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Posted on Wed, May. 04, 2005

Budget needs work, but Sanford overstates case


TO UNDERSTAND the feud between Gov. Mark Sanford and the nearly unanimous Legislature over this year’s budget, consider a hypothetical family recovering from the economic downturn.

Dad’s work hours were slashed severely when the recession hit, so the family trimmed a few obvious frills and decided they could live with lower checking and savings account balances. They let the credit card debt mount, and even got sucked into the payday lending racket. They couldn’t afford the tuition anymore, so the eldest child had to drop out of college; they stopped taking the kids to the doctor because they had to drop their medical insurance.

Finally, Dad’s hours were restored, so they picked their insurance back up and sent Suzie back to college. Then Mom got a bonus, so they broke out of the payday lending cycle, paid off half of their credit card debt, replaced the leaking roof and put a down payment on a new car.

Gov. Sanford has a problem with that. He thinks paying off the entire credit card debt and even building back up a healthy balance in the checking and savings accounts should take precedence over all that “new spending.” If it doesn’t, he thinks, Dad should give part of his salary back to the company.

Mr. Sanford has a point when he says lawmakers should pay back trust funds that they raided during the downturn before they start fixing up historic properties and creating new grants programs for local projects, as they propose to do, to the tune of several million dollars. Money in the trust funds, set up to pay for everything from the clean-up of dangerous waste sites to lawsuits filed against state government, was collected under the promise that it would be used only for a specific purpose. Restoring those trust funds is part of the Legislature’s basic obligation to keep its promises.

And the Legislature certainly shouldn’t use Mom’s one-time bonus — that is, money that cannot be expected to be available in following years — to expand programs that have to be paid for every year. It was particularly disturbing to see the Senate so quickly agree to use $8 million in one-time money to expand Medicaid to cover children whose families make up to 185 percent of poverty. That expansion is a great idea, and it will pay dividends in years to come. But the Legislature has finally just about dug itself out of the hole created by expanding and even maintaining Medicaid with non-recurring money. The thought of now resuming that crisis-to-crisis practice is simply intolerable.

But Mr. Sanford is simply wrong to suggest that the Legislature should make full repayment of all trust funds — as well as a reserve fund that the Legislature made a deliberate decision to shrink — at the expense of buying school buses and making sure Medicaid can maintain its current level of spending and providing crisis services for the mentally ill and restoring basic operating expenses for law enforcement agencies.

Moreover, the governor does the state a grave disservice when he talks about the “$600 million to $800 million of new money” as though legislators are on a drunken spending spree. They’re not. The bulk of that money is being spent to bring our state back toward the same, minimal level of services provided back in 2000.


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