Posted on Thu, May. 22, 2003


S.C. Senate budget hits schools, seniors hard
Proposal adopted Wednesday would remove thousands from nursing homes, SilverCard

Staff Writer

The Senate approved a stripped-down $5 billion budget Wednesday night that would lower school spending by $130 per child, remove 6,000 people from nursing homes and eliminate 66,000 seniors from the SilverCard prescription drug program.

Senators agreed to hold on to the budget for three legislative days on the off-chance they could reach consensus on raising more money for health care and education.

But that consensus has eluded them for three weeks of budget deliberations.

Sen. Verne Smith, R-Greenville, said he is losing hope for the cigarette tax increase - a 53-cent per-pack increase to fund Medicaid for the poor and elderly. That tax would raise $170 million in state money, to be matched by $400 million in federal dollars.

"I just don't believe that senators will leave here without providing the match money for Medicaid," said Smith, a 31-year Senate veteran. "It would be the most cruel, most nonsensical thing to ever happen on the floor of the Senate."

But Senate Minority Leader John Land, D-Clarendon, gave the cigarette tax increase at best a 40 percent chance of passing. That leaves Medicaid spending at essentially $528 million in state dollars - about $50 million less than allocated last year and with no money to offset growth in the health care system, from rising health care costs to more expensive prescription drugs.

Senate Finance chairman Hugh Leatherman, R-Florence, recited the list of carnage to come:

• Sixty-six thousand low-income seniors would lose prescription-drug benefits through SilverCard.

• Another 6,000 seniors would leave nursing homes.

• Twelve thousand people would lose long-term care benefits at home.

Leatherman doubts the cigarette tax increase will pass, though. Republican Gov. Mark Sanford has said he'd sign the proposal only if it's accompanied by a commensurate drop in the income tax. Some senators like an increased cigarette tax but don't like lowering the income tax at the same time. That will probably be a sticking point , Leatherman said.

"It would make no sense at all to me to send a straight-up cigarette tax," without the income tax provision, Leatherman said. "He has vowed he'll veto it."

Overall, Leatherman said his constituents told him they were against any tax increases, particularly a two-cent sales tax increase and a change in car sales tax that he had advocated earlier.

"This means we've got to live within our means," Leatherman said.

Land, the Senate's top Democrat, said the budget was an abomination.

"I really think we're letting our constituents down," he said. "I don't think we met our obligation to the people of this state."

The Senate seemed unhappy but resolved to support its $5 billion budget - almost identical to the $5.1 billion version approved by the House in March. Senators had derided the House version, calling it "criminal," "not an option," and "punting" on responsibility.

But that's what they ended up with. Smith said he could not remember a Senate budget that was leaner than the House's.

"I'm almost ashamed that it's happening this year," Smith said.

The Senate version:

• Put an amount of money into higher education identical to that allotted by the House

• Put slightly more into some departments - $5 million into the Department of Corrections and $4 million into the Department of Juvenile Justice

• Put slightly less into others - $1 million to the Department of Natural Resources and $2 million to the Department of Public Safety

• Set per-pupil spending at $1,643, the lowest level since 1995, and when adjusted for inflation, the lowest since 1977.

• Tweaked the appropriations of lottery proceeds, at the urging of members of the Legislative Black Caucus. The Senate plan puts $34 million toward reducing technical college tuition, more than the $27.8 million the House approved, and sends $3 million to the state's five historically black colleges. In turn, the Senate spent $26 million on elementary programs while the House spent $40 million.

The Senate meets at 10 a.m. to see whether any consensus on raising taxes and fees can be reached. Sen. Jake Knotts, R-Lexington, is pledging to oppose any increase whether it's called a tax, fee, surcharge or otherwise.

"People out there now aren't fooled," Knotts said. "They realize that if it's not money they can spend as they want to, it's a tax.

"I'm here to represent my base. My base is tired of it."

By next week, the Senate will send the House its budget. Then a joint House and Senate committee will work out differences between the two versions.

The committee would need to complete its work by June 5, the last day of the legislative session, to prevent an extra session.

That's a tight schedule that legislators are not sure they can meet. Then the budget would go to Sanford for his signature. It would take effect July 1.





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