Gov. should heed treasurer

As the impasse continues over federal stimulus funding due South Carolina, add Republican state Treasurer Converse Chellis to those who object to Gov. Mark Sanford's stubborn unwillingness to accept $700 million for schools and law enforcement.

The treasurer details his position in a column on our Commentary page and, in doing so, kicks the slats out from under the governor's argument for using the money to pay off the state's debt. As Mr. Chellis explains, South Carolina has a manageable level of debt. The state also has a strong credit rating

"Debt is not our problem," he writes. "Unemployment, job creation, low personal wealth and education are our problems. We stimulate nothing by paying down a very manageable debt."

The treasurer succinctly assesses the problems created by the recession — problems that are being exacerbated by the governor's refusal to take all of the stimulus money allocated to the state by Congress: "Companies are closing, energy prices are on the rise, and bad unemployment figures are only getting worse. The South Carolina economy is in freefall and needs a shot of adrenalin. With every day that goes by, our state loses valuable interest money on the stimulus funds."

Interest would be generated while the money is banked between its receipt and its disbursement. The interest that the state could expect to receive from the stimulus funding in question would likely total hundreds of thousands of dollars, according to a spokesman for the treasurer.

That additional money also could be used for public education, state colleges and law enforcement.

The Legislature is advancing along the same line of thought as advocated by the treasurer. On Wednesday, the Senate endorsed a budget that includes the anticipated stimulus allocation of $350 million for the next fiscal year. The House version of the budget also includes the funding.

In doing so, the Legislature has set the stage for a legal fight with the governor, unless he is willing to relent on his inflexible position.

While the governor's previous calls for budget frugality have resonated with state voters, he has picked the wrong time to beat the drum. Just this year, state revenues have declined $1.1 billion. Frugality has been forced upon the Legislature.

The $700 million in stimulus aid is designed to ease the cuts where help is most needed. As Mr. Chellis writes, "The time is now to stop playing politics, push forward, and accept all the allocated funds."