Ways and Means
budget still relies too heavily on one-time money
By CINDI ROSS
SCOPPE Associate
Editor
FOR THE BETTER part of a decade, budget-writing in South Carolina
has been part fantasy, part religious experience. Legislators would
round up pots of money they knew wouldn’t be available in future
years — left-overs from the previous year, proceeds from sales of
state property, federal bail-outs and other “one-time” funds — dole
them out among agencies to pay for programs that would need funding
in future years, and then ask everybody to join hands and pretend
that the money to keep paying for all those programs would somehow
mysteriously appear the next year.
This practice, begun in good times, did as much as the recession
to cause the deep and painful budget cuts over the last four years.
But still it continued, only instead of creating new programs with
the one-time money, legislators starved for cash started using that
money to delay making tough decisions about cutting programs or
raising taxes, pretending that the economy was going to rebound any
minute now.
While the dwindling supply of one-time cash pots has reduced this
practice, the budget proposed by Gov. Mark Sanford marked the first
real departure. He still used more one-time money than is healthy,
but he proposed to reduce the so-called annualization problem from
this year’s $235 million (down from a pre-recession high of $700
million) to $144 million. A huge step forward.
On paper, the budget under debate in the House this week goes
even further, reducing the annualization problem to a much more
reasonable $61 million. But on top of that $61 million, the Ways and
Means Committee plan gives agencies another $200 million in one-time
money — some of which budget writers acknowledge might not even
materialize this year — that budget writers are specifically warning
they will not seek to replace next year.
In many ways, this is a distinction without a difference. Using
$270 million that lawmakers know will not be available to spend the
following year means that, once again, the state is putting off the
inevitable.
Ways and Means Chairman Bobby Harrell argues that this year’s
approach will change the dynamic and lead to the Legislature finally
putting an end to this dangerous practice. The fundamental truth of
legislative government is that it is easier to maintain the status
quo than to change it, and this proposal, in Mr. Harrell’s view,
will have the effect of upending the status quo without seeming to
do so until the deed is done. His plan means that next year, rather
than coming to the Legislature begging that their budgets not be cut
any further, agencies will be begging that their budgets be
increased. In other words, it will be the agencies, rather than
budget writers, who will be trying to change the status quo.
Mr. Harrell also looks at this in what he sees as more practical
terms. Making those cuts this year — rather than getting one year’s
good use out of money the state has at its disposal — would amount
to putting theory ahead of real people.
I agree that — from the perspective of this Legislature — the
Ways and Means Committee’s plan to phase out the use of one-time
money by next year is a huge step forward.
And Mr. Harrell’s real-people argument is a compelling one, and
one I sometimes have a hard time getting around. A family struggling
to make ends meet would sell off stocks or tap the retirement fund
if that were the only way to pay the mortgage and the grocery bill
for a few months, in the hope that things would improve before the
cash ran out. But that family wouldn’t use the temporary cash to
move the kids to private schools or sign up for a faster Internet
connection — which this budget does, by creating new obligations
such as the long-overdue pay raises for state employees. As long as
the family still had ways to cut the monthly bills, such as turning
down the thermostat or dropping the cable service, it wouldn’t even
use the savings for something as important as signing up for health
insurance. And you can bet that Mom wouldn’t wait until the savings
ran out to go out and find a second job.
The problem with this plan to get us by on a prayer for just one
more year is that it is a far cry from what we need in this
state.
What we need is for our Legislature to determine what services
the government needs to provide to the people of South Carolina, how
much it costs to provide those services and how best to raise the
money to pay those costs. And then our Legislature needs to pay
those costs, whether they add up to more money or less money than
the state is currently collecting. What this budget does is allow
the Legislature to delay those decisions for yet another year — and,
perhaps not coincidentally, scrape past another election year with
the public believing that the situation is not as dire as it is. And
that is a disservice to all the people of our state.
Ms. Scoppe can be reached at cscoppe@thestate.com or at
(803)
771-8571. |