S 889 Session 112 (1997-1998)
S 0889 General Bill, By Moore, Leventis and Reese
A BILL TO AMEND ARTICLE 1, CHAPTER 11, TITLE 11, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO THE STATE BUDGET PROCESS, SO AS TO PROVIDE THAT
CERTAIN INFORMATION PROVIDED TO THE GOVERNOR FOR THE UNDERTAKINGS OF STATE
GOVERNMENT BE SENT TO THE SENATE FINANCE COMMITTEE AND THE HOUSE WAYS AND
MEANS COMMITTEE, TO PROVIDE THAT THE SENATE FINANCE COMMITTEE AND THE HOUSE
WAYS AND MEANS COMMITTEE CONSTITUTE A JOINT APPROPRIATION COMMITTEE WHICH
SHALL MEET TO CONSIDER AND ESTABLISH THE PROJECTED ANNUAL REVENUE AND CERTAIN
REQUIRED ALLOCATIONS ON WHICH THE ANNUAL GENERAL APPROPRIATION BILL MUST BE
BASED AND TO PROVIDE THAT THE BILL WHICH RECEIVES THIRD READING FIRST IN
EITHER BODY SHALL BE THE RECORD BILL FOR PURPOSES FINAL PASSAGE AND TO REPEAL
SECTIONS 11-11-100 AND SECTION 11-11-140.
12/15/97 Senate Prefiled
12/15/97 Senate Referred to Committee on Finance
01/14/98 Senate Introduced and read first time SJ-25
01/14/98 Senate Referred to Committee on Finance SJ-25
A BILL
TO AMEND ARTICLE 1, CHAPTER 11, TITLE 11, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE
STATE BUDGET PROCESS, SO AS TO PROVIDE THAT
CERTAIN INFORMATION PROVIDED TO THE GOVERNOR
FOR THE UNDERTAKINGS OF STATE GOVERNMENT BE
SENT TO THE SENATE FINANCE COMMITTEE AND THE
HOUSE WAYS AND MEANS COMMITTEE, TO PROVIDE
THAT THE SENATE FINANCE COMMITTEE AND THE HOUSE
WAYS AND MEANS COMMITTEE CONSTITUTE A JOINT
APPROPRIATION COMMITTEE WHICH SHALL MEET TO
CONSIDER AND ESTABLISH THE PROJECTED ANNUAL
REVENUE AND CERTAIN REQUIRED ALLOCATIONS ON
WHICH THE ANNUAL GENERAL APPROPRIATION BILL
MUST BE BASED AND TO PROVIDE THAT THE BILL WHICH
RECEIVES THIRD READING FIRST IN EITHER BODY SHALL
BE THE RECORD BILL FOR PURPOSES FINAL PASSAGE AND
TO REPEAL SECTIONS 11-11-100 AND SECTION 11-11-140.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Article 1, Chapter 11, Title 11 of the 1976 Code is
amended to read:
"Article 1
Section 11-11-10. The State Budget and Control Board shall
may employ competent budget assistants and
such staff special help as is authorized in the
annual general appropriation act it may require to carry
out the provisions of this chapter. It shall fix the compensation of
such persons as it shall employ in this connection and cause such
compensation, together with their necessary traveling expenses, to be
paid out of the civil contingent fund. It shall call upon the State
Department of Revenue and Taxation for any information desired,
and the State Department of Revenue and Taxation shall furnish such
information and shall be present, if requested at all hearings
before the committees having charge of the appropriations in the
Senate and House.
Section 11-11-15. The functions of the State Budget and Control
Board in the preparation and submission to the General Assembly of
the recommended state budget are devolved upon the Governor.
Wherever the phrase `State Budget and Control Board' appears in the
context of preparing and submitting budget recommendations to the
General Assembly, it means the Governor. In preparing the
recommended state budget, the Governor may consult with the State
Treasurer, the Comptroller General, or other state officials as needed.
The Budget Division of the State Budget and Control Board shall
assist the Governor in preparing the budget recommendations, but
this function of the Budget Division may not be construed as altering
the overall management and administration of the Budget Division
as an entity of the State Budget and Control Board.
Section 11-11-20. On or before the first day of November in each
year the Governor State Budget and Control Board and
its assistants shall complete a careful survey of
request and obtain from all of the departments,
bureaus, divisions, officers, boards, commissions, institutions and
other agencies and undertakings of the State, through which it
shall be in possession of the working knowledge all
information, reports, recommendations or any other such material the
Governor will use in preparing and submitting upon which
to base its his budget recommendations to the General
Assembly. A copy of all of the information, reports,
recommendations or any other materials provided to the Governor
pursuant to this section shall be sent to the Senate Finance Committee
and the House Ways and Means Committee or their successor
committees at the same time such is provided to the Governor.
Section 11-11-30. On or before the first day of November,
annually, each of the several State departments, bureaus, divisions,
officers, commissions, institutions and other agencies and
undertakings receiving or asking financial aid from the State shall
report to the Governor, the Senate Finance Committee, and the
House Ways and Mean Committee or their successor committees
State Budget and Control Board, on official estimate blanks
furnished for such purpose, an estimate in itemized form showing the
amount needed for the year beginning with the first day of July
thereafter. The official estimate blanks which must be used in making
these reports shall be furnished by the Board, shall be uniform and
shall clearly designate the kind of information to be given
thereon.
Section 11-11-40. On or before the first day of each November the
Comptroller General shall furnish to the Governor, the Senate
Finance Committee, and the House Ways and Mean Committee or
their successor committees State Budget and Control
Board the following statements, classified and itemized in strict
accordance with the budget classifications adopted by the Board
or required by the General Assembly:
(1) A statement showing the balance standing to the credit of the
several appropriations for each department, bureau, division, officer,
board, commission, institution or other agency or undertaking of the
State at the end of the last preceding appropriation year;
(2) A statement showing the monthly expenditures and revenues
from each appropriation account and the total monthly expenditures
and revenues from all the appropriation accounts, including special
and other appropriations, in the twelve months of the last preceding
appropriation year;
(3) A statement showing the annual expenditures in each
appropriation account and the revenues from all sources, including
expenditures and revenues from special and other appropriations, for
each of the last two appropriation years, with a separate column
showing the increase or decrease for each item;
(4) An itemized and complete financial balance sheet for the
State at the close of the last preceding fiscal year ending June
thirtieth; and
(5) Such other statements as the Governor or the respective
committees of the House or Senate Board shall request.
Section 11-11-50. On or before the first day of December,
annually, the Comptroller General shall furnish to the Governor,
the Senate Finance Committee, and the House Ways and Mean
Committee or their successor committees State Budget and
Control Board an estimate of the financial needs of the State,
itemized in strict accordance with the budget classifications adopted
by the Board and certified and approved by the chairmen of the
Senate Finance Committee and House Ways and Means Committee
respectively presiding officer of each House for each
year beginning with the first day of July thereafter; and he shall also
furnish an estimate of the financial needs of the judiciary, as provided
by law, itemized in strict accordance with the budget classification
as herein provided adopted by the Board, for each
year, beginning with the first day of July thereafter. The Comptroller
General shall transmit to the Board with these estimates
with full and detailed explanations of all increases or
decreases. These estimates together with the accompanying
explanations of increases and decreases shall be included in the
budget by the Governor Board without revisions, but
with his its recommendations thereon.
Section 11-11-70. (A) Within five days after the beginning of each
regular session of the General Assembly the State Budget and
Control Board Governor shall submit to the
chairman of the Senate Finance Committee and the House Ways
and Means Committee, respectively, presiding officer of each
house printed copies of a budget, based on his its
own conclusions and judgments, containing a complete and itemized
plan of all proposed expenditures for each state department, bureau,
division, officer, board, commission, institution, or other agency or
undertaking, classified by functions, character, and object, and of
estimated revenues and borrowings for each year, beginning with the
first day of the next fiscal year. Opposite each item of the proposed
expenditures the budget must show in separate parallel columns the
amount appropriated for the last preceding appropriation year, for the
current appropriation year and the increase or decrease.
(B) The budget which is submitted by the board
Governor pursuant to this section to the presiding officer
of each house must conform to the funding requirements
contained in Section 36 of Article III of the Constitution of this State.
Section 11-11-80. The State Budget and Control Board shall
accompany the budget with:
(1) A statement of the revenues and expenditures for each of the
two appropriation years next preceding, classified and itemized in
accordance with the official budget classification adopted by the
Board;
(2) A statement of the current assets, liabilities, revenues and
surplus or deficit of the State;
(3) A statement of the debts and funds of the State;
(4) A statement showing the Board's itemized estimates of the
condition of the State Treasury as of the beginning and end of each
year;
(5) An itemized and complete financial balance sheet for the
State at the close of the last preceding fiscal year ending June
thirtieth; and
(6) A general survey of the State's financial and natural resources,
with a review of the general economic, industrial and commercial
condition of the State.
Section 11-11-90. (A) The standing committees of the
House of Representatives and of the Senate in charge of
appropriation measures shall sit jointly in open sessions while
considering the budget and shall begin such joint meetings within
Within five days after the budget has been submitted by
the Governor to the Senate Finance Committee and the
House Ways and Means Committee, General Assembly by
the State Budget and Control Board. This joint committee may cause
the attendance of heads or responsible representatives of the
departments, institutions and all other agencies of the State to furnish
such information and answer such questions as the joint committee
shall require and to these sessions shall be admitted, with the right to
be heard, all persons interested in the estimates under consideration.
The Board, or its representatives, and the Governor-elect shall have
the right to sit at these public hearings and be heard on all matters
coming before the joint committee." the committees shall
meet jointly and shall constitute a joint appropriation committee. The
Joint Appropriation Committee must, among such other actions as it
may deem necessary, convene for the purpose of receiving a report
from the Board of Economic Advisors and such other information as
the joint committee may consider necessary and sufficient to establish
the projected annual revenue available for the succeeding fiscal year.
The joint committee shall, by majority vote of the Senate members
and a majority vote of the House of Representative members,
establish the gross estimated revenue upon which the annual general
appropriations for the operations of state government for the
succeeding fiscal year shall be based. Based on the established
revenue estimate and such other information as may be reported to
the joint committee, the joint committee shall determine the amount
of revenue which must be allocated to the maintenance of any
constitutional reserves, to fully fund the current projected debt
service payments, to fully fund the formula pursuant to Chapter 20 of
Title 59 of the Code of laws and to fully fund the Local Government
Fund pursuant to Chapter 27 of Title 6 of the Code of Laws.
Thereafter, the joint committee shall report this determination to the
respective committees which shall meet in their individual capacities
to write and introduce a general appropriation bill. Any such bill must
be based on the revenue estimate and required allocations established
by the joint committee, such bill to provide, among other things for
the full fiscal year appropriation sufficient to fund any continuing
authorization for which less than a full fiscal year appropriation was
made in the preceding fiscal year, necessary appropriations for any
formula driven programs, and any other authorizations as may be
required to defray the expenses of the general operation of
government for the succeeding fiscal year, to the extent that revenues
are available. Any such annual general appropriation bill shall be
introduced and considered only as provided in this section.
(B) The bill which receives a third reading first in either body shall
be fully available for amendment by the other house but shall be the
record bill for purposes of further consideration by the General
Assembly, for any necessary conference and for the purpose of
ratification of an act of the General Assembly.
Section 11-11-100. The General Assembly may
increase or decrease items in the budget bill as it may deem to be in
the interest of greater economy and efficiency in the public
service.
Section 11-11-110. The chairman of the ways and means
committee of the House of Representatives and the chairman of the
finance committee of the Senate shall receive, in addition to their per
diem, their actual traveling expenses, to be audited and approved by
the Comptroller General.
Section 11-11-140. (A) General fund appropriations in
the annual general appropriations act may not exceed the base
revenue estimate as calculated pursuant to subsection (B) or as
adjusted pursuant to subsection (C).
(B) For purposes of this section, the base revenue estimate is the
lesser of:
(1) (a) the total of recurring general fund revenues collected
in the fiscal year completed before the General Assembly first
considers the annual general appropriations bill increased by any
recurring general fund revenue enhancements occurring in the current
fiscal year if such enhancements are certified by the Board of
Economic Advisors;
(b) increased by a sum equal to seventy-five percent of the
amount the general fund revenue estimate of the Board of Economic
Advisors for the upcoming fiscal year exceeds the amount in subitem
(a) of this item; or
(2) the general fund revenue estimate of the Board of
Economic Advisors for the upcoming fiscal year.
The base revenue estimate may be increased or decreased (1)
by any amendment to the general appropriations bill which affects the
Board of Economic Advisors revenue estimate or (2) enacted
legislation which affects the board's estimate, if the board certifies in
writing the change in estimated revenue.
(D) Appropriations from surplus may not be made before the
first meeting of the General Assembly following the Comptroller
General's closing of the books on the fiscal year in which the surplus
occurred and may be appropriated only for nonrecurring
purposes.
(E) In making a recommendation to the General Assembly for
the fiscal year 1994-95 budget, and for each year thereafter, the
Budget and Control Board shall not incorporate or realize any
revenue derived on the basis of any future change in a method of
accounting, as determined by the Budget and Control Board, unless
such change in a method of accounting is based on statutory authority
specifically granted to the Budget and Control Board or a statutory
enactment changing the method of accounting.
(F) Notwithstanding the provisions of subsection (D),
appropriations from surplus may not be expended before the
Comptroller General's closing of the books on the fiscal year in
which the surplus occurred. The surplus in this subsection, that is
the calculated set-aside as defined in this section, after reduction by
way of transfer to the general fund of such amount as necessary to
offset any recognized budget shortfall for the fiscal year in which the
set-aside surplus occurred, is appropriated for deposit in the State
Property Tax Relief Fund. After the first year that the State Property
Tax Relief Fund is fully funded, the procedure in subsection (D) must
be applied."
SECTION 2. This act takes effect upon approval of the Governor.
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