COLUMBIA - House Speaker David Wilkins
said he will work with legislative leaders next year to create
legislation that would require the state to pay back its deficit in
a certain period of time.
On Wednesday, the state Budget and Control Board decided against
taking action on a $155 million deficit from the fiscal year that
ended in June 2002.
Under state law, the General Assembly - not the budget board -
has the sole authority to deal with budget problems from previous
years.
That troubled Gov. Mark Sanford, who said the deficit violates
the constitutional provision requiring the state budget to be
balanced. Sanford said the deficit could jeopardize the state's
credit rating.
At Wednesday's meeting, Sanford said legislators didn't handle
the issue this year and could choose to ignore it again next year
when they confront a $350 million budget gap.
Although he agreed to allow lawmakers to handle the problem in
January, Sanford seems to have little confidence in the legislature,
particularly because 2004 is an election year.
"Part of the reason we're in this problem is election-year
politics," Sanford spokesman Will Folks said.
Sanford said he would support a law authorizing the budget board
to act on deficits outside the current year. That idea is supported
by House Ways and Means Chairman Bobby Harrell, R-Charleston.
Sanford was encouraged by Wilkins' comments, Folks said
Thursday.
"I think it would certainly be appropriate to have a statutory
requirement," Wilkins said. Currently, there is nothing in the law
that sets a deadline for repaying funds, he said.
Members of the budget board will work on a plan to deal with the
deficit and make suggestions to the General Assembly, said Harrell,
who also is a member of the board.
The money to repay the $155 million must come from the general
fund, putting a burden on next year's state budget.
Wilkins expects a "myriad of proposals" to be discussed next
year, including a cigarette tax, alcohol tax and the removal of
sales tax exemptions. It's too early to say whether these proposals
will find support, but Wilkins said the House sent a clear message
against tax
increases.