Greg Wilson/Anderson Observer
Two proposed changes to the South Carolina Constitution are on the ballot this election season, and, as usual, the wording and context of the amendments are a bit confusing. The essence of the amendments asked if the state should be required to add additional funds to the reserves each year.
Voting “Yes” will require the state to set aside more money to avoid mid-year budget cuts.
“Without raising taxes, the state will put more revenue into its rainy-day funds to ensure it can meet the needs of running the state government in the event of an economic downturn,” said S.C. Rep. West Cox, R-Anderson.
The first question addresses the South Carolina’s general reserve fund, often referenced as the rainy-day fund:
“Amendment 1 - Must Section 36(A), Article III of the Constitution of this State, relating to the General Reserve Fund, be amended so as to provide that the General Reserve Fund of five percent of general fund revenue of the latest completed fiscal year must be increased each year by one-half of one percent of the general fund revenue of the latest completed fiscal year until it equals seven percent of such revenues?”
That question asks if the state legislature should increase the amount of money it is required to put into this fund from five percent to seven percent. If approved, the new law would be phased in over four years, rising one-half percent each year.
The second question on the ballot address the state’s capital reserve fund, which primarily but not exclusively funds major capital projects:
“Amendment 2 - Must Section 36(B), Article III of the Constitution of this State be amended so as to provide that the Capital Reserve Fund of two percent of the general fund revenue of the latest completed fiscal year be increased to three percent of the general fund revenue of the latest completed fiscal year and to provide that the first use of the Capital Reserve Fund must be to offset midyear budget reductions?”
The proposal would increase the amount of money required to go into capital reserves from two percent to three percent and it would mandate funds needed offset mid-year budget cuts come from this account first before tapping into general reserves.
If both these amendments are approved, the amount required to go into the combined reserves each year would rise from 7 percent of the annual revenue to 10 percent.
They have the backing of groups including the South Carolina Policy Council and Americans for Tax Reform, who held a joint news conference Monday in Columbia to encourage South Carolinians to vote “yes” on both the measures.
Currently, the legislature can add more money to reserves than constitutionally required, something they have done in recent years to produce what some would call artificial surpluses in the state budget.
“What this does is binds the hands of future General Assemblies so that they have to save more to ensure that, in the future, legislators at the State House are being as fiscally responsible as we have been over the last several years by saving and boosting these reserve accounts,” said Cox.
Voters in South Carolina can vote Nov. 8 at their regular precincts or all this week through Saturday at:
Anderson County Board of Registration and Elections
301 N Main Street, Anderson, SC 29621
8:30 am – 6:00 pm Monday – Saturday
Powdersville Branch Library
4 Civic Court, Powdersville, SC 29642
8:30 am – 6:00 pm Monday - Saturday
Absentee voting by mail is still valid. To receive a ballot for mail-in, contact the Anderson County Board of Registrations and Elections at County 864-260-4035 or acvote@andersoncountysc.org to initiate this process or visit: www.scvotes.gov.