General Appropriations Bill H. 4700 for the fiscal year beginning July 1, 1998
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SECTION 63C - F05 - BUDGET AND CONTROL BOARD, PAGE 480
BUDGET & ANALYSES, DIVISION OF
1 63C.1. (BCB/DBA: OSB - Agencies Affected by Restructuring) The Budget and Control Board is directed to work with affected
2 State agencies in order to phase-in operations of restructured organizations during Fiscal Year 1997-98. Restructured organizations should
3 be operating entirely under the revised structure not later than June 30, 1998. The Board is further directed to work with the affected
4 agencies in order to identify and facilitate the transfer of any portion of their operations, including transfer of funds, during Fiscal Year
5 1997-98, which is affected by the restructured organization adopted by the General Assembly, but which has not already been
6 accomplished herein. Until sufficient changes can be made to the State's accounting system and the appointment of appropriate agency
7 heads, the Comptroller General and the State Treasurer shall allow those agencies affected by restructuring to continue processing
8 documents within the account structure existing on June 30, 1997. Restructured agencies shall make all the necessary accounting
9 adjustments to complete the transition to the new account structure as soon as possible, but no later than June 30, 1998.
10 63C.2. (BCB/DBA: OHR - Compensation - Agency Head Salary) Notwithstanding any other provision of law in the event of an
11 agency head vacancy, the governing board of the agency or the Governor, must have the prior favorable recommendation of the Agency
12 Head Salary Commission to set, discuss or offer a salary for the agency head at a rate that exceeds the minimum of the range established
13 by the Agency Head Salary Commission. The Budget and Control Board shall have final approval authority for agency head salaries.
14 Boards and Commissions of newly created agencies shall not offer a salary to a prospective agency head until a salary range has been
15 established and the salary approved by the Agency Head Salary Commission. The funding for such purpose should come from resources
16 within the agency. The Agency Head Salary Commission shall recommend to the Budget & Control Board salary increases for agency
17 heads. No agency head shall be paid less than the minimum of the pay range nor receive an increase that would have the effect of raising
18 the salary above the maximum of the pay range. Funding shall be provided for an amount equivalent to the pay increase for all classified
19 employees. Any remaining increases recommended by the Agency Head Salary Commission shall be funded from the individual agency
20 budget. All increases shall be effective on or after October 1, of the current fiscal year.
21 In the event of a Technical College President vacancy, the appointing authority must have prior favorable recommendation of the
22 Agency Head Salary Commission to set, discuss or offer a salary for Technical College Presidents at a rate that exceeds the midpoint of
23 the salary range. The Budget and Control Board shall have final approval authority for these salaries.
24 63C.3. (BCB/DBA: OHR - Compensation - Reporting of Supplemental Salaries) No supplement shall be paid to an agency's
25 employee unless the agency head or designated official of the employing agency has approved the conditions and amount of salary
26 supplement. Any compensation, excluding travel reimbursement, from an affiliated public charity, foundation, clinical faculty practice
27 plan, or other public source or any supplement from a private source to the salary appropriated for a state employee and fixed by the State
28 must be reported by the employee employing agency to the Division of Budget and Analyses of the Budget and Control Board. The report
29 must include the amount, source, and any condition of the supplement. Any change in the amount, source, or condition must be reported
30 to the division by the employee. The employing agency must report this information on or before August 31 of each year and must include
31 the total amount and source of the salary supplement received by the employee during the preceding fiscal year (July 1 through June 30).
32 The Office of Human Resources of the B&C Board shall formulate policies and procedures to ensure compliance with the provisions of
33 this proviso.
SECTION 63C - F05 - BUDGET AND CONTROL BOARD, PAGE 481
BUDGET & ANALYSES, DIVISION OF
1 63C.4. (BCB/DBA: OHR - Vacancy Report/Appropriations for Compensation/Quarterly Allocations) In providing in this Act for
2 compensation of state employees, the General Assembly recognizes that a continuing minimum number of position vacancies among state
3 agencies is inevitable and that the full amount appropriated for employee compensation will not likely be required. In order to provide
4 for efficient administration and use of such appropriations, the Budget and Control Board is authorized to require such periodic reports
5 from agencies as will reflect actual compensation requirements during the course of the year and to allot to agencies on a quarterly basis
6 such amounts of appropriations for compensation as may be necessary to meet actual requirements only.
7 63C.5. (BCB/DBA: OHR - Employment Rights Affected by Restructuring) Provided, that all State employees affected by the
8 restructuring of State agencies shall retain all present employment rights. Employees who are transferred or reassigned as a result of
9 restructuring who had attained permanent status as provided in the State Employee Grievance Procedure Act of 1982, as amended, shall
10 retain such rights. Employees in positions not covered by the State Employee Grievance Procedure Act of 1982, as amended, who would
11 occupy positions subject to the Act after restructuring and who have more than six months service as a State employee shall have grievance
12 rights under the Act.
13 63C.6. (BCB/DBA: OHR - Agency Head Salaries Affected by Restructuring) The salaries of Agency Directors affected by
14 restructuring will be reviewed by the Division of Budget and Analyses of the Budget and Control Board. The review by the Division of
15 Budget and Analyses will be submitted to the Agency Head Salary Commission and the Budget and Control Board. The Agency Head
16 Salary Commission shall recommend to the Budget and Control Board any salary adjustments deemed appropriate for approval.
17 63C.7. (BCB/DBA: OHR - Compensation - Increase Eligibility) Statewide elected officials, constitutional officers, temporary
18 positions, whether full or part-time, and agency heads, shall not be eligible for any compensation increases as provided in this Act unless
19 otherwise specified in this Act.
20 63C.8. (BCB/DBA: BEA - Membership, Compensation, Duties) Notwithstanding the provisions of 11-9-820 of the 1976 Code, the
21 Board of Economic Advisors shall consist of the following members:
22 (1) one member, appointed by the Governor, who shall serve as chairman and shall receive the sum of $10,000 annually;
23 (2) one member appointed by the Chairman of the Senate Finance Committee who shall receive the sum of $8,000 annually;
24 (3) One member appointed by the Chairman of the Ways and Means Committee of the House of Representatives who shall receive
25 the sum of $8,000 annually;
26 (4) Director of the Department of Revenue and Taxation, ex officio with no voting rights.
27 The appointed members shall serve at the pleasure of their appointors. The Chairman of the Board of Economic Advisors shall report
28 directly to the Budget and Control Board to establish policy governing economic trend analysis. The Board of Economic Advisors shall
29 provide for its staffing and administrative support from funds appropriated by the General Assembly.
30 The Executive Director of the Budget and Control Board shall assist the Governor, Chairman of the Board of Economic Advisors,
31 Chairman of the Senate Finance Committee, and Chairman of the Ways and Means Committee of the House of Representatives in
32 providing an effective system for compiling and maintaining current and reliable economic data. The Board of Economic Advisors is
33 considered a public body under the provisions of Section 30-4-20(a) of the 1976 Code. The Board of Economic Advisors may establish
SECTION 63C - F05 - BUDGET AND CONTROL BOARD, PAGE 482
BUDGET & ANALYSES, DIVISION OF
1 an advisory board to assist in carrying out its duties and responsibilities. All state agencies, departments, institutions and divisions shall
2 provide such information and data as the board may require.
3 63C.9. (BCB/DBA: BEA - Mid-Year Budget Reductions & Restricting the Rate of Expenditures) Any appropriations made herein
4 or by special act now or hereafter, are hereby declared to be maximum, conditional and proportionate, the purpose being to authorize
5 expenditures not to exceed the amounts named herein, if necessary, but only in the event the aggregate revenues available during the period
6 for which the appropriations are made are sufficient to pay them in full. The State Budget and Control Board is directed to survey the
7 progress of the collection of revenue and the expenditure of funds by all agencies, departments and institutions. If the Budget and Control
8 Board determines that a year-end aggregate deficit may occur by virtue of a projected shortfall fall in anticipated revenues, it shall utilize
9 such funds as may be available and required to be used to avoid a year end deficit and thereafter take such action as necessary to restrict
10 the rate of expenditure of all agencies consistent with the provisions of this section. No institution, activity, program, item, special
11 appropriation, or allocation for which the General Assembly has provided funding in any part of this Act shall be discontinued, deleted,
12 or deferred by the Budget and Control Board. Any reduction of rate of expenditure by the Board, under authority of this Act, shall be
13 applied as uniformly as may be practicable except that no reduction shall be applied to funds encumbered by a written contract with an
14 agency not connected with the State Government. No such reduction shall be ordered by the State Budget and Control Board while the
15 General Assembly is in session without first reporting such necessity to the General Assembly and the General Assembly has taken no
16 action to prevent the reduction within five statewide session days of formal written notification.
17 As far as practicable all departments, institutions, and agencies of the State are hereby directed to budget and allocate appropriations
18 as quarterly allocation so as to provide for operation on uniform standards throughout the fiscal year and in order to avoid an operating
19 deficit for the fiscal year. It should be recognized that academic year calendars of state institutions will affect the uniformity of the receipt
20 and distribution of funds during the years. The Comptroller General or the Office of State Budget shall make such reports to the Budget
21 and Control Board as they deem advisable on any agency which is expending authorized appropriations at a rate which predicts or projects
22 a general fund deficit for the agency. The Budget and Control Board is authorized and directed to require any such agency, institutions
23 or department to file a quarterly allocations plan and is further authorized to restrict the rate of expenditures of the agency, institution or
24 department if the Board determines that a deficit may occur. It is the responsibility of any such agency to develop a plan, in consultation
25 with the Budget and Control Board, that eliminates or reduces a deficit. Should the Budget and Control Board make a finding that the
26 cause of and likelihood of a deficit is unavoidable due to factors which are wholly outside of an agency's control, then the Board may
27 determine that the recognition of an agency deficit is appropriate and shall notify the General Assembly of such action or the presiding
28 officer of the House and Senate if the General Assembly is not in session. Upon receipt of such notification from the Budget and Control
29 Board, the General Assembly may authorize supplemental appropriations from any surplus revenues which existed at the close of the
30 previous fiscal year. If the General Assembly fails to take action, then the finding of the Budget and Control Board shall stand, and the
31 actual deficit at close of the fiscal year shall be reduced as necessary from surplus revenues or surplus funds available at the close of the
32 fiscal year in which the deficit occurs and from funds available in the Capital Reserve Fund and General Reserve Fund, as required by the
33 Constitution. If the Budget and Control Board finds that the likelihood and cause of a deficit is the result of agency management, then
34 the bond of State officials responsible for management of the agency involved shall be held liable therefor and the Board shall notify the
SECTION 63C - F05 - BUDGET AND CONTROL BOARD, PAGE 483
BUDGET & ANALYSES, DIVISION OF
1 Agency Head Salary Commission of such finding. In the case of a finding that a projected deficit is the result of the management of the
2 agency, the Budget and Control Board shall take immediate steps to curtail agency expenditures in such a manner so as to bring
3 expenditures in line with authorized appropriations and avoid a year end operating deficit.
4 63C.10. (BCB/DBA: OHR - Compensation Increase - Appropriated Funds Ratio) Appropriated funds may be used for compensation
5 increases for classified and unclassified employees and agency heads only in the same ratio that the employee's base salary is paid from
6 appropriated sources.
7 63C.11. (BCB/DBA: OHR - Vacant Positions) In the event that any permanent position in an agency remains vacant for more than
8 one year the position may be deleted by the Budget and Control Board.
9 63C.12. (BCB/DBA: OHR - Employee Pay) The amounts appropriated to the Budget and Control Board for Employee Pay Increase
10 must be allocated by the Board to the various state agencies to provide for employees pay increases in accordance with the following plan:
11 1. With respect to classified employees, effective on the first pay date that occurs on or after July 1 October 1 of the current fiscal year,
12 the compensation of all classified employees shall be increased by 2.5% 2%.
13 2. With respect to unclassified employees or unclassified executive compensation system employees not elsewhere covered in this Act,
14 effective on the first pay date that occurs on or after July 1 October 1 of the current fiscal year, each agency is authorized to allot the total
15 funds for compensation increases among individual employees without uniformity. The funds provided for compensation increases for
16 any employees subject to the provisions of this paragraph are based on an annual average 2.5% 2% increase. All of the salaries are subject
17 to the provisions of Section 72.29 of Part IB of this Act and Office of Human Resources' approval must be obtained before any employees
18 subject to the provisions of this paragraph may be granted an annual pay increase in excess of the guidelines established by the Budget
19 & Control Board. Any employee subject to the provisions of this paragraph shall not be eligible for compensation increases provided in
20 paragraphs 1, 3, 4, 5, 6 or 7.
21 3. With respect to agency heads covered by the Agency Head Salary Commission, the Agency Head Salary Commission shall
22 recommend to the Budget and Control Board salary increases for agency heads. Agency head increases shall be effective on the first pay
23 date that occurs on or after July 1 October 1 of the current fiscal year. No agency head shall be paid less than the minimum of the pay
24 increase range nor receive a salary increase that would have the effect of raising the salary above the maximum of the pay range.
25 4. Effective on the first pay date that occurs on or after July 1 October 1 of the current fiscal year, agency heads not covered by the
26 Agency Head Salary Commission, shall receive an annualized base pay increase of 2.5% 2%.
27 5. With respect to local health care providers, the funds provided for compensation increases shall be based on an annual average 2.5%
28 2% increase, effective on the first pay date that occurs on or after July 1 October 1 of the current fiscal year.
29 6. Effective on the first pay date that occurs on or after July 1 October 1 of the current fiscal year, the Chief Justice and other judicial
30 officers shall receive a base pay increase of 2.5% 2%.
31 7. Effective on the first pay date that occurs on or after July 1 October 1 of the current fiscal year, the compensation of judicial
32 employees not elsewhere covered in this act shall be increased by 2.5% 2%.
33 63C.13. (BCB/DBA: OSB - Prior Year Shown in Appropriation Bill) Effective on July 1 of the current fiscal year, the Appropriation
34 Bill must show the prior year's base budget in the appropriation budget format.
SECTION 63C - F05 - BUDGET AND CONTROL BOARD, PAGE 484
BUDGET & ANALYSES, DIVISION OF
1 63C.14. (BCB/DBA: CRR - Artifacts Disposition) No artifacts owned by the State in the collection and exhibits of the Confederate
2 Relic Room shall be permanently removed or disposed of except by a Concurrent Resolution of the General Assembly.
3 63C.15. (BCB/DBA: CRR - Confederate Relic Room Location) Notwithstanding Act 313 of 1919 and Section 59-117-60, Code of
4 Laws of 1976, the War Memorial Building erected at the corner of Sumter and Pendleton Streets in the City of Columbia shall continue
5 to be used by the Confederate Relic Room and the custody and control of the building shall be forthwith transferred to the South Carolina
6 Budget and Control Board.
7 63C.16. (BCB/DBA: CRR - Research/Copy Fee) The Confederate Relic Room is authorized to collect, retain and expend fees from
8 research and photographic processing requests and from the sale of promotional items.
9 63C.17. (BCB/DBA: CRR - Appointment of Director) The Director of the Confederate Relic Room shall be appointed, after
10 consultation with the South Carolina Division Commander of the Sons of the Confederate Veterans and the President of the South Carolina
11 Chapter of the United Daughters of the Confederacy, by the Executive Director of the South Carolina Budget and Control Board and shall
12 serve at his pleasure.
13 63C.18. (BCB/DBA: CRR - Donations) The Confederate Relic Room is authorized to receive donations of funds and artifacts and
14 to expend these donations for the restoration, preservation and display of the collection to supplement state monies appropriated for such
15 purposes.
16 63C.19. (BCB/DBA: CRR - Confederate Museum Relocation) It is the intent of the General Assembly that, as soon as space becomes
17 available, the Confederate Museum shall relocate to the Columbia Mills Building where it will be retained as a separate and distinct facility,
18 under the State Budget and Control Board.
19 63C.20. (BCB/DBA: OSB - Study of DOT Indirect Costs) The Office of State Budget shall conduct a study of the Department of
20 Transportation's Statewide Cost Allocation Plan and Accounting Functions Transfer Fees. The study should address, but not be limited
21 to the fees paid for collection of Highway Revenue; Central Service Agency Recoveries; Other Indirect Cost Recoveries; Highway Fund
22 Transfer; and amounts transferred to the General Fund for servicing of accounting and payroll functions of the Comptroller General's
23 Office and the State Treasurer's Office. The report shall address these items separately and the study's findings and recommendations
24 shall be submitted to the Ways and Means Committee by December 1, 1998.
25