Competitive Grants' timely end

The first casualty of the state's budget crisis will be the state's Competitive Grants program, which has been used to fund a variety of down-home pork projects in recent years. The decision to cut the remaining $8 million for the program is a welcome shift in spending priorities.

The Competitive Grants program has been used to fund balloon festivals and other local projects throughout South Carolina and has been cited as an example of excess in a particularly tough budget year.

One of its most controversial grants was $100,000 to pay the tab for German politicians attending a conference on the Grand Strand.

House Speaker Bobby Harrell says the grants program would be the first item on the chopping block, adding that the Legislature would look at other cuts recommended by Gov. Mark Sanford to deal with the $500 million shortfall. Let's hope the budget committee chairmen get the message.

A spirit of crisis cooperation should extend to budget considerations beyond the special session that will begin Monday. A joint statement from Rep. Harrell and Senate President Pro Tempore Glenn McConnell anticipates the necessity of further economies into next year.

"We are recommending that our cuts need to go beyond the 6 percent requirement of the Board of Economic Advisors," they said. "Our budget plan will go an additional percentage point and addresses a 7 percent reduction in spending to better secure this budget and future budgets."

The governor has sent legislative leaders a list of suggested cuts assembled from agency heads and has further recommended a review of his budget vetoes from the last session, most of which were overridden by the Legislature. Mr. Sanford's spokesman says that not all agency recommendations are endorsed by the governor and has urged the Legislature to consult him on executive branch spending priorities.

Additionally, the governor has recommended a re-examination of his executive budget for cost-cutting ideas. It includes recommendations for cuts in state employee travel, savings from government restructuring, and reducing the TERI program for retirees who rejoin the state's workforce.

Sen. McConnell says short-term cuts have to be followed by a long-term solution that avoids the "feast or famine budgeting cycle." He recommends zero-based budgeting and a constitutional cap on spending that creates a budget stabilization fund. Of course, that can't realistically be undertaken until next session. But it should be first on the Legislature's agenda in January.

A limited restructuring of state government endorsed by the House last session should also be high on the Legislature's list next session. Creating a Department of Administration would cut costs by streamlining operations and reducing duplication. It also would heighten accountability by placing executive functions directly under the governor.

The Legislature has a difficult job ahead next week and more of the same next session. But as Sen. McConnell observes, "We were elected to make hard decisions."

Eliminating the Competitive Grants program should be among the easier decisions that the Legislature has to make.

In next week's special session, legislators will reveal something about their legislative priorities just before Election Day. Voters, take heed.