Legislators found
they could bank "Maybank Money"
JIM
DAVENPORT Associated
Press
COLUMBIA, S.C. - A year ago, state Revenue
Department Director Burnet Maybank was offering legislators an odd
deal.
He wanted $9 million to hire people to enforce the state's tax
laws and promised to quit if he didn't raise at least $90
million.
On target to raise that and more, the lanky Charleston lawyer is
credited with helping fill a hole in the state's budget.
The Legislature raised the stakes for Maybank, saying he'd have
to bring in at least $300 million in regular tax law enforcement
collections even before he could begin counting money toward the $90
million goal.
It remained a safe bet, Maybank said.
"We looked at how far the Department of Revenue had fallen off
with the collection activity," he said.
At the same time, he expected a recovering state economy would
make it easier for people to pay back taxes. And auditors already
had identified several taxpayers who owed the state millions.
"We had several checks from taxpayers of $2 million and up that
went into" meeting the goal, Maybank said.
Between July and January, Maybank's effort had pulled in $56
million - about $3 million ahead of projections. The Revenue
Department had collected $216 million, well ahead of a $175 million
projection.
State budget writers aren't expecting a repeat performance.
Estimates for the budget year that begins July 1 show Maybank's
increased enforcement efforts will bring in only about $45
million.
The House Ways and Means Committee begins writing its version of
budget this week. Chairman Bobby Harrell, R-Charleston, says
agencies were told last year that they would not have Maybank money
in the new fiscal year's budget. His committee now will decide
whether to fill those funding gaps or force those agencies to cut
spending.
Gov. Mark Sanford tapped Maybank as revenue director in 2002 when
the Republican took office. It's Maybank's second stint in that
Cabinet-level office. He'd served in the same job from 1994-1998 for
former Republican Gov. David Beasley. In between, Maybank practiced
regulatory and tax law.
With several of Sanford's agencies depending on Maybank
delivering cash, Cabinet meetings routinely bring questions about
his progress. And the resignation bet sometimes brings handshakes
that feel like "they were checking my pulse," Maybank said.
When Sanford was skeptical of Maybank's proposal while crafting
his executive budget last year, Maybank shopped the plan directly to
the state's chief budget writers.
"He sat in my office last year and said that if he couldn't
deliver on what he was telling us that he would resign," Harrell
said. "I thought that was a pretty strong statement."
"I think we've known Burnie longer than the governor had known
him and we had a great deal of confidence in his ability to deliver
on what he said," Harrell said.
Besides, Maybank had done a similar program under years ago under
Beasley, Harrell said.
Senate Finance Committee Chairman Hugh Leatherman, R-Florence,
said he'd grown to respect and trust Maybank over the years and was
more than willing to take his bet. "I did not hesitate," Leatherman
said. "He's the type of person that when he tells you something,
he's got some good basis for telling you that."
By May, Sanford was worried Maybank's plan was turning into a way
to pay for day-to-day agency operations. He took the extreme step of
showing up at a meeting of the Board of Economic Advisors to ask
them not to include the so-called Maybank money in a revised budget
forecast. Sanford said Maybank's cash should be "icing on the cake"
and not something to use in basic agency budgets.
At the time, Sanford's relationships with the Legislature were at
a low point. His appearance at the board "was totally inappropriate"
and an effort to influence forecasting group, Harrell said at the
time.
It's not that Sanford didn't support Maybank's effort, said Will
Folks, the governor's spokesman. But Sanford disagreed with
legislators' plans to use the money to fill huge holes in Cabinet
and non-Cabinet agency budgets. For instance, Maybank money
accounted for a fifth - $19.7 million - of the state Department of
Social Services.
"He had a serious problem with that money - as it was uncertified
by the BEA - going to fund operating expenses at front-line service
providers like DSS," Folks said.
Programs like that need to be paid for with regular funding
sources, he said. "It's not an objection to the additional revenue.
It's an objection to relying on it to fund critical needs before
you're sure that money is going to be there," Folks said.
Harrell says there was no doubt the money would materialize.
"We accepted him on his word and he proved to be good to his
word. He's proved to be more than good on his word," Harrell
said. |