News

A Frenzy of Election-Year Spending

3/21/06

By THOMAS RAVENEL
Guest columnist

We should have seen this coming.

On the floor of the S.C. House of Representatives last May, Bobby Harrell, answering a question about whether money for a project vetoed by Gov. Mark Sanford would go toward repaying raided trust fund accounts, said this:

“It does not automatically. It would be up to this General Assembly to make that decision next year, which is an election year, and quite candidly, I suspect members are going to want to spend money on things next year, just like they wanted to this year, just like they wanted to last year, just like they’re going to want to in two years.”

Unfortunately for South Carolinians, Speaker Harrell’s prophecy came true this month when the House Ways and Means Committee, under the leadership of Rep. Dan Cooper, R-Anderson, adopted a budget that spends every last nickel in state coffers and grows state government spending by about 11 percent — despite a projected increase in population and inflation of only about 4.8 percent.

“Spend it all, spend it now — if we don’t, then the Senate will!” That was the battle cry as Ways and Means passed its budget. Sadly, that is not an exaggeration; consider this from committee member Annette Young, R-Dorchester:

“Should we just give it to the Senate to spend? That would be irresponsible. I’m in favor of spending limits, but until we get (a spending limit bill) through the Senate, we have to spend the money.”

The committee simply has to spend the money, don’t you see? This is an election year, and to do otherwise would be irresponsible!

How is this happening? South Carolina’s economy, coming in stronger than previously expected, is pouring more than $1 billion in additional revenues into state coffers. Surely, there is a better way to approach this financial windfall than “spend it all, spend it now.”

We at the South Carolina Club For Growth want the Legislature to align the growth in government spending with the growth in South Carolinians’ average personal income — and to use the excess revenues not for new government programs, but to repay trust funds, accelerate repayment on state debts, establish a “rainy day” fund and stimulate our economy through a tax cut. In short, we want to use the excess money to put our state’s fiscal house in order and to return the rest to the taxpayers who sent it to Columbia in the first place.

The governor and the majority of Republicans in the House agree with us. This, verbatim from a January 2006 press release by the House Republican Caucus (ostensibly including Young and Cooper):

“The fifth item on the Caucus agenda is restraining state spending. House Republicans believe that just because more tax revenue is coming in that does not mean government needs to spend it. For that reason, the House Republican Caucus wants to limit the growth of government and restrain future General Assemblies.”

The House even passed a spending limits bill last month to show that it really is serious.

But then our fearless Chairman Cooper looked at a billion new taxpayer dollars flowing into state coffers, and his eyes got big. Visions of children’s museums, balloon races, planetariums and other pork danced in his head. Now he doesn’t even want to repay all of the trust funds legislators raided in prior years, let alone return any money to the taxpayers.

So, now that the House must consider this budget, it is time to hold the House responsible as a whole, forcing representatives to keep their promises of spending restraint. If you agree, give your representative a call.

Mr. Ravenel is a businessman from Charleston.