South Carolina General Assembly
114th Session, 2001-2002

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Bill 3801


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                      3801
Type of Legislation:              General Bill GB
Introducing Body:                 House
Introduced Date:                  20010327
Primary Sponsor:                  Harrell
All Sponsors:                     Harrell, Allison, Keegan, Kelley, 
                                  Scarborough, Meacham-Richardson, Wilkins, 
                                  Quinn, Bingham, Leach, Hinson, Knotts, Webb, 
                                  Davenport
Drafted Document Number:          l:\council\bills\gjk\20416sd01.doc
Residing Body:                    House
Current Committee:                Ways and Means Committee 30 HWM
Subject:                          Appropriations Act, State, General; mid-
                                  year budget reductions, education exempt from; 
                                  General Assembly, Agencies


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
House   20010328  Co-Sponsor added (Rule 5.2) by Rep.            Scarborough
                                                                 Meacham-
                                                                 Richardson
                                                                 Wilkins
                                                                 Quinn
                                                                 Bingham
                                                                 Leach
                                                                 Hinson
                                                                 Knotts
                                                                 Webb
                                                                 Davenport
House   20010327  Introduced, read first time,           30 HWM
                  referred to Committee


              Versions of This Bill

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND ACT 387 OF 2000, RELATING TO THE GENERAL APPROPRIATIONS ACT FOR FISCAL YEAR 2000-2001 AND A PROVISION PROVIDING FOR THE MANNER IN WHICH ANY MID-YEAR BUDGET REDUCTIONS SHALL BE MADE DURING THIS FISCAL YEAR, SO AS TO EXEMPT ELEMENTARY, SECONDARY, AND HIGHER EDUCATION FROM ANY SUCH REDUCTIONS, TO DEFINE ELEMENTARY, SECONDARY, AND HIGHER EDUCATION FOR THIS PURPOSE, TO PROVIDE THAT THE BUDGET AND CONTROL BOARD MAY ALSO EXEMPT FROM ANY MID-YEAR REDUCTION AN AGENCY'S BASE BUDGET WHERE THE BOARD HAS OFFICIALLY RECOGNIZED AN AGENCY'S OPERATING DEFICIT, AND TO PROVIDE THAT THE GENERAL ASSEMBLY HAS FIFTEEN RATHER THAN FIVE STATEWIDE SESSION DAYS AFTER FORMAL WRITTEN NOTIFICATION OF SUCH CUTS FROM THE BOARD TO PREVENT THE REDUCTIONS FROM TAKING PLACE.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Paragraph 63C.6, Part IB, Act 387 of 2000, is amended to read:

    "63C.6.    Any appropriations made herein or by special act now or hereafter, are hereby declared to be maximum, conditional and proportionate, the purpose being to authorize expenditures not to exceed the amounts named herein, if necessary, but only in the event the aggregate revenues available during the period for which the appropriations are made are sufficient to pay them in full. The State Budget and Control Board is directed to survey the progress of the collection of revenue and the expenditure of funds by all agencies, departments, and institutions. If the Budget and Control Board determines that a year-end aggregate deficit may occur by virtue of a projected shortfall fall in anticipated revenues, it shall utilize such funds as may be available and required to be used to avoid a year-end deficit and thereafter take such action as necessary to restrict the rate of expenditure of all agencies consistent with the provisions of this section. No institution, activity, program, item, special appropriation, or allocation for which the General Assembly has provided funding in any part of this act shall be discontinued, deleted, or deferred by the Budget and Control Board. Any reduction of rate of expenditure by the board, under authority of this act, shall be applied as uniformly as may be practicable except that no reduction shall be applied to funds encumbered by a written contract with an agency not connected with the state government. Appropriations for programs related to the education of students in kindergarten through twelfth grade including instructional materials, transportation, state aid to school districts and implementation of the Education Accountability Act of 1998, and the First Steps to School Readiness programs are exempt from any such reductions. This exemption extends to those appropriations directly related to educational activities for such students at the School for the Deaf and Blind, John de la Howe School, Wil Lou Gray Opportunity School, the Governor's School for Science and Math, the Governor's School for the Arts and Humanities, Department of Juvenile Justice, and the Department of Correction's Palmetto Unified School District. The board may also exempt from any mid-year reductions an agency's base budget where the board has officially recognized an agency's operating deficit. Appropriations for programs related to the education of students in higher education are also exempt from any such reductions. This exemption includes those appropriations directly related to the Commission on Higher Education, the Higher Education Tuition Grants Commission, The Citadel, Clemson University, the University and College of Charleston, Coastal Carolina University, Francis Marion University, Lander University, South Carolina State University, the University of South Carolina - Columbia Campus, University of South Carolina - Aiken Campus, University of South Carolina - Spartanburg Campus, University of South Carolina - Beaufort Campus, University of South Carolina - Lancaster Campus, University of South Carolina - Salkehatchie Campus, University of South Carolina - Sumter Campus, University of South Carolina - Union Campus, Winthrop University, the Medical University of South Carolina, the Medical University of South Carolina - Consortium of Community Teaching Hospitals, and the State Technical and Comprehensive Education Board. No such reduction shall be ordered by the State Budget and Control Board while the General Assembly is in session without first reporting such necessity to the General Assembly, and the General Assembly has taken no action to prevent the reduction within fifteen five statewide session days of formal written notification. As far as practicable all departments, institutions, and agencies of the State are hereby directed to budget and allocate appropriations as quarterly allocation so as to provide for operation on uniform standards throughout the fiscal year and in order to avoid an operating deficit for the fiscal year. It should be recognized that academic year calendars of state institutions will affect the uniformity of the receipt and distribution of funds during the years. The Comptroller General or the Office of State Budget shall make such reports to the Budget and Control Board as they deem advisable on any agency which is expending authorized appropriations at a rate which predicts or projects a general fund deficit for the agency. The Budget and Control Board is authorized and directed to require any such agency, institutions, or department to file a quarterly allocations plan and is further authorized to restrict the rate of expenditures of the agency, institution, or department if the board determines that a deficit may occur. It is the responsibility of any such agency to develop a plan, in consultation with the Budget and Control Board, that eliminates or reduces a deficit. Should the Budget and Control Board make a finding that the cause of and likelihood of a deficit is unavoidable due to factors which are wholly outside of an agency's control, then the board may determine that the recognition of an agency deficit is appropriate and shall notify the General Assembly of such action or the presiding officer of the House and Senate if the General Assembly is not in session. Upon receipt of such notification from the Budget and Control Board, the General Assembly may authorize supplemental appropriations from any surplus revenues which existed at the close of the previous fiscal year. If the General Assembly fails to take action, then the finding of the Budget and Control Board shall stand, and the actual deficit at close of the fiscal year shall be reduced as necessary from surplus revenues or surplus funds available at the close of the fiscal year in which the deficit occurs and from funds available in the Capital Reserve Fund and General Reserve Fund, as required by the Constitution. If the Budget and Control Board finds that the likelihood and cause of a deficit is the result of agency management, then the bond of state officials responsible for management of the agency involved shall be held liable therefor and the board shall notify the Agency Head Salary Commission of such finding. In the case of a finding that a projected deficit is the result of the management of the agency, the Budget and Control Board shall take immediate steps to curtail agency expenditures in such a manner so as to bring expenditures in line with authorized appropriations and avoid a year-end operating deficit."

SECTION    2.    This act takes effect upon approval by the Governor.

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