State of South Carolina
Office of the Governor
Governor's Executive Budget Message
Fiscal Year 1996-1997
Governor David M. Beasley
December 20, 1995
Last Updated: 6/29/09 2:59 PM
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1996-1997 Executive Budget Message
Governor David M. Beasley
December 20, 1995
Quality of life in America depends on several very basic
factors: control of one's own destiny, a good job,
and access to quality education. In South Carolina I
intend to make these factors a reality for everyone
to reach for opportunity.
The Beasley Administration is committed to improving the
quality of life for everyone in our state. This
budget, my first submitted since being elected Governor
last year, reflects that commitment. It also reflects
my determination to shed some much-needed light on the
budget process, allowing the public, for the first
time, to readily understand where their tax dollars are
being spent. This budget is not only "user
friendly', it is "taxpayer friendly."
We remain firm in our determination to create more and
better jobs for South Carolinians, to provide quality
education in a safe environment for our children, to
shrink the growth of government, and to provide
continued relief for over-taxed working people.
This budget reflects that determination. We will:
- Provide funding for a critical high-technology
infrastructure for our public schools, giving our
access to the highest quality instruction available -
regardless of where their school is located.
- Establish for the first time in the history of our
state a scholarship program to help South Carolina
students go to college.
- Establish a building fund for school districts. Safe
schools are more than just the installation of metal
- Ensure pay for our teachers at the Southeastern
- Expand the Governor's School for the Arts.
- Expand the Governor's School for Science and
- Increase funding for Higher Education.
- Continue to provide relief for South Carolina
taxpayers through additional property tax reductions,
continued phase-in of the child tax exemption, creation
of an exemption for older South Carolinians, and a
lowering of the manufacturing depreciation rate.
- Continue to provide quality jobs for South
Carolinians and recruit record-breaking investments by
providing adequate funding for the Coordinating Council
for Economic Development and the Department of
- More adequately compensate law enforcement and
correctional officers who protect the public on a daily
- Continue our crusade to keep criminals off the
streets by opening a new prison, annualizing operating
expenses for an existing prison and providing more
resources to the judiciary.
- Use existing gas tax dollars to address critical
highway infrastructure needs.
- Fund the Family Independence Act to assist in the
welfare-to-work transition for South Carolinians
seeking to improve their quality of life through
This Executive Budget implements a significant format
change. The evolution of our budgetary process had
resulted in a document that was difficult to use by even
the most seasoned legislator.
The new format makes it easier to see and evaluate
exactly where tax dollars are being spent. It makes it
easier to detect duplication of programs, eliminates
hidden funding, enhances consolidation and continued
restructuring efforts, and generally discloses far
greater information for budget writers, lawmakers and
importantly, the public. The new format includes:
- Priority-ranked programs for agencies. This method
increases the amount of detail included on specific
programs, enabling us to see how money is actually being
spent. This common sense approach to budgeting
of taxpayer dollars fully discloses programs and their
- Identification of increased expenditures on separate
lines. This allows for immediate and easy
identification of all new spending.
- Separation of the source of funds (state, federal or
"other") to provide a total view of all
funding in each agency. Concentrating only on state funds
allocated to an agency is a major factor in distortion
of the "big picture." We now will be able to
see all "other" sources of funding in an
- Disclosure of major components of operating expenses,
such as travel, equipment, contributions, and
contractual services by "unrolling" these
operational lines in the budget.
MANDATORY CONSTITUTIONAL AND STATUTORY
Every year there are several constitutional or statutory
mandates which strictly limit discretionary allocation.
The FY 1996-97 Executive Budget must expend over $76.4
million on such mandates. That amount is more
than 12.5% of the total funds available. Following is a
breakdown of these mandates:
- $6.2 million to the General Reserve Fund. There is a
constitutional and statutory requirement that the
General Assembly provide for a General Reserve Fund of 3%
of the General Fund revenue of the latest
completed fiscal year.
- 4.1 million to the Capital Reserve Fund. There is a
constitutional and statutory requirement that the
General Assembly provide for a Capital Reserve Fund equal
to 2% of General Fund revenue of the latest
completed fiscal year.
- $21.9 million for debt service payment. The payment
is composed of $14 million for school buses, $5.5
million for highway bonds, and $2.5 million for
- $25.1 million for the Local Government Fund (Aid to
Subdivisions). This statutory rule requires an
appropriation of not less than 4.5% of latest completed
fiscal year's total budgetary General Fund revenues
to local governments. The $15.1 million are to maintain
last year's funding level.
- $2.4 million for homestead exemption growth. The $2.4
million are necessary to maintain full state
funding for the $20,000 homestead exemption for persons
who are disabled or sixty-five and older. This
homestead exemption is in addition to the property tax
- $2.5 million for the Catawba Indian Settlement. This
is the fourth of five payments.
- $12.5 million will complete the state's settlement of
the federal retiree lawsuit.
- $1.4 million to fund the 1996 statewide elections.
Primary and Secondary Education
In Fiscal Year 1996-97, over 31% of all funds
available to spend will be dedicated to education.,
totaling $101 million. I will address other
revenue-related aspects of public education in my State
the State in January.
One of the primary goals of education is to provide our
young people with a base upon which they can build
a successful life. The technology now available through
multiple sources will enable us to meet that challenge
in an unprecedented manner.
Infrastructure is far more than four walls. It is also
the technological skeleton around which our children will
mold the experience and skills necessary to emerge
successfully in the new century.
Regardless of the amount of money we invest in public
education, access to the same human resources is not
available in every school district.
This year, I am committing $20 million to the first phase
of my plan to link every child in South Carolina
public schools to the best courses available anywhere.
The Department of Education and South Carolina
Educational Television (SCETV) will work cooperatively
to provide every single public school with the ability to
receive multi-channel or satellite programming from
SCETV's satellite network. Our children will have access
to advanced placement courses, specialized
instruction and master teachers no matter where they are
located. And much of the access will be interactive.
There is no reason why every child in our state should
not have access to the specialized instruction available
at the Governor's School for Science and Math...just
through the push of a button.
We are taking the critical first step toward ensuring
that every child in every school has access to
state-of-the-art technological resources. Every school
building will be linked to the Internet, providing our
children with a first class ticket to explore the world.
Business leaders tell me they need people trained in the
technology of tomorrow. Parents tell me they want
their children to have a future. This commitment to
technology in the schools is a critical first step to
Children's Education Endowment
The Children's Education Endowment, funded through
Barnwell revenues, and not included in the above
percentage, cements my resolution to create a new
landmark opportunity in South Carolina: a college
scholarship program for our young people.
The Children's Education Endowment will also underwrite
my commitment to improve school buildings
in our state. School safety is of paramount
importance to all of us and takes many forms. Solid
infrastructure is a critical element.
I propose that 100% of Barnwell revenues be allocated to
the Children's Education Endowment. I will
oppose any attempt to divert these funds.
In addition I propose:
- $5 million for the first of a multi-year project to
relocate the Governor's School for Science and
Mathematics, allowing the school to double in size.
Total project cost is approximately $18 million.
- $6 million to provide the basis for a 2-1 private
match for the construction of a year-round Governor's
School for the Arts and Humanities in Greenville. Total
capital construction costs are $18.1 million, with over
$12 million being funded through private contributions.
This is an expansion from the current Summer Honors
Program. This arts and academics education center will
provide the highest-caliber pre-professional career
development in South Carolina. The first class will
enroll in the 1997-98 school year.
- $13.6 million in textbooks and instructional
- $37.8 million to fully fund the Education Finance Act
at the projected inflation factor of 3.5 %.
- $5.7 million for the state portion of fringe
- $4.8 million in Education Improvement Act teacher
salary supplements. This brings our teachers in line
with the southeastern average.
- $6.2 million in EIA inflation in Base Student Cost
for Academic Assistance Program (Act 135) and
four-year old Early Childhood Education program.
- $8.5 million in nonrecurring funds for fringe equity
for school districts adversely affected by the change
in fringe distribution in the FY 94-95 Appropriation Act.
In this Executive Budget, I am recommending $83.3 million
for our colleges and universities.
- $65.2 million for colleges and universities, based
upon enrollment. This is an increase of $12 million
to what higher education terms "formula
funding." The $53.2 million received last year in
category was totally in nonrecurring dollars. I have
placed $29 million (44%) in the recurring column, adding
significantly to the base budget of higher education.
- I reiterate my commitment to the Children's Education
Endowment. Thirty percent of all revenues from
Barnwell will be used to fund this scholarship program
for young South Carolinians.
- $3 million for Winthrop University to continue
construction and renovation of its Mathematics and
- $10 million to fund Special Schools at the State
Board for Technical and Comprehensive Education.
Special Schools train students for placement in business
- $2.6 million in matching funds to the Commission on
Higher Education to continue the third year of
South Carolina's participation with the National Science
Foundation in EPSCOR (Experimental Program to
Stimulate Competitive Research) and SCAMP (South Carolina
Alliance for Minority Participation).
- $2.5 million are recommended for the South Carolina
Tuition Grants program. This amount represents
continued funding from FY 1995-96 with an additional
increase of $312,000 for FY 1996 97.
This budget reaffirms my commitment to the taxpayers of
South Carolina. After funding the
constitutional and statutory mandates, approximately
one-half of the total new, recurring revenue is dedicated
to tax relief.
This is a new day in South Carolina government, and I
intend to protect the working people of this state.
While we continue to bring jobs to our citizens in areas
where they're needed the most, and while we continue
to improve education so our young people will have
broader opportunities when they leave school, we must
also continue to constrain the growth of government and
return tax dollars to our citizens.
This budget commits a total of $143.8 million in
increased tax relief to homeowners, senior citizens,
and industry, and families with young children.
Property Tax Relief
This year we provided the largest tax break in the
history of South Carolina through property tax relief.
the first time in recent memory the debate has been about
the amount of tax reduction rather than the amount
of tax increase.
I propose to return more of taxpayers' own money to them
through a further reduction in the school portion
of property taxes. We will increase the Property Tax
Relief Fund by $37 million, bringing it to a total of
million. This will increase the exemption amount from
$100,000 to approximately $125,000.
This year the Property Tax Relief Fund contains $117.5
million in recurring dollars. We must expend 114.5
million in recurring and nonrecurring dollars in 1996-97
to reach the total fund amount of $232 million. I
strongly recommend that a minimum of 67.8 million
additional recurring dollars be directed into the fund,
bringing the total amount of recurring dollars to $185.3
million. This is nearly 80% of the total needed to fund
property tax relief in recurring dollars at the level I
am recommending in this budget. The remainder will be
provided this year by $46.6 million from the
Carnell-Felder calculation dedicated to property tax
the fund is fully annualized.
Tax Relief for Families with Children
I am committed to continuing the phase-in of tax relief
for families with young children. This is the third of
the four year phase-in that in the fourth year will
double the tax exemption for families with children under
six. I have allocated $10 million in my budget for this
investment in our families.
With this phase-in, families in South Carolina will be
keeping $134 per child or a total of $30 million more
in their family budgets for an estimated $2,600 in tax
relief. This, combined with the child tax credit proposed
in the Congressional budget currently under negotiation
with the President, will provide over $350 million
in tax credits for South Carolina families.
Tax Relief for Business and Industry
There needs to be equalization in the tax depreciation
treatment of industrial and commercial property in South
Carolina. Therefore, I propose lowering the manufacturing
depreciation floor from the current 20% to 10%
over the next three years.
This will provide over 6,000 manufacturers employing
370,000 or more people with the greater flexibility
needed to invest in new, state-of-the-art equipment, thus
retaining a critical competitive edge in the world's
market. Increased spending on equipment means greater
competitiveness, which means more orders for
products, and ultimately, more jobs.
The reduction also means that South Carolina becomes even
more attractive to manufacturers seeking new
investment sites, which translates once again into more
jobs for South Carolinians.
Each year of this phased-in reduction will save
businesses $10.2 million with the total tax relief to
over $33 million by the third year.
Since this is a revenue decrease for local governments, I
am also calling for the establishment of a state fund
to reimburse local governments.
Tax Relief for Senior South Carolinians: an Economic
Senior citizens are a unique group of South Carolinians.
Many are individuals on fixed incomes to whom this
break means a real difference in quality of life. Many
are retirees who reinvest in their communities,
stimulating the economy, creating more wealth in the
We hope to attract more older Americans to South
Carolina. This recruitment is a whole new wave of
economic development in our state. Traditionally they
place minimal demands on schools, social services and
the criminal justice system, but give much back to their
In this budget I dedicate $4.5 million to increase the
exemption for South Carolinians sixty-five and older.
Over 131,500 persons will pay no taxes at all on the
first $15,000 of income. This, when taken in tandem with
the existing homestead exemption and the dramatic
property tax reductions, will make South Carolina an
extraordinarily attractive retirement location for
Soft Drink Tax Reduction
I support the phase-in and eventual repeal of the soft
drink tax. Action to accomplish this occurred in the FY
1995-1996 Appropriations Act, but does not take effect
until FY 1996-97. Beginning this fiscal year, the soft
drink tax will be reduced in increments of
"sixths" until it is completely repealed in
The amount dedicated to the soft drink tax phase-out for
FY 1996-97 is $4.6 million.
I will soon be announcing record breaking new figures in
jobs and capital investments. We must keep pace
with our own momentum.
In addition to the education infrastructure we are
creating to help our children compete, we must provide
Department of Commerce with the resources necessary to
recruit good jobs for which they can compete.
My budget proposes $48.8 million in economic development
and infrastructure investment:
- $30 million for the Coordinating Council for Economic
Development. This funding will enable the
Council to continue recruiting prospects and working with
existing business expansions. These potential
investments total in the billions of dollars with
thousands of new jobs.
Department of Commerce
- $2,219,772 to the Department of Commerce, including:
- $264,000 for a trade mission in Frankfurt, Germany;
- $113,900 for an Asian and Pacific Rim trade program;
- $45,000 for a European industrial adviser;
- $363,600 for industry "cluster" managers,
marketing duster manager, business development
managers and prospect research staff;
- $761,000 to partially restore the advertising budget;
- $264,000 to fund shortfalls in the foreign offices
created by currency fluctuations;
- $145,200 to support the newly created Technology
Division in its mission to recruit technology
- $99,072 for regional strategic planning staff;
$209,000 for the agency mapping program;
- $6,500,000 to the Local Grant Fund housed at the
Budget and Control Board. These grants are used
to fund local infrastructure through the Aid to Local
Motor Fuel Tax for Infrastructure Development
In this budget, we are creating an updated education
infrastructure for our children and an economic
development infrastructure to bring good jobs and a
better quality of life to our people. All of our
must be prioritized and dedicated to those areas most in
That includes resources from the gasoline tax. Our
highway infrastructure needs are far too critical to
sending gas tax monies into areas unrelated to highways.
Last year we added $24 million to the revenues available
to the Department of Transportation through a
revision of the gasoline tax collection point, receipt of
interest on the Highway Fund, and decrease in
payments to the Department of Public Safety and the
Department of Revenue.
As a result of the revision of the gasoline tax
collection point, the Department of Revenue expects a 10
increase in taxable fuel reporting due to increased
compliance. This will mean a minimum of a $20 million
increase in collections.
I propose removing from the General Fund the one cent of
the gas tax it currently receives. This is a two year
transition which will result in an additional $20.2
million to the Department of Transportation.
I also propose a redirection of 25% of funds known as
"C" Funds. Currently, 2.66 cents of the
gasoline tax go to the counties, but only 25% of that
money is required to be spent on highway construction,
improvements and maintenance of state roads. My budget
increases that requirement to 50%, creating an
increase of $12.5 million for state highway system
Over a two year period, we will have increased the amount
of infrastructure resources available to DOT by
$66.5 million. This is a real step in the right
LAW ENFORCEMENT AND CORRECTIONS
South Carolina ranks fifth in the nation in violent
crime. While we must continue to develop ways to decrease
our crime rate, we must also commit to properly equip and
compensate those who place their lives in jeopardy
every day to protect us.
I propose the following:
State Law Enforcement Division
- $1.5 million to the State Law Enforcement Division of
the Governor's Office to replace old, high
mileage vehicles. While more than 30% of the SLED fleet
has logged more 100,000 miles and approximately
50% of the fleet has over 75,000 miles, SLED has no
recurring vehicle budget to fund this priority item.
- $100,000 to begin instituting a DNA Banking Program.
- $350,000 for pay uniformity with other state law
Department of Public Safety
- $2.7 million to fund 46 Highway Patrol troopers at
the Department of Public Safety.
Last year the General Assembly made significant changes
in our criminal justice system. I remain finn in my
commitment to protect the law-abiding citizens of South
Carolina. To that end, I propose the following:
- $15.7 million to annualize the operation of the 1,130
bed Ridgeland Prison.
- $37 million to help the Department of Corrections
implement a 12% pay increase for Correctional
Officers. The agency is to internally identify 8% of the
funds and is requesting our assistance with the
- $7.2 million to open the 1,116 bed Kershaw prison
being built to alleviate overcrowding. This is partial
year funding. The facility is projected to come on-line
in March 1997.
- $672,000 for contractual medical services from
- $8.7 million for institution maintenance, vehicle
replacement and other operating costs.
Probation, Parole and Pardon Services
- $1.6 million to fund an existing complement of 51
offender supervision officers. These officers were
funded last year with nonrecurring funds.
Department of Juvenile Justice
- $14 million for facility construction and renovation
to address overcrowding. These funds will renovate
the Greenwood facility, relocate the Hickory treatment
unit, increase services to seriously mentally ill
juveniles, and construct three regional centers, an
evaluation center in Dorchester, and a facility in Union.
- $6.8 million to operate these decentralized
facilities. The request includes $5 million for salaries
fringe benefits for 211.5 FTEs and $1.2 million in
operating funds for supplies, travel, contractual and
- $3.8 million for statewide programs and services.
$320,994 are requested for salaries and fringe benefits
for nine FTEs and substitute teachers. Operating expenses
include $3 million to fund nine contractual
programs and contract for resource development.
- $3.9 million to improve conditions in the facilities.
This includes staffing levels, health services and
access to programs.
- $278,156 to augment the classification system.
- $527,097 for the assessment system The request
includes $263,347 in personnel costs for salaries and
fringes to fund six FTEs and $223,250 to contract for
psychiatric services. One time funds will be used for
I am committed to working with the judiciary to expedite
trials and alleviate backlog . I have discussed the
needs of the judiciary on several occasions with Chief
Justice Ernest Finney and will continue to work with
him to meet the needs of the court system. I recommend
$2,411,397 to fund nine new judge positions created
last year by the General Assembly but funded only on a
limited scale. I also recommend $1,259,217 to fund
judges' travel, subsistence and office expense
allowances. And I recommend the transfer of an
Assistant II from the Attorney General's office to the
The State Grand Jury plays a key role in cracking down on
drug rings and dealers in South Carolina. With
the loss of the Bureau of Justice Assistance Grant
($500,000) in September 1995, the Attorney General
requests the state to continue its funding of the
- $313,000 for the State Grand Jury in support of the
Attorney General's efforts to make our streets,
schools and playgrounds safe from drugs.
- $100,000 to better enforce obscenity laws by funding
an Obscenity Prosecution Unit for the State Grand
Jury. The unit will be comprised of a prosecutor and
- Transfer Securities Unit from Secretary of State to
Prosecution Coordination Commission
- The General Sessions Court and Family Court have
experienced an increase in caseload over the last
ten years. I recommend an increase from $1.22 to
approximately $1.50 per capita to support the sixteen
solicitors' offices. This represents approximately
Governor's Office - Division of Victim Assistance
- Merge victim programs currently at the Department of
Social Services and the Department of Health
and Environmental Control with existing victims programs
in the Governor's Office. This will provide a
comprehensive approach victim services and needs.
- $1 million to fund victims' advocates in each county.
HEALTH AND HUMAN SERVICES
Department of Health and Human Services
The Medicaid program is a federal program that provides
financial aid to states for payment to health care
providers. Eligible individuals include cash assistance
recipients, children, pregnant women, and the elderly.
In FY 1995-96 approximately $25 million was funded with
nonrecurring funds. We must continue this funding
to maintain Medicaid program services. In addition:
- $13.6 million to fund the growth in client
annualizations and eligibles.
- $6.9 million to annualize with recurring dollars the
Medicaid program, given client annualizations and
increased growth of eligibles based on existing
eligibility criteria. This was funded last year with
- $4.9 million to annualize with recurring dollars
program services such as hospital, physician, drug abuse
and nursing home services. This was funded last year with
- $12 million to fund the Services for Emotionally
Disturbed Children's Fund.
- $1 million to annualize the 500 additional community
long term care slots funded last year with
Department of Social Services
- $2 million to fund the Family Independence Act. This
will annualize full year funding for the Act which
will help welfare recipients achieve and maintain
- $678,800 to fund the state match portion of the
Kellogg Foundation's initiative to strengthen families.
- $250,000 for the State Employee Adoption Initiative
begun in FY 1994-95.
Disabilities and Special Needs
- $1.9 million for growth in eligible clients based on
existing criteria. Each year, the Department of
Disabilities and Special Needs must take into its system
individuals who are no longer able to care for
themselves or whose family situations have become
- $950,000 to maintain state funding for basic
services. This maintains funding at a level to meet
maintenance of effort requirements and avoid loss of
federal matching funds. The agency was allocated
$950,000 last year with nonrecurring dollars.
NATURAL RESOURCES AND TOURISM
Department of Natural Resources
- $1,200,000 to replace old, high-mileage vehicles.
- $200,000 for noxious aquatic weed treatment.
- $350,000 for pay equalization with other state law
- $300,000 for southern pine beetle eradication.
- $100,000 to develop and maintain the H. Cooper Black,
Jr. Memorial Field Trial and Recreation Area.
Department of Agriculture
- $425,000 for two trucks and repair of an agricultural
station roof in Greenville.
- $300,000 to meet federal and state mandates for the
meat inspection program.
Parks, Recreation and Tourism
This marks the fourth year of a five-year plan for the
Department of Parks, Recreation and Tourism to reduce
its general fund budget by $1 million through change in
source of funds to the accommodations tax.
- $300,000 to complete nonrecurring funding for the
Palmetto Trails project, which includes building
hiking trails from the mountains to the sea.
OTHER STATE AGENCIES
Budget and Control Board
- $7 million for State House renovations.
- $900,000 to move the Emergency Preparedness Division
(a division of the Adjutant General's Office)
to Pineridge Armory in Lexington County to establish a
new emergency operations center. This is vital to the
maintenance of a first-rate Emergency Preparedness
operation with facilities for emergency response and
- $290,652 for operations, equipment, and additional
staff at the relocated Emergency Operations Center.
Labor, Licensing ant Regulation
- $250,000 for Fire Academy Equipment. These
nonrecurring funds will be used to fully equip the new
Fire Academy and replace out-dated and worn equipment.
Employee Pay/Employee Benefits
- I am recommending $13.8 million for a state employee
Christmas bonus plan. Employees earning
$25,000 and less will receive $400. All others will
receive $200. In addition, I am asking every state
beginning with my Cabinet agencies, to direct savings
accrued through natural attrition, through individual
innovation, and cost savings toward a pay increase of up
to 5% for all agency employees.
- $3.5 million for the state's dental program and
growth in retiree benefits. It is necessary to fund $1.3
million to support the dental program. This is the first
year in eleven years that the fund has needed an
increase. Another $2.2 million are needed for
approximately 1,450 new retirees' health and dental
increases. This will mark the fourth consecutive year in
which the state has been able to forego an increase
in the employee share of the State Health Plan and the
sixth consecutive year of maintaining employee
premiums at the same level.
Should additional surplus funds become available, as has
often been the case, I recommend funding the
following items in the order in which they are listed:
- $10 million for instructional materials, textbooks
and technology aid.
Division of Motor Vehicles
- $5 million for a new computer system for the Division
of Motor Vehicles at the Department of Public
Department of Mental Health
- $3.8 million for Patient Paying Fee Account. These
funds are placed in the General Fund by proviso.
In FY 1995-96, the General Assembly funded this in
Department of Public Safety
$3 million to the Department of Public Safety to
reimburse the Department of Transportation for fuel and
maintenance of vehicles and data processing for prior
- $2 million on a one-time basis to establish four
Discovery Centers along the Heritage Corridor in
Pendleton, Edgefield, Blackville and Charleston. Funding
is requested to fund design and production of
educational exhibits, retrofitting of existing
facilities, and computerized kiosks for visitor
state funds will be leveraged with private dollars and
Archives and History
- $2 million for the South Carolina History Center at
the Department of Archives and History.
State Auditor's Office
- $168,000 to purchase printers for auditors to use in
the field, replace portable computers with laptop
computers, upgrade existing laptop computers to run
Windows software, network all computers, install voice
mail and install an optical imaging system for work paper
storage and retrieval.
- $782,847 for the equipment, supplies and contractual
services needed to support the technology system.
This will complete implementation of the automated system
begun in 1993.
- $450,000 to complete the implementation of the
department's data processing system.
Columbia Museum of Art
- $2 million for the purchase of the Belk department
store for the Columbia Museum of Art.
Department of Commerce
- $3 million for airport improvements.
USC Law School
- $330,000 to fund automation and books for the USC-Law
Youth Alcohol Treatment
- $400,000 to fund an intensive post release follow-up
and treatment program. This helps prevent the
return of juveniles to DJJ or alcohol treatment centers.
- $503,500 for renovations to the Long Leadership
Center in Aiken. This is a camp for youth
- $7 million to lease the 800 MHz mobile radio voice
communication service (for state agencies, local
governments and utilities). This will, through a
public-private partnership, unify our public safety
Coastal Carolina-Humanities building
- $2 million to begin construction on the building for
which Coastal Carolina University received
$600,000 in nonrecurring funds in FY 199596 for an
Architectural and Engineering study.
The Board of Economic Advisors' (BEA) FY 1996-97
Preliminary Revenue Forecast projects general fund
revenue to be $4.419 billion. This is an increase of
$317.2 million (above the adjusted base from the FY
1995-96 Appropriations Act and including adjustments).
However, the Carnell-Felder appropriations limit sets
aside $52.4 million in a recurring surplus; therefore,
with the Carnell-Felder calculation applied and with a
technical adjustment by the BEA, there is $264.4 million
available in recurring revenue from revenue growth.
The BEA forecasts a growth rate in General Fund revenues
of 4.2% over the revised estimate for FY 1995-96.
The calculation of recurring funds available for
expenditure is as follows:
FY 1996-97 BEA Preliminary Revenue Forecast:
Less the Carnell-Felder set-aside (calculation in
Revenue available for appropriation:
Revenue available for appropriation:
Less 1995-96 Appropriation Base after Governor's vetoes:
Recurring funds available for appropriation:
Technical Enhancement/Adjustment to BEA estimate:
Recurring funds available for appropriation in 1996-97:
This budget uses the following sources of revenue:
- $264.8 million in forecast revenue growth for FY
1996-97 ($317.2 million in revenue growth less the
Carnell-Felder set-aside of $52.4 million).
- $90.5 million in surplus left over from FY 1994-95
- $80.4 million in the FY 1995-96 Capital Reserve Fund
available for appropriation in March 1996 for
FY 1996-97, barring any mid-year budget cuts in the
remainder of FY 1995-96. Since the BEA is currently
forecasting a surplus for FY 1995-96, it is likely that
the Capital Reserve Fund revenues will be available for
- $64.2 million from the Carnell-Felder carry forward
from FY 1995-96. These funds are allocated by
statute to fund the Property Tax Relief Fund until it is
fully funded. This amount of $64.2 million is different
from the Carnell-Felder amount of $52.4 million quoted
above. The Carnell-Felder figure quoted above is the
set-aside calculation to arrive at the FY 1996-97
Appropriation limit, while the $64.2 million
set-aside amount is from last year's calculation and
available for use this year. The $52.4 million will be
available for appropriation in FY 1997-98.
- $74.1 million in projected surplus funds from FY
1995-96. I am recommending a list of items to be
funded if surplus beyond the current projection is
- $21.6 million in forecast revenue growth for FY
1996-97 in Education Improvement Act (EIA) funds.
- While none of this amount is available for
appropriation, the state also has a General Reserve Fund
emergency purposes of $120 million.
The total funds available for appropriation over the
recurring base is more than $595.6 million. More than
half of these funds ($309.4 million) are technically
nonrecurring. However, given the careful calculations of
the BEA and the numerous "reserve" funds on
hand to fend off any mid-year reductions, a
substantial portion of these funds are, in reality,
[PIE CHART GRAPHIC omitted from the Web page]
Specific Figures in Governor's Budget Proposal