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| Wednesday, Jan 29, 2003 |
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Posted on January 28, 2003 House bill would limit growth, spending By AMY GEIER EDGAR Associated Press Writer In response to the state's budget crisis, House members introduced a bill Tuesday that would limit government spending and growth. The bill, which has support from both Republicans and Democrats, will go to the House Ways and Means Committee for debate. While keeping growth and spending in check, the bill also will set up a sufficient rainy day account for the state, said House Speaker David Wilkins. The measure will help lawmakers "become better stewards of taxpayers' dollars," said Wilkins, R-Greenville. When the economy was strong in the 1990s, government grew too fast, said House Speaker Pro Tem Doug Smith. But the economy soured, and the state was forced to deal with several rounds of budget cuts. The budget may fall as much as $1 billion short of meeting more than $5 billion in spending needs in the fiscal year that begins July 1. Bad spending habits of previous years need to stop, said Smith, R-Spartanburg. Under the bill, the state's current spending limit formula will be deleted. The current formula, which is based on the average growth of personal income over the last three years or 9.5 percent of total personal income, is "ineffective," said Ways and Means Chairman Bobby Harrell. The bill would create a new formula based on population and inflation growth and sets a maximum spending limit of 6 percent of annual appropriations. "It's time for us to get spending under control," said Harrell, R-Charleston. The bill would set up a spending limit reserve fund to replenish reserve funds. Excess revenues could be spent only on infrastructure, schools, temporary tax reductions and natural disasters. It also would increase the state's general reserve fund from the current 3 percent to 4 percent. The bill has a loophole in the case of financial emergencies. Lawmakers could suspend the spending limitation with a two-thirds vote in the House and Senate. The bill will "change fundamentally the way we do business in South Carolina state government," said Rep. Vincent Sheheen, D-Camden. Under the plan, the state would have more financial stability even in tough economic times, Harrell said. "Deeper cuts are becoming increasingly more difficult," Harrell said. "We won't raise taxes. We can and must put the brakes on the growth of state government." |
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