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Gov. Sanford Unveils 2010-11 Executive Budget

BUDGET SETS SPENDING PRIORITIES AS STIMULUS DOLLARS DWINDLE

Executive Budget 2010-2011 Download the 2010-2011 Executive Budget [2.6mb]

Ex Budget Fact Sheet  Download the 2010-2011 Ex Budget Fact Sheet [48kb]

Columbia, S.C. - January 7, 2009 - Gov. Mark Sanford today released the seventh Executive Budget of his Administration – a balanced, activity-based $5.84 billion spending plan for Fiscal Year 2010-11 that prioritizes spending in yet another tough budget year, begins to address the roughly $1 billion in federal stimulus dollars that will evaporate the following year, offers $255 million in cost savings, and endeavors to protect core government functions such as education, public safety, economic development, natural resources and health care.

While the state’s general fund budget has been cut roughly $1.58 billion over the last two years, the total state budget this year – including federal funds and state fees – will top $21 billion, the highest total budget in South Carolina history.  Over the course of this Administration, the total state budget will have expanded from around $15.5 billion in FY 2003 to a projected $22.8 billion in FY 2011 – an increase of almost 47 percent. In just general fund terms, the last six years have represented a spending roller coaster that has led to harmful, and predictable, consequences.  Prior to mid-year reductions, South Carolina state government grew by over 40 percent from 2004 to 2008, leading the Southeast in year-to-year government growth.  Over the last 18 months, that same budget has been cut by 27 percent. 

“The financial challenges created by a global economic slowdown, and correspondingly our state’s declining revenues, have in many ways been exacerbated by the fact that federal stimulus dollars, used this year to plug state budget holes here in South Carolina and nationwide, are fast drying up,” Gov. Sanford said.  “That said, we think this balanced budget, while including many incredibly tough decisions, offers a blueprint not only for budget-writers, but policymakers across state government as well.  We look forward to working alongside the Legislature as it takes up the issues of government spending caps that would help avoid future budget cuts past muscle into bone, government restructuring that would save taxpayer dollars, and reform at the Employment Security Commission which would help avoid a repeat of the near billion dollar deficit currently at that agency. We’d also acknowledge House and Senate leadership in their recent opinion-editorial calling for common sense changes to the state’s budget process, and plan to work with them to push needed fiscal reforms.” 

The Governor’s budget, which will be submitted today to the South Carolina General Assembly, was crafted again this year following a series of public agency budget hearings and working with different “results teams” composed of state employees, board appointees, private citizens and issue advocates that were asked to rank around 1,600 different government activities in order of priority.  Based upon that work, this year’s Executive Budget recommends roughly $255 million in suggested savings.

FACT SHEET: 2010-2011 Executive Budget


Fiscal Responsibility: Gov. Sanford’s FY 2010-11 Executive Budget is a balanced, $5.84 billion spending plan that includes $500,000 for a Sunset Commission that would eliminate archaic and oftentimes expensive laws which no longer serve their original purpose.  

Job Creation: Similar to last year, the Governor’s budget includes a recommendation to eliminate the state’s corporate income tax, taking the rate from 5 percent to zero. This would potentially move South Carolina’s overall business climate ranking from 25th to 6th, or in fact higher. The Executive Budget also sends $4 million to the Commerce Department’s closing fund to help attract capital investment and quality jobs, and restores half of the 50 percent cut made to that agency last year.

Savings: Gov. Sanford’s FY 2010-11 Executive Budget proposes $255 million in specific cost savings and reinvests those funds in priority areas of education, job creation, healthcare and public safety. Those savings include things like not forcing law enforcement to provide state universities game-day traffic control free of charge, consolidating fragmented local school systems, better organizing custodial services in state buildings, enacting state employee furloughs, phasing out excess car repair facilities owned by the state in Columbia, and eliminating funding for state-paid lobbyists. 

Restructuring: As part of the overall cost savings, Gov. Sanford’s budget recommends agency and higher education realignment resulting in $17 million in savings.

Education: Understanding that South Carolina ranks 3rd in the Southeast in per pupil K-12 spending, and 1st in the Southeast in average tuition and fees at public higher ed institutions, there are difficult decisions to be made with regard to education funding. Still, the Governor’s budget serves students of all ages by providing more than $218 million to college scholarships and need-based grants, $34 million to First Steps and $3.3 million to charter schools. This budget also provides roughly $4 million for USC-Lancaster, Salkehatchie and Union, and pays for South Carolinians to take the GED practice test.

Law Enforcement: To improve public safety and ensure quality of life, the Executive Budget includes more than $75 million to eliminate deficits at Corrections and Juvenile Justice – helping the latter agency stay out from under federal court order. As well, this budget sends $58.3 million to DPS for increased highway traffic enforcement, and $2 million recurring to help enforce South Carolina’s Illegal Immigration law.

Healthcare: The Governor’s budget fully funds the state employee health plan and the state’s Medicaid Maintenance of Effort of $348 million, and supports Medicaid-fraud enforcement because every dollar we spend on enforcement we recoup seven dollars in Medicaid costs.

Quality of Life: The Executive Budget also provides $2 million for the Meals on Wheels program to make sure the homebound and needy are served, and sends $200,000 to the Military Base Task Force to protect the state’s 142,000 military-related jobs and over $7 billion in annual economic impact. 

Natural Resources: Gov. Sanford’s budget provides almost $11 million to support the state’s water quality maintenance efforts, and ensures that the Conservation Land Bank has enough funding to avoid shuttering their doors.