South Carolina Gov. Mark Sanford released a fiscal 2012 budget Tuesday — his final one as governor — that proposes some spending cuts for a state facing a $1.3 billion budget gap.
Though the $23.1 billion budget is a 6% increase over the current year, Sanford said it identifies $265 million in general fund savings. It allocates $199.2 million for debt service, down from $210.2 million in fiscal 2011.
Sanford’s proposed budget includes funding cuts for education, state employee salaries, and state police.
The state has cut $2 billion during the past three years.
Sanford said his budget remains committed to maintaining the state’s rating. South Carolina is rated triple-A by Moody’s Investors Service and Fitch Ratings. Standard & Poor’s rates it AA-plus.
As he has in previous years, Sanford proposed a flat tax on personal and corporate income.
Incoming Republican Governor-elect Nikki Haley, who takes office on Jan. 12, will not be preparing her own budget. The State newspaper reported that Haley will negotiate with legislators to craft a budget.
South Carolina’s budget writers are fretting about the loss of federal stimulus aid, according to a report earlier this week from the National Conference of State Legislators.
The state received $1 billion from the American Recovery and Reinvestment Act over the last two years.