Gov. McMaster wants $45 million in SC surplus to go to fight coronavirus
S.C. Gov. Henry McMaster has asked state lawmakers to send $45 million to the state agency responding to COVID-19, the disease caused by the novel coronavirus.
In a letter Thursday, McMaster urged House and Senate members to pass a joint resolution that would send cash from the state emergency reserve fund to the state Department of Health and Environmental Control. That cash could be replaced with money that would have been used to give Palmetto State residents a $128 million one-time taxpayer credit, according to a statement from the governor’s office.
“DHEC protocols and procedures require the agency to prepare for a variety of contingencies and situations,” McMaster wrote in the letter. “This requires that the agency identify and secure — in advance — the necessary resources, equipment and personnel to successfully address these contingencies.”
The tax credit, which would apply to 2021 state tax filings, was passed by the House Wednesday as part of its budget for next year. The credit would be paid for from the roughly $1.8 million in new dollars the state is expected to bring in this year above and beyond existing revenues. The budget now goes to the Senate for consideration.
“At this time, I believe these one-time surplus dollars should be utilized now to provide DHEC with funds, to the extent necessary, to address COVID-19 in South Carolina,” McMaster wrote.
Ultimately, any money not spent on efforts to respond to the coronavirus would return to the state’s coffers, according to the statement.
House Speaker Jay Lucas, R-Darlington, and state Rep. Murrell Smith, R-Sumter, who chairs the House budget committee, released a statement saying they were in favor of approving the money to combat COVID-19.
“The health and safety of our citizens is the highest priority of the House and we will continue to work to ensure that appropriate resources are available to respond to the impact of COVID-19,” the statement read.
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As of Thursday afternoon, South Carolina currently had identified 12 presumptive positive cases of the coronavirus. Six of those cases have been confirmed by the Centers for Disease Control and Prevention.
On Wednesday, the World Health Organization declared COVID-19 to be a global pandemic. In response, McMaster told reporters Wednesday that South Carolina would not be changing its approach to combating the virus because of the WHO declaration, instead saying he would continue following the approach recommended by state and federal health officials. He added that at this time, there was no reason for schools or businesses to close or for organizers to cancel large events.
Despite that advice, some organizers of large public events in the Midlands, including the Five Points St. Patrick’s Day parade and the Carolina Cup in Camden, have announced cancellations.
McMaster’s call for the coronavirus response funds came the same day state Sen. Dick Harpootlian wrote a letter to the governor, urging him not to appear in a St. Patrick’s Day parade in Greenville and to urge South Carolinians to “avoid large crowds” and “insist that local festivals be postponed until a later date when the risk has subsided.”
McMaster told reporters Wednesday that he intended on attending the parade, which was canceled Thursday.
Harpootlian also said some of the extra money the state expects to bring in for the budget year beginning July 1 should be set aside to help the state meet its needs down the road if the coronavirus results in economic harm to the state. COVID-19 cases in South Carolina could have an impact on tourism, a major industry in the Palmetto State, he said.
“(T)he question for us as elected leaders is not whether there will be some economic consequence, but what will be the scope and severity of it,” Harpootlian said.
On top of surplus funds that may be used to combat the coronavirus in South Carolina, the U.S. Centers for Disease Control and Prevention awarded South Carolina with more than $8.9 million for COVID-19 response, according to the U.S. Department of Health and Human Services. That money was part of a $8.3 billion dollar emergency spending package approved by Congress last week.
This story was originally published March 12, 2020 at 2:24 PM.
