 House panel supports spending cap legislation_files/arcad.gif)
|
 House panel supports spending cap legislation_files/brand.gif) |
||
 House panel supports spending cap legislation_files/t.gif){kind=small} | ||
| Thursday, Feb 6, 2003 |
|
|
|
|
Subscribe to the H-J | | ||||
|
| |||||||||
|
Posted on February 06, 2003 House panel supports spending cap legislation COLUMBIA -- The House Ways and Means Committee on Wednesday approved a bill that would limit government spending and growth. The proposal deletes the state's current spending limit formula. Lawmakers say that formula, which is based on the average growth of personal income over the past three years or 9.5 percent of total personal income, is ineffective. Instead, the bill would create a new formula based on population and inflation growth and sets a maximum spending limit of 6 percent of annual appropriations. The bill now will be debated on the House floor. The proposal was created to address the state's financial crisis. Lawmakers say government grew too fast during the strong economic times of the 1990s. When the economy soured, the state was forced to deal with several rounds of budget cuts. The budget could fall as much as $1 billion short of meeting more than $5 billion in spending needs in the fiscal year that begins July 1. "I'm pleased the bill went through so quickly today in Ways and Means," said House Speaker David Wilkins, R-Greenville. "It just makes good sense." It keeps government growth and spending in check even in good times." Wilkins said the bill includes a sufficient rainy day account for the state. Under the bill, a spending limit reserve fund would be set up to replenish reserve funds. Excess revenues could be spent only on items such as infrastructure improvements and school buses. It also would increase the state's general reserve fund from 3 percent to 4 percent. The bill has a loophole in the case of financial emergencies. Lawmakers could suspend the spending limitation with a two-thirds vote in the House and Senate. A few minor amendments were made to the legislation Wednesday. One would require the comptroller general to report to the governor, House and Senate if the state exceeded its spending limit. Previously, the comptroller general was directed to simply stop cutting checks if the state exceeded its limit. "The governor's the only one who should have veto power, not the comptroller general," said Ways and Means Chairman Bobby Harrell, R-Charleston. |
|
|
|
| |||||
|
All material ©2003 Spartanburg Herald-Journal | | |
| |||
 House panel supports spending cap legislation_files/serve.gif){kind=small}
 House panel supports spending cap legislation_files/affiliate_120x240.gif)