In these most difficult times when budgets are short and needs are great, we at the S.C. Chamber of Commerce are pleased that there is one important area of consensus. Political leaders of both parties acknowledge the need for adequate Medicaid funding.

The reason is simple.

Medicaid is a necessity for our state's most vulnerable citizens. While Medicaid serves senior citizens and the poor, it also provides health care for more than 40,000 uninsured children, for tens of thousands of blind and disabled people, and thousands of families who have children with special needs including disabilities or chronic illness. It is also the lifeline to health care for the working poor.

Yet, our Medicaid system has become as chronically ill as many of the patients it assists.

Recent tight budget years and the escalating costs of health care have created a woefully under-funded Medicaid system. Temporary fixes, such as last year's $100 million appropriation from one-time money, only compound the problem for this year and future years. Not only do we under-serve those who qualify for Medicaid, we pass the unpaid costs on to those fortunate enough not to need Medicaid. And we do all of this in a world where the federal government is willing to give us $3 for every $1 we commit to Medicaid funding.

Answers are never easy, especially in a world where budgets are tight for both governments and families. And, true solutions -- those answers that solve problems for the long-term -- require innovative thinking and leadership.

We have seen leaders of both parties and the private sector searching for those solutions. The thinking has been innovative. Taxpaying citizens and companies have boldly asked for a dedicated funding stream, most particularly an increase in the taxes on cigarettes. House members, under the leadership of Speaker David Wilkins, have sought ways to reduce Medicaid costs by eliminating waste and increasing efficiencies. And Gov. Mark Sanford stepped forward last week with a plan that provides additional Medicaid funding while stimulating the economy with a corresponding tax decrease. It is a long-term solution for a chronic problem, and it shows promise.

The governor's plan is simple in concept but multi-faceted in implementation. He supports an increase in the cigarette tax, coupling it with a gradual decrease in personal income tax. He sees the personal income tax reduction as an economic stimulus, an offset for the increased cigarette tax and, quite frankly, the delivery of a campaign commitment.

It appears in concept to deliver all that and perhaps more.

In addition to a dedicated funding stream for Medicaid, the plan starts the state along a road where personal income tax rates -- affecting all individuals and most small businesses and sole proprietorships -- will be lowered to the uniform tax rate of 5 percent. It accomplishes that by using a portion of the annual personal income tax revenue growth above a baseline to fund a tax credit. If the economy is not growing, the credit is not available. In other words, the governor's plan is designed to share the wealth with citizens, but not to create additional pain by costing government when revenues are not available.

It makes every individual and every small business a stakeholder in South Carolina's economy. Grow the economy -- create wealth for our citizens -- and you will share in it. It is gradual and relies on growth. It keeps government growth in check during good times. It recognizes income taxes as an important component of any balanced tax system. And it avoids tax shifts to taxpayers not receiving the credit.

The debate on the governor's proposal began the day it was rolled out. That is healthy. As chaotic as legislative debate might appear, it often is a messy route to a strong solution. Details will be attacked and debated. Ideas will be accepted and dismissed. In the end, more often than not, what emerges is a stronger product. The governor's proposal will have to travel that road. But we all owe him a genuine "thank you" for his leadership in placing an innovative, comprehensive solution on the table. It deserves careful and serious consideration now.