Sanford signs bill limiting spending

S.C. Gov. Mark Sanford, left, greets Speaker of the House David Wilkins prior to signing the Fiscal Discipline Act of 2004 at the Poinsett Hotel in downtown Greenville Monday. Staff/Owen Riley Jr. e-mail this story

With the speaker at his side and surrounded by legislators at the Westin Poinsett Hotel, Sanford signed a bill that will hold spending increases to 3 percent a year until the state's general reserve fund is restored to $150 million, as mandated by the state Constitution.

The pig incident came a day after Sanford reacted angrily to the House's rapid-fire override of all but one of his 106 budget vetoes. He named the pigs Pork and Barrel to make a point about excess spending.

Lawmakers who were angry and outspoken about the pigs wore calm faces Monday as Sanford credited House and Senate members for supporting the bill. Will Folks, a Sanford spokesman, said the good will was genuine.

"It's not been about personalities with the governor," Folks said. "It's always been about the issues."

Wilkins, R-Greenville, said Monday's announcement was meant to show that Sanford and legislators are working together. Too much was made of the pig affair and the perceived rift it caused between Sanford and legislators, Wilkins said.

"Differences get accentuated and played up," Wilkins said. "Many, many times we have worked together."

Certainly not on the day of the pigs. That day, Wilkins said, "The governor stood outside our chamber and practiced the worst kind of politics." Wilkins also said of the pig ploy: "This is beneath the dignity of the Governor's Office, and I am embarrassed for him."

Also that day, House Minority Leader James Smith, D-Columbia, questioned Sanford's credibility and said, "Everyone knows the governor and the speaker haven't always gotten along."

About 30 people from Upstate groups opposed to tax increases, including Jim Keasler, a member of the Greenville County Taxpayers Association, applauded loudly as Sanford signed the law authorizing the state to reduce by $50 million the $155 million deficit from fiscal 2001-02.

"This helps rein in government," Keasler said.

The $50 million added to the $89 million the General Assembly has appropriated to pay off the debt reduces it to $16 million, which will be paid in 2004-05 using money from the capital reserve fund, Sanford said.

If the state's revenue grows at more than 3 percent a year while the cap is in place, the additional money will be put into the capital reserve fund, Sanford said.

"One of our top priorities as an administration has been to get state government thinking more like a business," Sanford said.

He said the measure makes sure the state doesn't lose its AAA bond rating. Losing the rating would affect residents because more of their tax dollars would be spent paying off interest, leaving less for services.

Wilkins said the spending law will protect South Carolina taxpayers in good and bad financial times.

"We are all together ensuring that we have a sound fiscal policy not only today but in the future," he said.

John Boyanoski can be reached at 298-4065.