SC’s state reserves increasing as a percentage of overall spending

abeam@thestate.comJuly 16, 2013 

THE TAX FOUNDATION

— South Carolina lawmakers had to make hundreds of millions of dollars in budget cuts following the Great Recession – and it appears to have had an interesting effect on the state’s spending.

In 2007, a year before the Great Recession hit, South Carolina’s reserves equaled 2.56 percent of its spending – good enough for 35th in the country, according to an analysis by the Tax Foundation, a nonpartisan tax research group.

Rainy Day funds as percentage of spending, state-by-state, 2007. Map from The Tax Foundation.

Click map for larger view

But in 2013, South Carolina’s reserves equaled 6.04 percent of its spending, giving it the 10th best percentage in the country.

Rainy Day funds as percentage of spending, state-by-state, 2013. Map from The Tax Foundation.

Click map for larger view

“Although these rates are a far cry from 18% and fall below even the lower end of the spectrum of expected revenue shortfalls during an economic downturn (13%), they are nevertheless a significant improvement from 6 years ago,” Richard Borean, a spokesman for the Tax Foundation, said in a news release.

Reach Beam at (803) 386-7038.

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