By FITSNews || Contrary to the repeated pronouncements of the state’s mainstream media (who apparently believe that if they keep telling the same lie over and over again, you’ll believe it), South Carolina’s total state budget for the 2010-11 fiscal year – which that started on Thursday – is not $5.1 billion.
Not even close.
Nor is it – as The (Columbia, S.C.) State newspaper reporter Roddie Burris dubbed it earlier this week – a “pain-filled budget,” a “shriveled budget” or a budget “faced with a $462 million shortfall.”
You can read Burris’ bureaucratic bitchfest – (a.k.a. “objective journalism”) – by clicking here, but the bottom line is that all of his bitching and moaning on behalf of South Carolina’s “reeling state agencies” is based on a premise that’s completely false.
After the S.C. House and Senate finished their work on Gov. Mark Sanford’s vetoes, the total budget for the current fiscal year stands at just over $20.8 billion. If revenues holds up (and that’s admittedly a big “if”), it will be the largest budget in state history by about $600-700 million. Should revenues fall off – which we predict that they will based on the current trajectory of the national and global economies – it will likely clock in at roughly the same level as it has the last two years.
S.C. lawmakers appropriated $20.8 billion two years ago and $20.6 billion last year – although revenue failed to keep up and they were forced to trim back both of those budgets to just over $20 billion apiece. Still, those numbers are obviously much bigger than the $5.1 billion figure that the press keeps force-feeding you – and keep in mind we’re in year three of one of the worst economic downturns in American history.
Also important to remember? Even before the recession, government spending in South Carolina was well above the national average, consuming more than forty percent of our gross state product. That’s the tenth-highest rate in the country, which is one reason why South Carolinians have to pay what is effectively the highest income tax rate in the Southeast.
But back to spending … why the huge budget discrepancy? Well, we addressed it back in March in a little post called The $5 Billion Lie (And $21 Billion Reality), but it all basically boils down to which sections of the budget the press chooses to include in their coverage.
The $5.1 billion that the vast majority of the legacy media (a.k.a. the mainstream press) chooses to report is general fund revenue only – which is just one slice of a much larger pie. You see on top of that $5.1 million, the state budget also includes approximately $8.2 billion in federal funds and $7.5 billion in “other funds” collected from fees and fines levied on South Carolinians.
And while general fund revenue has indeed been declining, both federal funding and the so-called “other funds” included in the state budget have soared in recent years.
We’ve talked to numerous reporters over the years about their budget reporting and they justify using the $5.1 billion figure by saying that this is the amount that lawmakers can control.
That’s not true, though.
State lawmakers hold enormous power over the remaining $15.7 billion. For example, lawmakers have an opportunity to vote on any new fee or fine that is levied on the people of South Carolina – or any increase or decrease in those assessments. On top of that, lawmakers direct how the revenue collected from those fees and fines is spent via hundreds of provisos that accompany the budget each year.
Then there are decisions the General Assembly makes with regard to federal “matching funds,” basically determining where to appropriate state dollars in anticipation of receiving a certain federal “match.” Now … do lawmakers directly control all of the $8.2 billion in federal funds including in this year’s budget? No … but their decisions certainly influence where that money goes.
When you add it all up, this year lawmakers will directly control around $12.6 billion and be able to influence another $8.2 billion.
Of course while there may be some legitimate disagreement regarding how certain money gets appropriated, there’s no disagreement as to where it’s going – even if state agencies are throwing pity parties for themselves hoping you won’t notice that they’re really getting fatter than ever during this economic downturn.
Take the University of South Carolina and Clemson University, the state’s two largest institutions of higher learning.
Citing draconian budget cuts, both USC and Clemson raised tuition on parents last week. But what did they fail to mention in doing so? Yeah … that their total government appropriations increased again this year – even before you count the revenue these tuition hikes will bring in.
It’s a scam, people … and it’s been going on for decades.
But while it’s expected that the government is going to lie to you, isn’t the job of the media to expose those lies … not help government cover them up?
Yes.
But that’s why we’re here – and that’s why record numbers of South Carolinians are turning to websites like this one in an effort to get the truth about how their leaders are spending their money. And while the legacy media may have decided to abdicate its responsibility to the citizens and taxpayers years ago, count on FITS to continue you bringing you the real numbers.
By PandaChris1 July 2, 2010 at 9:53 am
Can sommeone explain how SC spends 20 billion per year while NC spends 19 billion per year but NC has a much better road system, public school and university system and provides more financial support to social services statewide with almost twice the population?
Something doesnt add up.
By countryboy July 2, 2010 at 9:54 am
A day of reckoning is coming folks. Might be month, years or decades, but it is coming unless governments at all levels do what is right for the citizens they represent. And I don’t personally have any hope that is going to happen.
By Jerry July 2, 2010 at 10:02 am
propaganda is everywhere huh? I sure haven’t noticed public education getting fatter, but I am sure this propaganda rag would disagree.
By OhNoNotAgain July 2, 2010 at 10:23 am
I’ll bet N.C.’s $19 billion budget is just general fund, like S.C.’s $6 billion.
Got to know if it’s apples to apples, or not.
By stevetclark July 2, 2010 at 11:39 am
Thats funny how the State reporter is saying the same exact thing that The (Rock Hill) Herald reporter was saying. It is definetly propaganda.
By eggaday July 2, 2010 at 11:53 am
that is also why you gotta maintain your credibility Sic.
By countryboy July 2, 2010 at 12:51 pm
Panda – According to a search, the final NC budget was 18.9 billion. Still brings up your question of how a much larger state has a budget less than ours. You are right, insofar as I know, about their schools, roads and so forth being better too.
By Analyst July 2, 2010 at 3:47 pm
Let’s compare shall we – Apples to Apples and not Apples to Asparagus – here are the correct #’s for state general funds. From Day 1, Sanford and “Sic” have tried to spin this in their direction, but the reality is federal dollars are directly appropriated funds for specific purposes as well as fines and fees. This is the only money the General Assembly can truly have full control over. Stop the lies FITS.
2010 GENERAL FUND BUDGETS IN SOUTHEAST (Billions)
AL – 7.7
AR – 4.4
GA – 18.5
NC – 19.6
TN – 10.8
MS – 4.9
LA – 9.3
VA – 15.9
KY – 9.1
WV – 3.9
FL – 23.6
SC – 5.1
By FITSNews July 2, 2010 at 3:55 pm
Populations of those states:
Alabama – 4,708,708
Arkansas – 2,889,450
Georgia – 9,829,211
North Carolina – 9,380,884
Tennessee – 6,296,254
Mississippi – 2,951,996
Louisiana – 4,492,076
Virginia – 7,882,590
Kentucky – 4,314,113
West Virginia – 1,819,777
Florida – 18,537,969
South Carolina – 4,561,242
Also, what are the “other funds” percentages for each of those states? How much federal funding did they get?
-FITS
By FITSNews July 2, 2010 at 4:04 pm
Also, where do those states rank in terms of government as a percentage of their GSP?
Alabama – 7th
Arkansas – 12th
Georgia – 41st
North Carolina – 38th
Tennessee – 24th
Mississippi – 2nd
Louisiana – 21st
Virginia – 14th
Kentucky – 11th
West Virginia – 1st
Florida – 29th
South Carolina – 10th
Now let’s see … look at the high government % numbers …
West Virginia (ass-backward)
Mississippi (ass-backward)
Alabama (ass-backward)
Now look at the low government % numbers …
Florida
Georgia
North Carolina
Which way do you want us to go, “analyst.”
-FITS
By Legal Eagle July 2, 2010 at 9:32 pm
An elected official has limited control over the flow of federal funds into and out of a state, and little opportunity to spur dramatic changes from one year to the next. Factors that influence federal spending and taxation patterns include the following:
Demographics
A state’s share of residents aged 65 or older and under 18 helps determine spending levels for many federal programs designed to assist the elderly and children.
Economic well-being
High poverty rates and low income levels in a state increase the likelihood of federal spending on assistance programs, while high incomes reduce the likelihood of such federal spending and increase the federal tax burden.
Industry mix
A concentration of defense industries boosts federal procurement dollars, and a concentration of farming increases federal expenditures for agricultural assistance.
Federal facilities
The location of federal facilities, ranging from military bases to offices to research labs, determines state-by-state federal spending on employee benefits, wages, and salaries, among other items.
Emergency situations
targeted federal spending helps offset the impact of unexpected and adverse developments, including natural disasters and human catastrophes.
The rank on states on Federal Spending include the following from the South:
#2 VA
#9 AL
#10 MS
#11 WV
#13 LA
#18 KY
#19 TN
#23 FL
#24 SC
#30 AR
#33 NC
#40 GA
The difference b/t #40 GA and #24 SC less that a mere 1,000 per person per capita to show how close it really is from 20-40. However, Sarah Palin’s state of Alaska which is the least populated, receives the most of any state, ranking at #1 and is almost more than double that of #24 SC. As far as tax burdens, southern states are at the following:
#10 VA
#16 Fl
#29 GA
#33 NC
#37 TN
#41 AL
#43 SC
#47 AR
#48 WV
#49 LA
#50 MS
So as you can see, FITS and Club for Growth, and all the other groups that are spinners of facts, yet offer no real solutions (or rather ones that really would work.
And maybe now we no why Sarah Palin resigned? She was the top recipient from DC….why is no one talking about this?
By Legal Eagle July 2, 2010 at 9:33 pm
and sorry for the long post FITS
By baker July 2, 2010 at 10:23 pm
I think “government as a percentage of gross-state-product” is essentially bogus. It’s as if to say, Hey, our economy is weak, and we’re having a hard time attracting industry……so here’s an idea: Why don’t cut spending for education and roads and jails and economic recruiting? Whoo-hoo. It’s counter-intuitive, I think.
Indeed, I don’t think, for example, that North Carolina’s relatively strong economy is BECAUSE of low spending on the part of government. I think it has to do with strong universities, relatively strong public schools, and a culture that is generally considered more progressive. Again, I don’t think it’s because NC is run by a bunch of libertarians. I haven’t heard of Howard Rich being a major political player there.
Here’s something interesting, though: North Carolina sure seems to have more Democrats elected than South Carolina.
By You Talkin' to Me? July 5, 2010 at 7:56 am
Of course, all of this number spinning from your Haley / Sanford / Sic types serves to distract from another problem with their agenda: they have no idea how to govern and aren’t really interested in governing. Recording more votes in the legislature — Haley’s big reform measure — doesn’t mean a damn thing when it comes to working on SC’s Swiss-cheese tax code or the structural deficits that will dog us for the next 30 years.
By Call me Ava July 5, 2010 at 9:56 am
So what’s the alternative here, let’s cut the budget and put even more in the unemployment line? Let’s slash school spending and see our cuts turn out even dumber than they already are? Political theories are great things to have, but reality is a bitch.