No Rebate For You!

During the fiscal year that concluded on June 30, South Carolina taxpayers shelled out a record $20.8 billion – and according to the state’s annual report, there was $122.7 million left over.

Did S.C. taxpayers – whose income levels have been ravaged by the recession – see a nickel of that money?

Of course not … because there’s currently no mechanism in place to send surplus money back to them. As a result, these surpluses are spent elsewhere in government – along with the so-called “savings” realized by state agencies.

The lack of a rebate fund – such as the one proposed by S.C. Senator Tom Davis (R-Beaufort) – is inexcusable.

In fact, the failure of our “Republican” leaders to create such a rebate mechanism for “savings” and surpluses is precisely why state government continues to grow much faster than the ability of our citizens to pay for it, even during recessions.

Case in point: According to the S.C. Board of Economic Advisors, the state’s record-setting $22.1 billion budget for the current fiscal year is projected to run a whopping $401.5 million surplus. Also, projections for the coming fiscal year indicate a $519 million surplus.

That’s $1.04 billion in surplus revenue, people … over and above what’s already been appropriated by our “Republican” General Assembly and “Republican” Gov. Nikki Haley.

South Carolina state government spent $1.3 billion in new money in the current year’s budget – so you can guess what’s going to happen to this money when wide-eyed state lawmakers return to Columbia, S.C. in January 2012.

They’re going to spend it … every last damned nickel of it.

And our guess is that despite various maneuverings by establishment politicians, we won’t be seeing any real spending reform passed next year, either.

Davis introduced his taxpayer rebate fund a year ago – but it was defeated in the S.C. Senate by a six-vote margin. Specifically, “Republican” State Senators Thomas Alexander, Paul Campbell, Wes Hayes, Hugh Leatherman, Larry Martin and Billy O’Dell all voted against it.

Now more than ever, it is up to “Republicans” in Columbia to live up to their rhetoric and pass real spending reform.

What does that entail?

1) Freezing government spending for the next three fiscal years while lawmakers conduct an extended review of state government for the purposes of determining which agencies should be cut, privatized or eliminated.

2) Capping annual spending increases thereafter at a rate no greater than the growth of the state’s population or the annualized rate of inflation, whichever figure is lower.

And most importantly …

3) Establishing a “Taxpayer Rebate Fund” which would automatically and immediately send surplus state revenue (and revenue from vetoes and other government “savings”) back to the taxpayers.

Faced with a choice of whether to spend savings and surpluses on additional government or to invest those resources into our economy in the form of tax relief/ rebates – our “Republican” leaders have consistently opted to spend, spend, spend.

So, how has that approach – and our soaring government incentives tab – worked out for our state’s economy?

Well, it’s produced a chronically-high unemployment rate, low income levels, diminished competitiveness and recessionary economic conditions.

It’s time to take this “extra” $1 billion and give it back to the people … not pump it into more government.

All that takes is a little long-overdue fiscal discipline.

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