Senate Passes State Budget

Filed Under Caucus, Top News, Leatherman, Peeler

Responsible, Pork-Free Budget Focused On Education and Healthcare

Columbia, SC - The South Carolina Senate today passed a lean, responsible, pork-free budget that fully funds K-12 education and prioritizes healthcare. Senators were forced to make tough funding decisions after the Board of Economic Advisors adjusted estimated state revenue downward by $180 million. The estimate included an expected shortfall in the current budget year of $90 million and an additional $90 million decrease for fiscal year 2008-2009.

“This was a tough budget, but it is a responsible budget that meets the core needs of the state,” says Senate Finance Chairman Senator Hugh Leatherman. “In the face of a serious shortfall in state revenue the Senate has produced a budget that addresses the needs of K-12, healthcare and other essential functions of government without raising taxes.”
“In the last three years the General Assembly has returned over $500 million to the taxpayer in the form of tax cuts,” says Senator Leatherman. The tax cuts include removing the sales tax on groceries, tax cuts to small businesses, and the elimination of the bottom income tax bracket.
The 2008-2009 budget provides full funding for the Education Funding Act in addition to $10.6 million in recurring funds for school bus replacement. The budget also achieves the average teacher salary goal of $47,304, gives state employees a one-percent pay raise, and provides funding for healthcare related efforts such as: the Autism waiver, Meals On Wheels, and breast and colon cancer screenings.

Despite the challenges presented to the Finance Committee and the Senate, we have created a lean budget that does not contain any special projects,” says Senate Finance Vice-Chairman Senator Harvey Peeler (R-Cherokee). “We all had to look at the priorities of the State and make decisions based on what was best for the citizens of South Carolina and I think we did the right thing by producing a responsible budget.”
The Senate also adopted amendments allowing expenditures from the Capital Reserve Fund that maintains the current funding of the State’s 4-K program, provides money for state elections and fuel for school buses.

The bill will now return to the House of Representatives, which now has $ 90 million less to work with than the version originally adopted in March.
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