Caucus Press Release: Republicans Usher State Spending Limit Through House
Feb 15, 2007
FOR IMMEDIATE RELEASE
Republicans Usher State Spending Limit Through House
COLUMBIA -- Led by South Carolina's 73 House Republicans, the House of Representatives approved a state spending limit Thursday that forces state government to live within its means.
After a routine third reading Friday, the bill will head to the Senate, where it is expected to face stiff resistance.
"This is a critical part of our conservative commitment to restrain the growth of government," said Rep. Garry Smith of Simpsonville, the billâs author. "If we don't follow a path of fiscal responsibility when times are good, we will be much worse off when we have economic trouble. We saw that several years ago when we were forced to slash inflated budgets."
The bill imposes a new limit on spending beginning on 2008, when government growth will be limited to 6 percent or on a formula based on the growth in population and inflation. The House Republican leadership said it intends to stick by that spending limit beginning this year, even though it will not officially be in force.
The bill was amended by House Majority Leader Jim Merrill to include a provision making tax relief the number one priority in distributing funds above and beyond the spending limit.
"This is an important first step that we hope will instill some sanity in the budget process," Rep. Merrill said. "I'm proud of my Republican colleagues for putting action behind one of the central tenets of our conservative philosophy."
The bill also requires the Governor's Executive Budget to be certified by the Board of Economic Advisors. As it stands today, the governor's budget does not have to meet accounting standards. State law prohibits the House from "simply approving the governor's budget," as critics contend, because it does not stand up to accounting standards.
Other requirements of the bill include:
* leaving room for the General Assembly to suspend the limit in case of emergency or natural disaster.
* a provision that in years where there is revenue above and beyond the limit, the General Assembly may appropriate those funds for infrastructure improvements or temporary tax reductions and credits.
South Carolina is one of 30 states that has proposed or approved spending limits in the past few years. According to the National Conference of State Legislatures, 23 states currently operate under spending limitations.
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