For Immediate Release
Friday, 16 March 2001
On March 5, 2001, the leading national publication dealing with public finance, THE BOND BUYER, honored State Treasurer Patterson with the following profile:
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In South Carolina, the old adage "if it ain’t broke, don’t fix it" applies. That principle and its constitution’s safeguards against overspending keep the state in a fiscal condition that credit agencies admire.
Treasurer Grady Patterson is credited with many of the state’s fiscal reforms, including creation of an annual debt limit, a reserve fund to cover budget shortfalls, and the requirement that pension funds be used only for retirement purposes. He has also been recognized nationally for his fight to protect the tax-exempt status of state and municipal bonds.
The state’s net tax-supported debt is about $1.35 billion, representing 1.6% of personal income, which is below the 2000 median of 2.2% for all states. Total debt per capita of $347 for the state is below the $540 median for all states.
The state has achieved budget surpluses for the past eight years. Even thought the economy brought faster revenue growth, income that many other states poured into new programs and one-time spending, South Carolina deposited some of its savings into general and capital reserve funds that are available to offset the current slowdown in the economy.
General-fund revenue collections in fiscal year 2000 grew by 5.5%, bringing the state a budget surplus of $213 million, of which the General Assembly transferred $97 million to the capital reserve fund, according to a review by Moody’s Investors Service.
Patterson’s responsibilities include issuing and managing all state debt, while overseeing the state’s banking programs, investments, and debt, including state retirement funds and more than 400 trust accounts.
His office also runs the tax-free mini-bond program, which offers the sale of state bonds only to South Carolina residents. Patterson was first elected in 1966. For eight years prior to that, he was assistant attorney general. He received an undergraduate and law degree from the University of South Carolina. He was president of the National Association of State Auditors, Comptrollers and Treasurers, and was chairman of the Tax Exempt Bond Committee.
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David A. Adams, 803/734-0380