REP. DAN COOPERC H A I R M A N , W A Y S & M E A N S C O M M I T T E E
T U E S D A Y M A Y 3 , 2 0 1 1
C O L U M B I A , S O U T H C A R O L I N A
The South Carolina State Budget
The NumbersK-12 and Medicaid =42% of the Budget
Total Expenditures
$19.8 Billion (FY 09/10)
Total Personal Income
$146 Billion (2008)
SC Budget is about 1/7 of our total state economy.
Public Education
$3.7B Total Funds
713,600 Students
$20.5M per day of school (180 days)
Medicaid
$5.14B Total Funds
952,004 Recipients
$100M per week
Budget Primer
Looking Back
High Point: 2006/07
$6.659 Billion
FY 2009/10
$5.309 Billion
Loss of $1.42 Billion just over 20%
FY 2008/09
Rescission Bill - $487.9M
7% B&CBd. - $383.5M
2% B&CBd. - $101.9M
FY 2009/10
4% B&CBd. - $200.5M
5% B&CBd. - $238.2M
Revenue Appropriation Adjustments
Historical General Fund Collections
$0
$1,000,000,000
$2,000,000,000
$3,000,000,000
$4,000,000,000
$5,000,000,000
$6,000,000,000
$7,000,000,000
197
919
80
198
119
82
198
319
84
198
519
86
198
719
88
198
919
90
199
119
92
199
319
94
199
519
96
199
719
98
199
92
00
02
00
12
00
22
00
32
00
42
00
52
00
62
00
72
00
82
00
92
010
20
112
012
Going back 30 years there was only one year of negative GF growth – at least until the last recession.
General Funds Total Funds
Education (K-12) $1,879,298,422 $3,567,576,153
Higher Education $568,870,814 $4,051,324,682
Health & Social Rehabilitation $1,206,725,193 $9,195,283,935
Correctional $402,621,026 $525,969,957
Public Safety $65,880,728 $176,691,119
Legislative $34,693,360 $36,470,108
All Other $922,309,352 $3,560,624,378
Total $5,080,398,895 $21,113,940,332
Current Budget
Allocations:
Fiscal Year 2010/11
In terms of Dollars
Allocations General Fund Allocations for FY 2010/11
Education (K-12)37%
Higher Education11%
Health and Social Rehabilitation
24%
Correctional8%
Public Safety1%
Legislative1%
All Other18%
Allocations Total Fund Allocations for FY 2010/11
Education (K-12)17%
Higher Education19%
Health and Social Rehabilitation
44%
Correctional2%
Public Safety1%
Legislative0%
All Other17%
FY 2011-2012
In March the House of Representatives closed an $840 million budget gap to pass a balanced budget that funds core government services, while not raising taxes.
The House was able to do this by doing two things:
1. Eliminating much of the annualization problem created by previous budgets, and
2. Maximizing the modest gains in the General Fund.
Annualziations
Annualization – while there are many definitions of an annualization; the most common is the paying for recurring items with non-recurring dollars.
i.e. -- Get a one time bonus at work and go buy a car.
The $840 million shortfall makes the assumption that all one-time or non-recurring items will be annualized.
However, the Budget passed by the House does not annualize most of these items.
Annualizations cont.
The current annualization problem is mostly the result of the Stimulus Package.
Approximately $345 million went to state agencies in ARRA funds.
Then about another $400-$500 million in annualizations with Medicaid when the enhanced match rate reverts back to normal levels.
House Budget
Annualized:
$100 Million of EFA funds at SDE
$35 Million at Dept of Disabilities and Special Needs
$40 million at the Department of Corrections
All necessary Medicaid Dollars
Not Annualized:
$110 million spread across institutions of Higher Learning
≈$5 Million to Natural Resource agencies
$74 million at SDE
General Fund
The State’s economy and the General Fund are currently showing signs of recovery.
We had bottomed out for quite a few months, and for the first time we are seeing, small growth; but growth none-the-less.
Current Year-to-Date over last year:
Retail Sales and Use Tax –Up 2.2% or $31.1 million
Individual Income – Up 7.6% or $148M
House Version FY 2011/12
Key Points:
Added $100 million to the EFA to increase the Base Student Cost from its current level of $1,617 per student to $1,788 per student.
Fully funded the Medicaid program per the request of Governor Haley and Director Keck ($437 million additional funds) .
Reduced the size of Government by elimininting 4,700 unfilled and unfunded FTEs.
Restructured the funding model for ETV to allow the agency to operate on a more market-based funding model.
House Version FY 2011/12 cont.
Fully funded the proposed merger of the Dept of Corrections and the Department of Probation, Parole, and Pardon Services.
Reductions in Higher Education were targeted to reward institutions with higher graduation rates and favorable in-state enrollment.
Allocated $110 million from the FY 2010/11 Capital Reserve Fund. Some items include:
$10 million for the Closing Fund at Commerce
$13 million for the Special Schools program at the Tech Board
$5.5 million for tourism promotion
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