Lawmakers trying to hammer out budget

Debate to continue today on $7 billion state spending proposal

COLUMBIA — The state's two lead budget writers are trying to get a $7 billion spending plan worked out by tonight, but nearly all of the contentious items remain unresolved.

House and Senate negotiators spent almost four hours in a conference committee meeting Monday but postponed debate on almost all the sticking points, including how to fund 4-year-old kindergarten.

"We have lots of things to work through," said Senate Finance Committee Chairman Hugh Leatherman, R-Florence. He and House Ways and Means Chairman Dan Cooper, R-Piedmont, set a goal to try to finish the budget today, although the House might get caught up in debate on whether to go along with the Senate plan to raise the state's cigarette tax.

The conference committee will meet at 9 a.m. If they agree on a budget, it would then go to the House and Senate floors for consideration and eventually on to Gov. Mark Sanford.

Chief among the differences are four provisions the House included in its revised budget earlier this month. The provisions, which were passed in separate bills and sent to the Senate, would give married couples a break on income taxes, designate money from the sales tax on cars toward road maintenance and construction, impose a state spending cap and put money into the endowed chairs programs for higher education research opportunities.

Sanford said recently that he is worried that the Legislature might be preparing to send him a budget that does not meet constitutional requirements. By law, the governor said, the budget must be balanced, but proposals have the departments of Education and Corrections running deficits.

Rising fuel costs mean operating the bus fleet could push the Education Department into the red. Every 8-cent increase in fuel means an extra $1 million in costs each year, said Jim Foster, agency communications director.

Budget writers have been forced to cut budget proposals as revenue projections have dropped. They received a bit of good news Monday when the state Board of Economic Advisors decided further revenue cuts won't be likely.

"These numbers do not say we're falling in the hole," said Bill Gillespie, the state's chief economist.

The board decided to wait another two weeks before revising its revenue estimate.

In April, the board lowered its revenue projection by $50 million, which caused the House and Senate to revise their versions of the proposed spending plan. The board members discussed Monday the possibility of the state regaining $30 million, or more, of that projected loss because of the processing of tax returns.

Still, revenue overall is down $110 million to date from last year.