Washington gives lifesaver

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Just as it appeared the South Carolina General Assembly was ready to approve a budget with deep and devastating cuts for all state services — but particularly harsh for education and Medicaid — Congress has come to the rescue. At least, that was the word flowing from Washington late Friday after the $330 billion tax cut package won final approval.

The $20 billion bailout for states included in the final version of the federal tax cut plan was opposed by many conservative groups that argued the federal government should not bail out states that were poor money managers during the 1990s boom times. South Carolina, sad to say, was one of those states.

In real terms, the federal money that will filter down to Columbia over the next two years takes the sharp edge off many cuts in the state budgets approved by the House and Senate. A joint conference committee must reconcile the two versions of the budget.

What had champagne corks popping Friday night was the good news that South Carolina should receive $68.2 million for basic services over each of the next two years, along with enough of a reduction in its Medicaid matching commitment to free another $64.5 million annually for the next two fiscal years.

This encouraging news came literally hours after State Senate Majority Leader Hugh Leatherman had called newspapers across the state to warn of the damage that would happen if the Legislature did not approve the cigarette tax increase. Failing to do so will severely impact health care for seniors, the disabled and poorer South Carolinians, he argued Friday morning.

Without a tobacco tax hike, the SilverCard drug program for 66,000 seniors and health care for 43,000 children could be eliminated. Also on the chopping block could be: nursing home care for 6,000 elderly residents, prescription drug benefits for 250,000, mental health services for 48,000 and assistance for 49,000 blind and disabled residents.

Those are just a few of the services that could be cut if the Senate does not raise the cigarette tax by 53 cents per pack. As it stands, the state Medicaid program faces a $200 million shortfall.

The promise of a partial federal bailout for states had Republican legislators who had opposed the cigarette tax increase downright gleeful late Friday. They pledged to stand firm against any last-minute effort to resurrect the cigarette tax increase. Leatherman was more cautious on Friday, telling Greenville News reporter Dan Hoover that he wanted to see more detailed numbers.

Sanford, vacationing in Bermuda, said the federal aid took some of the pressure off, but continues to advocate tax reform that will make South Carolina a more friendly environment for small businesses.

Even with the federal assistance, South Carolina's budget will contain significant cuts without the cigarette tax increase. This infusion of one-time federal money, even if it is for two years, doesn't absolve state legislators for irresponsible budget decisions made in recent years. This state needs tax reform, and Gov. Sanford needs to become a more forceful and persuasive advocate of it — if not next week, then next year.