SC voters decided to make changes to the state Constitution. Here are the moves they made
South Carolina voters have spoken, telling lawmakers to save more money in each year’s spending plan.
Two constitutional amendments passed Tuesday that require the General Assembly to set aside more money in rainy day accounts that an be used in case of economic downturns to help meet budget shortfalls.
Both amendments passed with about 62% of voters’ support.
The first measure requires lawmakers to set aside 7% of the previous year’s revenues, up from 5%, into the general reserve fund, which is available to cover any budget shortfalls at the end of each fiscal year.
That move will be phased in over four years.
South Carolina currently has $575 million in its general reserve fund.
The second measure requires lawmakers to hold onto to an additional 3% of annual revenue, up from 2%, to put into the state’s capital reserve fund. That account can be used in subsequent budget years on capital projects, such as addressing deferred maintenance at colleges and universities.
The second measure also allows lawmakers to take money from the capital reserve to stave off any mid-year budget cuts if there’s an economic downturn.
If the requirements were in place this year, and fully phased in, lawmakers would have set aside about $313 million more into the reserve accounts.
Both of the accounts were emptied during the Great Recession when the economy tanked and led to a drop in state revenues.
Lawmakers then used a combined $277 million from the accounts and made budget cuts to keep the state financially afloat. From 2008 to 2010, the state lost $1.3 billion in revenue, according to the Revenue and Fiscal Affairs Office.
State Rep. West Cox, R-Pickens, who lost his bid for reelection in the primary but pushed for these amendments, called Tuesday’s vote a commitment for “sound fiscal management” in the state.
“Whether it’s natural disasters (or) economic decline, the people of South Carolina said last night, and over the last two weeks of early voting, that they want to assure the state is prepared fiscally for what’s ahead,” Cox said Wednesday.
This story was originally published November 9, 2022 at 12:00 PM.
