Proposed budget would be largest in state history. Cuts to General Fund more than compensated for by increased Fines and Fees, and Federal Funds.
COLUMBIA -- House lawmakers unveiled their initial draft of the proposed 2010-2011 state budget Tuesday. Despite multiple media reports that the budget cuts back on spending, the proposed budget actually increases total state spending by roughly $400 million.
The House plan proposes the state spend $21.1 billion for 2010-2011. According to the State Budget Office, current state spending is $20.7 billion.
"Even though you see total dollars, you have to understand those are one-time federal monies that go to programs that are dictated and mandated by the federal government," says Republican Representative Kenny Bingham of Lexington County.
Bingham points out state dollars have been slashed roughly $2 billion over the last two years.
At issue is how state spending is calculated. The budget is comprised of three categories: General Funds, Federal Funds and Other Funds. However, some lawmakers and media outlets only consider the general fund when discussing the state budget.
General Fund revenue is comprised largely of income taxes, sales taxes and is the budget category most commonly known. It is debated on the House floor and is commonly referred to as the "state budget." However, state lawmakers also appropriate revenue collected by state agencies from fines and fees imposed on state residents. The state also receives money from the Federal government either via grants or in some cases as a match for state dollars to fund certain programs.
General Fund spending declines under the proposed budget from $5.7 to $5 billion. However, state fine and fee revenue increases from $7.2 to $7.8 billion, which nearly wipes out cuts made to general fund spending. This along with a $400 million increase in federal spending results in a total budget that spends more than ever before.
| State Agencies set to increase funding | 2009/2010 | 2010/2011 |
| Commission on Higher Education | $123 Million | $144 Million |
| Employment Security Commission | $101 Million | $116 Million |
| Clemson University | $598 Million | $767 Million |
| State Agencies set to lose funding | 2009/2010 | 2010/2011 |
| University of South Carolina | $921 Million | $918 Million |
| South Carolina State University | $158 Million | $150 Million |
| Department of Education | $3.4 Billion | $3.1 Billion |
Click here for the full Ways and Means 2010/2011 budget proposal.
Education is looking at almost $400 million in cuts while agencies like the Attorney General's office and the Commission on Higher Education could see money increase.
"At the (local school) district level 85-90 percent of your budget is salaries and that means people. And most of your people are teachers," says Jim Foster of the Department of Education.
Despite facing deep cuts some teaching jobs in this state have been saved by one-time federal stimulus dollars, according to Foster. But next year, they go away just like some of the money included in this year's House Ways and Means appropriations bill.
"Nobody is in shock about what will happen next year, but I do believe some people will be shocked next year whenever the budget comes out because it's going to be far worse than what we're dealing with this year unless there's some kind of turnaround in the economy," adds Rep. Bingham.
The proposed House budget is less than the executive budget proposed by Gov. Mark Sanford in January. Sanford issued his final spending plan January 7, which recommended a $22.75 billion budget.
State Budget History
2010-2011 Proposed House Budget: $21.1 billion
2010-2011 Proposed Executive Budget: $22.75 billion
2009-2010 State Budget: $21.1 billion (Revised down to $20.7 billion)
2008-2009 State Budget: $19.8 billion
2007-2008 State Budget: $20.2 billion
2006-2007 State Budget: $19.1 billion
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