By Mike Fitts
mfitts@scbiznews.com
Published Aug. 13, 2009

The S.C. Budget and Control Board put off another round of budget cuts this morning, with Senate Finance Committee Chairman Hugh Leatherman expressing hope for an economic uptick.

The board voted 3-2 to wait until after the Board of Economic Advisors has taken its next look at revenue later this month. At its last meeting, the BEA lowered its estimate of state revenue, recommending a 4.04% cut, which would be about $200 million.

Leatherman said he believes revenues will show “a significant uptick” as the year progresses, and that might reduce the need for further budget cuts. He said that he’s seen signs of recovery as he travels around the state and expects personal incomes to show some growth. It’s also better to do one cut rather than two, if cutting must be done, he said.

Comptroller General Richard Eckstrom disagreed with the move, saying that economic data support cutting now, rather than waiting later in the fiscal year.

“I’m not sure where the favorable economic data is,” Eckstrom said.

Gov. Mark Sanford also supported taking action now.

“Isn’t this a reality that’s going to happen anyway?” he asked.

The board’s motion to take no action included a warning to state agencies that another round of budget cuts is looming.

“I think they probably understand that,” said House Ways and Means Chairman Dan Cooper.

Cooper, Leatherman and Treasurer Converse Chellis voted to delay the cut.

The BEA is set to meet Aug. 21. The Budget and Control Board moved up its next meeting to no later than Sept. 18.

In other action, the commission moved to recommend the purchase of a building that now houses the National Guard unit in Anderson. The $7 million purchase is subject to final review by the state’s Joint Bond Review Committee. An agreement to buy the building that houses the air defense unit would help show Washington officials that South Carolina is committed to keeping the unit and providing space for growth, Cooper said.