Caucus Press Release: Republicans Propose Local Government Spending Caps
Mar 1, 2007
FOR IMMEDIATE RELEASE
Republicans Propose
Local Government Spending Caps
COLUMBIA -- House Speaker Bobby Harrell, Majority Leader Jim Merrill, Rep. Garry Smith, and 19 other conservative Republicans filed legislation today to cap the out-of-control local government spending in South Carolina.
"The lesson of the Property Tax Relief from 1995 is that if there are no limits on the spending authority of local governments and school districts then we will have to address property tax relief again in the near future," Rep. Smith said. "We want the tax relief we provided last year to be permanent."
The legislation is filed on the heels of the historic passage of state spending limits under the guidance of the House Republican leadership.
"Lawmakers are responsible for the public's money at all levels of government," Speaker Harrell said. "The House has proven its commitment to limit government spending by passing legislation that limits state government. We are now asking that local governments also share in the commitment to responsibly handle the people's tax dollars."
Legislation was needed to cap local governments because of events following the 2006 property tax relief. At least 20 school districts, and some municipalities and counties circumvented the tax relief provided by the General Assembly by dramatically increasing property taxes before the relief took effect.
"Those actions were a clear money grab by a few unscrupulous local governments," Merrill said. "While a select few gave reasons for their tax increases, most rushed through what are, in effect, massive penalties on local businesses."
The bill filed Thursday rolls back those increases. It also restricts spending increases for operations to a formula that considers inflation and population growth. There are some exceptions: including declarations of a state emergency or a two-thirds vote of the council or school board.
"Government must learn to live within its means," Merrill said. "Since government has proven it won't voluntarily, we must restrict it by statute."
For More Information:
Jason Zacher
(864) 787-6608
-30-
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