House passes budget, but more cuts on way

The state House gave final approval Wednesday to a $6.6 billion budget that uses $1 billion in federal stimulus cash.

Much of the stimulus money in the spending plan that now heads to the state Senate would pay for health care and education, but increasingly dire economic forecasts will likely spur more cuts.

Before Wednesday's vote, the House passed an amendment 108-8 to use stimulus money. The budget approved Wednesday includes federal money Gov. Mark Sanford said he would rather use to pay off bonds or plug into long-term liabilities, such as the state retirement fund.

Only hours after the House sent its budget to the Senate, the state's economic forecasting board shaved its revenue estimates by 1 percent for the current fiscal year and 1 percent for the new budget.

Senate Finance Committee Chairman Hugh Leatherman said he'll call for the state's financial oversight board to make across-the-board cuts that require agencies to cut $64 million in the four months remaining in the fiscal year.

For the new budget being crafted, the problems are worse. In order to take the stimulus money, education and health care budgets can't take cuts. That means up to 4 percent in budget cuts for remaining agencies, Leatherman said.