1997 Budget Message
January 7, 1997
Last year's Executive Budget addressed key issues central to the improvement of the quality of life of every South Carolinian: control of one's own destiny, a good job and access to quality education. This year's goal is the same.
We are fortunate in South Carolina to have a healthy economy. That means we have more and better jobs for our citizens and the potential for unprecedented success for our children.
But as leaders we must not allow our growth to become stagnant. We must grow our economic base. We have to maintain our pro-business environment. After all, that is what brings us the good jobs. And we must constantly seek to challenge our best and brightest...and bring hope and opportunity to those temporarily in need. This budget reflects those goals.
There are many critical issues facing our state, and they must be addressed by all of our state's leaders in a responsible and reasoned manner. To that end, this budget message proposes significant changes to the budget process (which I will walk you through in just a minute)...bringing it up to speed with the reality of South Carolina's needs today so South Carolina can meet its challenges tomorrow.
One such challenge is highway infrastructure. Our bridges and roads are our economic pipelines. They deliver people to and from work every day. They help our children arrive safely at school. They make it possible for companies to transport goods to market. And they are in critical need of attention.
I will be addressing this concern in a separate forum with a separate proposal within the next two weeks.
In this budget, however, we must first and foremost address an issue which can make or break the future of our children regardless of the state of our infrastructure, our pro business environment and the goodness of our people. And that's our children's education.
The 1997-98 Executive Budget builds on last year's historic increase in K-12 spending. Over the last two years, our appropriations to K-12 have increased nearly 15%...the largest increase since the penny sales tax from the Education Improvement Act. And all without a tax increase. You can see from the graph right behind me -- there's also a copy of it in your budget message book -- the general breakdown of new education dollars this year. But let me give you just a few of the highlights. For the first time ever, we are creating a prepaid tuition program for South Carolina students. We all know that as expenses escalate on every front, many parents feel a sense of hopelessness when it comes to sending their children to college. Where will the money come from? Will their child be able to go? What can be done? Well, with this program, parents can start paying for college tuition years ahead of time...essentially getting tomorrow's college education at today's tuition.
Grandparents can pay into it. Friends can help out with gifts. Kids can pay into it from their baby-sitting money or from cutting the grass. So by the time these students are seniors in high school, they know they can go to any public college in South Carolina and their tuition is paid. Guaranteed. The Budget and Control Board will administer the plan, which will be totally self-sustaining after the initial $400,000 for start -up.
On another front, another first: I am recommending for the first time in the history of South Carolina that we pay our teachers above the Southeast average. And for those teachers who take the initiative to undergo and receive certification from the National Board, we will reimburse their $2,000 enrollment fee and give them a $2,000 bonus. We demand an awful lot of our teachers, rightfully so. But we also need to recognize them for what they do and reward them to the best of our ability.
This budget also provides for the second year phase-in of full day kindergarten for five year-olds. You'll recall that this is an optional program, and next year will be the final phase-in year. The phase-in is important because it allows local school districts the opportunity to be adequately prepared with facilities.
This is a good program, and I will continue to give it my full support as long as it remains optional. It is ultimately the right of parents to decide about full-day school for their five-year olds.
This year also ushers in Phase 2 of our school technology plan. Last year was just spectacular in terms of the public-private partnership that led to so many of our schools being wired for this technology. Now we move on to the next level--workstations, teacher training, and so on. This budget fully funds the Education Finance Act, and it increases the number of credits required to graduate from high school. Let's face it. Our kids need to learn more and learn better and learn smarter if they are going to have a real chance out there. So these credits can't be awarded for just anything. They must be in math, science, computer technology, advanced foreign language.
Finally and critically, this budget continues to direct all the dollars generated from Barnwell into the Children's Education Endowment...with 70 percent earmarked for school buildings and 30 percent to scholarships for South Carolina students to go to college here at home.
In all, we are dedicating almost 45% of total new dollars to education. That's a lot of money, and it is critically important. However, we've shown over the years that there are issues in education that cannot be solved by mere dollars. I will be addressing some of those issues further in my State of the State address later this month. In addition to education, which is vital to so many South Carolina families, this budget also puts families first by extending a helping hand to mothers and fathers most in need.
I am proposing that over $4 million go toward helping welfare parents in transition pay for child care so they can take another step toward family independence. It's also important to note that South Carolina's welfare rolls are shrinking in large part because good corporate citizens are hiring. I will be working with businesses across the state to keep their payrolls open to those looking for a better life. They are critical to this process. We need their help, and they will benefit from motivated new workers.
At the state level, we can also help bring a greater measure of prosperity to families through continued commitment to property tax relief.
And this year, the final phase-in of the children's exemption, combined with the new phase-in of an exemption for senior citizens, brings us full circle in our protection of South Carolina families from the tax monster.
This is a budget for the people, rather than for the government. This is a budget renewing my pledge to protect tax relief for South Carolinians. And we will do this through a significant change in the way we develop our budget here in South Carolina.
As part of our ongoing commitment for fiscally responsible government, I am committed to a four point reform plan that requires strict controls and safeguards in spending state funds. These reforms will: eliminate the contingent spending of unprojected surplus funds on a contingent basis (the "wish list"); consider a bond bill for capital projects, ensuring that projects undergo the stringent criteria already established for the bond process; amend the Carnell-Felder set-aside and dedicate those funds to the Property Tax Relief Fund; and fund the Property Tax Relief Fund at 90 percent recurring dollars.
I will safeguard the process by ensuring that the Capital Reserve Fund and the General Reserve Fund remain constant, providing at least 5 percent reserve funds for unforeseen shortfalls.