Posted on Thu, Jan. 06, 2005


Governor's spending plan gets mixed reviews from budget writers


Associated Press

Gov. Mark Sanford won't get everything he wants in his $5.3 billion state spending plan, but he's given lawmakers a good starting point, the Legislature's chief budget writers said Thursday.

Sanford's call to spend less on teacher incentives and college programs faces a tough battle when the General Assembly reconvenes Tuesday, and lawmakers said they likely will find more disagreements as they dig through the Republican's 346-page budget proposal.

"I'll be surprised if we cut higher education as we move forward with the budget," said House Ways and Means Chairman Bobby Harrell, R-Charleston.

A rosier economic outlook has lawmakers optimistic about the state budget following four years of cuts.

"I don't want expectations to get too high," said Senate Finance Committee Chairman Hugh Leatherman, R-Florence. "We have a lot of catching up to do."

Sanford's renewed pitch to lower the state's income tax to spur economic growth got mixed reviews.

Leatherman said he was concerned legislators may pass a tax law without understanding the impact. For instance, property tax breaks passed in the last decade were initially forecast to cost $195 million, but now demand $410 million yearly.

"I'll keep an open mind," Leatherman said.

Sanford's proposal to cut the state's top income rate from 7 percent to 4.75 percent is expected to hit the House floor within two weeks. Sanford's executive budget, released Wednesday, calls for the Legislature to earmark $7 million for the tax cut to begin in 2006.

"Why do we have to wait for the economy to improve before we can implement it?" said former House Minority Leader James Smith, D-Columbia. He also questioned how the plan is the answer to the state's economic woes when it only benefits the wealthy.

Leatherman said many individuals and businesses are reluctant to move to South Carolina because of many factors, including the state's education system. That's why he disagrees with Sanford's plan to reduce college spending by $13 million, including a $10 million cut in state funding for research university professorships and programs.

Also, Leatherman said cuts to higher education lead to a bigger burden for students and parents who face increased tuition costs.

Sanford says college spending is out of line with national levels and that the state has too many colleges. South Carolina spends nearly twice the national average on colleges while it has the nation's second-lowest high school graduation rate, Sanford said.

Smith pledged a bipartisan effort to shield education from any cuts. Rep. Herb Kirsh, D-Clover, said he wants to put a freeze on any tuition increases for one year.

Harrell also said he disagreed with Sanford changes the incentive for teachers earning national certification. Those teachers now get a bonus of $7,500 each year of the certification's 10-year duration.

"It's worked to improve the teaching force we have," Harrell said.

Sanford would give newcomers to the program $3,000. Teachers working in critical education areas or certain schools and districts would be able to get an extra $4,500 a year. The $1.4 million saved by making the incentive change would be used to increase spending per-student spending to $2,213, up from $1,852.

Sanford's plans to eliminate $199,659 in spending for security tied to the Confederate submarine H.L. Hunley and artifacts tied to it may not go far either. Senate President Pro Tem Glenn McConnell, the Republican chairman of the Hunley Commission, says that money should stay in the budget.

Sanford says the commission should consider using local law enforcement of a private security company. But the McConnell says the items being protected are priceless and belong to the state - making them a state responsibility.

"That money was earmarked for the security of the Hunley," said McConnell, R-Charleston.

Overall, lawmakers said they liked Sanford's philosophy on the state's spending priorities.

Sanford's budget splits all of what state government does into 1,552 separate programs, which is a new approach to the way state spending plans are usually handled. It was his way of deciding how the state should spend money and cut duplication of services.

"I like the fiscal responsibility I saw in it," Harrell said.





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