Posted on Mon, May. 19, 2003


Senate discusses budget behind closed doors


Associated Press

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.





© 2003 AP Wire and wire service sources. All Rights Reserved.
http://www.thestate.com