Budget board finds millions to offset cuts
Plan would cover $25 million slashed from state money

By RODDIE BURRIS – rburris@thestate.com

The state agency thought to have been vetoed out of existence, along with the Confederate Relic Room and Museum, likely will continue business as usual.

The State Budget and Control Board is working on a plan that would cover the $25 million cut to its state appropriations, using funds it already has in accessible accounts.

Nearly two weeks ago, Gov. Mark Sanford vetoed – and the House sustained – all of the state appropriations earmarked for the board.

So it may come as a shock to South Carolina residents that a state agency has that kind of money at its disposal to absorb a $25 million cut, especially when the Palmetto State is facing a $462 million revenue shortfall this year, and a $1 billion shortfall next fiscal year.

The agency said the plan still is incomplete. But Sanford’s office said it is working with the board on the plan, and that perhaps none of the agency’s 182 employees will have to be let go as a result of the cut.

Sanford’s office also said no cuts should be necessary in the 2010-2011 budgets for the S.C. Confederate Relic Room and Military Museum or the State Budget Office.

“The Board’s staff is working to create a plan that would comply with the governor’s directive in his veto message,” the State Budget and Control Board said in an issued statement Thursday. “We do not have any further information at this time, but we hope to complete this work soon.”

Sanford issued the eyebrow-raising cut of the agency’s general operating expenses two weeks ago in a $314 million line-item veto flurry covering 107 general fund expenditures.

The House of Representatives, in an equally surprising move, sustained the State Budget and Control Board veto and 50 others last week.

The General Assembly returns to Columbia Tuesday to finish the budget vetoes and take up any other new vetoes Sanford could issue by then.

Thirteen bills are on the governor’s desk, which he must act upon by Saturday night, or allow them to become law.

Sanford already has enjoyed his best veto record in his eight years in office, and said the budget vetoes were necessary to bring the state’s spending in line with its declining revenue intake.

The board, created in 1919 to function in many regards as a de facto state chief executive officer, balked initially at last week’s veto, indicating it could possibly “scrounge up” a few million dollars to help offset the budget cut. Sanford, however, said last week the board had access to at least $60 million in unrestricted accounts that could be accessed to cover the agency’s operating expenses this year.

This week he revised that figure. “With $1.4 billion in cash reserves, and roughly $70 million in unrestricted cash now sitting in their bank accounts, we’re confident that the board can continue its current operations, and we’re committed to working with them on this front,” Sanford said. “For the board’s leadership to suggest otherwise, and even threaten to fire employees or cut essential services, is simply short-sighted, and we believe irresponsible.”

The State Budget and Control Board employs about 1,100 people, and has a total annual budget topping $226 million. It is the umbrella agency that manages dozens of functions in state government, from information technology to the state retirement system.

The Confederate Relic Room and State Military Museum, which takes in $765,000 in state money, employs seven people full time and three part time.

Museum officials declined to comment on the impact the budget cut would have on its operations or how they think the situation might be resolved.

Last week, however, the museum claimed the veto would cause it to close. “If this veto is not overridden, the museum will have to cease operations,” said museum director W. Allen Roberson in a newsletter and talking points memo aimed at putting pressure on lawmakers to override Sanford.

“In his veto message to the General Assembly, the governor stated that he was taking this action because the ‘board has sufficient carry-forward and other funds to maintain its operations in this fiscal year.’

“This is not correct. There are not sufficient funds to make up the $25.2 (million) general fund cut to the board, which includes $765,000 for the museum,” Roberson said.

The House sustained the museum veto cut by a 29-80 vote. Once the House acted to sustain Sanford the Senate’s opinion did not matter, as both chambers must agree by two-thirds to override a gubernatorial veto.

Read more…

I’m supposed to be enjoying some R&R on the SC Coast, but I remembered I said I would write about the Budget Vetoes this week and so, sitting here on the Grand Strand watching the Gamecocks in the College World Series (after several delays tonight), I’ll type a quick recap for you off the top of my head.

Long story short, the outcome this week really shows how far we’ve come in my short-time in office.

One month before I was elected (6 years ago), the House overrode almost all Gubernatorial Vetoes in two hours . This year? We spent 16 hours (9 a.m. Wednesday until 1 a.m. Thursday) debating all 107 vetoes and a few other matters.

As the Governor’s press release read early Thursday morning “…not only (did our votes to sustain several vetoes represent) the high water mark for the past eight years of our Administration, but also the highest number of budget vetoes sustained by any governor since Carroll Campbell 23 years ago and the highest dollar amount of budget vetoes sustained in state history.”

The House sustained 51 out of 107 which represented a potential $261million that can be used to plug the large hole in our Medicaid program that I’ll mention below AND/OR can help in next year’s budget when we no longer have millions of “stimulus” money available to us.

Off the top of my head, I believe I voted to override about 10 or so vetoes: 19, 20, 21, 23, 24, 33, 65, 73, 74, 77, 78. I’ll check later to be sure. Basically: ETV, Museum, Tech Schools, Textbooks, Buses, Reapportionment for House/Senate.

Why those and not others?

Obviously, first I listened to my constituents and made sure to review all their requests in greater detail than I might have given some others. Next, I wanted to prioritize (as best I could) so that we could set aside as much funding as possible (through sustaining vetoes) in order to help meet the Medicaid Maintenance of Effort money ($172M) that I knew the House would be left needing to fulfill when we sustained the Part IV section of the budget . Our last vote of the night/morning was one that saw us overwhelming sustain that Part IV veto.

Long story short, the Part IV funding (enhanced Federal Medical Assistance Percentage) is “pretend money” because it has not yet been approved by Washington. In fact, this money may actually never come and therefore we did the right thing and recognized it was not responsible to anticipate those funds and instead we worked to find as much funding as possible to replace the $172M we will be required to have in order to allow our state to draw down OVER $1 BILLION in Federal Matching dollars.

Not many voters knew about that and maybe now it might help some who have been scratching their head saying “Why didn’t they override such-n-such veto?” Hopefully, knowing we need to find $172M to draw down $1 BILLION might help understand motives behind votes.

Quite simply, I voted to override a few items that I felt focused on education (a primary repsonsibility of government) as well as mandates for the House/Senate to redraw district lines after the census is complete. Please be sure you read that correctly, my votes for House/Senate were for funds to be used during the reapportionment process and not “every day items”. I did NOT vote for Vetoes 48 and 49 though which were “Senate – Employee Benefits” and “House – Rep Salary @ $10,400″. (By the way, the House sustained our veto but the Senate later overrode theirs.)

For a complete summary of all House votes on budget vetoes, visit the SC Policy Council website or click here.

I would like to thank the hundred+ constituents who called and emailed me with their opinions on the vetoes prior to our votes being cast. Almost all of them shared that they understand the task is not an easy one and they did not envy my position. Thank you to for those that understood that my vote to sustain was not “against” their agency/request but was simply what I thought is best for our state to meet other obligations. Obligations, that if not met, would mean even deeper cuts to their agency/request next year.

[UPDATED, June 26] I’m back from vacation and took time to review my votes, turns out I also voted to override 31, 71 and 82. Also, I found it interesting (but not surprising) that today’s State paper had this to share about the $25 million veto the House voted to sustain dealing with the Budget and Control Board.

Looking forward to Father’s Day tomorrow where we’ll get to see both Karen’s dad and my dad !

Karen’s parents recently moved back to Irmo ( from Black Mountain ) so we’ll grab lunch tomorrow with them and then head to my parent’s time-share at the beach for a week of R&R!

After another late night in the State House this week, I can sure use the break. Karen can too after all her packing for our move when we return from the beach.

There will be no posts next week but a new video should be up Monday! Come back the first week of July where I’ll recap the recent two-year session we just finished as well as the elections from June 8th and the runoffs on Tuesday, June 22!

Don’t forget to vote again Tuesday!

For those that are curious or have never seen this before, here is what a veto message looks like and also the complete list of all vetos and rationale behind the decisions.

From the Governor’s Office today…

Veto: H.4657 – Appropriations Act
Gov. Sanford Announces Budget Vetoes

GOVERNOR VETOES DUBIOUS FEDERAL FUNDS, 107 LINE ITEMS AND PROVISOS

Columbia, S.C. – June 9, 2010 – Gov. Mark Sanford today announced his decision to veto 107 line-items and provisos in the legislative budget, including the entire section of the budget depending on Medicaid money that may or may not come from Washington D.C. The Governor’s vetoes were made after productive meetings with legislative leaders and a growing recognition that tough budget decisions must be made this year, and not pushed off until next year.

“The fact remains that while this year may be difficult from a budget standpoint,” Gov. Sanford said, “next year will be cataclysmic. With the Obama Administration’s stimulus funds running dry next summer, South Carolina will be forced off a one billion dollar budget cliff at the very time the state and nation’s economy struggles to regain its footing.

“Yet I believe that in this approaching financial crisis there lies opportunity. So while the current budget represents an indeed devastating reality for state agencies and those most served by government, there is also a unique opportunity to reorder our state’s budget priorities and restructure government, if we adhere to three basic principles.

“First, stop spending money we don’t have. Last year’s so-called stimulus bill borrowed taxpayers’ money to fix a problem created by too much borrowing, and this year’s state budget perpetuated that mistake by spending $200 million in Medicaid dollars from Washington, D.C. that Congress has not even passed yet. We’re refusing to sign off on this $200 million today because it’s financially reckless to balance a budget based on merely the hope of Congressional action. We said as much in a letter to legislators three months ago: “this budget simply spends money that we don’t have… We believe a more fiscally prudent step would be to set aside [$200] million to help alleviate the pain caused by the loss of $1 billion in stimulus funds next year.”

“I’d give real credit to many in the House and Senate who now agree that caution is the better part of valor with regard to the budget, and that our state absolutely needs this $200 million cushion going into next year. Setting aside this $200 million will effectively reduce next year’s budget shortfall from roughly $1 billion to a still challenging $800 million. And by making this fiscally sound decision that will ultimately benefit taxpayers, South Carolina will join Republican and Democratic states alike – including Delaware, Indiana, Louisiana, Nebraska, Virginia, West Virginia and Wyoming – who have not included this speculative Medicaid money from Washington D.C. in their budgets.

“Second, not making the hard choices now makes them that much harder the next time around. The roughly $100 million in line-item and proviso vetoes this year represent exceedingly difficult choices, whether they are areas our administration has targeted in past Executive Budgets, or areas where legislative leaders have identified potential savings. But it must not be forgotten that this year’s decreases will be miniscule compared to forced cuts next year when the budget faces a billion dollar hole and whole state agencies may in fact have to be zeroed out. [Read more...]

*** STATE HOUSE ***

Last Thursday was “Sine Die” on the 2nd Regular Session of the 118th South Carolina General Assembly. As expected, the House and Senate approved the Budget Conference Report and now the only things left to wrap up the session are for us to return June 15, 16, 17 to deal with any gubernatorial vetos on the budget or other legislation approved by the House/Senate last week. (More on the budget below in YOUR MONEY).

Since May’s Community Update , I’m pleased to let you know that the Senate passed H.3066 (my Campaign Finance Disclosure Reform) and the Governor signed it into law. The Senate gutted one of the main provisions I had in place: our disclosure within 48 hours during the “blackout period” which is currently two weeks before elections. The other provision that survived the Senate (mandating all officials/candidates to file disclosures on-line) was important enough (saves an estimated $100,000 for SC Ethics Commission AND helps voters “follow-the-money” for all candidates/officials) that the House took “half a loaf” and accepted the bill as amended by the Seante. Don’t worry though, I will work towards the “other half” again starting next January by making that my first pre-filed legislation.

*** YOUR MONEY ***

This year’s Budget Conference Report passed with the closest budget vote I’ve seen in my six years in office. The House approved the report by a vote of 64-54 and the Senate approved it with a vote of 22-16. Obviously in any budget, you can find a few, many, several items you don’t approve and would change; however, in order to avoid a complete government shutdown, we often have to hold our noses to get a majority of votes.

In addition to the statement for journal I wrote, I was pleased to at least see us remove the Heritage Golf Tournament $10M loan; not add fee increases to fund the judicial branch, law enforcement services, DNR, etc; and remove airline incentives for a discount airline (which has now agreed to come to Greenville/Spartanburg and Charleston WITHOUT the incentives). Also, there appears to be agreement to work towards restricting future abortions in the State Health Plan next session. This was a key part of getting enough Republican votes to pass the conference report this year. As Nathan’s News readers recall, all these items were a few of the sticking points last month in negotiations.

Unfortunately, this budget again relies on federal stimulus money (the 2nd year of the 2 year Recovery Act stimulus) and also relies on additional federal money: the yet-to-be-approved Federal Medical Assistance Percentage (FMAP) money . There is roughly $200M FMAP money in our budget that has not even been approved by Congress yet. Without that $200M, when January 2011 arrives, there will be even more cuts to agencies than those already in place. (These agencies/items are listed in Part IV of the budget this year). If Congress approves those funds, Part IV is funded. If Congress does not, Part IV is not funded.

Here is my statement for the journal: My vote today to advance the Budget Conference Report to the Senate, comes with the understanding that my House colleagues will join me in carefully and thoughtfully considering the expected Gubernatorial vetoes to follow this year. We still have additional opportunities to improve our budget with targeted cuts that can then help fund the core functions of a government to her people and also prepare South Carolina for the future. Rep. Nathan Ballentine.

Now…that brings us to the next phase of the state budget. Vetos….or is it Veto (singular) this year? The budget is now with the Governor who has 5 days to share his decisions. Based on the votes on the conference report (and other discussions among various officials) there appears to be sufficient votes to sustain vetos this year. The question is: will the Governor send one veto (the entire budget) or a handful of line-items? Should he veto the whole budget and either the House or Senate sustains that veto, we’ll be back to budget negotiations again. That would obviously mean pressure to have something in place that could again pass the House/Senate and survive gubernatorial veto(s) by June 30.

*** COMMUNITY***

Tuesday, in addition to statewide and federal primaries, we’ll elect our representative on Richland County Council. Once again I have heard rumors that supposedly I have endorsed a candidate in that race. This also happened in 2006 and I went out of my way then to share the fact that I do not endorse locally (only statewide or federal).We have two candidates to choose from: Ronald Colley and Bill Malinoswki . Visit their websites to educate yourself on both men.

I will mention that I have endorsed the following candidates for statewide office in the Republican Primary: Nikki Haley (Governor) , Bill Connor (Lt. Governor), Alan Wilson (Attorney General) and Kelly Payne (Superintendent of Education). Whether you are a Republican, Democrat or Independent, please get out to vote Tuesday, June 8 (and again June 22nd for runoffs).

There are two “advisory questions” on the Republican Primary ballot. You can click here to read those in advance.

Other voting: Please take a minute to go on-line this week and support two teachers in our community Clay and Heather Barnhart. They are finalists to perform on the inaugural voyage of the Norwegian Epic and need your support to make it happen.

Vacation Bible Schools! Obviously there will be several VBS in our community for your children to attend. My church, Riverland Hills Baptist , has ours June 14-June 18th. Please feel free to list your church’s VBS dates in the comments section below (with contact information/links) for others to see.

*** SCHOOLS ***

Because the last day of session coincided with District Five’s graduations, I missed them for the first time since I was elected. I hated missing them but know that we have graduated fine young men and women who will continue their education at colleges/universities, enter the workforce, or join our country’s military!

Last week, I did announce the 2010 Ballentine Scholarships Winners and am proud to share them with you here today! Makenzie Ashley (Chapin High) receives the B.C. Ballentine Scholarship; Lauren Barton (Chapin High) receives the J.D. Winburn, Jr. Scholarship; and Bethany Dickey (Dutch Fork High) receives the Margaret Jane Winburn Clarke Scholarship.

** THANK YOU **

Thanks again for the privilege to return to Columbia and represent the Irmo/Chapin/Ballentine/Dutch Fork community! If you have events or people you’d like me to share with the community through Nathan’s News, please let me know and I’ll do my best to help!

I’m always eager to spend time with you at your Homeowners Association Meetings, Churches, and other civic events in the community! Let me know dates and times and I’ll work to be there!

During the summer and fall months, please contact me here through Nathan’s News anytime
I can help!

Nathan Ballentine
www.nathansnews.com
House of Representatives, District 71
Richland-Lexington Counties
320B Blatt Building
Columbia, SC 29221