SANFORD SAYS VETOES AN EFFORT TO WORK WITH  GENERAL ASSEMBLY ON TRUST, RESERVE FUND REPAYMENT

Columbia, S.C. - May 17, 2005 - Saying that South Carolinians deserve more of their money back, that government shouldn't grow faster than the taxpayers' ability to pay for it and that more of the $707 million in new money coming into state government this year should go toward paying back trust and reserve funds, Gov. Sanford today issued his budget vetoes for FY 2005-06. Totaling $95.9 million, the governor's 163 vetoes would provide for over $210 million in trust and reserve fund repayment, up from the Legislature's proposed sum of $117 million. The budget sent to Gov. Sanford's desk spends 83% of the $707 million in new money on additional spending and just 17% on restoring trust and reserve funds. It also represents a 9.1% increase in the expenditure of state tax dollars compared to last year, despite the fact that income levels in South Carolina grew by just 3.8% last year. Similarly, our combined population and inflation growth increased last year by just 4%.
           

"Given that just $2.5 million out of the $707 million in new money coming into state government this year is going toward tax relief, we think there's a lot of room to repay money borrowed from trust and reserve funds," Gov. Sanford said. "I believe we ought to completely pay those funds back this year, but these vetoes are all about trying to find some common ground. Let's split the difference and pay back half of what we owe."

The contemplated vetoes keep spending at the highest level approved by the chambers during the legislative process in education ($190 million more), Medicaid ($80 million more) and law enforcement ($37 million more),  and still leaves $185 million available for any other items the General Assembly might wish to fund. 

"If you look at the threats that are out there with respect to our national economy - whether it's a weak dollar, our trade deficit, rising gas prices or increased consumer debt, I think it's critically important that we get our fiscal house in order," Gov. Sanford said. "Any dollar in vetoes that the Legislature sustains is a dollar we can use to do that, so it's my hope that these vetoes would get a full and careful debate based on their merits. I think we owe that to the taxpayers."

For a copy of Gov. Sanford's veto message in its entirety, please log onto the governor's website at:   
http://www.scgovernor.com

-#####-

W

Will Folks
Press Secretary, Governor Mark Sanford
803-734-5258 (office)
803-734-6447 (facsimile)
803-446-6713 (mobile)
[email protected]
www.scgovernor.com