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Senator proposes priorities for S.C. budget

By Yvonne Wenger
<a href="mailto:ywenger@postandcourier.com">ywenger@postandcourier.com</a>
Saturday, January 22, 2011

COLUMBIA -- Sen. Mike Rose thinks he has a bold idea that might get South Carolina's
spending priorities straight.

And as soon as the Summerville Republican put his idea into legislation this week, some of
the chamber's most influential and conservative senators signed on.

Here's Rose's plan to deal with the state's gaping $1 billion budget hole:

Transfer $776 million, or 10 percent, of the $7.76 billion the state collects each year from
fines and fees and shift it to an escrow account that ultimately would end up going toward
what are universally regarded as the state's top five budget responsibilities: public schools,
law enforcement, disabled children, health care and criminal justice.

File

State Sen. Mike Rose says his proposal will tackle the state's $1 billion budget deficit.

This money isn't part of the general fund, from which the state draws its annual budget.
Instead, the money routinely has been left in department accounts to be used as the
agencies' high-level government workers deem necessary.

Next, under Rose's proposal, the agencies that normally receive the fines and fees would

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have to prove why keeping the money for their programs and services is more important
than using the money toward the five core government responsibilities. If lawmakers buy
the argument, then the agencies would get the cash back, he said.

Rose said his proposal will get the state through the budget emergency and provide better
oversight of spending by state agencies.

"The burden is transferred to them to compete for the money and justify the spending,"
Rose said.

Read more

Joint Other Funds Oversight committee

Read the bill

The South Carolina Policy Council's report on the state's $21 billion budget

Top 10 Statewide Other Fund Revenue Sources, from the Office of State Budget

He said the state has another option to managing the general fund. "I want to reallocate the
money South Carolina does have instead of cutting services or raising taxes."

Gov. Nikki Haley says she wants to hear any and all suggested solutions from lawmakers.
"Sen. Rose has stepped up," said Rob Godfrey, Haley's press secretary.

Government spending in South Carolina is more than $21 billion a year. That includes the
approximately $5 billion this year that will go into the general fund from tax collections,
primarily income and sales taxes; $8.26 billion from Washington; and $7.76 billion in fines
and fees.

The bulk of the fines and fees come from student tuition, a penny in sales tax levied for
public schools, Medicaid and Medicare reimbursements, cash from gasoline and fuel taxes,
lottery proceeds and motor vehicle licenses. Lawmakers previously have earmarked that
money for specific uses.

--Tuition allows colleges and universities to keep their doors open, especially as the share
the Legislature ponies up keeps shrinking.

--The purpose of the lottery is to provide higher education scholarships.

--The gasoline taxes goes toward road and bridge construction

Rose said he expects portions of the fines and fees to be spent in justifiable ways. Likewise,
he said it would not make any sense to take money out of education, only to transfer it back.

Rose's bill is expected to draw some opponents who see the fines and fees, especially
tuition, as a transaction for a service and not a money grab bag.

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What Rose said he wants to do is take that pot of money off "autopilot" and subject the
spending to legislative scrutiny. The agencies that would lose the money would provide, in
writing, an explanation as to why they should get it back, and the Legislature would vote on
whether to return the cash or use it to plug the budget hole.

Senate President Pro Tem Glenn McConnell, R-Charleston, and Senate Majority Leader
Harvey Peeler, R-Gaffney, are among the senators who have signed on as co-sponsors to
Rose's legislation.

A legislative panel also has been convened to study the fines and fees portion of the state
spending. The work is ongoing.

Rose said a call from the Department of Natural Resources two weeks ago helped solidify
his idea. Rose said he got a call to sign off, as a member of the Dorchester County
delegation, on the purchase of a $18,000 boat. Rose said he is sure the boat is a legitimate
purchase, but he didn't think it could be justified when the state is talking about requiring
teachers to take unpaid days off.

"There are hundreds of examples of expenditures," Rose said. "Are we going to spend the
money for that or to keep our schools open? We can close the parks or we can cut back the
parks to be open only a certain number of days a week. Parks, museums and the like aren't
core functions of government. They're nice and desirable, but they're not necessary."

Rose continued, "What's wrong with saying, 'We're not going to build this road this year?' I
am drawing the line at not shutting down the schools."

Reach Yvonne Wenger at 803-926-7855.

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