Senate Finance Cuts Additional $40 Million from Budget
Senate Finance Chairman Determined to Present Balanced Budget to Full Senate
Columbia, SC – In response to the Board of Economic Advisors estimated revenue shortfall of $90 million the Senate Finance Committee today convened an emergency meeting to reduce spending an additional $40 million. Today’s cuts are above the $50 million the Finance Committee agreed to when it adopted the budget just five days ago. Senate Finance Chairman Senator Hugh Leatherman (R-Florence) took quick action once the BEA made its announcement, which will effect the 2008 - 2009 budget year beginning July 1.
In order to achieve the reductions necessary, the committee eliminated the 2% pay raise it had originally proposed for state employees. Despite the elimination of the pay increase the Senate maintained health benefits with no increase in premiums to state employees, even as the overall cost for benefits is expected to increase. Several senators voiced support for the proposal because it maintained the current level of premiums charged to state employees.
“Today’s decision was one of the toughest I have made in my 28 years in the Senate,” says Senator Leatherman. “No one has fought harder for state employee benefits than I have, and as we move the budget process forward I will try to find ways to hopefully increase the pay for our hard-working, dedicated state employees.”
Senator Leatherman went on to say, “The actions of the Finance Committee affirm the Senate’s commitment to producing a responsible, balanced budget that does not include deficit spending and addresses the core needs of South Carolinians. The last 24 hours have been very difficult and I appreciate the hard decisions the members of the committee made today.”
The BEA also cut current year revenue estimates by $90 million. The total BEA estimated reduction in revenue announced yesterday was $180 million, which the Senate Finance Committee dealt with today.
The full Senate is scheduled to begin budget debates on Tuesday, April 15.
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