Posted on Tue, Jun. 03, 2003


Senate, House approve final $5.3 billion budget


Associated Press

Public schools and health care for the state's neediest residents won't see many changes when the new budget year begins on July 1.

Under the $5.3 billion spending plan approved by legislators Tuesday, those programs will be funded at about the same level in 2003-04 as they ended up with this fiscal year.

The news isn't so rosy for other state agencies, which will have to bear the brunt of cuts caused by the sagging economy.

After long hours and at least a couple sleepless nights last month, the House and Senate approved the spending plan with just two days left in the regular session for 2003. The House vote was 72-42; the Senate's was 28-18.

Gov. Mark Sanford has five days to decide what to veto.

"This budget is not a budget for the future of South Carolina," said House Minority Leader James Smith, D-Columbia.

The spending plan allows public schools to spend $1,701 per student, about $500 less than the state budget board's research division recommended.

In separate legislation Tuesday, the House approved putting $44.6 million more into classrooms; that would lift per-student spending to $1,777 if the Senate agrees. Midyear cuts left per-student spending at $1,770 during the current fiscal year.

Medicaid programs picked up $127 million in federal aid. Combined with other moves in the budget, the state Health and Human Services Department gets the $212 million it needs to avoid cutting programs.

Senate Finance Chairman Hugh Leatherman, R-Florence, said without extra money, 6,000 people would lose nursing home care, 12,000 senior citizens would lose home-based services that keep them out of nursing homes and 66,000 residents would be cut from the SilverCard prescription program.

While the federal money helps, it is well below the funding set by state law, Smith said, and the state will have to find a way to replace that money next year.

Schools pick up extra money from the state lottery, including $8 million for much-needed buses and $40 million for elementary reading, math, science and social studies programs.

Other state programs weren't so lucky, such as public colleges, which will lose $50.9 million even though they're already raising tuition and trimming jobs to deal with the last round of cuts.

The lean budget and tough choices are good fiscal exercises, said Sen. Jake Knotts, R-West Columbia. The state was forced to live within its means and not raise taxes, he said.

A variety of plans to increase cigarette taxes or sales taxes fell by the wayside during the process.

However, Sen. Nikki Setzler seemed disappointed in some of his colleagues. Setzler, D-West Columbia, said the Senate should reject the budget and develop another one. "I think we've got a job to do. I think we've got until July 1 to do it," he said.

"We gave up far too easily," said Sen. Jim Ritchie, R-Spartanburg. "We never got to the hard decisions of setting priorities in government." With limited money, the Senate should have dumped some state programs, he said.

In the end, legislators relied on $265 million in federal money, approved in Washington two weeks ago, to patch the budget. "Let me tell you, had that manna not have fallen down, I don't know where in the world we would be," Leatherman said.

The Legislature adjourns Thursday, but House members approved a plan to return to Columbia in two weeks to deal with vetoes and pending legislation.





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