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The New Media Department of The Post and Courier

MONDAY, APRIL 25, 2005 12:00 AM

Repay state trust, reserve funds

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.


This article was printed via the web on 4/27/2005 1:33:12 PM . This article
appeared in The Post and Courier and updated online at Charleston.net on Monday, April 25, 2005.