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.