State legislators should heed Gov. Mark Sanford's
call to use a major part of new revenue to repay the trust and reserve
funds that were depleted during tough budget years. To do so would
demonstrate legislative responsibility and frugality.
Currently, the Senate budget includes $33 million for trust-fund
repayment, less than a tenth of what the governor seeks. The Legislature
drained more than $400 million from trust and reserve funds during a
three-year period when revenues didn't match spending.
A trust fund for the cleanup of the Barnwell landfill, which serves for
low-level radioactive waste disposal, was depleted by some $90 million.
Money also was used from the trust fund for the cleanup of the Pinewood
hazardous waste dump near Lake Marion. In addition, legislators borrowed
$130 million from trust accounts serving the state health insurance fund.
Gov. Sanford estimates that the state will receive as much as $800
million in new revenue next fiscal year, and seeks $362 million for trust
fund repayment. "It makes common sense to say that before you begin new
and additional spending commitments, you take care of money that was
borrowed in tough times," he said.
It also is the responsible course of action, recognizing that the trust
funds were created for specific purposes, and not to provide long-term
loans on easy terms for the Legislature. The governor contends that
repaying trust funds will help maintain the state's AAA credit rating by
demonstrating fiscal responsibility.
Comptroller General Richard Eckstrom agrees and has additionally
endorsed reducing the state's high level of indebtedness for the same
reason.
Last year, the governor's success in convincing the Legislature to use
$155 million in surplus to repay a budget deficit turned out to be one of
the most important achievements of the legislative year. The Legislature
should reaffirm the latest recommendation in like fashion and repay the
majority of loans from state trust and reserve funds while the money is
available.