Voters will find the following two proposed constitutional amendments on the ballot in November.
"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?
Yes []
No []
"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?
Yes []
No []
Both these existing funds, the General Reserve Fund and the Capital Reserve Fund, constitute budget stabilization funds as they are known in many other states. South Carolina is required by law to balance its budget. If revenue falls short of projections, the state was in past years forced to make midyear budget cuts which are very destabilizing for state agencies, employees, and services. These two funds were created to provide for that contingency. Budget Stabilization Funds ensure the continuation of essential state programs and services during recessions and help to stabilize economic activity until the economy recovers.
These proposed revisions expand the General Reserve fund from five to seven percent of the budgeted General Fund revenue and the Capital Reserve Fund (for capital projects, like buildings and airports and other facilities) from two to three percent of the General Fund budget. The proposal phases in the increases extends the time for repayment, and allows Capital Reserve Fund to also be used to help prevent midyear budget cuts.
~ Holley Ulbrich, Vice President, LWV of Oconee-Pickens Counties
