Gov. Sanford introduces spending plan
By Jessica Cross crossja84@gmail

Gov. Mark Sanford introduced a $6.8 billion state spending plan on Monday for the fiscal year 2008- 09. The fiscal year begins July first, and the plan reduces state spending by $326 million or 4.6 percent, compared with last year's spending levels, provides an optional income tax rate cut, and includes funding for such items as 300 new law enforcement officers and $50 million for the Conservation Land Bank.

The new budget pares nearly $183 million from the state's General Fund. Areas of major savings include cutting almost $22 million from the Children's Health Insurance Program and saving more than $16 million by moving State Health Plan members to generic drugs.

But Sanford said the big picture is "This will be a tough budget year," and pointed out a nationwide economic slowdown resulting, in part, from the current sub- prime crisis.

Though the current administration has proposed reduction of state spending, the budget has grown an average of seven percent per year for the past five years.

Sanford quoted the National Association of Budget Officers as reporting that S.C. led the Southeast in terms of budget growth for the last two years and the state is currently fifth in the nation.

And the administration's philosophy, said Sanford, is "You cannot grow government faster than the underlying economy or faster than the growth of people's paychecks and wallets."

Sanford proposed tax burden relief that gives wage earners the option of paying a 3.4 percent income tax without deductions, rather than the current seven percent after exemptions. This tax cut shifts an estimated $107 million in taxes to smokers, who will have to pay a 30- cent increase in the state's cigarette tax.

Sanford said the cigarette tax is not the cure- all to any problems in S.C.'s health care. He called the income tax savings a "revenue- neutral" way of producing revenue streams within government and, in turn, a stronger, healthier economy.

While the budget makes no provisions for road improvements, Sanford said he plans to analyze creative models worldwide of ways to fund improvements. One option he said he is considering for funding and increasing efficiency is toll roads and lanes.

www.scgovernor.com.