Last Updated: 6/29/09 2:59 PM

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Quality of life in America depends on several very basic factors: control of one's own destiny, a good job, and access to quality education. In South Carolina I intend to make these factors a reality for everyone willing to reach for opportunity.

The Beasley Administration is committed to improving the quality of life for everyone in our state. This budget, my first submitted since being elected Governor last year, reflects that commitment. It also reflects my determination to shed some much-needed light on the budget process, allowing the public, for the first time, to readily understand where their tax dollars are being spent. This budget is not only "user friendly', it is "taxpayer friendly."

We remain firm in our determination to create more and better jobs for South Carolinians, to provide quality education in a safe environment for our children, to shrink the growth of government, and to provide continued relief for over-taxed working people.

This budget reflects that determination. We will:

• Provide funding for a critical high-technology infrastructure for our public schools, giving our students access to the highest quality instruction available - regardless of where their school is located.

• Establish for the first time in the history of our state a scholarship program to help South Carolina students go to college.

• Establish a building fund for school districts. Safe schools are more than just the installation of metal detectors.

• Ensure pay for our teachers at the Southeastern average.

• Expand the Governor's School for the Arts.

• Expand the Governor's School for Science and Mathematics.

• Increase funding for Higher Education.

• Continue to provide relief for South Carolina taxpayers through additional property tax reductions, continued phase-in of the child tax exemption, creation of an exemption for older South Carolinians, and a lowering of the manufacturing depreciation rate.

• Continue to provide quality jobs for South Carolinians and recruit record-breaking investments by providing adequate funding for the Coordinating Council for Economic Development and the Department of Commerce.

• More adequately compensate law enforcement and correctional officers who protect the public on a daily basis.

• Continue our crusade to keep criminals off the streets by opening a new prison, annualizing operating expenses for an existing prison and providing more resources to the judiciary.

• Use existing gas tax dollars to address critical highway infrastructure needs.

• Fund the Family Independence Act to assist in the welfare-to-work transition for South Carolinians seeking to improve their quality of life through meaningful employment.

This Executive Budget implements a significant format change. The evolution of our budgetary process had resulted in a document that was difficult to use by even the most seasoned legislator.

The new format makes it easier to see and evaluate exactly where tax dollars are being spent. It makes it easier to detect duplication of programs, eliminates hidden funding, enhances consolidation and continued restructuring efforts, and generally discloses far greater information for budget writers, lawmakers and most importantly, the public. The new format includes:

• Priority-ranked programs for agencies. This method increases the amount of detail included on specific programs, enabling us to see how money is actually being spent. This common sense approach to budgeting of taxpayer dollars fully discloses programs and their costs.

• Identification of increased expenditures on separate lines. This allows for immediate and easy identification of all new spending.

• Separation of the source of funds (state, federal or "other") to provide a total view of all funding in each agency. Concentrating only on state funds allocated to an agency is a major factor in distortion of the "big picture." We now will be able to see all "other" sources of funding in an agency.

• Disclosure of major components of operating expenses, such as travel, equipment, contributions, and contractual services by "unrolling" these operational lines in the budget.

Every year there are several constitutional or statutory mandates which strictly limit discretionary allocation. The FY 1996-97 Executive Budget must expend over $76.4 million on such mandates. That amount is more than 12.5% of the total funds available. Following is a breakdown of these mandates:

• $6.2 million to the General Reserve Fund. There is a constitutional and statutory requirement that the General Assembly provide for a General Reserve Fund of 3% of the General Fund revenue of the latest completed fiscal year.

• 4.1 million to the Capital Reserve Fund. There is a constitutional and statutory requirement that the General Assembly provide for a Capital Reserve Fund equal to 2% of General Fund revenue of the latest completed fiscal year.

• $21.9 million for debt service payment. The payment is composed of $14 million for school buses, $5.5 million for highway bonds, and $2.5 million for miscellaneous items.

• $25.1 million for the Local Government Fund (Aid to Subdivisions). This statutory rule requires an appropriation of not less than 4.5% of latest completed fiscal year's total budgetary General Fund revenues to local governments. The $15.1 million are to maintain last year's funding level.

• $2.4 million for homestead exemption growth. The $2.4 million are necessary to maintain full state funding for the $20,000 homestead exemption for persons who are disabled or sixty-five and older. This homestead exemption is in addition to the property tax relief.

• $2.5 million for the Catawba Indian Settlement. This is the fourth of five payments.

• $12.5 million will complete the state's settlement of the federal retiree lawsuit.

• $1.4 million to fund the 1996 statewide elections.

Primary and Secondary Education

In Fiscal Year 1996-97, over 31% of all funds available to spend will be dedicated to education., totaling $101 million. I will address other revenue-related aspects of public education in my State of the State in January.

Technology

One of the primary goals of education is to provide our young people with a base upon which they can build a successful life. The technology now available through multiple sources will enable us to meet that challenge in an unprecedented manner.

Infrastructure is far more than four walls. It is also the technological skeleton around which our children will mold the experience and skills necessary to emerge successfully in the new century.

Regardless of the amount of money we invest in public education, access to the same human resources is not available in every school district.

This year, I am committing $20 million to the first phase of my plan to link every child in South Carolina public schools to the best courses available anywhere.

The Department of Education and South Carolina Educational Television (SCETV) will work cooperatively to provide every single public school with the ability to receive multi-channel or satellite programming from SCETV's satellite network. Our children will have access to advanced placement courses, specialized instruction and master teachers no matter where they are located. And much of the access will be interactive. There is no reason why every child in our state should not have access to the specialized instruction available at the Governor's School for Science and Math...just through the push of a button.

We are taking the critical first step toward ensuring that every child in every school has access to state-of-the-art technological resources. Every school building will be linked to the Internet, providing our children with a first class ticket to explore the world.

Business leaders tell me they need people trained in the technology of tomorrow. Parents tell me they want their children to have a future. This commitment to technology in the schools is a critical first step to meeting both goals.

Children's Education Endowment

The Children's Education Endowment, funded through Barnwell revenues, and not included in the above percentage, cements my resolution to create a new landmark opportunity in South Carolina: a college scholarship program for our young people.

The Children's Education Endowment will also underwrite my commitment to improve school buildings in our state. School safety is of paramount importance to all of us and takes many forms. Solid physical infrastructure is a critical element.

I propose that 100% of Barnwell revenues be allocated to the Children's Education Endowment. I will oppose any attempt to divert these funds.

In addition I propose:

• $5 million for the first of a multi-year project to relocate the Governor's School for Science and Mathematics, allowing the school to double in size. Total project cost is approximately $18 million.

• $6 million to provide the basis for a 2-1 private match for the construction of a year-round Governor's School for the Arts and Humanities in Greenville. Total capital construction costs are $18.1 million, with over $12 million being funded through private contributions. This is an expansion from the current Summer Honors Program. This arts and academics education center will provide the highest-caliber pre-professional career development in South Carolina. The first class will enroll in the 1997-98 school year.

• $13.6 million in textbooks and instructional materials.

• $37.8 million to fully fund the Education Finance Act at the projected inflation factor of 3.5 %.

• $5.7 million for the state portion of fringe benefits.

• $4.8 million in Education Improvement Act teacher salary supplements. This brings our teachers in line with the southeastern average.

• $6.2 million in EIA inflation in Base Student Cost for Academic Assistance Program (Act 135) and four-year old Early Childhood Education program.

• $8.5 million in nonrecurring funds for fringe equity for school districts adversely affected by the change in fringe distribution in the FY 94-95 Appropriation Act.

Higher Education

In this Executive Budget, I am recommending $83.3 million for our colleges and universities.

• $65.2 million for colleges and universities, based upon enrollment. This is an increase of $12 million to what higher education terms "formula funding." The $53.2 million received last year in this category was totally in nonrecurring dollars. I have placed $29 million (44%) in the recurring column, adding significantly to the base budget of higher education.

• I reiterate my commitment to the Children's Education Endowment. Thirty percent of all revenues from Barnwell will be used to fund this scholarship program for young South Carolinians.

• $3 million for Winthrop University to continue construction and renovation of its Mathematics and Science Complex.

• $10 million to fund Special Schools at the State Board for Technical and Comprehensive Education. Special Schools train students for placement in business and industry.

• $2.6 million in matching funds to the Commission on Higher Education to continue the third year of South Carolina's participation with the National Science Foundation in EPSCOR (Experimental Program to Stimulate Competitive Research) and SCAMP (South Carolina Alliance for Minority Participation).

• $2.5 million are recommended for the South Carolina Tuition Grants program. This amount represents continued funding from FY 1995-96 with an additional increase of $312,000 for FY 1996 97.

This budget reaffirms my commitment to the taxpayers of South Carolina. After funding the constitutional and statutory mandates, approximately one-half of the total new, recurring revenue is dedicated to tax relief.

This is a new day in South Carolina government, and I intend to protect the working people of this state. While we continue to bring jobs to our citizens in areas where they're needed the most, and while we continue to improve education so our young people will have broader opportunities when they leave school, we must also continue to constrain the growth of government and return tax dollars to our citizens.

This budget commits a total of $143.8 million in increased tax relief to homeowners, senior citizens, business and industry, and families with young children.

Property Tax Relief

This year we provided the largest tax break in the history of South Carolina through property tax relief. For the first time in recent memory the debate has been about the amount of tax reduction rather than the amount of tax increase.

I propose to return more of taxpayers' own money to them through a further reduction in the school portion of property taxes. We will increase the Property Tax Relief Fund by $37 million, bringing it to a total of $232 million. This will increase the exemption amount from $100,000 to approximately $125,000.

This year the Property Tax Relief Fund contains $117.5 million in recurring dollars. We must expend 114.5 million in recurring and nonrecurring dollars in 1996-97 to reach the total fund amount of $232 million. I strongly recommend that a minimum of 67.8 million additional recurring dollars be directed into the fund, bringing the total amount of recurring dollars to $185.3 million. This is nearly 80% of the total needed to fund property tax relief in recurring dollars at the level I am recommending in this budget. The remainder will be provided this year by $46.6 million from the Carnell-Felder calculation dedicated to property tax relief until the fund is fully annualized.

Tax Relief for Families with Children

I am committed to continuing the phase-in of tax relief for families with young children. This is the third of the four year phase-in that in the fourth year will double the tax exemption for families with children under six. I have allocated $10 million in my budget for this investment in our families.

With this phase-in, families in South Carolina will be keeping $134 per child or a total of $30 million more in their family budgets for an estimated $2,600 in tax relief. This, combined with the child tax credit proposed in the Congressional budget currently under negotiation with the President, will provide over $350 million in tax credits for South Carolina families.

Tax Relief for Business and Industry

There needs to be equalization in the tax depreciation treatment of industrial and commercial property in South Carolina. Therefore, I propose lowering the manufacturing depreciation floor from the current 20% to 10% over the next three years.

This will provide over 6,000 manufacturers employing 370,000 or more people with the greater flexibility needed to invest in new, state-of-the-art equipment, thus retaining a critical competitive edge in the world's market. Increased spending on equipment means greater competitiveness, which means more orders for products, and ultimately, more jobs.

The reduction also means that South Carolina becomes even more attractive to manufacturers seeking new investment sites, which translates once again into more jobs for South Carolinians.

Each year of this phased-in reduction will save businesses $10.2 million with the total tax relief to business over $33 million by the third year.

Since this is a revenue decrease for local governments, I am also calling for the establishment of a state fund to reimburse local governments.

Tax Relief for Senior South Carolinians: an Economic Development Initiative

Senior citizens are a unique group of South Carolinians. Many are individuals on fixed incomes to whom this break means a real difference in quality of life. Many are retirees who reinvest in their communities, stimulating the economy, creating more wealth in the private sector.

We hope to attract more older Americans to South Carolina. This recruitment is a whole new wave of economic development in our state. Traditionally they place minimal demands on schools, social services and the criminal justice system, but give much back to their communities.

In this budget I dedicate $4.5 million to increase the exemption for South Carolinians sixty-five and older. Over 131,500 persons will pay no taxes at all on the first $15,000 of income. This, when taken in tandem with the existing homestead exemption and the dramatic property tax reductions, will make South Carolina an extraordinarily attractive retirement location for seniors.

Soft Drink Tax Reduction

I support the phase-in and eventual repeal of the soft drink tax. Action to accomplish this occurred in the FY 1995-1996 Appropriations Act, but does not take effect until FY 1996-97. Beginning this fiscal year, the soft drink tax will be reduced in increments of "sixths" until it is completely repealed in July 2001. The amount dedicated to the soft drink tax phase-out for FY 1996-97 is $4.6 million.

I will soon be announcing record breaking new figures in jobs and capital investments. We must keep pace with our own momentum.

In addition to the education infrastructure we are creating to help our children compete, we must provide the Department of Commerce with the resources necessary to recruit good jobs for which they can compete.

My budget proposes $48.8 million in economic development and infrastructure investment:

• $30 million for the Coordinating Council for Economic Development. This funding will enable the Council to continue recruiting prospects and working with existing business expansions. These potential investments total in the billions of dollars with thousands of new jobs.

Department of Commerce

• $2,219,772 to the Department of Commerce, including:

• $264,000 for a trade mission in Frankfurt, Germany;
• $113,900 for an Asian and Pacific Rim trade program;
• $45,000 for a European industrial adviser;
• $363,600 for industry "cluster" managers, marketing duster manager, business development managers and prospect research staff;
• $761,000 to partially restore the advertising budget;
• $264,000 to fund shortfalls in the foreign offices created by currency fluctuations;
• $145,200 to support the newly created Technology Division in its mission to recruit technology industries;
• $99,072 for regional strategic planning staff; $209,000 for the agency mapping program;
• $6,500,000 to the Local Grant Fund housed at the Budget and Control Board. These grants are used to fund local infrastructure through the Aid to Local Subdivisions program.

Motor Fuel Tax for Infrastructure Development

In this budget, we are creating an updated education infrastructure for our children and an economic development infrastructure to bring good jobs and a better quality of life to our people. All of our resources must be prioritized and dedicated to those areas most in need.

That includes resources from the gasoline tax. Our highway infrastructure needs are far too critical to continue sending gas tax monies into areas unrelated to highways.

Last year we added $24 million to the revenues available to the Department of Transportation through a revision of the gasoline tax collection point, receipt of interest on the Highway Fund, and decrease in payments to the Department of Public Safety and the Department of Revenue.

As a result of the revision of the gasoline tax collection point, the Department of Revenue expects a 10 to 20% increase in taxable fuel reporting due to increased compliance. This will mean a minimum of a $20 million increase in collections.

I propose removing from the General Fund the one cent of the gas tax it currently receives. This is a two year transition which will result in an additional $20.2 million to the Department of Transportation.

I also propose a redirection of 25% of funds known as "C" Funds. Currently, 2.66 cents of the gasoline tax go to the counties, but only 25% of that money is required to be spent on highway construction, improvements and maintenance of state roads. My budget increases that requirement to 50%, creating an increase of $12.5 million for state highway system improvement.

Over a two year period, we will have increased the amount of infrastructure resources available to DOT by $66.5 million. This is a real step in the right direction.

South Carolina ranks fifth in the nation in violent crime. While we must continue to develop ways to decrease our crime rate, we must also commit to properly equip and compensate those who place their lives in jeopardy every day to protect us.

I propose the following:

State Law Enforcement Division

• $1.5 million to the State Law Enforcement Division of the Governor's Office to replace old, high mileage vehicles. While more than 30% of the SLED fleet has logged more 100,000 miles and approximately 50% of the fleet has over 75,000 miles, SLED has no recurring vehicle budget to fund this priority item.

• $100,000 to begin instituting a DNA Banking Program.

• $350,000 for pay uniformity with other state law enforcement officers.

Department of Public Safety

• $2.7 million to fund 46 Highway Patrol troopers at the Department of Public Safety.

Corrections

Last year the General Assembly made significant changes in our criminal justice system. I remain finn in my commitment to protect the law-abiding citizens of South Carolina. To that end, I propose the following:

• $15.7 million to annualize the operation of the 1,130 bed Ridgeland Prison.

• $37 million to help the Department of Corrections implement a 12% pay increase for Correctional Officers. The agency is to internally identify 8% of the funds and is requesting our assistance with the remaining 4%.

• $7.2 million to open the 1,116 bed Kershaw prison being built to alleviate overcrowding. This is partial year funding. The facility is projected to come on-line in March 1997.

• $672,000 for contractual medical services from private sources.

• $8.7 million for institution maintenance, vehicle replacement and other operating costs.

Probation, Parole and Pardon Services

• $1.6 million to fund an existing complement of 51 offender supervision officers. These officers were funded last year with nonrecurring funds.

Department of Juvenile Justice

• $14 million for facility construction and renovation to address overcrowding. These funds will renovate the Greenwood facility, relocate the Hickory treatment unit, increase services to seriously mentally ill juveniles, and construct three regional centers, an evaluation center in Dorchester, and a facility in Union.

• $6.8 million to operate these decentralized facilities. The request includes $5 million for salaries and fringe benefits for 211.5 FTEs and $1.2 million in operating funds for supplies, travel, contractual and other basic expenses.

• $3.8 million for statewide programs and services. $320,994 are requested for salaries and fringe benefits for nine FTEs and substitute teachers. Operating expenses include $3 million to fund nine contractual programs and contract for resource development.

• $3.9 million to improve conditions in the facilities. This includes staffing levels, health services and access to programs.

• $278,156 to augment the classification system.

• $527,097 for the assessment system The request includes $263,347 in personnel costs for salaries and fringes to fund six FTEs and $223,250 to contract for psychiatric services. One time funds will be used for equipment (computers).

Judicial

I am committed to working with the judiciary to expedite trials and alleviate backlog . I have discussed the needs of the judiciary on several occasions with Chief Justice Ernest Finney and will continue to work with him to meet the needs of the court system. I recommend $2,411,397 to fund nine new judge positions created last year by the General Assembly but funded only on a limited scale. I also recommend $1,259,217 to fund judges' travel, subsistence and office expense allowances. And I recommend the transfer of an Administrative Assistant II from the Attorney General's office to the Supreme Court.

Attorney General

The State Grand Jury plays a key role in cracking down on drug rings and dealers in South Carolina. With the loss of the Bureau of Justice Assistance Grant ($500,000) in September 1995, the Attorney General requests the state to continue its funding of the program.

• $313,000 for the State Grand Jury in support of the Attorney General's efforts to make our streets, schools and playgrounds safe from drugs.

• $100,000 to better enforce obscenity laws by funding an Obscenity Prosecution Unit for the State Grand Jury. The unit will be comprised of a prosecutor and investigator.

• Transfer Securities Unit from Secretary of State to Attorney General.

Prosecution Coordination Commission

• The General Sessions Court and Family Court have experienced an increase in caseload over the last ten years. I recommend an increase from $1.22 to approximately $1.50 per capita to support the sixteen solicitors' offices. This represents approximately $941.470.

Governor's Office - Division of Victim Assistance

• Merge victim programs currently at the Department of Social Services and the Department of Health and Environmental Control with existing victims programs in the Governor's Office. This will provide a comprehensive approach victim services and needs.

• $1 million to fund victims' advocates in each county.

Department of Health and Human Services

The Medicaid program is a federal program that provides financial aid to states for payment to health care providers. Eligible individuals include cash assistance recipients, children, pregnant women, and the elderly. In FY 1995-96 approximately $25 million was funded with nonrecurring funds. We must continue this funding to maintain Medicaid program services. In addition:

• $13.6 million to fund the growth in client annualizations and eligibles.

• $6.9 million to annualize with recurring dollars the Medicaid program, given client annualizations and increased growth of eligibles based on existing eligibility criteria. This was funded last year with nonrecurring dollars.

• $4.9 million to annualize with recurring dollars program services such as hospital, physician, drug abuse and nursing home services. This was funded last year with nonrecurring dollars.

• $12 million to fund the Services for Emotionally Disturbed Children's Fund.

• $1 million to annualize the 500 additional community long term care slots funded last year with nonrecurring dollars.

Department of Social Services

• $2 million to fund the Family Independence Act. This will annualize full year funding for the Act which will help welfare recipients achieve and maintain independence.

• $678,800 to fund the state match portion of the Kellogg Foundation's initiative to strengthen families.

• $250,000 for the State Employee Adoption Initiative begun in FY 1994-95.

Disabilities and Special Needs

• $1.9 million for growth in eligible clients based on existing criteria. Each year, the Department of Disabilities and Special Needs must take into its system individuals who are no longer able to care for themselves or whose family situations have become untenable.

Vocational Rehabilitation

• $950,000 to maintain state funding for basic services. This maintains funding at a level to meet maintenance of effort requirements and avoid loss of federal matching funds. The agency was allocated $950,000 last year with nonrecurring dollars.

Department of Natural Resources

• $1,200,000 to replace old, high-mileage vehicles.

• $200,000 for noxious aquatic weed treatment.

• $350,000 for pay equalization with other state law enforcement officers.

Forestry Commission

• $300,000 for southern pine beetle eradication.

• $100,000 to develop and maintain the H. Cooper Black, Jr. Memorial Field Trial and Recreation Area.

Department of Agriculture

• $425,000 for two trucks and repair of an agricultural station roof in Greenville.

Clemson- PSA

• $300,000 to meet federal and state mandates for the meat inspection program.

Parks, Recreation and Tourism

This marks the fourth year of a five-year plan for the Department of Parks, Recreation and Tourism to reduce its general fund budget by $1 million through change in source of funds to the accommodations tax.

• $300,000 to complete nonrecurring funding for the Palmetto Trails project, which includes building hiking trails from the mountains to the sea.

Budget and Control Board

• $7 million for State House renovations.

Adjutant General

• $900,000 to move the Emergency Preparedness Division (a division of the Adjutant General's Office) to Pineridge Armory in Lexington County to establish a new emergency operations center. This is vital to the maintenance of a first-rate Emergency Preparedness operation with facilities for emergency response and recovery operations.

• $290,652 for operations, equipment, and additional staff at the relocated Emergency Operations Center.

Labor, Licensing ant Regulation

• $250,000 for Fire Academy Equipment. These nonrecurring funds will be used to fully equip the new Fire Academy and replace out-dated and worn equipment.

Employee Pay/Employee Benefits

• I am recommending $13.8 million for a state employee Christmas bonus plan. Employees earning $25,000 and less will receive $400. All others will receive $200. In addition, I am asking every state agency, beginning with my Cabinet agencies, to direct savings accrued through natural attrition, through individual innovation, and cost savings toward a pay increase of up to 5% for all agency employees.

• $3.5 million for the state's dental program and growth in retiree benefits. It is necessary to fund $1.3 million to support the dental program. This is the first year in eleven years that the fund has needed an increase. Another $2.2 million are needed for approximately 1,450 new retirees' health and dental benefit increases. This will mark the fourth consecutive year in which the state has been able to forego an increase in the employee share of the State Health Plan and the sixth consecutive year of maintaining employee premiums at the same level.

Should additional surplus funds become available, as has often been the case, I recommend funding the following items in the order in which they are listed:

Education

• $10 million for instructional materials, textbooks and technology aid.

Division of Motor Vehicles

• $5 million for a new computer system for the Division of Motor Vehicles at the Department of Public Safety.

Department of Mental Health

• $3.8 million for Patient Paying Fee Account. These funds are placed in the General Fund by proviso. In FY 1995-96, the General Assembly funded this in nonrecurring dollars.

Department of Public Safety

• $3 million to the Department of Public Safety to reimburse the Department of Transportation for fuel and maintenance of vehicles and data processing for prior years.

Heritage Corridor

• $2 million on a one-time basis to establish four Discovery Centers along the Heritage Corridor in Pendleton, Edgefield, Blackville and Charleston. Funding is requested to fund design and production of educational exhibits, retrofitting of existing facilities, and computerized kiosks for visitor information. These state funds will be leveraged with private dollars and federal grants.

Archives and History

• $2 million for the South Carolina History Center at the Department of Archives and History.

State Auditor's Office

• $168,000 to purchase printers for auditors to use in the field, replace portable computers with laptop computers, upgrade existing laptop computers to run Windows software, network all computers, install voice mail and install an optical imaging system for work paper storage and retrieval.

Judicial Automation

• $782,847 for the equipment, supplies and contractual services needed to support the technology system. This will complete implementation of the automated system begun in 1993.

Insurance

• $450,000 to complete the implementation of the department's data processing system.

Columbia Museum of Art

• $2 million for the purchase of the Belk department store for the Columbia Museum of Art.

Department of Commerce

• $3 million for airport improvements.

USC Law School

• $330,000 to fund automation and books for the USC-Law School Library.

Youth Alcohol Treatment

• $400,000 to fund an intensive post release follow-up and treatment program. This helps prevent the return of juveniles to DJJ or alcohol treatment centers.

Clemson PSA

• $503,500 for renovations to the Long Leadership Center in Aiken. This is a camp for youth environmental education.

800 MHz

• $7 million to lease the 800 MHz mobile radio voice communication service (for state agencies, local governments and utilities). This will, through a public-private partnership, unify our public safety communications system.

Coastal Carolina-Humanities building

• $2 million to begin construction on the building for which Coastal Carolina University received $600,000 in nonrecurring funds in FY 199596 for an Architectural and Engineering study.

The Board of Economic Advisors' (BEA) FY 1996-97 Preliminary Revenue Forecast projects general fund revenue to be $4.419 billion. This is an increase of $317.2 million (above the adjusted base from the FY 1995-96 Appropriations Act and including adjustments). However, the Carnell-Felder appropriations limit sets aside $52.4 million in a recurring surplus; therefore, with the Carnell-Felder calculation applied and with a technical adjustment by the BEA, there is $264.4 million available in recurring revenue from revenue growth.

The BEA forecasts a growth rate in General Fund revenues of 4.2% over the revised estimate for FY 1995-96. The calculation of recurring funds available for expenditure is as follows:

FY 1996-97 BEA Preliminary Revenue Forecast:              


 $4,419,802,221
Less the Carnell-Felder set-aside (calculation in 
statute):  -$52,422,258
Revenue available for appropriation:                      


 $4,367,379,963

Revenue available for appropriation:                      


 $4,367,379,963
Less 1995-96 Appropriation Base after Governor's vetoes:  


-$4,106,881,762
Recurring funds available for appropriation:              


   $260,498,201

Technical Enhancement/Adjustment to BEA estimate:         


     $4,400,000

Recurring funds available for appropriation in 1996-97:   


   $264,898,201

This budget uses the following sources of revenue:

• $264.8 million in forecast revenue growth for FY 1996-97 ($317.2 million in revenue growth less the Carnell-Felder set-aside of $52.4 million).

• $90.5 million in surplus left over from FY 1994-95 revenue.

• $80.4 million in the FY 1995-96 Capital Reserve Fund available for appropriation in March 1996 for FY 1996-97, barring any mid-year budget cuts in the remainder of FY 1995-96. Since the BEA is currently forecasting a surplus for FY 1995-96, it is likely that the Capital Reserve Fund revenues will be available for expenditure.

• $64.2 million from the Carnell-Felder carry forward from FY 1995-96. These funds are allocated by statute to fund the Property Tax Relief Fund until it is fully funded. This amount of $64.2 million is different from the Carnell-Felder amount of $52.4 million quoted above. The Carnell-Felder figure quoted above is the set-aside calculation to arrive at the FY 1996-97 Appropriation limit, while the $64.2 million Carnell-Felder set-aside amount is from last year's calculation and available for use this year. The $52.4 million will be available for appropriation in FY 1997-98.

• $74.1 million in projected surplus funds from FY 1995-96. I am recommending a list of items to be funded if surplus beyond the current projection is available.

• $21.6 million in forecast revenue growth for FY 1996-97 in Education Improvement Act (EIA) funds.

• While none of this amount is available for appropriation, the state also has a General Reserve Fund for emergency purposes of $120 million.

The total funds available for appropriation over the recurring base is more than $595.6 million. More than half of these funds ($309.4 million) are technically nonrecurring. However, given the careful calculations of the BEA and the numerous "reserve" funds on hand to fend off any mid-year reductions, a substantial portion of these funds are, in reality, recurring funds.

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Specific Figures in Governor's Budget Proposal