STATE COLLECTIONS COMING UP SHORT …
Annual revenues to the state of South Carolina grew by 4.3 percent during the fiscal year that ended on June 30 – well below the 7.3 percent growth rate experienced in fiscal year 2014-15.
And the current fiscal year isn’t looking so hot either …
State lawmakers had projected 4.6 percent growth for the previous year – money they already earmarked toward a host of “supplemental” expenses.
Given that this funding has not materialized, $10.3 million worth of spending will have to be cut – including projects at the S.C. Division of Aeronautics, S.C. Adjutant General’s office and the S.C. State House.
In addition to the missed estimate from the recently-concluded fiscal year, S.C. comptroller general Richard Eckstrom reported that the current fiscal year is also seeing slower growth.
Last month’s revenues were 0.9 percent lower than revenues from July 2015.
“Many extreme financial demands will be confronting state government during this new fiscal year,” Eckstrom wrote in a letter (.pdf) to state officials. “As state government generates revenue surpluses, it would be prudent to resist the temptation to ‘spend it all’ and to instead establish additional reserves for leaner times that appear to be emerging. South Carolina’s economy is not exempt from slowdowns and stresses being experienced in the world economy.”
Um … not exempt?
South Carolina’s economy is currently marked by terrible jobs, a small workforce, low incomes and slowing growth.
Nonetheless state spending – including unconstitutional deficit spending – continues to soar.
Is this sustainable? Hell no … but “Republican” lawmakers continue to spend every last dime of revenue that comes in anyway. And S.C. governor Nikki Haley has scarcely lifted a finger to stop them.