SC Revenues Plummet
South Carolina’s already grim revenue situation got even grimmer today as S.C. Comptroller General Richard Eckstrom released the latest data on the state’s tax collections.
According to Eckstrom’s office, state revenues for June 2009 are 10% lower (or $71.7 million less) than revenues collected in June 2008, and revenue is down 12.5 percent (or nearly $830 million) over the last twelve months.
Specifically, individual income tax revenue is down 10.1 percent (or $36.8 million) compared to the previous June, and off 15.4 percent (or $512.6 million) for the year. Sales tax revenue is down 6.7 percent ($13.8 million) compared to last year, and off 8.5 percent (or $190.5 million) for the year.
South Carolina’s $20.7 billion budget – passed earlier this year – is the second-largest spending plan in state history. It’s also the second consecutive budget in which lawmakers have appropriated more spending – much more spending, in fact – than state revenues were capable of supporting.
“This trend continues to underscore the need to step back and take a good, hard look at government spending, and renew the discussion of spending caps so that the growth of government never again outpaces our ability to pay for it,” Eckstrom said. “We should commit to the idea of setting priorities and funding only those things that are essential functions of government. We’d also do well not to use so-called ‘stimulus’ money as an excuse to keep from eliminating unnecessary spending.”
Eckstrom specifically blasted the “stimulus” – which his office is tracking – as nothing more than an excuse to grow government at the expense of the taxpayers.
“The president told us Congress must pass the stimulus immediately to keep the unemployment rate, which was at 7.6 percent, below eight percent,” Eckstrom said. “Since then, the national unemployment rate has ballooned 24 percent, and our state’s unemployment rate has grown 17 percent.”
Eckstrom added that “if the White House and Congress want to continue to increase spending in the face of record deficits … they should not do it under the pretense of economic recovery.”
WEB EXTRA
Comments
By 1+1=3 on July 9th, 2009 at 4:14 pm
Does anyone know where our Governor is?
By Freedom for Me on July 9th, 2009 at 5:59 pm
I think it is brilliant to pass one of the biggest budgets ever when we are headed into a major depression.All we need to do now is to start printiing South Carolina dollars and borrowing from Georgia. Then Obama would be really jealous……where is the soup line???
By James the Foot Soldier on July 9th, 2009 at 9:39 pm
Ruh ro – am I going to lose my bet on an October announcement of “mid-year” budget cuts??
By anonymous on July 10th, 2009 at 6:47 am
Sanford should also put the citizens first and step down.
The recent developments will render Sanford unable to effectively lead this state in the critical months ahead. South Carolina simply cannot afford to be rudderless as it faces the problems of record high unemployment, failing schools and other serious challenges. .
Can Sanford recruit industries to solve the unemployment problem – currently third-worst in the nation? It’s hard to imagine many corporate chief executives will now be recommending to their boards of directors that they open a new industrial plant in Sanford’s state.
Unfortunately, Sanford can no longer get the job done. Some polls show that more than 70 percent of South Carolinians want the governor to resign.
By lou on July 10th, 2009 at 7:58 am
when people don’t work, they don’t pay tax…..
YOOO HOOOO TAX COLLECTORS>>> WE NEED SOME JOBS>
By Cooter Brown on July 10th, 2009 at 9:40 am
“Can Sanford recruit industries to solve the unemployment problem – currently third-worst in the nation? It’s hard to imagine many corporate chief executives will now be recommending to their boards of directors that they open a new industrial plant in Sanford’s state.”
Please masa, pleeeeze help us! We needs a new masa ’cause dat masa in da big house aint no gud no more!
What’s wit you young folks?!?!
Altho’ da gob-ner problie ought t’ step aside, Andre aint gonna fix nuthin– in fact, nobody is a gonna fix anythin’ for anyone!
Git dem scalawag bastards in Columbia an’ dose tresonious bastards in Warshingtun outta da way an’ keep ‘em outta our wallets so we can fend fer ourselfs an’ our families!