Sanford presents budget recommendations
Story Date: 1/4/2007

 

Posted on Thu, Jan. 04, 2007
 
Sanford budget gets frigid reception
House speaker takes exception to barb in governor's $6.5 billion proposal

johnoconnor@thestate.com

House leaders, angered by perceived attacks in Gov. Mark Sanford�s $6.5 billion budget released Wednesday, said it would be quickly shelved when the Legislature writes its own plan.

House Speaker Bobby Harrell, R-Charleston, noted a summary printed with Sanford�s plan says �many House Republicans decided to ignore their pledge� to return money to taxpayers last year. Sanford, he said, has no intention of working with the Legislature.

�It�s totally unnecessary in this document,� Harrell said. �He�s intent on not working with us.�

Past spending plans lawmakers adopted have strayed from Sanford�s outlines. Last year, the differences were absolute. Sanford vetoed the entire bill, and lawmakers overruled him.

Lawmakers return to Columbia next week to begin writing a plan for the fiscal year that begins July 1.

The budget, which Sanford has previewed in parts over the past few weeks, shows both a familiar stubbornness and a new willingness to compromise as he enters his second term.

�This budget for us is painting a snapshot in time of where we would want to go if we had complete free rein,� Sanford said.

�In an ideal world, this is where we want to go ... this is a starting point, we all know that.�

Sanford said he was not taking �shots� at lawmakers, and getting people to talk about issues is the first step to change.

�It�s not an attack on anybody,� said Sanford spokesman Joel Sawyer. �It�s stating a fact.�

Of the roughly $1.1 billion available in one-time dollars and annual, recurring money, Sanford�s budget would spend about $400 million on new programs and the rest on a tax cut, saving for future state health care costs, road construction and other projects.

The budget limits growth over the current spending plan to the rate of population growth plus inflation, or 6.5 percent.

Sanford�s centerpiece is a slimmed-down income tax cut � partially swapped for a higher cigarette tax � offered as a compromise to lawmakers worried about his 2003 proposal, which was twice as large. The budget also sets aside $439 million to begin paying the $9 billion in future health care costs for which the state must begin accounting.

In addition to taking on the large issues, Sanford said, a new tactic is smaller proposals � targeted �rifle shots� � that could lead to larger improvements. The new income tax cut is such a rifle shot, according to Sanford.

The budget also carries over proposals the Legislature has rejected more than once:

� Across-the-board cuts to colleges and universities

� Eliminating state aid to some nonprofit or private groups, such as Special Olympics

� Cuts to Clemson University extension services

Still, other proposals, such as restructuring state government, are gaining support and could be approved this year.

�We�re going to know in the first several weeks,� Senate President Pro Tem Glenn McConnell, R-Charleston, said of restructuring bills. �I don�t know whether he�s gained ground on that or not.�

Lawmakers have been more split over the cigarette tax proposal. The 30-cents-a-pack increase would take the levy from the lowest in the nation at 7 cents.

Some, such as House and Senate Democrats, say money from the increased tax should pay for health care. Others question raising the cigarette tax at all.

�When you have as much surplus money as we have,� House Majority Leader Jim Merrill, R-Berkeley said, �you have to figure out the right way to return it to the taxpayers.

�I�m hopeful we can find some agreement there and some middle ground.�

McConnell said the changes Sanford made to the income tax swap could mean approval.

�He comes off a convincing (election) win for himself,� McConnell said. �Inaugurations are new starts, even though this is the same personality.�