What do you think of the Governor's proposed Executive Budget?
Jonathan Pait
January 8, 2004
Below you will find some of the highlights of the Governor's 2004-05 Executive Budget. What do you think? Comment on the budget using the feedback form at the bottom of this page.
In addition to closing a $350 million funding gap, we
1. Balance the budget without raising taxes.
2. Make education funding a top priority.
A) K-12 Education
- The proposed FY 2004-05 spending increase for education is $29.7 million more than spending for FY 2003-04.
- The proposed FY 2004-05 increases spending for the BSC is $31.7 million more than FY 2003-04 Ė a 3.8 percent increase. Increases include funding from:
1.
South Carolina Education Lottery: $20.4 million
2. Reduction of State Department of Education Administration and Other Program reductions: $4.6 million
B) Higher Education
- The proposed FY 2004-05 spending reduction in direct funding to colleges and universities is 2.6 percent, this is partially offset by an increase in Commission on Higher Education spending and removed the onerous mandate of Performance Funding.
- The proposed reduction is considerably smaller than the FY 2003-04 reduction (10.7 percent) or the FY 2002-03 reduction (11.1 percent)
- No proposed reductions to scholarship programs.
3. Strengthen health care spending.
- Proposed increase in overall spending at the Department of Health Oversight and Finance (currently the Department of Health and Human Services) by $7.5 million.
- The proposed Medicaid budget is funded totally in recurring general fund revenue.
- The proposed funding increase represents a 25 percent increase in Medicaidís recurring base.
4. Save nearly $26 million for the taxpayers through restructuring.
- Implemented certain proposals from
A) The bipartisan Governorís Commission on Management, Accountability, and Performance (MAP Commission).
B) The 1991 Restructuring Commission, and
C) The 2003 Governorís Task Force on Government Restructuring and Campaign Finance Reform.
- Propose reducing the number of state agencies from 87 to 72.
- Proposed consolidating all of the health and human services agencies into three cabinet-level agencies to improve front-line services:
A) Department of Health Oversight and Finance
B) Department of Health Services
C) Department of Human Services
5. Reduce annualizations to the lowest level in ten years.
- The FY 2004-05 Executive Budget proposes a reduction of one-time expenditures to $144 million.
- The FY 2003-04 Budget included $235 million in annualizations.
- The FY 1994-95 Budget included $202 million in annualizations.
6. Implementing Trust Fund integrity
- No funds borrowed from any Trust Fund for other operations.
- Begin repayment to the Barnwell Cleanup Fund with a proposed $5 million contribution for FY 2004-05.
- Propose moving forward on funding the Conservation Land Bank.
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