Printer Version
Email This ArticleAfter several late nights sessions, senators gave second reading approval to a budget that remains at least $70 million out of balance thanks to procedural rulings that scrapped several revenue raising measures initially included in the budget approved by the Senate Finance Committee.
Attempts by several senators from both parties to introduce one- and two-cent sales tax proposals were stopped in their tracks thanks to Lt. Gov. Andre Bauer's interpretation of Senate rules.
The repeated negative rulings led Sen. Vern Smith, R-Greer, to say he's "never seen us so tangled up in our own rules that we can't function."
"We're allowing the chair to trample on the ability of every senator in this chamber," agreed an irritated Sen. Scott Richardson, R-Hilton Head, who twice introduced penny sales tax proposals. "We've got a serious problem."
Unless Democrats and about half of the Republicans who are open to some sort of tax increase can arrive at a compromise within the next week, the senate probably will be forced to cut per pupil education spending to an even lower level than that proposed by the House earlier in the year.
"The last few years we've been able to deal with deficits without tax increases," said Wes Hayes, R-Rock Hill. "But this year, without a tax increase, we have no where else to turn. And I'm afraid that when these cuts take effect, there will be a serious response from the public."
Local school districts across the state are scrambling to plan for worst-case scenarios.
The York County schools, for instance, approached Hayes and other members of their local delegation last week to request permission to raise the millage rate above the mandated 6 mill limit should state cuts make such an increase necessary. The Senate granted approval for the request this week, and the York County proposal is now before the House.
"If the governor vetoes it, we will overrule him," Hayes said, referring to Sanford's stated opposition to exclusively local legislation.
Throughout the first full week of budget debates Senate Democrats tried to force Republicans to make full funding of K-12 education the top priority, but Republicans refused to do so.
"It is a philosophical difference," Hayes said. "Some people think you should come up with needs, then find a way to fund them. "
But unless and until tax increases are approved, there simply isn't the money to fully fund education, Hayes said.
Democrats increased pressure on Republicans to reconsider full funding of education Thursday, when they helped defeat a test vote on the cigarette tax increase to fund hundreds of millions in Medicaid shortfalls.
Although Democrats support the cigarette tax, they feared that if the measure passed, "we would never get back to education," said Sen. Brad Hutto, D-Orangeburg.
Another problem with the cigarette tax increase proposal is that it is coupled with Gov. Mark Sanford's income tax reduction plan, Hutto said, adding that Democrats would not support a plan that would result in the biggest shift in the tax burden from the wealthy to the poor ever seen in the state.
"The vast majority of the benefits from that plan go to 5 percent of the people," Hutto said.
Hutto, Hayes and others said that while the test vote on the cigarette tax failed, the measure is not dead.
"Some version of the tobacco tax will pass, I believe," Hayes said, adding that he also believes a compromise on another revenue raising proposal to fund education is still possible.
On Friday, Ken Shull, President of the S.C. Hospital Association, and George Johnson, President of the S.C. Managed Care Alliance criticized the way the cigarette tax is being used as a bargaining chip for education funding.
"If the General Assembly fails to pass a cigarette tax increase before June 5, thousands of children will lose health care coverage, senior citizens will lose access to prescription drugs and the health care costs of every South Carolinian will rise," they said in a written statement.
