News
Budget Cuts and a Federal
REPUBLICAN STATEHOUSE REPORT No. 5
February 20, 2009
The process of writing the state budget is always a roller-coaster in any year, but between the budget cuts and the poorly named federal "stimulus" package, this year is unlike any other I have seen during my time in the General Assembly.
Looking strictly at the numbers, a new influx of cash to help pay for schools, roads, and public safety looks like a good idea, but the Republican Caucus has major concerns as we prepare to accept or reject the stimulus money.
We whole-heartedly support the opposition to the entire "stimulus" bill that our Congressmen and Senators showed during the debate in Washington. We thank Senators Graham and DeMint, as well as Congressmen Barrett, Brown, Inglis, and Wilson for helping lead the charge against this giant pork-laden spending bill.
But it passed, so the question now is what should South Carolina do with its share of the money: accept it, reject it, or some combination of the two. The House Ways and Means Committee decided to accept it this week, in an effort to keep the process moving forward.
The federal money will be provided over two years, but a concern shared by myself and my Republican colleagues is: Are we just "kicking the can down the road" for two years on the promise that the economy will grow enough to plug the hole with regular revenue? I'm not sure that will happen, and right now, I think we're just delaying harsh budget cuts until 2011. We have fought against "annualizations" - paying for recurring items with one-time revenue - for many years now. This federal money is one, giant annualization.
The Ways and Means Committee was forced to make some dramatic and difficult choices on which agencies would be cut more than others. The federal money helped our education, public safety, and healthcare systems, but we would have done everything we could to fund those critical functions of government anyway. The devil is always in the details with federal legislation, and I'm sure there will be more restrictions and requirements coming.
The flip side is simply rejecting the money, which several Republican governors are urging. The fiscal conservative in me likes this idea, but unfortunately, as with everything that comes out of the federal government, it's not that simple.
There are many numbers being tossed around, but one fact is certain - every taxpayer will be paying this back for a very, very, long time. Chances are, your five-year-old's children will be paying for this. So, do we accept money (that we will inevitably send to Washington) and try to help out our schools and projects here in our state, or do we reject the money and have our taxpayers in South Carolina paying tens of thousands of dollars to governments in California or Massachusetts, who will be certainly accepting every dollar possible.
For now, the Republican Caucus - with the information we have available to us as I am writing this - has decided to accept the money and patch our budget hole. But the debate is not over yet. The House will consider the state budget during the week of March 9th. I need to hear from my constituents about this vitally important issue so I can make your concerns heard on the House floor. This is an issue where you can have a direct and immediate impact on the process.
As always, thank you for the privilege of serving you in Columbia. If I can ever be of assistance to you, or if you have ideas on issues you want me to share with the rest of the General Assembly, please don't hesitate to contact me at (803) 734-3144.
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