The General Assembly will extend its session to finish work on
the state budget - at a cost of $75,000 a day - after a last-ditch
effort to end on time failed Thursday.
The $5 billion budget has dominated legislators' attention since
the session began in January. The Senate alone has spent four weeks
fighting on the floor, but ultimately reached no agreement on how to
raise more money for state needs.
In a push to meet an end-of-session deadline, a group of six
legislators worked from 7 p.m. Wednesday to 7 a.m. Thursday to
smooth out differences in the House and Senate proposals.
Their goal was to have the House and Senate approve the joint
plan Thursday and send it to Gov. Mark Sanford for the legally
required five days' review. Then Sanford could send back his
signature or veto by June 5, the end of the legislative session.
But some senators voiced strong opposition to items in the joint
plan, such as a $25 fee tacked on to every traffic ticket. The $25
million raised in fees would go towards the Department of
Corrections, the Department of Juvenile Justice and other
public-safety agencies.
The money ended up staying in the budget, but in the hours some
senators spent protesting it, others found additional items they
didn't like.
The sticking points? Most were buried deep in the budget and were
incorrectly written, according to precise rules. They include:
• Whether Medicaid clients should
have to meet stricter eligibility requirements, such as face-to-face
interviews,
• Whether Palmetto Fellows, the
college students who receive public money for private schools,
should be able to transfer from one school to another,
• And how the Department of Health
and Environmental Control would notify legislators if it changed
some of its Medicaid policies.
The Senate opposed these items. The House wants them in. So the
joint conference committee will have to return to work Monday and
start rewriting the budget.
House leaders said they were stunned the Senate would jeopardize
the agreement on big-ticket items, such as education, over
relatively minor ones.
House Ways and Means Chairman Bobby Harrell said an extended
session could last deep into June.
"The Senate is in a total meltdown," said Harrell, R-Charleston.
"The Senate doesn't seem to know what it wants."
Senate Finance Chairman Hugh Leatherman, R-Florence, acknowledged
that the Senate has had a "difficult" month, mostly because it could
reach no consensus on whether to raise taxes.
The Senate spent its early budget days debating whether to raise
a sales tax to prevent cuts in education and health care. Then
senators spent much of the last two weeks on Sanford's proposal to
lower the income tax in return for raising the cigarette tax.
A majority of senators wanted a 53-cent per-pack tax on
cigarettes, to offset growth in the Medicaid health-care program for
the poor and elderly. But some Republicans opposed raising any taxes
at all, and Democrats opposed lowering the income tax and taking
more money out of the budget, so Sanford's plan died.
"I think the cigarette tax is gone for this year," Leatherman
said. "I simply can't see it being revived. The House says we're in
meltdown. That's part of what got us there."
Sanford, a Republican, spent much of this spring pushing the
proposal, letting other legislative plans fall by the wayside. But
spokesman Chris Drummond said the failure of the plan was not a
failure for Sanford. Instead, Drummond said the General Assembly
plugged a $200 million hole in the Medicaid budget with one-time
bailout money approved last week by the U.S. Congress. That simply
shifts the problem to next year, Drummond said.
"We still haven't resolved a stable funding source for Medicaid,"
Drummond said. "We haven't seen anything yet that brings growth in
South Carolina."
Harrell said that on principle, he doesn't like using one-time
money for recurring needs.
But the reality is much different. Sen. Tommy Moore, D-Aiken,
said legislators' unwillingness to increase the tax means the state
will be in the same mess next year. And the cigarette tax proposal
will be back, but it won't be for 53 cents a pack, Moore said. It
will be more like 65 cents.
Democrats in the House largely opposed the budget compromise,
which passed by a vote of 72-37. As it stands, the compromise budget
would:
• Use $188 million in federal
funds to keep Medicaid spending at this year's level. This would
preserve the SilverCard prescription drug program, keep 6,000 people
in nursing homes and pay for the CHIPS children's health
insurance.
Rep. Joe Neal, D-Richland, said the lack of progress on health
care funding means "people may die," because there's no room for
growth on the Medicaid or SilverCard patient rolls.
"People will suffer in a state that's already poor," Neal
said.
• Set the per-pupil school
spending at $1,701, $500 less than state economists recommend but
more than the $1,643 originally proposed by the House.
Jim Foster, the S.C. Department of Education's chief spokesman,
said the meaning of the budget may not register now - but it will in
August when kids go back to school.
"They'll see fewer teachers in the classrooms, more students in
each class, canceled academic programs and new fees so their child
can play football or be a cheerleader."
Staff writers Aaron Sheinin and Bill Robinson contributed to this
report.