Posted on Mon, Aug. 16, 2004
EDITORIAL

No Spending Spree For S.C., Please
Let recession thinking stay with legislators in the better times ahead


Only a few months ago, it looked as though the state of South Carolina would have to suffer real pain to take care of the unconstitutional deficits hanging over from fiscal 2002 and fiscal 2003 - $155 million and $22 million, respectively. This year, it took incessant prodding from Gov. Mark Sanford to get legislators to bite the bullet on the 2002 deficit by agreeing to pay it off in installments.

Then, at the end of June, the Board of Economic Advisers, whose members forecast state revenues quarterly, noted that tax and fee collections for the year were running more than $250 million ahead of spending - the best budgetary news state government had had in years. Last week came word that the final tally for fiscal 2004, which ended June 30, was $243 million in the black - enough to take care of those illegal deficits with plenty left over.

This wonderful news is attributable more to an improving S.C. economy than any other factor, including prudent fiscal management by the politicians. The need now, as Sanford seems to understand, is to avoid a return to the free-spending habits that have gotten the state into trouble before. If legislators can sustain the lean and mean mode budgeting recession forced upon them into the better times ahead, perhaps state government can endure the next recession with less pain and disruption than this one has caused.

S.C. Comptroller Richard Eckstrom is right: Now that the state doesn't need to sell off valuable assets to cover budget deficits, it should go slow on getting rid of surplus property. True, as Gov. Mark Sanford says, the state should shed land and buildings it no longer needs, but thanks to the unexpected end-of-the-year state surplus, the pressure to raise quick cash has diminished.

The Budget and Control Board, on which both Sanford and Eckstrom sit, should let loose of no piece of land around the state until its recreational potential has been evaluated and unless it gets at least market value on each sale. Buildings beyond renovation for use to the state can go, but only at fair-market prices. Now that the fiscal pressure is off, let prudence and wisdom be the watchwords for this process.





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