Direct money to trust funds

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Over the past three years, as the state faced dwindling revenues, state lawmakers borrowed money from the trust funds for general operations. Such borrowing can be justified under dire fiscal challenges, but it's not the most responsible way to run state government.

Trust and reserve funds basically are savings accounts dedicated to such important purposes as conservation, workers' compensation, insurance, pensions and monitoring nuclear waste. In most cases, the money in the accounts is not needed right now. But the money eventually will be needed — perhaps urgently. Millions of dollars one day will be required, for instance, to monitor the Barnwell nuclear waste dump near Aiken. Lawmakers have drained $90 million from that fund.

In the past three years, lawmakers also have taken $28 million from the Insurance Reserve Fund —for property, casualty, auto and liability insurance for state agencies and employees. That fund also insures some school districts and local governments. In addition, $135 million has been taken from a health insurance fund for state and local employees. The state's rainy day fund, meanwhile, has been reduced by $150 million.

By taking money from these funds and others, lawmakers deprive them not only of the principal balance but also of millions of dollars in potential interest. For instance, the $90 million taken from the Barnwell fund is supposed to be socked away, building interest for the day it will be needed to monitor the nuclear waste site for the next 300 years. Instead, that money was used to fund ongoing state operations.

Gov. Sanford wants to use about $158 million next year to restore some money to the rainy day General Reserve Fund, the Barnwell fund and the Insurance Reserve Fund. In addition, he would devote money from increased tax collections to the health insurance fund.

Other trust funds would remain depleted but at least Sanford is making a earnest start at restoring some of the money taken. Lawmakers will find numerous uses for a projected $190 million surplus next year but Sanford is right that a portion of that money should go toward bolstering some state trust and reserve funds.