Gov. Haley directs SC agencies to plan possible budget cuts

S.C. Gov. Nikki Haley has ordered state agencies to plan for a 3 percent budget cut — about $206 million — in their spending proposals for next year.

S.C. lawmakers will have roughly $440 million in added money to spend next year, the state’s chief economist projected last week. While more than this year, that is only about a third of the added money that the state had this year.

However, Haley directed state agencies to plan for possible cuts in case of an “economic downturn or crisis.”

State agencies need to identify areas that could be cut in their budgets now, “instead of being forced to make tough decisions amid economic downturn or crisis,” she wrote in a letter to agency directors.

State agencies first must submit their budget proposals to Haley. Haley, typically, unveils her state spending plan after lawmakers return in January. That plan advises lawmakers on her legislative priorities. However, her plan carries little weight with lawmakers, who write the state budget.

The state budget is made up largely of state income and sales taxes.

Haley’s request comes as lawmakers continue to grapple with how to make up for gaps in the state budget.

For example, S.C. schools get about $500 million less this year than state law says they should get. Local governments also got about $90 million less than state law says they should get.

Meanwhile, other state agencies, including Social Services, have said they cannot do their jobs because they are underfunded and can’t fill vacancies. In addition, more money is needed to maintain S.C. roads, where crumbling roads have cost hundreds of lives.

This story was originally published August 29, 2016 at 3:28 PM with the headline "Gov. Haley directs SC agencies to plan possible budget cuts."