Difference between revisions of "South Carolina state budget and finances"
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Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue.<ref>[http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?
Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue.<ref>[http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?=''United States Census Bureau'' "State Government Finances: 2012," accessed February 24, 2014]</ref>
Revision as of 15:14, 25 February 2014
|South Carolina state budget|
|GF expenses:||$6.7 billion|
|All funds expenses:||$22.8 billion|
|Other state budgets|
- 1 Budget process
- 2 Revenues
- 3 Expenditures
- 4 State budgets by year
- 5 Historical spending
- 6 State debt
- 7 Budget transparency
- 8 Accounting principles
- 9 Federal aid to state budget
- 10 External links
- 11 See also
- 12 References
- A summary of the budget drafting process
- Trends in revenues and expenditures
- Current fiscal year budget developments
- Financial transparency measures
Between fiscal years 2010 and 2014, the South Carolina state budget has increased by more than $3 billion, from $19.7 billion in 2010 to $22.8 billion in 2014. This represents a 15.7 percent increase, outpacing the cumulative rate of inflation during the same time period (7.95 percent, calculated using the Consumer Price Index).
The state operates on an annual budget cycle. In July and August of the year preceding the start of the new fiscal year, the Governor sends budget instructions to state agencies. In September, agencies submit their budget requests to the Governor. Budget hearings are held with state agencies in September and October, and in January the Governor submits his or her proposed budget to the state legislature. Both the House and the Senate pass a budget. If these versions do not match, a conference committee consisting of both House and Senate members is assembled to reconcile the differences. The legislature must pass a budget with a simple majority by the beginning of the fiscal year, which is July 1. The governor may exercise line item veto power on the enacted budget.
The Governor is constitutionally required to submit a balanced budget to the legislature. In turn, the legislature must pass a balanced budget, and any budget signed into law by the Governor must be balanced.
A rainy day fund, the General Reserve Fund, must maintain a balance equaling three percent of General Fund revenue. Rainy day funds may be withdrawn only for the purpose of covering operating deficits.
According to the National Association of State Budget Officers, the revenues comprising the estimated fiscal year 2013 general fund consisted of the following (comparable figures from surrounding states are also provided to give additional context):
|Revenue sources in the general fund, FY 2013 ($ in millions)|
|State||Sales tax||Personal income tax||Corporate income tax||Gaming tax||Other taxes and fees||Total|
In fiscal year 2013, personal income tax accounted for approximately 45 percent of all general fund revenues in South Carolina. Compared to the four neighboring states noted above, South Carolina's personal income tax to general fund ratio ranked fourth, behind 47 percent in Georgia, 53 percent in North Carolina, and 68 percent in Virginia.
|Revenue sources in the general fund, South Carolina ($ in millions)|
|Year||Sales tax||Personal income tax||Corporate income tax||Gaming tax||Other taxes and fees||Total|
|Change in %||8.90%||20.16%||28.02%||N/A||-2.63%||12.75%|
Estimated expenditures for fiscal year 2013 can be broken down as follows (comparable figures from surrounding states are provided to give additional context):
|Total state expenditures, FY 2013 ($ in millions)|
|State||General fund||Federal funds||Other funds||Bonds||Total|
Expenditures by function
State expenditures in South Carolina can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context):
|Expenditures by function, FY 2012 (as percents)|
|State||Elementary and secondary ed.||Higher ed.||Public assistance||Medicaid||Corrections||Transportation||Other|
Between 2008 and 2012, state expenditures for elementary and secondary education fell by nearly three percent. Expenditures on corrections and transportation also fell, by 0.3 percent and 0.9 percent respectively. Meanwhile, spending on higher education and Medicaid saw modest increases during the same period. The table below details changes in expenditures from 2008 to 2012.
|Expenditures from 2008 to 2012 (as percents)|
|Year||Elementary and secondary ed.||Higher ed.||Public assistance||Medicaid||Corrections||Transportation||Other|
|Change in %||-2.9%||0.4%||0%||0.6%||-0.3%||-0.9%||3.1%|
State budgets by year
Fiscal year 2014
|South Carolina state budget -- 2014|
|South Carolina State Legislature|
|Text:||A101, R120, H3710|
|Introduced:||March 5, 2013|
|House:||March 13, 2013|
|Vote (lower house):||116-1|
|Senate:||May 28, 2013|
|Vote (upper house):||34-7|
|Conference:||June 19, 2013|
|Conference vote (upper house):||39-5|
|Conference vote (lower house):||54-52|
|Signed:||June 25, 2013|
The fiscal year 2014 budget was signed into law by Governor Nikki Haley on June 25, 2013. The $22.8 billion spending plan includes a $6.7 General Fund, $7.6 billion in federal funds and $8.4 billion in other funds (e.g., grants, agency fees, fines, etc.). While the budget easily cleared the state Senate, it passed by only a two-vote margin in the House. The vote was split largely along party lines, with only two House Democrats voting in favor of the budget.
Budget opponents disapproved of the inclusion of tax credits for private school tuition, a lack of expanded Medicaid eligibility, and a failure to institute a cost-of-living wage increase for state employees. Supporters of the budget pointed to allocations for infrastructure improvement and expanded full-day pre-school programs.
Fiscal year 2013
- See also: South Carolina state budget (2012-2013)
Fiscal year 2012
- See also: South Carolina state budget (2011-2012)
Fiscal year 2011
- See also: South Carolina state budget (2010-2011)
Fiscal year 2009
- See also: South Carolina state budget (2008-2009)
|Historical state spending in South Carolina ($ in millions)|
|Fiscal year||General Fund||Other funds||Federal funds||Bonds||Budget totals|
|Total||% of Budget||Total||% of Budget||Total||% of Budget||Total||% of Budget|
According to a January 2014 report by the nonprofit organization State Budget Solutions, South Carolina had a state debt of over $71 billion. Its state debt per capita was $15,053. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.
|Total state debt in South Carolina|
|Total state debt||$71,105,557,000||23|
|Per capita debt||$15,053||23|
|State and other fund expenditures||$12,681,000,000||10|
|Line item expenditures|
|Public employee salaries|
|Last evaluated in 2009.|
South Carolina Spending Transparency is the publicly available website created by the South Carolina government. It discloses information about South Carolina's spending, and is managed by the Comptroller. South Carolina's current Comptroller, Richard Eckstrom, has written extensively on the importance of state and local transparency. In December 2008, he wrote:
"Earlier this year, I worked with Gov. Mark Sanford to create an easy-to-use spending transparency website. It contains detailed spending information for more than 80 state agencies, giving the public more access than ever to information about how state government spends its hard-earned tax dollars. This website, which is available through my office’s site (www.cg.sc.gov), is serving as a national model for other states attempting their own transparency initiatives. Several states have contacted me hoping to duplicate our open-government ideas."
South Carolina Spending Transparency provides a searchable expenditures database.
The table to the right is helpful in evaluating the accessibility and scope of the information provided by the South Carolina Spending Transparency page.
Support for creation of the database
Governor Mark Sanford signed South Carolina Executive Order 2007-14 on August 30, 2007. The order required the Comptroller to compile and disclose information concerning how the state agencies of South Carolina allocate revenues.
In 2012, 13 state agencies pushed to make 65 separate accounts exempt from oversight, meaning that the money in those accounts could only be reviewed by people inside the agency. Agencies are allowed to apply for such status with the Budget and Control Board if "release of the information would be detrimental to the state or agency."
Multi-measure budget transparency profile
The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for South Carolina, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.
In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.
The South Carolina State Auditor performs financial audits of state agencies, the annual financial audit of the State's General Purpose Financial Statements, and the annual Single Audit of the State's Schedule of Expenditures of Federal Funds. The audit reports are published online.
The Institute for Truth in Accounting (IFTA) rates South Carolina “timely” in filing the state’s Comprehensive Annual Financial Report (CAFR) -– the annual financial report of state and local governmental entities. IFTA rated 22 states "timely," 22 states "tardy," and 6 states as "worst." IFTA does not consider South Carolina's CAFRs, and those of the other states, to be accurate representations because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care. South Carolina's CAFRs are annual publications of the South Carolina Comptroller General, the state's top accountant. The Comptroller General is responsible for supervising state spending, keeping the state's books and maintaining accounting controls over state agencies. Richard Eckstrom has served as Comptroller General since 2002.
Federal aid to state budget
- See also: Federal aid to budgets in the 50 states
The chart below represents how much of the state’s budget comes from the federal government. The number in parentheses is the corresponding ranking in relation to the rest of the nation (e.g., if "1", the state receives the highest percentage of federal funding in the nation):
|Federal aid to state budgets in 2012|
|State||Federal aid as % of general revenue||National rank|
Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue.
South Carolina received $4.39 billion in federal stimulus funding between February 2009 and June 2013.
- State Budget Solutions, South Carolina
- South Carolina Policy Council
- South Carolinians for Responsible Government
- South Carolina Spending Transparency -- official website
- South Carolina Budget and Control Board -- official website
- South Carolina state website
- South Carolina Legislature
- Model transparency legislation from the American Legislative Exchange Council is available at this link.
- South Carolina state budget bills
- Bureau of Labor Statistics "Consumer Price Index," accessed February 24, 2014
- National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting," updated April 2011
- National Association of State Budget Officers "Budget Processes in the States, Summer 2008," accessed February 21, 2014
- SC Budget and Control Board "State Budget - FAQ," accessed February 21, 2014
- National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
- National Association of State Budget Officers "State Expenditure Report, 2009-2011," accessed February 24, 2014
- National Association of State Budget Officers "State Expenditures Report, 2010-2012," accessed February 24, 2014
- National Association of State Budget Officers "State Expenditure Report, 2009," accessed February 24, 2014
- National Association of State Budget Officers "State Expenditure Report, 2008," accessed February 24, 2014
- The Times and Democrat "S.C. General Assembly passes 2013-2014 budget compromise," June 20, 2013
- State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
- Washington Examiner "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
- State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
- The Herald-Journal "Urge local governments to put spending information online," December 28, 2008
- South Carolina Spending Transparency Database "Home page," accessed February 21, 2014
- Institute of Government and Public Affairs at University of Illinois "Home page," accessed February 21, 2014
- Institute of Government and Public Affairs at University of Illinois "South Carolina: Budget Transparency Profile," September 2011
- Institute of Government and Public Affairs at University of Illinois "Budget Transparency Profiles - All 50 States," September 2011
- South Carolina Office of the State Auditor "Home page," accessed November 11, 2009
- Institute for Truth in Accounting “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
- South Carolina Comptroller General "Home page," accessed November 11, 2009
- State of Indiana “State Credit Ratings as of June 24, 2009," accessed February 21, 2014
- The Pew Charitable Trusts "Infographic: S&P State Credit Ratings, 2001-2012," accessed February 21, 2014
- United States Census Bureau "State Government Finances: 2012," accessed February 24, 2014
- Recovery.gov "Stimulus Spending by State," accessed February 21, 2014
State of South Carolina
|State executive officers||
Governor | Lieutenant Governor | Attorney General | Secretary of State | Comptroller General | Treasurer | State Auditor | Superintendent of Education | Director of Insurance | Commissioner of Agriculture | Director of Natural Resources | Director of Labor, Licensing and Regulation | Chairman of Public Service Commission |