(Columbia-AP) June 3, 2003 - Medicare was spared, but education took a hit in the final version of the state budget that was passed Tuesday by the House and the Senate. The state's $5.3 billion spending plan is for the fiscal year that begins July 1st.
     
While the federal health care program for the poor and elderly was largely spared, public school and college spending was cut and most state agencies will have fewer dollars to spend. Democrats complained the budget doesn't do enough for education. They urged fellow senators to reconsider an increase in cigarette taxes.
     
Senate Finance Committee Chairman Hugh Leatherman says there is not enough time or support to pass a tax increase this session.
     
The bill goes to Governor Mark Sanford. He will have five days to decide what, if anything, he doesn't like. The House and Senate expect to return two weeks after Thursday's mandatory adjournment to deal with any vetoes.

The budget is the second compromise in five days reached on the state spending plan. Governor Mark Sanford is less than thrilled with the plan, "I think it is still found wanting from my perspective on a number of categories that could have been filled if we'd passed it as proposed with the cigarette tax-income tax trade off, so in that sense I'm disappointed."

He says, "I think that at the end of the day, the process that we went through, particularly on the Senate side and the way it took essentially five weeks to go through a process that normally takes a week or two, I think is case 101 for the need for restructuring"

Unlike last week's budget deal, the compromise reached Monday includes spending up to $8 million in unclaimed lottery money to buy new school buses. Most of the other issues resolved involved policy decisions including agreements on sex education-related initiatives for public schools.

The committee also agreed to a financial study of the state's Medicaid system. The compromise drops state spending to $1701 per pupil . That's the lowest level of funding since the 1995-1996 school year and $500 less than the Board of Economic Advisors says schools need.

The committee co-chairman Representative Bobby Harrell, (R), says, "Frankly, I think what we've got is a pretty good compromise between the concerns addressed in the Senate last week, and concerns we've been hearing addressed in the House since then to put a few things back on the table and to limit it to only a few things, rather than the entire budget being opened up, which a lot of us were afraid might happen."

An extended legislative session would cost taxpayers $25,000 a day at a time in which state agencies are still trying to cut almost nine percent from their budgets to wrap up the current fiscal year.

House Democrats say the Republican majority failed in its leadership responsibility in the House and Senate. House Democrats called a news conference to rip Republicans for crafting a spending plan short on funding for healthcare. Rep. Joel Lourie (D) Richland, had especially strong words about education, How can anyone in this legislature vote for a budget that will eliminated 6000 teachers. How can anyone eliminate 6000 teachers? That I will never understand."

In the compromise version passed by the House last week, the state's Medicaid programs were spared deep cuts with the help federal money President Bush signed into law Thursday.

By Jack Kuenzie
Updated 4:43pm by BrettWitt