COLUMBIA--A proposed $5.8 billion state spending
plan unveiled by House budget writers Wednesday increases education
funding by more than half a billion dollars and raises pay for law
enforcement and correctional officers by as much as 10 percent.
It also includes a provision that could keep local school districts
from raising property taxes for the next year.
The 2005-06 budget proposal from the House Ways and Means Committee
suggests the state's economy is improving, and lawmakers are using the
increased revenue to pay off their debts and raise per-pupil spending in
primary education to meet state formulas.
In recent years, the Legislature -- facing lean budgets and a distaste
for raising taxes -- has not met Education Finance Act requirements for
base student costs.
The House's chief budget writer said his committee began work on the
bill with a mind to changing all that.
"Fully funding education is the priority of this budget. State
government doesn't do anything more important," said Ways and Means
Chairman Bobby Harrell, R-Charleston. "This is a good budget. We're
completely back on track."
Democrats and Republicans alike praised the spending plan, which the
full House of Representatives will debate before sending it to the Senate.
Before a packed committee room Wednesday, Ways and Means committee
members outlined what they call a "fiscally responsible" budget that puts
the state back on track after years of painful spending cuts. With $300
million more to work with than they had last year, lawmakers opted not to
go on a spending spree but to repay debts, live up to the state's ongoing
obligations and rectify past slights.
Among the major proposals, this budget:
-- Restores $122 million to trust funds -- including the Barnwell
cleanup fund -- which the General Assembly has raided in recent years to
make up for budget shortfalls. Earlier this week, Gov. Mark Sanford urged
lawmakers to restore the funds, particularly Barnwell. Committee members
say their budget goes further than the governor's proposal.
-- Spends $18 million to replace worn-out school buses across the
state. Lottery proceeds will pay for about $3 million of that.
-- Raises the amount each teacher is given for classroom supplies from
$200 to $250, a move that costs about $2 million.
-- Gives a 4 percent raise to all state employees and fully funds their
health insurance so workers don't lose ground to rising costs.
-- Provides an additional 6 percent raise on top of the
across-the-board raises to state troopers and officers with the State Law
Enforcement Division and the Departments of Corrections, Juvenile Justice
and Natural Resources.
Concerning the trust funds, Sanford and Harrell disagreed on how the
committee's track record.
Sanford spokesman Will Folks said the governor was still reviewing the
House budget proposal but initially saw some things he liked and others
that he didn't. "It's a mixed bag," Folks said. "We certainly are going to
be more aggressive in our pursuit to repay trust and reserve funds."
Folks said the governor proposed more repayments to trust and reserve
funds than the House, $158 million versus $122 million. "They are a good
bit south of the number we feel we need to get to," Folks said.
Harrell said only $112 million of the governor's proposal went to trust
funds -- $10 million less than the House proposal -- and the rest of his
paybacks were for reserves. Harrell said while the governor's plan
completely repays four of the trust funds, the House version restores more
than 40.
The state Corrections Department, which has been the punching bag of
state government in recent years, got a boost with the pay raises.
Corrections officials have had a hard time keeping prison guards, and the
Highway Patrol has lost officers to cities and counties that pay better.
"We have been losing a lot of valuable officers, so we were really glad
to be able to give them 10 percent pay raises -- they were desperately
needed," said state Rep. Chip Limehouse, R-Charleston. "We really held the
line on other spending; we didn't do anything big."
Except, that is, fully fund the Education Finance Act. To do that,
lawmakers had to put $315 million into base student costs. In all, there
was $298 million in new money for K-12. When you add higher-ed costs, the
total price tag is $568 million in new money for education. The rest was
redirected. In the House budget, the state would spend $2,290 per pupil in
2005-06 year.
State Rep. Gilda Cobb-Hunter, a longtime advocate for increased
education spending, praised the Ways and Means Committee -- of which she
is a member -- for its "long overdue" emphasis on schools. "I was
pleasantly surprised and hope that it is a precedent we are setting for
years to come," said Cobb-Hunter, D-Orangeburg.
Ultimately, Harrell offered the budget amendment that may be felt
closest to home, eliminating the required matching funds for education
increases at the local level. When the base student cost is raised, 70
percent is supposed to come from the state and 30 percent from the local
school district.
Harrell said that in past years, local school districts apparently have
raised property taxes to make up for state funding shortfalls. So they
should be ahead of the game now and won't have to make the 30 percent
match for this year's education spending increases.
"Some school districts have grown their budget instead of cutting, like
we did, and they blamed the General Assembly for laws that made them raise
taxes," Harrell said. "We took that crutch away."
The Ways and Means Committee is expected to vote on the budget bill
after the House adjourns today. The budget bill will be waiting for
lawmakers, and the hundreds of amendments they offer, when the General
Assembly reconvenes next week.