After numerous requests for a vote, we were told we would not be voting on the alternative budget produced by Senators Ryberg and Davis (summarized here). The Senate Finance Committee then released a budget Gov. Sanford has dubbed “Chaos Budget – The Sequel.”

Greg Ryberg, (R-Aiken) pleaded for a vote on his version of the budget.I later  chimed in and asked for a vote. We were told NO.

The Ryberg-Davis budget used methodology used by the House of Representatives to produced the officially certified figures. The math worked, the budget was certified, but unfortunately, the committee was denied an opportunity to vote on excellent work by Ryberg and Davis. “In my 17 years in the Senate, I’ve never witnessed the rejection of a vote on any amendment in any committee by any member” was Ryberg’s response yesterday afternoon. “The constituents of Aiken County in Senate 24 were silenced.”

I agree that the constituents of every member of the Senate Finance Committee were suppressed. We checked with the clerk’s office and were told that Senate rules do not apply to committee meetings. “Traditionally common courtesy has worked in the committee process” we were told. We need to consider a rule change that applies to committee hearings.

 

The Anderson Independent Mail did cover the two budget versions, but I was unable to contact them to notify the vote was denied.

If South Carolina accepts the $700 million, state funding should be adjusted to either pay down debt, or cut taxes in targets such as capital gains or corporate income. Here’s a few reasons why. Paying down state debt would offset the tremendous federal debt incurred by Congress. Most would agree that Washington has essentially stolen our grandchildren’s prosperity for short term remedies. Also, these targeted tax cuts heal our lethargic economy. We would see an immediate impact with job creation. As you know, job creation liberates individuals from the rolls of government services and enables them to become productive taxpayers.

I would also point out that Gov. Sanford’s executive budget contained cost savings allowing us to fully fund essential services like classroom expenses, indigent healthcare, and public safety. Unfortunately, the General Assembly has resisted most of these recommendations. The Legislature has ignored many cost saving items preferring across the board funding cuts that include these core functions of government. I will continue to offer healthy solutions to our budgetary woes.

You may also be interested in a recent study coauthored by the South Carolina Policy Council and Dr. Arthur Leffer, President Reagan’s chief economist. These findings concluded that the acceptance of the stimulus cash would cause a net reduction of jobs in South Carolina’s struggling economy. I have summarized these findings here.

2009-2010 Alternative Budget

This week I’ve joined other conservatives in supporting an alternative budget. We’ve taken a different approach to the current budgeting woes. Our main concerns were  restoring funds for essential services like education, public safety, corrections & indigent healthcare.

Here’s some highlights:

-The current Senate Finance budget document sits at a $296m deficit from the 2008-2009 Appropriation Base (includes mid-year rescission and 9% reductions).

-This alternative budget includes $674m in “new” money including FMAP (Federal Matching Funds for Medicaid), carry forward balances and other transfers.

-$382m remains following the elimination of the deficit.

-$200m is set aside for tax cuts and debt reduction.

-Other savings occur throughout the other agencies (except higher education) as a result of things like travel reduction, cell phone/pager usage reduction, etc.

-All agencies receive a 2-day furlough.

-All agencies with health care functions have their mid-year 7% cuts fully restored. This results in a 2% cut from their 2008-2009 budgets.

-Department Of Corrections and Department of Juvenile Justice are made whole and their operating deficits erased.

-Restoring 7% to Department of Public Safety (Highway Patrol) allows for 75-100 new troopers.

-Total EFA sits at $2.03 billion which is $.57 billion below the 2007-2008 level.

-The addition of EIA ($.54 billion) takes the level to $2.57 billion. This over $.3 billion more than the 08-09 formula base.

-The flexibility resolution allows all of this to go toward the classroom.

SC has approximately 873,000 students and therefore, with flexibility over $2943 per student will flow to the classroom. This is more than $350 over last year’s base student cost.

-This budget funds education at the highest level in history

Senator Harvey Peeler Introduces “Jumpstart South Carolina’s Economy Plan”

Whilst we’re hearing all the hub-bub about paying down debt, here’s an interesting study by alec American Legislative Exchange Council) showing our 10.8% is ranked 47th. As you know, common sense tells us that such a large amount of our budget going to debt means less going to essential services and even less in the private sector. Here’s a link to the report by alec.

 

Debt service is an indicator that contributes to our competitiveness. We need to get this 10.8% down. Hopefully, we’ll see a turnaround in our economy and we can chisel this debt down.