Posted on Wed, May. 19, 2004


S.C. budget hits a snag: Senator wants to read it
Bill cuts marriage penalty, has 3 percent raise for state workers

Associated Press

Plans to get the state's $5.5 billion budget to Gov. Mark Sanford's desk were delayed Tuesday when Sen. Greg Ryberg balked at the idea of adopting the massive spending plan without reading it.

It was a one-day delay legislators didn't expect as they raced to complete their budget work to force Sanford to act on the bill by next week. That would give them plenty of time to override expected vetoes before adjourning June 3.

"I think we ought to have a little bit of time to look at all 514 pages," said Ryberg, R-Aiken. The Senate delayed action on the budget until today. The House voted 96-18 to approve the compromise.

Ryberg's move sank an otherwise buoyant mood that had surrounded a spending plan that gives taxpayers a $40 million break on the marriage penalty, which will save married couples about $108 on their state income tax bill. The budget also hands state workers a 3 percent raise -- their first pay increase in two years -- and puts more money into public schools and Medicaid programs.

The measure also pays off a $155 million deficit left from the 2002 fiscal year that Sanford had asked lawmakers to fix. With an unexpected surplus and a revised revenue forecast, the budget spares state agencies from cuts expected last fall.

Sen. Phil Leventis, D-Sumter, questioned a $13 million cut in estate taxes included in the bill.

"You understand that gives 300 people in this state a $43,000 tax break," Leventis said, noting that current tax law affects only estates valued at more than $1.5 million.

House Minority Leader James Smith, D-Richland, liked parts of the budget compromise but said it did not do enough to support public education and health care and ignored chances to cover those obligations by raising taxes.

"I cannot support this budget because it does not articulate what I believe is the correct vision for South Carolina and what I believe the people of this state expect," Smith said.

House Ways and Means Chairman Bobby Harrell, R-Charleston, said representatives wanted more in the budget than they got.

For instance, the House version called for $25 million to shield state workers from rising health insurance premiums. The Senate put $6 million into that plan. The compromise calls for $13.4 million, Harrell said.

The Senate also balked at the House's plan for a 7 percent raise for law enforcement officers. "I think it's something we should have done. ... In the end, the senators simply would not agree to that," Harrell said.

Those raises would have gone to the lowest-paid officers, said State Law Enforcement Division Chief Robert Stewart. Low pay has caused his agency to lose workers in its laboratory and forensic science areas, Stewart said.

The budget now calls for a study of law enforcement pay, Stewart said. "We do appreciate the study is coming," he said.

He has something else to be grateful for: $3 million to replace part of his aging vehicle fleet. SLED and other agencies still will take an across-the-board 15 percent spending cut for telephones, travel, meals and fees for items such as conference registration.

Those reductions come along with varying cuts in other agency budgets. Some will be deeper if the state Revenue Department can't raise $90 million through tougher tax law enforcement.

The governor has threatened to veto parts of the budget because he doesn't like the way lawmakers dealt with a 2-year-old deficit. He also said he wants $430 million restored to trust and reserve accounts that have been raided in the past few years.

Sanford spokesman Will Folks said the governor's executive budget influenced legislators, but not enough. "We certainly wish the current steps taken by the legislature took us a good bit farther down the road to putting our state's fiscal house in order," Folks said.





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