Gov. Nikki Haley Presents 2013-2014 Budget

Gov. Nikki Haley began the budget season on Thursday at a Statehouse press conference where she presented the Executive Budget for Fiscal Year 2013-2014.

Among the highlights: 

• Revenues have increased year-on-year by 2.6 percent. 
• Estimates were that, in the current fiscal year, the General Fund would be ahead of last year by 4.7 percent. It’s at 6.6 percent. Exceeding estimates by 1.9 percent represents an additional $20.7 million. 
• Failure by Congress and President Obama to address the “Fiscal Cliff” could adversely affect the progress South Carolina has made in rebuilding its economy. 
• The state will prioritize improving its infrastructure, as that is critical to attracting and keeping business.
• Even if the state opts out of the Medicaid expansion resulting from the Affordable Care Act, it will cost $67.4 million in the upcoming year.
• An additional $5 million for charter schools. 
• “Accountability-Based Funding” for colleges tied to instruction quality, cost and on-time graduation rate. 
• Investments in law enforcement that will see 18 new Highway Patrol officers in the Department of Public safety and 10 officers for the Department of Natural Resources. 25 new parole agents age funded as are improvements to correctional facilities.
• Elimination of the 6% individual income tax bracket.
• Haley also rejected the notion of a gas tax and called for Blue Line Budgeting.

Blue Line Budgeting, according to Haley, would eliminate the “all or nothing” approach that occurs during the veto session. For example, when funding a project such as the Arts Commission, the legislature approves it in full or not at all. In the event the Governor and the legislature cannot agree on funding a particular item, the Governor could reject the figure suggested by the legislature and then present a figure of her own that the legislature could vote on.

Greg Foster, spokesperson to House Speaker Bobby Harrell said of Haley's budget, "It has an approach to reality that wasn't always present in previous administrations."

Historically, about 80 percent of the budget eventually gets put into place after negotiations by the governor and the legisalture.

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