COLUMBIA, S.C. - In an unusual Monday meeting,
the Senate convened then quickly Republicans and Democrats split up
and went behind closed doors for much of the afternoon.
Last week, senators rejected every attempt to raise taxes, which
would have spared some education and Medicaid programs in the $5
billion state budget.
Some of those tax proposals may be salvaged and others may be
introduced. For instance, Sen. Danny Verdin, R-Laurens, headed into
the session hoping that a plan to slightly reduce sales tax breaks
for a year would gain traction.
That plan was not debated Monday.
The Senate spent more than an hour debating a plan from Sen.
Scott Richardson, R-Hilton Head Island, that would put state's basic
per-student spending at $2,000, up from the $1,643 contained in the
House budget.
Republican Senate leadership bashed the plan, saying it would
force the elimination of property tax breaks. They won the argument
with a 24-22 vote that tabled the amendment.
Meanwhile, there was little hope that a recovering economy will
provide extra money for the ailing budget that begins July 1.
The Board of Economic Advisors met Monday and said the state's
revenues are running about $8 million above the revised estimate for
current fiscal year.
Revenue Department Director Burnie Maybank said there was a sharp
slow down in sales and income tax collections during the first two
weeks of May but that could pick up before the end of the month.
The board didn't budge on its state lottery income forecast, even
though those games are taking in more money than expected.
Lottery Director Ernie Passailaigue said last week that $185.4
million had been deposited in a special education account during the
past 10 months - $13 million more than what was projected for the
entire year.
BEA Chairman John Rainey said Monday that projections for lottery
income aren't likely to rise. Despite the good news, lottery income
appears to be declining at a rate of about $5 million a month, he
said.
As the board met, senators quickly disposed of their routine work
then began a series of recesses as Republicans and Democrats huddled
in different rooms to discuss budget strategies.
It's unclear how much that helped. Senate Finance Committee
Chairman Hugh Leatherman, R-Florence, said Democrats and Republicans
are sharing ideas with each other. He would not say what those are
or whether a consensus is developing around them.