Executive Budget to Fund Liabilities, Return Dollars to Taxpayers

Executive Budget to Fund Liabilities, Return Dollars to Taxpayers

BUDGET FOCUSES ON TAXPAYER PROTECTION BY FUNDING LOOMING DEBTS, RETURNING DOLLARS TO TAXPAYERS

In the third preview of his upcoming Executive Budget, Governor Mark Sanford traveled to Greer today to lay out a number of recommendations aimed at bringing greater fiscal responsibility to the state budget. Specifically, the governor's budget holds state spending increases to growth in population plus inflation, puts $307 million toward paying for the state's looming unfunded liabilities, and could return up to $98 million to the state's taxpayers on an annual basis.

"If South Carolina continues the course it's been on over the past few years of growing government far faster than people's paychecks, our state is going to face some serious financial difficulties in the very near future," Gov. Sanford said. "These actions are tied to three principles I've found most South Carolinians believe in. One, government ought to grow at a sustainable rate, not two times faster than the growth in people's pocketbooks and wallets. Two, we ought to pay for existing promises before we make more. Three, after we've done those things, excess funds should go back to the people rather than to pay for more government. I'd give real credit to the House and Senate for following our lead on completing repayment of trust and reserve funds last year, and I'd call on them to continue that progress this year by working with us to come up with a fiscally responsible budget that keeps government growth in check and makes better use of taxpayers' dollars."

Budget writers will have roughly $803 million new dollars available to spend when they return to Columbia in January. Gov. Sanford's Executive Budget recommends limiting spending increases to the population plus inflation rate of 5.5 percent, or roughly $398 million in new spending.

With the remaining dollars, the Executive Budget 1) will allocate up to $245 million toward the unfunded $9 billion retiree benefits liability, 2) will put $41 million toward shoring up the tuition prepayment program and recommend phasing out the program, 3) will repay $21 million in state debt on an accelerated basis, and 4) could return as much as $98 million to taxpayers on an annual basis.

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