State budget writers sharpening their knives
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Session likely before Nov. 4; State's financial situation will become more clear after budget forecasters meet today, published 10/08/08
COLUMBIA — Within a few hours of the announcement Wednesday that South Carolina government spending must be cut by a total of more than $550 million, agencies were looking at the real-life consequences.
Fewer troopers on the roadways, limited tourism promotion, a shorter list of doctors for Medicaid patients, elimination of schooling for inmates and fewer teachers in the classrooms are all possible outcomes of the budget shortfall.
Senate President Pro Tem Glenn McConnell and House Speaker Bobby Harrell, both Charleston Republicans, said they will refuse to see the Legislature balance the budget on the back of the taxpayer.
A tax increase, especially as the Legislature is expected to return to session shortly before Election Day, is unlikely, but agency hiring freezes have been announced and layoffs for government workers are possible.
Gov. Mark Sanford wants his previously overridden vetoes back on the table. He handed legislators a list of 69 vetoes worth $72 million in May, including $3 million for programs at the College of Charleston, $600,000 for the Hollings Cancer Center and $575,000 to cover indigent patient care at the Medical University of South Carolina.
"Let's be clear, the situation we're in with these cuts was predictable, preventable and guaranteed based on the run-up in spending over the past four years because you can't grow government faster than the economy and not have it catch up with you," Sanford said Wednesday.
Since August, Sanford has urged legislators to reconvene to prioritize budget cuts and warned of the need to rein in spending long before then.
Overall, the $7 billion budget as passed by the Legislature in late May will have to be cut by 8 percent, or $554 million.
Cuts to date have been made piecemeal. In August, the Budget and Control Board told agencies to make 3 percent across-the-board cuts and took 2 percent from reserve funds.
That leaves 3 percent, or $210 million, more that needs to be cut to balance the budget with projected revenue collections reset Wednesday by the Board of Economic Advisors.
"It's hard for anyone to believe things will get better soon," said John Rainey, the state's top economic forecaster. "The fear factor is everywhere."
Consumer spending, one of the biggest factors driving the slump, has taken a nosedive, Rainey said. Year to date, the state's sales tax collections are down $57 million. More than $38 million of that was expected, however, when the Legislature eliminated taxes last November on food sold in grocery stores.
McConnell and Harrell will decide when to call the Legislature back, but they will wait to set a date until after budget writers have more time to reach agreements on where to make the cuts. Sanford expects legislators to waive any payment for returning to session.
Legislators will re-evaluate the cuts made by state agencies to better prioritize and relieve certain agencies, and figure out where to cut more.
The Departments of Corrections is already expecting to run a $23 million deficit in the current fiscal year, and Director Jon Ozmint has repeatedly warned about the dangers of reducing prison staff further.
Superintendent of Education Jim Rex has been meeting with key educators to figure out how schools are going to absorb the cuts as the Education Department also struggles to find a way to fuel buses.
Less than 2 percent of the money allocated for public schools is spent in the administrative headquarters, meaning the majority of cuts will come directly from schools districts.
"When you have budget cuts this severe, it's hard to avoid reducing the part of your budget where most of your money is spent, and 85 percent of a typical district's budget is personnel," said Jim Foster, agency director of communications.
Reach Yvonne Wenger at ywenger@postandcourier.com or 803-799-9051.
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Comments
This article has 18 comment(s)
Posted by sig on October 9, 2008 at 5:45 a.m. (Suggest removal)
I agree with Thomas1776. If they would actually investigate DHHS they would find at least $50 million in fraud. I have reported fraud on more than one occasion to this state agency and they swept in under the table along with Senator Graham.
If they did an agency by agency investigation they could probably find a minimum of $500 million in fraud waste and abuse. Just like the vehicles you see flying down the interstate with government tags on them. These are not emergency vehicles. Who pays for the gas and maintenance on these vehicles? We do. It drives me crazy when I see these folks and their families get out of the car at Walmart or pick up their children at school. Report it you say - well I have on numerous times and I see the same vehicles doing the same thing after I reported it.
I do not want to see the children hurt, but make these fools that go out and produce these babies pay for the services. The welfare system needs to be changed to help the people that need the help. This should be a temporary fix to a short term problem - not a solution for families to stay on medicaid and welfare their whole lives.
Posted by EqualityB4theLawThinkAgain on October 9, 2008 at 6:18 a.m. (Suggest removal)
Take a look at the school districts. Tons of money is spent buying books for the media center and then the books are discarded as being too old and out of date. Yet, the same books are rebought time and again. Likewise, school districts are spending too much on technology when kids can't even read and write, like somehow putting them on the Internet is going to solve their being illiterate. If you want to investigate a state agency, check out the nepotism in Berkeley County Schools. It reeks from the District Office on down to the custodial staff.
Posted by moonpie on October 9, 2008 at 6:29 a.m. (Suggest removal)
Yeah Gov Mark has been saying that these idiots have been spending to much money for some time now. Well to quote the most Rev Wright, "SC CHICKENS HAVE COME HOME TO ROOST"
MY CUTS;
=suspend all Hunley money. frees up 2 schw patrol officers!
=suspend all unemployment benefits to illegals. After all they're illegal?
=raise revenue by collecting state taxes from the illegal businesses. You know like A&A Granite that pays his workers cash under the table.
Posted by back2u on October 9, 2008 at 6:59 a.m. (Suggest removal)
Wow! We all have belly-aching rights on this one. If everyone ran their households the way the elected/appointed ones run their agencies, then it's no wonder our economy is in such a depression. I agree with the Hunley comment. Hellooo...just how many tourist $ will that bring to the state?? [jeez] The school districts (at least the one my kids are in) seem to use a lot of paper unnecessarily. That may not add up to much when looking at just 1 school but imagine if every school in the state wasted the same amount. I would love to see more use online, instead of online & by paper. Also, seems like the education dept. would start looking at alternative energy/gas sources & modifying state law to allow for 4 day school weeks. Can you imagine the gas saved by taking all buses off the roads just 1 less day per week? We could all be a part of the solution in many of the other agencies by volunteering to do work that they pay others to do. If everyone made "baby steps" to help out, then much could be accomplished for less $. It's OUR state. Somebody has to care for it because obviously, it's not caring for itself.
Posted by carolinadude on October 9, 2008 at 7:24 a.m. (Suggest removal)
Moonpie,
Are you sure that SC pays unemployment benefits to illegals? It's time for a revolt!! In addition these lawmakers have squandered how many buget surpluses in recent years? And they've ridiculed Gov Sanford and Comptroller Eckstrom for exposing their shennanigans time after time. All we get this morning from Harrell and McConnell is a soundbite, "we won't balance the budget on the backs of taxpayers". lol. They think we're stupid. Well if we keep reelecting these idiots, maybe we really are. We have been betrayed by these lawmakers in Columbia as well as Washington. VOTE FOR NO INCUMBENTS IN NOV!!
Posted by commonsence on October 9, 2008 at 7:44 a.m. (Suggest removal)
back2u...apparently most households DO handle their budgets the way the state does - live above their means, rack up a mountain of credit and hope the bill never comes due. Time for everyone to take a reality check and stop this ridiculous spending spree.
Posted by ironhorse on October 9, 2008 at 8:20 a.m. (Suggest removal)
Save money: Fire every principal in the N Charleston school system, replace them with Nuns. We’ll get better grades and more discipline.
Make money: Charge a fifty cent fee to cross Ashley Phosphate on foot, the illegals will generate a billion dollars a day in revenue.
Posted by oldglory on October 9, 2008 at 8:40 a.m. (Suggest removal)
The State nor it's citizens can 'spend' money they don't have! The Federal Gov't is a prime example of that!
Mr. Governor, if the state/citizens needs to spend money on anything perhaps it should be spent on investigating each and every agency for misuse of funds? Get rid of the 'special' interests, etc?
Posted by whatelseisthere on October 9, 2008 at 8:40 a.m. (Suggest removal)
Who will Harrell point the finger to when SC runs out of money....I wish we could vote to remove their pensions, insurance, and perks...then watch them all scramble!
Posted by missyall on October 9, 2008 at 10:35 a.m. (Suggest removal)
In 2006, Sanford vetoed the budget and told lawmakers to go back to work to find spending cuts so that money could be put in reserve for a future time when the economy tightened. Everyone from the Republicans to the Democrats scoffed, The State and its bloggers ridiculed Sanford for a a dumb move with no muscle behind it, and McConnell and Harrell were right in there making sure the veto was overridden with no spending cuts. These same folks now expect us to believe they'll make smart choices. NOT. State or Federal, all our elected officials need remedical economic education BEFORE they cast their first vote!
Posted by ProudNative on October 9, 2008 at 11:04 a.m. (Suggest removal)
We do not have enough patrolmen on the highway's now! Fewer teacher's in the classroom! What are they thinking?!?!?!
Posted by summerville_guy on October 9, 2008 at 11:30 a.m. (Suggest removal)
Before cutting teachers out of our school systems, here are two places to cut some money that is not going to very good use:
Steve Spurrier's annual salary - $260,075
Tommy Bowden's annual salary - $295,000
If the state was doing a budget like many of us do at home, these expenses would fall under the "entertainment" category, which is usually the first to get cut.
Posted by Adjoran on October 9, 2008 at 1:11 p.m. (Suggest removal)
Ever notice that whenever a state, city, or county has budget problems, they start talking about cutting police and fire services, trash pickup, teachers, and jailers? All the most critical functions of government are the FIRST things they talk about gutting, to soften up the citizenry for a possible tax hike. Heck, we don't want fewer cops and firemen to protect us, and more garbage piling up, now, do we?
Of course, if they just cut out the useless bureaucratic positions occupied by legislators' cronies, spouses, children, uncles, and cousins, we'd be in the black in no time flat. Can't do that, though . . . mustn't touch the patronage . . .
Posted by k5 on October 9, 2008 at 4:59 p.m. (Suggest removal)
thomas1776 - before you point at all! I am a supervisor at one of THOSE state agencies that you mention and the state gets more of my time than my family does! MY tax money pays my salary just like everyone else's and I'm sick and tired of people pointing fingers without knowing the facts!! I bust my behind everyday, but I'm a salaried employee!! So the citizens of this state get far more than what I'm paid for!!!
Posted by ironhorse on October 9, 2008 at 5:07 p.m. (Suggest removal)
k5,
Protesting a little too much aren't you?
You must be the supervisor at an "obviously" efficient DMV.
Posted by MinoritySouth on October 9, 2008 at 8:07 p.m. (Suggest removal)
For the first time ever, think I am at least in partial agreement with citizen Thomas1776. There are numerous gaggles of overpaid under worked mid and upper management types at MUSC that could save the state a whole lot of money with their official absence. If their systems were made more efficient and those loafers are let go.
Posted by martin on October 9, 2008 at 9:55 p.m. (Suggest removal)
the governor in virginia is taking a 5% pay cut and cutting his office. The constitutional officers there are cutting back, too.
They need to cut salaries of state agency heads by 10% and their useless top and middle management by 5%. Cut where the cuts give the most bang for the buck, not at the bottom. I worked for the state 30+ years and these people are, well, useless.
There is stealing with gas credit cards at DSS, too. They are not prosecuting. Does that make the Office of Investigation staff, county directors and agency head accessories after the fact. In one county, the theft was describes as "enormous".
Posted by k5 on October 13, 2008 at 9:59 a.m. (Suggest removal)
To Ironhorse - not protesting too much, just getting tired of seeing my family grow up before my eyes while I'm out working past working hours trying to get my job done and no unfortunately I'm not at DMV! My job is a "physical" one that requires me to be doing labor to get it done. I don't leave at 5 when my coworkers do...