Now it’s up to
lawmakers to pay off old deficit
AN ATTORNEY GENERAL’S ruling carries no legal weight, and state
officials frequently ignore those that take them to task. So
Comptroller General Richard Eckstrom is to be commended for
immediately reversing his earlier actions after Attorney General
Henry McMaster issued an opinion saying he had no legal right to pay
off a deficit that the state has been running for more than a
decade.
We hope the General Assembly now will follow suit and reverse its
inappropriate actions — which is what Mr. Eckstrom had been trying
to do.
The problem, which had been swept under the rug until Mr.
Eckstrom unmasked it this fall, dates back to 1991, when the Budget
and Control Board voted to pay off bills from the fiscal year that
ended in June by essentially floating a check — changing the state’s
accounting methods, so that some July sales tax receipts could be
counted toward the previous fiscal year. The Legislature did nothing
to reverse that action, and in fact did the same thing itself, with
other tax receipts, in 1993. And again in 2002. This practice
probably didn’t violate the state’s constitutional prohibition on
deficit spending, but it was the sort of irresponsible maneuver that
the financial market rightly frowns on.
What’s worse: This isn’t the only way the Legislature has been
outed creating a deficit it had tried to hide from the public. In
2003, Mr. Eckstrom and Gov. Mark Sanford discovered that instead of
paying off a shortfall that had occurred at the end of the 2002
fiscal year (as legislative leaders had promised to do), the
Legislature had allowed it to linger for more than a year, turning
it into another deficit — this one clearly unconstitutional — that
lawmakers had tried to pretend didn’t exist.
In both instances, Mr. Sanford and Mr. Eckstrom provided the
outside perspective that is all too hard to find in a legislative
environment that is built around protecting the status quo and a
Legislature that operates as though the state motto is “that’s how
we’ve always done it, so it must be right.” Whatever you might think
of their politics, that’s a valuable contribution. One wonders if
either matter would ever have been acknowledged — much less
addressed — without their badgering.
Last time, legislators immediately promised that this time they
really meant it when they said they would pay off the deficit. But
even then, it took quite some doing, with senators playing games
over the repayment right up until the closing days of the 2004
session.
We expect better of them this time around. If any legislators
consider Mr. McMaster’s ruling a vindication, they need to think
again. The fact that we had to come to this point is a testament to
their grossly irresponsible behavior. They can only begin to redeem
themselves by quickly putting the books in order. |