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CONTROL GROWTH OF GOVERNMENT
We believe very simply that government should never grow faster than the taxpayers’ ability to pay for it. Too often, however, the temptation of those in power to spend every new dime that comes in far exceeds the duty to protect the taxpayers who fund government.
Unless excessive government spending is brought in line with the growth of inflation and the population, South Carolina government will continue to eat up a greater and greater share of the dollars that should remain in the private sector to increase personal income and create jobs.
Consider these facts:
- From 1990-2006, government spending in South Carolina increased by 156% – more than twice the combined increases in the population and growth of inflation over that same period (75%).
- In FY 2006, government spending in South Carolina increased by 9.1% – more than twice the combined rate of our taxpayers’ growth in personal incomes (3.8%).
- During a recent two-year period (FY 1999 and FY 2000), government spending in South Carolina grew by 23.6% – nearly four times the combined rate of population and inflation growth (8%). This exceedingly rash spending resulted in insufficient revenues being available when the economy suffered a downturn a few years later. The result was over $800 million in across the board budget cuts that hampered vital government services like education and health care.
- If our state had limited the growth in spending to the growth in population plus the inflation rate 20 years ago, a massive $6.6 billion would have remained in our state’s economy over that time period. A growth in spending cap would have negated the dramatic mid-year budget cuts of 2001-2003 and prevented the raiding of trust funds and reserve accounts to the tune of over $500 million.
We believe that it is past time to control the growth of government this year and in future years. As recently as 2004, our total state budget was approximately $15 billion. The legislature is debating a budget next year that could be close to $20 billion – an over 30% increase of nearly $5 billion in only 3 years! The General Fund portion of the budget is currently $5.6 billion and there are approximately $1 billion in new money to be appropriated for the upcoming year. If we limit our growth in government to the inflation rate plus our growth in population, we would only need to spend $300 million of that money and could use the other $700 million to repay past debts, fund capital needs, and still return hundreds of millions of dollars to our economy. Instead, many in the legislature hope to spend every penny of the $1 billion. We strongly urge those in power to ease themselves off of their spending addiction and return monies to the taxpayers who earned them.
To control spending in future years, we urge the legislature to ask the taxpayers of South Carolina if they are satisfied with the status quo or ready to make government live within its means. Over a dozen states are currently looking to implement a Taxpayer Empowerment Amendment-type spending cap by putting the referendum question on the ballot in November. The S.C. Club for Growth aggressively supports this vital question of responsible governance being put to our voters in the 2006 election and urge the legislator to allow taxpayer’s voices be heard on this issue.
It’s time to slow the growth of government in South Carolina to a responsible level and start putting more of our hard-earned tax dollars toward growing our state’s economy, not excess government spending.
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