LAWMAKERS OVERSEE EXPLOSION IN FEDERAL FUNDS, FINES & FEES

Each year during the budget debate, legislators talk about the responsible spending included in the budget. In this year’s debate, for instance, a House leader described the historically high budget as “reining in government spending.” But the numbers tell a different story.

Since 2007, the total budget has climbed over 35 percent — an increase of over $7 billion. This includes the recession cuts and short-lived and ill-advised stimulus funds.

Even more telling is the dramatic rise in “other funds” (fines and fees collected by the state) and federal funds. Budget writers (and some in the media) only talk about the general fund portion of the budget, but these other two portions both consist of public money collected from taxpayers.

It’s extremely difficult to get an accurate sense of the state budget, and that’s by design. The chart below gives you some idea of budget growth in all categories over the last decade.

 

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By South Carolina Policy Council

Since 1986 the South Carolina Policy Council Education Foundation has advocated innovative policy ideas that advance the principles of limited government and free enterprise. The Policy Council is the state’s meeting place for business leaders, policymakers, and academics – as well as engaged citizens – who want to see South Carolina become the most free state in the nation. For questions or comments on the articles on this website, please email Research Director Jamie Murguia.