Sanford wants House
to curb government growth, cut taxes
JIM
DAVENPORT Associated
Press
COLUMBIA, S.C. - Gov. Mark Sanford thinks
House budget writers haven't done enough to curb spending, repay
trust funds or give tax breaks to South Carolinians.
"If we stay on the course that we're on, we're probably
jeopardizing South Carolina's triple-A credit rating," Sanford said
Wednesday.
"There's still room for improvement," the Republican governor
said before the House takes up the budget next week. With about $616
million more to spend in the state's budget, legislators need to do
more to repay trust funds and include money for his proposal to trim
the state's top income tax rate.
Sanford praised education and health care spending, but the
self-described penny pincher said he was concerned the House version
of the budget increases government spending 5.3 percent.
House Speaker David Wilkins, R-Greenville, said the governor was
"creating controversy where none exists."
"It seems like we are in heated agreement about ... his
priorities and yet the governor doesn't seem to understand that,"
Wilkins said.
Wilkins said the House budget reflects top state priorities, such
as restoring education spending to proper levels, making roads safer
and restoring money taken from trust funds.
"The governor seems to think (paying back trust funds) is
mutually exclusive," Wilkins said. "It took three years to take this
money out of trust funds. Our plan is to pay it back over three
years."
Legislators have raided a variety of trust funds since 2000 as
they tried to balance the state's budget without steeper cuts in
agency spending.
The House Ways and Means Committee's budget would put $117
million back into those accounts, and pay off what was borrowed from
more accounts than Sanford asked for, said committee chairman Rep.
Bobby Harrell, R-Charleston.
Sanford wanted the budget to include $7 million for the first
year of his proposal to reduce the state's top income rate.
That plan would, over a decade, reduce the state's top income tax
rate to 4.75 percent from 7 percent and cost about $1 billion. He
says that will help small businesses and attract wealthy executives
and retirees to the state.
Harrell said the bill, which has cleared the House, would have to
be approved by the General Assembly before it was included in the
budget. But few legislators expect it will pass the Senate before
the Legislature adjourns in June.
While Sanford works to persuade lawmakers his tax break is a good
idea, he also plans to convince credit rating agencies.
Moody's Investor Services and Standard and Poor's have said
Sanford's plan would take revenues away from the state and cited it
as a reason for having a negative outlook on the state's credit.
Sanford said he is "going to make it a point to go to New York
and have a conversation with a number of different credit agencies"
to explain it more fully.
It would be unusual for a South Carolina governor to make that
type of trip without other financial leaders.
When asked about that, Sanford said he wouldn't go solo. "If
that's the way it's normally done, I have no problem with taking a
delegation," he
said. |