The state is in the red

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needed of the state's budget deficit and

the raiding of state trust funds.

South Carolina's Constitution bans deficit spending, but that has not restrained state leaders from engaging in deficit spending. The state is in the red to the tune of $177 million, according to state Comptroller General Richard Eckstrom.

Eckstrom is doing the state a valuable service by drawing attention to the state's budget deficit, although he might have served the state better by speaking out during the Legislature's budget negotiations a few months ago. The deficit, after all, did not accumulate overnight but is the result of at least two years of irresponsible budgeting practices by state leaders.

In announcing the deficit, the Republican Eckstrom took a swipe at former Democratic Gov. Jim Hodges, who clearly deserves part of the blame for the problem. But Eckstrom seemed less willing to acknowledge the Republican-controlled General Assembly's responsibility for the predicament.

The truth is there's enough blame to go around. The deficit came about as a result of the refusal of state leaders to balance the budget by prioritizing spending or raising some targeted taxes, such as cigarette taxes.

Eckstrom says state leaders over the past two years masked the deficit by raiding special "earmarked funds" that lie outside the general budget. Eckstrom didn't even include in his calculations the $100 million or more the Legislature has taken from state trust funds. Trust funds are special-purpose accounts, often funded by donations or fees, and they are reserved for such things as conservation and environmental cleanup.

House Speaker David Wilkins defended the practice of taking money from special state accounts, saying the money eventually would be repaid.

However, the state is engaging in covert deficit spending by raiding special funds and taking millions from earmarked funds — with no plan developed on how the money will be restored and when it will be returned to those funds. Eckstrom reported that $39 million was taken from rainy day funds this year — on top of $63 million last year and $87 million the year before.

The first step should be a full airing of the problem so state leaders know exactly how much money is owed to earmarked funds and trust funds. Eckstrom has advanced the discussion by underscoring the state's deficit. The Legislature and Gov. Sanford should follow that with an honest and clear accounting of state liabilities. Then they should develop a plan to erase those deficits, and, of course, state lawmakers need to adopt a truly balanced budget next year.