On Thursday (02.21.08) morning at 9:30 am I will be a guest on the ETV show “This week in the Senate” (click here to watch) with President Pro Tempore Sen. Glenn McConnell. The topic will be on proposed spending caps legislation and the discussion will also include sunshine on government expenditures. Below are highlights of the spending caps legislation. The cap would be a constitutional requirement capping spending on all government bodies in the state. Below are some 
reasons for a need for this cap:
STATE AND LOCAL SPENDING COSTING TAXPAYERS TOO MUCH: SC NEEDS SPENDING CAPS
Government Grew Three Times Faster Than Families’ Income
Since 2004, state spending has grown nine percent each year, but SC families’ income has only grown three percent
State Spending Is Skyrocketing
In 2007, SC state spending grew by eighteen percent – that is twice the regional and national average rate
Local Spending Is Out of Control
For the past ten years, local government spending has grown almost eight percent every year
In 2006, school districts, cities and counties collected more than $13 billion – almost twice the state budget
Local government raised more than $4 billion in local (government) fees, most of which cost SC businesses
Fees and other charges are increasing at a rate of 14 percent each year
Average millage shot up from 277 in 1997 to 357 in 2005
Existing “Limitations” Won’t Slow Spending
The SC Constitution (Article V, Section 7) has a loose limit on spending that can be overridden and is so high that state government will never come close to reaching it
SC Tax Burden is Growing Faster than Other States
South Carolina’s total per capita tax burden is one of the highest in the Southeast, and second highest in the nation among states with similar personal incomes
Government Spending Must Be Slowed
Without spending caps, economists predict that by 2010:
Property tax relief will be cut by 45 percent
SC will lose 6,557 jobs
SC will lose $852 million in investment
SC personal income will fall by $321 million
Limitations Must Be Comprehensive
Lawmakers must ensure that government does not cost more than everything else in the economy – state and local government limits should be tied to a multi-year averaged index of consumer purchasing power or the cost of consumer goods and services
Spending Caps Must Be Constitutional, Not Political
State government alone cannot be trusted to limit itself – the people must force them to do it and ensure that limits are not later overturned by lawmakers
Exceptions for extreme states of emergency – as declared by the governor – would allow for additional expenditures
Local Spending Must Be Capped
State spending caps alone will not save taxpayers from a higher tax burden — local government spending costs taxpayers billions of dollars a year. County, city and district spending must also be capped
Unless state and local spending is capped, the taxpayer burden will continue to rise and businesses will be forced to cut jobs and investments. Spending caps are the only way to ensure that taxpayers and businesses are protected from out-of-control government growth
Nothing in the foregoing should be construed as an attempt to aid or hinder passage of any legislation. Copyright 2008. South Carolina Policy Council Education Foundation, 1323 Pendleton Street, Columbia, South Carolina 29201. Visit the Policy Council online
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