Bill
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Dear Friend,
We are in the middle of a battle – right now – over how your taxpayer
dollars will be spent this coming year. The tide in that battle is starting to
turn in our direction, but we need your help.
In our Executive Budget, we outlined very specific budget goals – fully
funding core government services like education, healthcare and public safety;
paying off deficits and borrowings from prior years; capping overall government
spending at the rate of inflation plus population growth; and then returning
to taxpayers all of the surplus revenues that have been pouring into state
coffers by the hundreds of millions as our economy continues to improve.
Based on the current revenue forecast by the state Board of Economic
Advisors, we could meet our budget goals and still return $400 to each taxpaying
family. And the availability of that dividend will likely increase next month
when the BEA issues its updated revenue forecast.
However, some powerful members of the House Ways & Means Committee – the
committee that puts together the budget – have said they will not pay back all
the money borrowed from prior years or return any of the surplus revenues to
taxpayers. Instead, they have said they will spend every last dollar on
government programs – which would mean yet another double-digit percentage increase
in government spending.
Fortunately, as stated in two stories published today in The Spartanburg
Herald-Journal and by the Associated Press – printed below – powerful leaders
in the House are standing with us this year on holding the line on spending,
paying off deficits and borrowings from prior years, and returning the surplus
revenues to the taxpayers:
· Rep. Jim Harrison, Chairman of the House Judiciary Committee, says that “
we have a unique opportunity not to repeat the mistake that has been made over
and over in the past – spending every dollar that comes in to state
government.â€
· House Speaker Pro Tem Doug Smith echoes that, saying that this could be
the year that we succeed in “controlling the growth of government spending.â€
· Rep. Harry Cato, Chairman of the House Labor, Commerce and Industry
Committee, says that “we can use this year to set a new precedent for running
government more like a business in terms of our spending practices.â€
These House leaders – true conservatives who believe in limited government –
have taken a stand with us, as have many other House members. I urge you to
contact your House representative – by telephone, email, letter, or in
person, and as soon as possible – to let them know that you expect them to join
them and us in taking this stand. The contact information for your House member
is online at www.scstatehouse.net and then click “House†and “Email Address.
â€
Thanks for your help in this very important matter. If you make your voice
heard – now – we have a real chance this year to adopt a truly conservative
budget, to avoid wasteful spending on legislators’ pet projects, and to return
the surplus revenues to the rightful owners – you, the taxpayers.
Mark
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PUBLISHED BY THE SPARTANBURG HERALD-JOURNAL
Thursday, February 23, 2006
House debates use of budget windfall
ROBERT DALTON Staff Writer
COLUMBIA -- State Rep. Annette Young says the best thing the House can do
with $547 million in new money expected to come into South Carolina next year
is spend it.
Spend it all. Spend it like there's no tomorrow.
"Should we just give it to the Senate to spend?" said Young, R-Summerville,
a member of the House budget writing committee. "That would be irresponsible.
I'm in favor of spending limits, but until we get that bill passed and get
it through the Senate, we have to spend the money."
The problem with that, said Rep. Scott Talley, is that there is a tomorrow.
And he doesn't want it to resemble the yesterdays that came after Sept. 11,
2001, when an economic downturn forced the Legislature to slash budgets and
raid trust funds.
The differing philosophies on how to handle all that cash have caused a rift
in the usually chummy House Republican Caucus.
Some members side with Young, saying that some agencies are still playing
catch-up from the belt-tightening days.
Others agree with Talley and say the House has an opportunity to practice
what it started preaching at the beginning of the session.
When the majority caucus announced its agenda in early January, limiting the
growth of government spending was No. 5 with a bullet.
When the House passed its version of a property tax relief bill earlier this
month, it included an amendment to limit the growth of government spending.
And a bill pending in the House that would cap growth has more than 90
sponsors.
That's why Talley scratches his head when he looks at the budget that the
Ways & Means Committee is putting together. As it's currently written, the $6.5
billion spending plan that takes affect July 1 increases spending by 10.75
percent over the current budget. Spending limit proponents would like to see
growth of about 5 percent.
Talley, R-Moore, said it's time for House members to put their money where
their mouths are.
"The people back home are tired of out-of-control spending," Talley said.
"With the surplus that we have, we have the opportunity to set aside some money
and plan for the future.
"That's the way families do it. That's the way businesses do it. But I guess
some people don't think those rules apply to us."
House Speaker Pro Tem Doug Smith has for years advocated for spending
limits. It was his amendment – limiting spending increases to population growth
plus the consumer price index – that was attached to the property tax relief
bill.
Still, Smith said he understands the budget writers' predicament.
"There's a reason why this is happening, and that is because we have to
start the budget process," said Smith, R-Spartanburg. "More money is projected to
come in and it starts a spending frenzy."
Smith said he's confident that the House leadership will honor the spending
limitation that it passed.
To do so, Ways & Means Chairman Rep. Dan Cooper said, will require some
tough choices.
The working version of the budget includes $51 million to give state
employees an across-the-board 3-percent pay increase. It also includes $26 million
for new school buses and $26.7 million to help pay for fuel to run those buses.
"We can certainly (adhere to the spending limitations) if that's what the
House chooses to do," said Cooper, R-Piedmont, who is in his first year as Ways
& Means chairman. "But we'll have to decide what we're not going to fund.
Are we not going to buy school buses, or fund Medicaid?"
Gov. Mark Sanford, not surprisingly, sided with those who want to put away
some money for the inevitable rainy day. He said it's still early in the
process, but that he's concerned that some representatives are "headed in the
wrong direction when it comes to keeping an eye on the taxpayers."
"The good news is that this year there are also a number of people in the
House who are committed to the idea of limiting government growth and restoring
trust and reserve funds, and I will continue to work with these like-minded
people to stop this spending train early before it gets too far down the
tracks and hopefully send a dividend back to the taxpayers in the process,"
Sanford said.
Sen. John Hawkins, R-Spartanburg, said that there is a strong movement in
the Senate to cap spending as well. But he conceded that there would be
pressure to spend the money.
Hawkins said House members should be guided by their conscience, not by what
they believe will happen in the Senate.
"The House ought to do what it thinks is the right thing to do regardless of
what it thinks we're going to do," he said.
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PUBLISHED BY THE ASSOCIATED PRESS
Thursday, February 23, 2006
Sanford, legislative leaders try to pressure budget writers
JIM DAVENPORT Associated Press
COLUMBIA, S.C. - House budget writers who rushed to spend all that extra
cash the growing economy is delivering have run headlong into opposition from
Gov. Mark Sanford and three top House leaders.
Those challenges could delay work on the $6.5 billion budget until next
week, House Ways and Means Committee Chairman Dan Cooper said.
Sanford "basically wants us to adopt his budget," a frustrated Cooper said
Wednesday.
The budget committee, helped by having $500 million more to spend than
expected, has followed many of the governor's budget recommendations this year as
it works on the spending plan.
But Sanford doesn't think the House committee has cooperated enough.
For instance, Sanford wanted $173 million set aside to repay money raided
from a state reserve and trust accounts as legislators struggled to balance
budgets between 2000 and 2004. But the House budget committee socked away just
$66 million for that.
"It's debatable what's a trust fund and what's not," Cooper said.
In a prepared statement, Sanford said, "I think some in the House are headed
in the wrong direction when it comes to keeping an eye on the taxpayers."
Sanford said there also were House member committed to limiting government
and restoring the trust and reserve funds. "I will continue to work with these
like-minded people to stop this spending train early before it gets too far
down the tracks and hopefully send a dividend back to the taxpayers in the
process," the governor said.
Last week, Sanford said he wanted $388 million earmarked for a tax rebate
for state residents that would give about $400 to each South Carolina
household. That plan isn't in the proposal the Ways and Means Committee is mulling.
Sanford wants the state's budget to be no more than $5.9 billion this year
after paying off trust accounts and giving the rebate. That would be an
increase of just over 5 percent from the last budget. But the spending plan being
debated could be anywhere from a 10 percent to a 16 percent increase from last
year, according to different estimates.
Sanford is siding with several leaders that made unsuccessful runs for House
Speaker against Rep. Bobby Harrell last year. House Speaker Pro Tem Doug
Smith, R-Spartanburg; House Judiciary Chairman Jim Harrison, R-Columbia, and
House Labor, Commerce and Industry Chairman Harry Cato still have enough clout
to force changes on the budget now or when it gets to the House floor in about
three weeks.
In the news release, Cato praised Sanford as a "watchdog for the taxpayer"
and said there is "absolutely no reason to not repay all of our trust and
reserve funds this year."
Harrell noticed his three former opponents on the news release and pointed
out all had sought special spending projects in the budget.
Harrison told a reporter later that there's no intent to sabotage the budget
committee's work.
"It's obvious from our discussions and the (Republican) Caucus discussions
that there are some concerns" that the state's budget is increasing yearly,
Harrison said. "We've got to have some spending limitations and those
discussions need to be had."
The episode shows a disconnect between the governor and Cooper - the
legislator with the clearest shot at helping Sanford get his proposals into the
budget bill.
Cooper said he was surprised about Sanford's problems with the budget
because the two hadn't talked about the budget since earlier this year. "We haven't
even adopted dollars yet and he's thrown a grenade at us," Cooper said.
Sawyer said Cooper was, at a minimum, briefed with other House leaders when
he released his executive budget in early January.
"If Chairman Cooper ever has any question on where the governor is on state
finances, all he has to is open a copy of the executive budget or give us a
call," Sawyer said.
Harrell also wasn't happy with the governor's office sending out the news
release in the middle of the Ways and Means Committee meeting. "It was a pretty
sneaky way of doing a press release," said Harrell, who added the move
lacked "common courtesy."
The episode "is not productive at all," Harrell said. "I think it would have
made a lot more sense to call up the chairman of House Ways and Means."
