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Senate approves $5 billion budget, debating tobacco tax increase
(Columbia) May 22, 2003 - The Senate approved the state's $5 billion state budget on Wednesday night. Senators approved the budget on third reading on a 27-to-14 vote before adjourning after nine days of deliberation, more than double the usual time spent.

The spending plan doesn't please Senate Democratic leadership who say it doesn't adequately fund education or health care. Senate Minority Leader John Land of Manning says he's never seen the Senate unwilling to step up to the plate and pay for critical state programs.

The Senate wrapped up debate on the state's budget last night without providing the $326 million Democrats wanted to meet minimum formula funding for schools or enough money to maintain Medicaid programs. Senators are debating plans that could increase the state's cigarette tax by 53 cents to 60 cents a pack. Senators voted down a cigarette tax increase last week. The tax increase would raise a reported $171  million for the state's Medicaid programs.

Florence Senator Hugh Leatherman, (R) Florence, says the increase is needed to make sure children, the disabled and elderly do not lose health care services, "If we don't do that, the Medicaid program in this state will be absolutely devastated. Many thousands of people will not receive care."

Leatherman says without additional revenue, 66,000 people would lose coverage under the state's SilverCard program. He says 6000 people would lose their nursing home care.

Senators approved a plan Wednesday to spend a projected $195 million in lottery proceeds. The plan puts more money into tuition assistance for technical colleges than the House version. Senators want $34 million for technical college tuition help. The House approved about $28 million.

Senator Nikki Setzler (D) Lexington County on the lottery agreement, "I think it goes to the heart of the scholarship programs in this state that we've created with the Life, the Hope and the Palmetto Fellows. And it also helps all the institutions like the tech system, four year and the research universities."

The Senate puts less into kindergarten through fifth grade programs than the House did. The House put $40 million into the reading, math, science and social studies program. The Senate is putting only $26 million into the effort.

Senators agreed to hold onto the budget for three days, to see if they can find additional revenues. If the House doesn't sign off on the Senate budget, which is unlikely, the plan goes to Senate and House negotiators, who will work out differences in the two versions of the budget.

By Jack Kuenzie
updated 1:21pm by Chris Rees with AP

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