Caucus Press Release: House Approves State Budget
Mar 15, 2007
FOR IMMEDIATE RELEASE
House Approves State Budget
Budget cuts income taxes, fights Internet sex predators,
adds law officers, and funds college scholarships
COLUMBIA -- The House of Representatives, led by House Speaker Bobby Harrell and Ways and Means Committee Chairman Dan Cooper, approved the $7.3 billion 2007-2008 South Carolina budget Thursday -- a budget that cuts income taxes, reforms the Department of Transportation, adds more law enforcement, and increases college scholarships.
"We are working hard to improve the quality of education and fund critical services while holding the line on government growth and returning money back to the taxpayers," said Speaker Harrell. "This budget shows the House's commitment to address our citizens' needs and provide South Carolina the means to compete with the rest of the world in tomorrow's economy."
The top priority for the 73-member House Republican Caucus was a personal income tax cut, which has failed to pass the Senate in two previous years. Taxpayers with an adjusted gross income of more than $13,000 per year will see their tax rate fall from 7 percent to 6.8 percent next year -- the first step in a three-year process that steps taxes down to 6.4 percent.
"This is a budget that responsibly appropriates taxpayer money while also returning money to the people who gave it to us," said Majority Leader Jim Merrill.
The budget also includes provisions for reforming the Department of Transportation, a vital government reform in peril by Senate inaction.
"By putting DOT reform in the budget we are putting the Senate on notice that the House is serious about reforming the agency," said Rep. Annette Young, chairman of the House DOT Study Committee. "We must reform this troubled agency, and since reform clearly has repercussions for our state's taxpayers, we included these reforms in the budget."
Another important item funded in the state budget is the "Post Employment Benefits Trust Fund." The $63.5 million in this fund begins funding a projected deficit in the state employee retirement fund. The change is in response to a change in national accounting standards.
In addition, the budget:
* Fully funds the replacement cycle for the state's aging school bus fleet,
* Funds additional LIFE and Palmetto Fellows scholarships,
* Allocates $13 million to the Department of Commerce to recruit new business,
* Hired 135 new law enforcement officers and 62 new corrections officers,
* Gives the Attorney General three new Internet sex predator prosecutors.
The budget now heads to the Senate.
For More Information
Jason Zacher
(803) 734-3139
-30-
Click for a PDF copy of this press release.
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