Governor Mark Sanford Vetoes Stimulus Funds

[2much4U]

From The Anderson Independent Mail

Governor vetoes stimulus funds

Press Release
Tuesday, May 19, 2009




COLUMBIA, S.C. — Governor Mark Sanford today vetoed state budget sections compelling him to spend stimulus funds, saying the budget failed to put South Carolina in a better post-stimulus financial position, and that it wasted a once-in-a-generation chance to make much-needed reforms to state government.

Governor Sanford vetoed part 1A of the budget, the budget’s main spending portion, and Part 3, the portion that directs stimulus spending, in their entirety. Governor Sanford has advocated throughout the budgeting process using $700 million in stimulus money – about 10 percent of the total headed to South Carolina – to pay down state debt.

The governor separately vetoed 47 provisos that made inefficient structural changes, continued wasteful practices, or represented misplaced priorities. In his veto message, the governor said the spending plan suffered from fundamental flaws in the way it failed to set priorities and failed to take advantage of the opportunity provided by the stimulus to address debt repayment like the $20 billion in unpaid for political promises tied to the retirement system.

“If a prudent family received a windfall like what is represented by this stimulus bill, they would use at least a small portion to pay down debt like the mortgage and credit cards – and to that end, we’re disappointed that the General Assembly didn’t follow suit,” Gov. Sanford said. “What’s worse is that this budget is written in such a way as to make a political point, with stimulus dollars being used to fund core agency budgets rather than setting priorities and restructuring through the budgeting process. Quite simply, the General Assembly needs to start over on its spending plan if we’re going to have a responsible state budget that not only looks out for current taxpayers, but future generations as well.”

Among other items the governor vetoed were:

The newly created “Capitol Police Force,” aimed at protecting entrances to the legislators’ garage

A provision that prevents exploring privatization of state-owned golf course parks that lose $500,000 annually

A legislative attempt to avoid $350,000 in cost savings related to state aircraft by moving the state Aeronautics Commission to the Budget and Control Board

A prohibition on the Highway Patrol recouping costs from game day traffic control, part of the nearly $1 million annually it costs the Highway Patrol to provide traffic enforcement at special events

A $37 million raid of the state’s Insurance Reserve Fund, and a $15 million raid on unclaimed property in the Treasurer’s Office.

[2much4U]

Way to go Mark Sanford! I'm proud to have voted for you!

[2much4U]

May 19, 7:52 PM EDT

SC Gov. vetoes $5.7B state budget over stimulus

By JIM DAVENPORT
Associated Press Writer
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COLUMBIA, S.C. (AP) -- South Carolina Gov. Mark Sanford on Tuesday again blocked his state from receiving federal stimulus cash, this time by vetoing the bulk of a $5.7 billion spending proposal that included a requirement he take the money.

Sanford said he is "asking the legislative branch to go back to the drawing board with regard to this year's budget."

Legislators said they would easily override his vetoes as early as Wednesday rather than leave the state with no money to operate schools, health care or prisons.

Sanford said the spending plan is flawed because it relies on $350 million in federal bailout cash and accused legislators of trying to usurp his authority and force him to request the money. He criticized behind-the-scenes work on the final spending bill that left legislators with little time to review or debate a budget that he contends avoided cutting government and could generate a $920 million budget hole in two years.

"This is an unusual and unprecedented step forward in the degradation of the balance of power that is vital to a functioning government," Sanford said.

By nixing the stimulus money, which is mostly for struggling schools, the Republican continued his long-running opposition to the federal bailout on the grounds it increases the nation's debt and devalues the dollar. His critics, including leaders of the GOP-dominated Legislature, say Sanford is seeking to raise his national political profile at the expense of the schools.

"You can tell every school child in South Carolina that the governor of South Carolina voted for you to not have any education," said Senate Minority Leader John Land, D-Manning. "You can tell every sick person that the governor voted for them not to have any medical care."

Teacher layoffs are in the works, and colleges predict tuition hikes. While lawmakers predict overrides, control of the money may be decided in court.

In essence, Sanford vetoed the parts of the budget dealing with spending. The governor said he had no choice because the part of the budget that would spend the stimulus cash was too closely linked to the rest of the budget. Leaving the non-stimulus part intact would have been the same as advocating cuts in public education, he said.

But vetoing all the spending was worse and full of political consequences, legislators said.

"It puzzles me as to why this governor would just love to have no government - and that's what he tells me if he vetoes all the money," said Senate Finance Committee Chairman Hugh Leatherman, R-Florence.

Legislators relied on the stimulus cash to resolve budget problems tied to economic turmoil.

As the economy soured, the $7 billion budget for the current fiscal year was slashed by more than $1 billion, costing most state agencies 15 percent or more of their spending.

Without the stimulus cash, half the state's agencies would see an additional 7 percent budget cut. The Department of Public Safety says it would lose $15 million and have to reduce the number of troopers on the state's roads and the state's prison system would lose $22 million.

The budget proposal called for $185 million in bailout money for public schools. Without that cash, school districts are expected to cut 1,500 teaching jobs and colleges have said they'll be forced to raise tuition by more than 10 percent.

Apart from the stimulus cash, the budget calls for using more than $430 million in federal cash tied to Medicaid to head off severe reductions in programs ranging from care of autistic children to hospice services.

In all, South Carolina programs and agencies stand to get up to $2.8 billion from the $787 billion federal stimulus law over two years.

But the biggest sticking point has been the $700 million in federal money over which Sanford has some control. Sanford has insisted the money be used to reduce state debt, a plan the White House has twice rejected.

The $5.7 billion budget approved by lawmakers called for Sanford to request one year of stimulus money - $350 million - in five days. Sanford on Tuesday wouldn't rule out legal action over that. Meanwhile, a Chapin High School student is preparing to refile a lawsuit that could force Sanford to seek the money.

Now it will be up to Sanford to rally allies to help his vetoes stand in the House on Wednesday and then in the Senate. He briefed his allies in the Legislature before releasing his veto message, gathering at best a couple of dozen of the General Assembly's 170 members in an office next to his.

Legislators point out that Sanford persistently fell short of the numbers needed to sustain vetoes throughout the budget debate.

[2much4U]

I see that a Chapin High School student is preparing to refile a lawsuit that she didn't come up with??? Wonder what democratic lawyer is putting her up to it?

[moonpuppy]

Any number of them. Name some come out quickly