Legislature OKs $7.4B budget

Dramatic session also ends with tax cuts, restructuring of DOT

Dramatic session also ends with tax cuts, restructuring of DOT

COLUMBIA — The state Legislature approved a $7.4 billion budget Thursday that saves residents some change at the grocery store and delivers tax cuts to almost everyone who earns a paycheck.

Lawmakers also agreed to restructure the Department of Transportation, the linchpin on which the budget and tax cuts depended. It came down to the final two hours before mandatory adjournment that the House was able to reach a deal with a contingent of mostly Democrats.

They had been holding out for $50 million toward rural roads, water and sewer projects before they would vote to allow DOT reform to go forward.

That was the latest entanglement in a drama-filled session that started with the House leadership's refusal to sign a budget until agreements were reached on DOT and workers' compensation reform, and ended on a note that even senior lawmakers said they've never experienced.

"I've never seen a session quite like this session's been," said Hugh Leatherman, R-Florence, a senator since 1981. "The House started out with putting out edicts. I've started out with putting out edicts. I've never been one to put out ultimatums."

In the end, House Speaker Bobby Harrell said it was all worth it.

"The House wanted to make sure the Department of Transportation reform got done and workers' compensation reform got done and that we had record tax relief," said Harrell, R-Charleston, who marked the second anniversary of his time as speaker Thursday. "The only way to make sure those things got done, unfortunately, was the confrontations."

House Republicans and Democrats held closed-door caucus meetings to strategize a way to overcome the stalemate, but ultimately easily passed the budget, tax cuts and DOT reform, while the Senate waited to ratify the bills.

"We felt very strongly that we needed to fulfill our constitutional obligation and have a budget passed and then we'd consider DOT reform," said House Minority Leader Harry Ott, D-St. Matthews.

He also said the leadership compromised with Democrats and the handful of Republicans who joined the fight to ensure support when lawmakers return next year for the funding of rural infrastructure projects.

In all, the budget includes $221 million in tax cuts. On Nov. 1, the 3-cent sales tax on groceries will be eliminated under the spending plan that takes effect July 1. The Legislature also cut income taxes by $65.75 for all workers who earn about a minimum of $15,000 a year.

While shopping with one of his two teenage children Wednesday, Ernest Edwards, 51, a welder from North Charleston, said he likes the combination of tax cuts, but getting rid of the tax on groceries will help his family the most.

"We shop a lot," Edwards said.

The budget also includes 3 percent raises for state employees, money to hire 100 new state troopers, $28 million to put a nurse in every elementary school, $22 million to provide more low-income children with health-care coverage and $19 million in new money for higher education, including increases for state scholarships.

The budget includes $30.5 million for new school buses. A recent Post and Courier series revealed that the state's buses are the oldest, most polluting and least safe in the nation.

Although Gov. Mark Sanford was on a business trip in Europe, he issued a statement on the budget.

"The fact that a significant, broad-based income tax cut, an idea that we've been pushing for six years, was passed for the first time in state history is incredibly significant," said Sanford, who preferred the House's original plan to give top-down income tax cuts. "I'd give real credit to the House for standing with us on the idea of substantive tax relief, and I'd thank the Senate for ultimately agreeing with us on that front."

The Legislature will return June 29 to take up vetoes expected from the governor.

Democrats and Republicans thanked Harrell for his leadership as they made their way out of the House chamber Thursday afternoon.

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Key local, state projects

The state Legislature approved a $7.4 billion spending plan Thursday, which takes effect July 1. This year's budget was for $6.6 billion. Included in the upcoming budget is money for key local and state projects. Here are some highlights:

$167.5 million for a port-access road in North Charleston.

$17 million to continue 4-year-old kindergarten classes for at-risk children.

$30.5 million for new school buses.

$20 million for state advertising to boost tourism.

$1.6 million for Stevens Barracks renovations and $2.5 million for the South Carolina National Guard Readiness Center at The Citadel.

$3.7 million for the renovation of Randolph Hall at the College of Charleston and $350,000 for its global trade center.

$7.5 million for the construction of the College of Dental Medicine at the Medical University of South Carolina and $1.5 million to establish its connection to the S.C. Light Rail.

$500,000 for the Morris Island Lighthouse restoration.

$285,000 for the Colleton Cultural Center.

$150,000 for the Colleton Farmers Market revitalization project.

$200,000 for the Callen Lacy Center in Berkeley County.

$40,000 for operations at the Calhoun Street Hazard Resilient Center and $93,750 for the Hazard Resilient South Carolina partnership at the Sea Grant Consortium in Charleston.

$500,000 for Mount Pleasant Waterfront Park.

$160,000 for Dorchester County Youth, Senior and Tourism.

$150,000 for security costs for the H.L. Hunley Commission.

Warren Wise contributed to this report. Reach Yvonne M. Wenger at ywenger@postand courier.com or (803) 799-9051.

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