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Governor's bold budget good start for Legislature


Gov. Mark Sanford has proposed an impressive budget for the state that deals with a $350 million projected revenue shortfall without a tax increase. The budget is politically courageous, and is the most comprehensive ever produced by a South Carolina governor. The governor's fiscal leadership is due the high praise it is receiving from legislative budget leaders.

That doesn't mean those leaders are immediately prepared to buy the Sanford plan. But House Ways and Means Committee Chairman Bobby Harrell is impressed with the fact that the document is a "real budget" that actually could be used to operate the state. Gubernatorial budgets are relatively new in South Carolina and have never been presented in such detail. Before Gov. Carroll Campbell, the budget process began and ended with the General Assembly.

Rep. Harrell praised the fact that the budget doesn't anticipate a tax increase, even as the state scrambles to find millions to provide for essential state services. So did Senate Finance Chairman Sen. Hugh Leatherman, who observed that the previous executive budget from Gov. Jim Hodges was a political document that was "$500 million out of balance."

The budget translates a year of study by the administration and its Commission on Management, Accountability and Performance into a plan for cost cutting, government restructuring and tax reform. The plan to close the gap between projected spending and revenue includes selling surplus state land, reducing the state's bloated vehicle fleet and merging human services agencies.

The budget would begin the difficult job of restoring the state's $150 million capital reserve fund, necessary to retain South Carolina's AAA bond rating, and replenishing the Barnwell landfill cleanup fund, which has been nearly emptied by the Legislature as a result of the state's ongoing budget woes.

It recommends funding Medicaid through general operating funds, thereby dealing with one of last year's most intractable budget problems. And it slightly improves funding for education with additional lottery proceeds to be gained by reducing administrative and promotional costs.

One of its most significant recommendations would cut the number of state-supported colleges by two, recognizing that South Carolina is too small and too poor to support 33 campuses. Mr. Sanford has recommended the gradual elimination of University of South Carolina campuses at Salkehatchie and Union, both of which he said have seen declining enrollment.

The budget anticipates operational efficiencies of $45 million, program cuts of $37 million and savings of $26 million from restructuring. The sale of surplus state land owned by the Department of Mental Health, the State Ports Authority and Santee Cooper would generate millions more.

The document also outlines Mr. Sanford's reorganization plans for elected constitutional offices, which include making the superintendent of education, the commissioner of agriculture and the adjutant general appointive offices. That proposal won't immediately affect the budget, since each would have to be approved by the voters in a state referendum.

The budget is sure to have an unparalleled influence on legislative debate. If Mr. Sanford gets half of what he recommends in his bold proposal, he will have achieved important reform during what one legislative leader described as one of the worst budget years on record.


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