Legislature
was "sweet vindication.""Having some formula in place that is an automatic cap
is a great victory," Smith said. "In the 1990s we had some really good years and
spending went up. Then we had an economic downturn and we paid an awesome
price."Robert W. Dalton can be reached at 562-7274 or bob.dalton@shj.com.