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Article published Jan 9, 2004
Sanford reshapes budget

ROBERT W. DALTON
Staff Writer

Gov. Mark Sanford unveiled his first executive budget on Thursday, a balanced, $5.1 billion spending plan that wipes out a $344 million shortfall without raising taxes.The 301-page proposal provides a slight increase in education spending, reduces the number of state agencies from 87 to 72, calls for a 15-percent across-the-board cut in phone and travel expenses and advocates the sale of "nonessential" state assets.It also proposes phasing out the University of South Carolina's Union and Salkehatchie campuses over three years and moving the South Carolina School for the Deaf and the Blind under the state Department of Education umbrella. The SCSDB is currently a stand-alone entity.Sanford also proposes fully funding Medicaid with recurring general fund revenue."Whether you agree or disagree, I'm asking people to take a big-picture look at the budget," Sanford said. "Historically, executive budgets haven't stepped to the plate. We did, and we took a very comprehensive approach."House Speaker David Wilkins, R-Greenville, praised Sanford's effort."For the first time in several years, we have a realistic executive budget that the General Assembly can truly incorporate in writing the state budget," Wilkins said. "While it will take time to review all of the proposals and there will likely be some areas of disagreement, this is an excellent start."Sanford said the savings from restructuring, program cuts and increased efficiency would be about $108 million -- money that would help cover the shortfall. Selling state assets -- such as surplus land and more than 6,000 cars -- would provide $94 million more. Growth in recurring revenues would make up $25 million, federal relief funds would contribute $65 million, and other sources -- such as lottery funds and user fees -- would provide $52 million.Calling education a top priority, Sanford's plan increases K-12 spending by $29.7 million, with $20 million coming from lottery funds. The per-pupil expenditure would rise by $67, to $1,810.State Superintendent of Education Inez Tenenbaum said that, while the increase is a step in the right direction, it isn't nearly enough."While that may be higher than the current Base Student Cost (BSC) of $1,743, it also is lower than 1997-98, before the mandates of the Education Accountability Act and No Child Left Behind," Tenenbaum said in a statement. "The Base Student Cost is determined by a formula in the Education Finance Act, and for next year that formula calls for a BSC of $2,234. If we're going to follow precedent, and follow state law, that's where it should be."Sanford also proposes freezing new entrants into the National Board Certification salary supplement and application reimbursement programs, a move he says will save $4.6 million that could be redirected to per-student expenditures.Higher education spending was cut by 2.6 percent. It took a 10.7-percent hit this year and saw an 11.1-percent reduction in fiscal 2002-03.Sanford said the $2.95 million saved by closing USC Union and Salkehatchie would be shared by the system's other institutions. He justified the closings by saying that statewide enrollment has increased by 7.1 percent since 1993, while Union's enrollment has dropped by 22 percent and Salkehatchie's by 14.4 percent during the same period.But USC Union Dean James Edwards said the governor's plan would further devastate Union County's struggling economy."I just don't think the governor's staff realizes how critical the mission USC Union provides is," Edwards said. "We are in a county that is in the top six in unemployment. What could be worse than taking away an educational opportunity for our students?"Edwards said many of the school's 400 students cannot attend classes elsewhere."They are locked here because of their families or their jobs," Edwards said.Edwards said the school receives about half of its $1.8 million annual budget from state appropriations. The remainder comes from tuition and grants."Nine hundred thousand dollars is just a pittance of the state's budget," Edwards said.Moving the School for the Deaf and the Blind under the state Department of Education would reduce administrative costs by $364,174. That money would be redirected to the school's student cost.SCSDB President Shelia Breitweiser said she was unsure what impact the switch would have on the school."I've just seen the budget and haven't had time to study it yet," Breitweiser said. "It looks like some anticipated savings could come back to the school that we could use for our kids, which is always a good thing. But it's not clear how it would work or how those savings would be reached."Breitweiser said it could be possible for the school to duplicate the savings in the governor's budget."Is it possible to realize those savings in the governor's budget, or is it possible to have savings with other forms of consolidations with staff positions?" Breitweiser asked.Staff Writer Tony Taylor contributed to this report.Robert W. Dalton can be reached at 562-7223 or bob.dalton@shj.com.