Lawmakers to tackle fee increases

For years, state agencies could raise fees, from hunting licenses to court fines, simply by notifying the Legislature, which would have 90 days to say no.

They rarely did, allowing agencies to amass a revenue pot that grew from $4.5 billion almost 10 years ago to $7.1 billion this year. That's more than the $5 billion General Fund portion of the budget that contains all state taxes.

Now, given a budget shortfall of several hundred million dollars and an economic storm that has produced record unemployment in the state, legislators are poised to change the way state agency fees are created and approved.

"We believe for far too long agencies have been passing fee increases without those fees being debated on the floor of the House, and we think fees should be treated just like taxes," said Rep. Harry Ott, the leader of House Democrats who has filed legislation on the issue.

Although called "other funds" by state budget writers, the category includes all sorts of revenue collected by agencies that aren't part of the General Fund budget debated each year by legislators.

The billions of dollars include money paid by hunters and fishermen for permits, professionals of every stripe who must be licensed, tuition and other college charges, fines and penalties imposed by courts and law enforcement and money collected at state parks.

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Legislators aren't sure of everything in the category because they never have done a comprehensive study. But they have received complaints.

Rep. Garry Smith, a Simpsonville Republican who has co-sponsored legislation to change the way fees are increased, said the current system is a problem.

"I'm not sure anyone does budgeting that way," he said, "especially for something that has this huge an impact on the consumer. I realize that most of these are user-related but it still has an impact on those using the services. It can be a detriment to being able to utilize them."

Sen. David Thomas of Fountain Inn started the scrutiny of the issue, chairing a panel last year that began looking at fees at selected agencies. The panel hasn't completed its work, which he said might take years.

Sen. Tom Davis also has argued for legislators to get a handle around fees and filed legislation passed recently in the Senate that would require any fee increases or new fees, other than tuition or other college fees, the fees or charges involving a marine terminal and fees of the Public Service Authority, be approved by lawmakers in legislation separate from the state budget.

The idea is for any fee increase to get the full attention of lawmakers. Gov. Mark Sanford likes the idea.

"We'd support Senator Davis' efforts as it provides a valuable layer of accountability and indeed transparency that are oftentimes lacking in the process," said Ben Fox, Sanford's spokesman.

"Furthermore, we'd support the general idea of including college tuition hikes under this umbrella as it parallels the college tuition cap we've proposed for years, and if this legislation is another way at getting at the same problem, then we'd hope it receives full and fair consideration in both the House and the Senate."

Ott said his bill also exempts tuition from fee approval.

Davis' bill also creates a study committee to look at all state fees, something Ott thinks is unnecessary.

However, the general idea of approving all new fees or increases has bi-partisan support.

"I don't know that it would have a problem in the House," said House Ways and Means Chairman Dan Cooper. "We'll certainly look at it."

Ott said the economic environment makes the timing ripe to pass the fees legislation.

"I think everybody understands we are in a bad economic situation," Ott said.