Bill capping spending passes Senate panel

A bill limiting state spending for at least the next two years cleared a Senate Finance subcommittee Wednesday.

The bill says the state has to repay $155 million borrowed from state deposit accounts two years ago after South Carolina exhausted all its reserve accounts at the end of the 2002 fiscal year.

Under the Senate bill, the state would have to restore money and replenish reserve accounts. Until then, legislators would limit spending increases to 3 percent through July 2009, unless the borrowing is repaid before then.

The Senate bill now heads to the full Finance Committee. The House is considering similar legislation.

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