The Palmetto Insider

The blog of the South Carolina Policy Council

State Spending Keeps Increasing … And So Will Taxes

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As you finish up your taxes for tomorrow’s federal deadline, consider this: state spending is on the rise – and if lawmakers don’t cut spending now, we are looking at a guaranteed tax increase next year. Already, fines and fees are on the rise.

In fact, Other Funds revenue, which is derived from fines and fees, is the fastest growing revenue source in the proposed FY10-2011 House budget.

Check out these spending increases in the new budget:

$21.10 billion: proposed FY10-2011 budget

$400 million: increase in previous year’s total budget

$450 million: increase in Federal Funds

$600 million: increase in Other Funds

All in all, the total budget has increased by 1 percent since the beginning of the current recession, fueled by a 17 percent increase in Federal Funds and an 11 percent increase in Other Funds. By comparison, per capita income in South Carolina has declined by 2.1 percent, going from $32,495 to $31,799 in 2009.

But if you think that’s bad, wait until next year.

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Written by Jameson Taylor

April 14, 2010 at 1:55 pm

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