To what could be called a “Grinch” this Christmas, declining state revenues have caused a South Carolina Budget Oversight Board to cut more than it anticipated from state spending plans. After checking the list, and checking it twice, the South Carolina Budget and Control Board has cut the state’s spending plans due to short revenues. On Tuesday, the board cut more than $238 million from the overall $5 billion budget for the fiscal year ending in June. Initially, the budget was predicted to cut about $122 million, but that has doubled. Governor Mark Sanford says as much as he doesn’t like cuts, they have to happen.
“I’ve consistently been against them, but we are in a global economic slowdown, and a national economic slowdown and we have to deal with the reality that’s before us,” says Sanford.
Most affected by the budget cuts will be education, health care, social services, prisons, and other agencies across the state. One of the leading causes of the falling state tax collections was the high 12 percent unemployment rate in October.