2011 South Carolina Budget Passed:
The House of Representatives approved its proposed STATE GOVERNMENT BUDGET for Fiscal Year 2011-2012 by amending and sending to the Senate H.3700, this year's GENERAL APPROPRIATIONS BILL, and H.3701, the joint resolution making appropriations from the CAPITAL RESERVE FUND. The proposed $5.4 billion budget includes widespread cuts for state government agencies made necessary by the declines in state revenue in recent years and the absence of federal stimulus funds that have been used to help offset shortfalls.  Evidence of economic recovery can be found in the availability this year of $350 million above the level of last year's general fund appropriations.

A $101.4 million increase in Education Finance Act items allows for the base student cost to be increased to an estimated $1,788, which amounts to an additional $171 for each pupil.  $25 million is included for the virtual and brick and mortar charter schools of the South Carolina Public Charter School District. Funds are provided to the state's special schools to allow them to operate near full capacity.
 
The State's Institutions of Higher Education receive cuts ranging from 5 to 8 percent, with budget reductions distributed to universities and colleges using a formula that takes into account the percentage of state general funds comprising an institution's budget and favors institutions with successful graduation rates and higher in-state enrollment. Several appropriations are made from the Capital Reserve Fund to allow higher education institutions to undertake deferred maintenance projects. The state's scholarship programs are fully funded.
 
The Department of Health and Human Services receives an additional $435 million mostly to offset the agency's $350 million deficit. The proposed budget eliminates the provison that has prohibited alterations in the rates paid to doctors and other service providers in the state's Medicaid Program. The proposed budget authorizes the Director of the Department of Health and Human Services to reduce provider rates as a cost-saving measure. The budget also allows access to $157.3 million in Medicaid Reserve Fund revenue collected from the fifty-cent cigarette surcharge for maintenance of effort in the Medicaid Program. Residual funds from the cigarette surcharge are to remain in the Medicaid Reserve Fund and may be used by the DHHS director to ensure access to care.  
 
The budget incorporates numerous government restructuring initiatives. The Department of Probation, Parole, and Pardon Services is merged with the Department of Corrections.  The Arts Commission and the State Museum are transferred into the Department of Parks, Recreation, and Tourism.  The Department of Alcohol and Other Drug Abuse Services is transferred to the Department of Mental Health.  The Division of Aeronautics is moved to the Department of Transportation.  The Procurement Review Panel is transferred to the Administrative Law Court.  The duties, functions, and responsibilities of the Education Oversight Committee are devolved upon the Department of Education and the committee's funding is redistributed to fund other needs such as teacher salaries and supplies.
 
The new position of Governor's Inspector General is required to make quarterly reports to the House Ways and Means Committee and the Senate Finance Committee on investigations of state government fraud, waste, and abuse.  After June 30, 2012, the position of Inspector General must be fully self-sufficient from savings identified in the cabinet agencies under review. The Judicial System is spared funding reductions and receives $5 million in capital reserve funds for statewide implementation of its electronic court filing initiative.

• The Department of Corrections is fully funded according to the agency's budget request with recurring general funds. 
• The Department of Disabilities and Special Needs receives an additional $35 million in recurring general fund appropriations to maintain agency operations.  The Department of Social Services is fully funded according to its budget request.  
• Existing benefits are maintained under the state employee health insurance plan and the additional cost for maintaining the program is divided equally between state employees and their state agency employers. 
• The state's reserve funds and rainy day accounts are fully replenished. 
• The budget includes a 10 percent reduction in state aid to local governments. 
• Budget cuts are directed to state agencies and institutions to eliminate taxpayer funded lobbying.  Lobbyist registration fees are increased from one hundred to two hundred dollars with half of the increase remitted to the general fund and the other half retained for use by the State Ethics Commission. 
• All general funds are eliminated for South Carolina Educational Television, but SCETV is allowed to retain revenue derived from the use of its broadcast towers, signal spectrum, and contracts for other facilities and services in order to fund its operations. 
• The budget includes an additional $10 million in capital reserve funds for the Deal Closing Fund that the Department of Commerce uses to recruit new business to South Carolina. 
• $13 million in capital reserve funds is included for new job training at the state's technical colleges. 
• The Department of Parks, Recreation and Tourism receives $5.4 million in capital reserve funds for marketing destination specific tourism. 
• The Forestry Commission is shielded from general fund reductions and receives $3 million in capital reserve funds to replace equipment used for such activities as firefighting.

Voter ID:
Republicans in the Senate overcame Democratic obstructionism, procedural gimmicks and even a mountain of 480 amendments to pass the voter ID bill. SC voters will have to show photo identification at polls under the legislation that passed the Senate. Voters currently can show either a driver's license or voter registration card, which lacks a photo. Senators amended our House bill and exempted people who are 65 years old and over from having to get IDs to vote. They also created an 11-day early voting period ending three days prior to an election. The measure died last year with the House and Senate unable to agree on a compromise between their two versions. I voted in favor of this bill.

Concealed Weapons Permit:
This bill (H-3292) is currently being delayed. There has been a tremendous amount of feedback. I appreciate all the comments that I have received. I am going to watch this bill very closely. As it stands now, I don't see this bill being passed as is. I think the most common sense approach to this will be more debate and understanding of how important it is for law enforcement to understand the full impact of this bill. I am a believer and supporter of the Second Amendment and a long time member of the NRA. 
 
Tort Reform:
The House overwhelmingly approved this lawsuit abuse reform by a vote of 100-7. This law prevents outrageous punitive damages, while still ensuring that if a company hurts you, you will continue to have access to the legal system. Under the provisions of the bill approved last Wednesday (H-3375), people who win lawsuits are entitled to a maximum punitive damage award of $350,000 or three times the actual damages awarded, whichever is greater. The legislation also requires the Attorney General and Solicitors to disclose contracts when they use outside counsel and imposes limits on the fees the outside counsel may collect from the state. The House passed a similar Tort Reform bill last year, but the legislative session ended before it could become law. This year, we hope that we took action quick enough so it has plenty of time to make it through the senate.

Spending Cap Bill:
The Spending Cap Bill (H-3368) limiting how much the state can spend. Letting people spend their own hard-earned dollars and ensuring government serves the people by getting out of our way, is something in which I truly believe. We should do all we can to limit the size of government.  

Tax Payer FairnessThis bill:
(H-3419) states that the South Carolina Department of Revenue must interpret tax statutes of this State fairly and the terms in the tax statutes may not be given broader meaning than intended by policy documents and regulations of the department of revenue. Ambiguity in tax statutes must be resolved in favor of the taxpayer.  

The "Card Check" Constitutional Amendment:
The voters of SC approved this Amendment with 86% of the vote in favor of a secret ballot in union elections. Both the House and Senate have ratified the voters decision. Each version has been approved and the Amendment will be sent to the Governor's desk for her signature. This is the Amendment that the Federal National Labor Relations Board threatened to sue South Carolina over.  

SRS, H-Canyon, and Department of Energy:
Last week, our county legislative delegation sent another letter to Secretary Chu of the Department of Energy (DOE) as to the DOE directive to SRNS to take H-Canyon to a "safe minimum operating level."  It is important that the DOE use H Area as a processing facility to dispose of spent fuels as well as a research and development center for Savannah River National Laboratory to immediately and aggressively identify technologies to solve the "back-end" of the nuclear fuel cycle and reduce the risks presented to our communities from the storage of spent nuclear fuel.  

School Choice Bill:
A House Education Subcommittee heard from advocates on the Educational Opportunity Act (H-3407) for the first time. They explained that this is not the same system that has been called the voucher system. It is actually a tax credit giving parents a choice where they would like to send their children to school. The bill is designed to give parents who can't afford private school more of a choice. Scholarships will also be offered in the program. 

Charter School Bill Passes House:
The House passed the Charter School bill (H-3241).  I voted for the bill and it passed 85-32. The bill was amended so that no local district money is spent on the state-sponsored charter schools.  These schools include both (1) brick and mortar schools of which there are 11 statewide and (2) virtual schools of which 223 students in Aiken County attend.  The bill also allows students enrolled in public charter schools to play sports at the school where they would normally attend if the public charter school does not offer the same sport.  

Roll Call Voting, Higher Education, Repeal Amendment & Government Restructuring;
…are some of the other bills that have passed so far this year.

I anticipate the second half of the 119th session to be as productive as the first. Please be sure to stay up to date with all that is going on in Columbia. If you have any questions, comments or concerns, I am always available..