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The McClatchy Co.

State & Regional Interest Thursday, April 8, 2004

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Sanford writes letter to House leader on budget concerns

By AMY GEIER EDGAR,
(Published March 10‚ 2004)

COLUMBIA, S.C. (AP) - Gov. Mark Sanford sent a letter to House leaders, asking them to avoid using one-time money and funds that may not materialize for core government functions and to restore cuts made in the base budgets of agencies.

Sanford sent the letter Tuesday to Speaker David Wilkins and Ways and Means Chairman Bobby Harrell as the House worked on the state's $5.3 billion spending plan.

The budget writers headed off a deficit by finding $398 million to balance the budget, including $90 million the Revenue Department estimates it can collect in overdue taxes, $56.7 million from selling surplus property and shuttering vehicle fleet maintenance operations and $40 million raided from the Second Injury Fund, which would be shut down.

Relying on these funds is a concern, Sanford wrote.

"If any of these moneys don't materialize or are not adopted by the General Assembly, it will lead to a significant reduction in many agencies core budgets," Sanford wrote. "As most of our cabinet agencies offered significant cost-savings in their budget requests this year, we don't think that they should be additionally penalized with the loss of dollars that may not materialize."

Sanford cites the Department of Motor Vehicles, which requested about $4.7 million less funding in its base budget this year. If DMV were to lose funding from the Second Injury Fund and the Revenue money, the agency would be cut 12 percent on top of its self-imposed reduction of more than 17 percent, he said.

Harrell said the House already scrapped plans to raid the injury fund before receiving Sanford's letter.

But the governor and the House have a difference of opinion on the budget, Harrell said.

"The House's position was if we weren't going to cut three or four budgets as deeply as he did (in the executive budget), then cuts had to come from the rest of government in order to balance the budget," said Harrell, R-Charleston.

The House tried to soften the blow of the agency cuts by offering the Revenue money as one-time funds, he said.

 

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