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Article published Jan 11, 2004
Legislators facing familiar subject: Budget
shortfall
ROBERT W. DALTON
Staff
Writer
The state Legislature faces a familiar problem when it
opens a new session Tuesday.Legislators will be greeted by a budget shortfall
projected to be between $300 million and $500 million when the opening gavel
falls."The budget's going to be the big priority," said Rep. Brenda Lee,
D-Spartanburg. "It's what we'll be paying attention to early on."We're no
different than other states that are having to look at how they're spending
money. Hopefully, we'll be able to raise revenues and we won't have to look at
layoffs."Gov. Mark Sanford gave the General Assembly a head start on Thursday,
when he delivered a balanced, $5.1 billion budget that wipes out the shortfall
without raising taxes.Sanford's 301-page proposal relies on restructuring,
program cuts, increased efficiencies and the sale of surplus assets."I'd like to
believe that the governor's projections on savings and other changes will result
in fewer cuts," said Sen. Jim Ritchie, R-Spartanburg.Rep. Lanny Littlejohn,
R-Pacolet, gave Sanford high marks for his work in putting the budget
together."This is the first time we've received a budget of that nature that was
within reach of the General Assembly," Littlejohn said. "He's taking on some
things that are going to be controversial, but at least he's setting a pretty
good example for us."Littlejohn has a tax bill on the calendar that also could
be controversial. His bill would give school districts the option of enacting a
1 percent sales tax in lieu of raising property taxes for capital
projects.Budget concerns won't be the only thng occupying legislators' minds
this year.Tort reform -- including a major medical malpractice overhaul proposal
that House Speaker Pro Tem Doug Smith has been working on -- also will be a key
issue."We've heard the concerns of medical providers," Smith said. "We've put
together legislation that we think addressed the issues raised without stomping
on a person's right to go to court."Ritchie said developing legislation that
creates good-paying jobs would be a priority in the Senate."It's my highest
priority," he said. "We need to modernize our economic development incentives,
strengthen K-12 education and our colleges, and streamline the red tape for
small businesses in South Carolina. We've lost thousands of jobs over the last
two years and we've got to create more opportunities."In addition to his
restructuring proposals, Sanford will focus on income tax relief as part of his
"Jobs & Growth" plan, spokesman Will Folks said.Sanford's plan, which he
unveiled in November, includes lowering the state's top income tax rate from 7
percent to 5.9 percent, increasing the tax on cigarettes from 7 cents per pack
to 68 cents per pack and extending the sales tax to lottery tickets.The plan is
revenue-neutral, meaning the $222 million in income tax relief would offset the
increase in the cigarette tax and the tax on lottery tickets. But, Sanford says,
the income tax relief would spur economic growth.Sanford's plan is one of
several tax reform proposals on the block. Legislators will have to decide
which, if any, will make the cut in an election year."We're going to face some
big issues this year, but the biggest will be every single vote we take on tax
proposals," said Smith said. "It's going to test us. It's not ever easy saying
no."Robert W. Dalton can be reached at 562-7223 or bob.dalton@shj.com.