News and Press Releases for January 2007
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1/03/2007
Gov. Sanford Unveils 2007-08 Executive Budget
Budget Limits Spending Growth, Provides Tax Rebate, Pays for Future Promises, Fully Funds Core Services
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Columbia, S.C. - Gov. Mark Sanford today unveiled the fourth Executive Budget of his administration - a balanced, activity-based $6.5 billion spending plan for Fiscal Year 2007-08 that limits spending to population plus inflation, provides for a $205 million income tax cut, begins the process of paying for future financial commitments, and increases funding for core government functions such as education, law enforcement and healthcare.
Of the $803 million in new money coming into the state this year, the governor's budget proposes spending roughly $399 million - 5.5 percent growth above the previous year plus constitutional exemptions, for a total growth rate of 6.5 percent. Gov. Sanford has proposed using the remaining dollars for a combination of beginning payment on the state's unfunded liabilities and providing tax relief for South Carolinians. Specifically, the budget recommends using $98 million in recurring money plus $107 million in increased cigarette taxes to cut income taxes for individuals, businesses or some combination of the two by $205 million.
"What's too often lost when people are talking about the budget in Columbia is the very real impact that it has on South Carolinians' lives, and in particular the impact it has on their wallets and pocketbooks," Gov. Sanford said. "South Carolinians know that whether it's in their homes or their small businesses, making too many spending promises will eventually lead to cutting necessities, which is exactly what happened to our state just a few years ago. But by holding spending to a sustainable level and returning more dollars to those taxpayers and small businesses, we can both fund the stateÕs core needs and use the excess to grow the economy instead of growing 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 ask them to help us 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."
The governor's budget, which has been submitted to the South Carolina General Assembly, was crafted again this year following a lengthy series of public agency budget hearings. After the budget hearings, the governor and his staff worked with different "results teams" composed of state employees, board appointees, private citizens and issue advocates that were asked to rank roughly 1,600 different government activities in order of priority. Based upon that work, this year's Executive Budget recommends roughly $92 million in suggested savings.