Sanford sets tight budget framework

It has voluntary cap limiting increases to rate of population growth plus inflation

By JOHN O’CONNOR

johnoconnor@thestate.com

Gov. Mark Sanford told cabinet members Monday he plans to recommend a total of about $400 million in new state spending for 2007-08, a roughly 6.6 percent increase over the current budget.

At the first of three hearings, Sanford said agencies requested about twice as much in new spending as he wants to make available. Sanford’s budget imposes a voluntary cap limiting increases to the rate of population growth plus inflation.

The governor will likely release his budget, which is a recommendation to the Legislature, in December.

Last year, Sanford and the General Assembly sparred over the size of the state’s $6.6 billion total budget until the last day of the legislative session.

Sanford’s draft spending is subject to change. It now includes:

• $167 million in constitutionally-required spending, such as increasing employee pay and topping off reserve accounts

• $332 million in new or expanded state programs. The budget hearings could determine how this money is allocated.

• $95 million in savings from cutting or streamlining agencies. Sanford proposed a similar amount of cuts last year, much of it through restructuring government and filling jobs vacated by retiring employees with lower-salaried workers.

The hearings allow agency heads to make a case for a share of that money.

Among the highest-profile requests was money for roads and bridges, mass transit and tripling state tourism over the next 15 years.

“By 2020 ... that would create 594,000 jobs,” said Parks, Recreation and Tourism director Chad Prosser of his plan to grow the state’s tourism industry.

While the governor’s budget may stake out his priorities, lawmakers will likely write their own plan.

House Ways and Means chairman Dan Cooper, R-Anderson, said the Legislature will not know how much money is available until later this year But, he said, roads will likely be a priority in the coming year.

In addition to new money, the Legislature created a reserve account last year that can only be spent for new school buses, roads or an emergency. That account has more than $170 million.

“It may be six percent (growth), it may be less. I don’t know at this point,” Cooper said.

Sanford will hold a second budget hearing, on education, Friday. A third session on public safety will be held Sept. 29.

Reach O’Connor at (803) 771-8358.