State Continues to Experience Tough Economic Times

COLUMBIA, SC – August 17, 2009 – The state overspent its General Fund budget by $98.2 million for the fiscal year that ended June 30, 2009, Comptroller General Richard Eckstrom reported last week.

For the fiscal year, actual revenue collections were $1.2 billion less than the estimates used to form original spending plans.  As South Carolina’s economy deteriorated and estimated revenues failed to materialize, midyear spending cuts and other actions lowered — based on numerous revised revenue estimates during the year — the amounts state agencies were authorized to spend by $974.7 million, Eckstrom said. “Yet in the end these revised estimates were still too optimistic, resulting in $98.2 million of excess spending even after exhausting the state’s Capital Reserve Fund (using the entire $133.2 million) and General Reserve Fund (using the entire $108.1 million).”

“The fact that the state overspent by nearly $100 million once again underscores the need to re-examine the prevailing philosophy about spending, to close the gap between what we spend and what we can afford,” said Eckstrom. “We must set priorities – identifying those essential things state government should do and resisting the urge to spend on things that are less essential or can be delayed until better economic times.

“The challenges we face in South Carolina are great. Improving our state’s fiscal health is one of the keys to moving South Carolina toward a brighter future and reaching our full potential.”

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