Reported by Matt Long, SCRN
Legislators will return to session trying to resolve a half-billion dollar gap between expected revenue and the state’s budget for the upcoming year.
The Office of State Budget said Friday it expects a $560 million difference, which legislators said likely means across-the-board agency cuts. The report adds that next year will be even worse as federal stimulus and Medicaid match funds run out. The report says the state’s deficit will be $1.3 billion in 2011 and $1.4 billion a year later. Governor Mark Sanford, who lost a court case last summer that forced South Carolina to accept the federal money, says there isn’t much the state can do about that funding.
However, House Speaker Bobby Harrell is skeptical of the projections. He says the Budget Office predicted last year would be a good year financially–which did not happen.