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Article published Dec 5, 2003
State agencies likely to face another round of budget
cuts
Susan
Orr
Staff Writer
GREER -- State leaders are anticipating
another round of cuts in state agencies in order to deal with a significant
budget shortfall, Upstate legislators say."We are probably between $300
(million) and $500 million dollars short of having the income in our state to
provide the services we did last year," Sen. Verne Smith, R-Greer told the
audience at a legislative breakfast in Greer Thursday."The thing we're focusing
on in the coming year is, we don't have nearly enough money to provide services
to our people," Smith said.Smith, along with state representatives Lewis Vaughn,
R-Greer; Bob Leach, R-Greer; and Joe Mahaffey, R-Lyman, were the speakers at the
breakfast, sponsored by the Greater Greer Chamber of Commerce and held at
Greer's Commission of Public Works.The recent wave of textile closings means
there are fewer companies paying state taxes, Smith said, and the rise in
catalog and online shopping is taking a bite out of the state's sales tax
revenues.Leach said he estimates the state's shortfall to be $467 million.Vaughn
said legislators hope they can avoid cutting the state's Medicaid and education
budgets, but other state agencies might face cuts of up to 16 percent or 17
percent. This would be the third straight year of cuts for state agencies.Vaughn
outlined four separate tax increase plans currently circulating in the
legislature, including Gov. Mark Sanford's plan to raise the cigarette tax and
begin taxing lottery tickets, while reducing the state income tax; and various
legislators' ideas of raising the sales tax 1 percent or 2 percent while
reducing property or vehicle taxes.Mahaffey said he is encouraged because state
revenues increased in the first quarter of the fiscal year. The increase was not
enough to make up for the shortfall, but it is a step in the right direction, he
said."I do not expect it (state revenue levels) to come back fast," Mahaffey
said."We've got to get our manufacturing base back up."Speaking after the event,
the legislators said they're not convinced which if any of these plans will win
favor at the Statehouse."None have any weight or validity yet, and there may not
be any tax increase," Smith said.Vaughn said he doubts there will be any tax
increases because this is an election year.In other news at the breakfast, Smith
told the crowd that the legislature's joint bond review committee approved a $40
million expenditure to build an interchange that would add a new exit on I-85 at
Brockman-McClimon Road in Greer. The interchange would include a connector to
the Greenville-Spartanburg International Airport.The money comes from a $250
million industrial development bond that was authorized two years ago, Smith
said.Susan Orr can be reached at 877-3225, 574-5980 or susan.orr@shj.com.