The General Assembly approved a $5 billion budget Tuesday that
would not increase taxes, but would instead raise $45 million in
fees and rely heavily on $200 million in one-time federal funds.
The 2003-04 spending plan would lower state funding for schools
from $1,770 per pupil this year to $1,701 - the lowest level in a
decade.
It also would set spending on Medicaid - health care for the
poor, elderly and disabled - at levels that would maintain current
services, but not allow for growth.
The House approved a separate plan late Tuesday that could raise
per-pupil spending to $1,777 - by using much of the remaining
federal money granted states last month. That plan must come before
the Senate for approval.
The budget now goes to Gov. Mark Sanford. He has five days to
sign the 500-page document or veto individual items. The General
Assembly is scheduled to end its session Thursday, then come back in
two weeks to consider Sanford's expected vetoes.
Senators warned this year's Band-Aids of fees and one-time
federal dollars would not staunch next year's bleeding.
By relying on the federal windfall this year, lawmakers will
start writing a budget next year already at least $200 million in
the hole for Medicaid alone. State spending formulas established
under the Education Finance Act of 1997 would put them another $200
million in the hole in crafting an education budget for 2004-05.
"Next year, we'll be further in the hole than this year," said
state Sen. Ralph Anderson, D-Greenville.
The Senate approved the budget reluctantly, 28-18. But some
senators had worried the budget might not pass at all because
Democrats disliked it altogether and Republicans were angry about
bits of it - from granting money to teen-pregnancy prevention that
didn't teach abstinence only, to levying $25 fees on all traffic
tickets.
The grumbling prompted Majority Leader and Senate Finance
chairman Hugh Leatherman to plead with his colleagues to approve the
budget so government could continue at the July 1 start of the
fiscal year.
"If we shut down government, what do we do to provide services?"
asked Leatherman, R-Florence. "How do we make payments to nursing
homes?"
Several senators were on the fence just before the vote.
State Sen. Mike Fair, R-Greenville, said he would vote against
the budget to protest the funding of $500,000 for sex-education
programs, in addition to existing abstinence programs. "That money
is supposed to be promoting abstinence," Fair said before voting for
the budget.
State Sen. Robert Ford, D-Charleston, was equally conflicted, but
for different reasons. He liked that the budget would add money to
historically black colleges and raise the number of needs-based
college scholarships, priorities of the Legislative Black Caucus.
But Ford knew Democratic leaders did not want the budget to
pass.
"My mama always told me there'd be days like this," Ford said
before voting against the bill.
In the House, debate was more brief and the vote never in doubt -
72-42.
The Senate has been considering the budget for five weeks.
Senators spent much of their time debating whether to raise
cigarette taxes by 53 cents a pack to offset the Medicaid
budget.
Most senators said they wanted a cigarette tax, but negotiations
broke down because Sanford insisted any hike in the cigarette tax be
accompanied by a reduction in the income tax.
Democrats opposed the income tax decrease, and some Republicans
opposed the cigarette tax standing alone. No compromise was
reached.
State Sen. Tommy Moore, D-Aiken, said he planned to bring the
cigarette tax up for consideration again today, as part of different
legislation.
State Sen. Jake Knotts, R-Lexington, and others said they were
proud the Senate protected taxpayers in tight budget times, when the
economy is faltering. "They'll know that we stuck up for them this
year."
Overall, the budget would:
?_Bolster the budgets of public safety agencies by levying a $25
fee on all traffic tickets. This would raise $25 million a year.
?_Increase other fees to offset departmental budgets, ranging
from charging prison inmates $2 per prescription, to raising the fee
for a combined hunting and fishing license from $20 to
$25.