March 13, 2009

BUDGET

The House approved the 2009-2010 Appropriations bill on Wednesday and concluded their session for the week. The bill now goes to the Senate where it will be sent to the Senate Finance Committee for their consideration. Below are items in the budget that impact Clemson.

Higher Education

Two tuition cap proposals were defeated.  The first, introduced by Rep. Thad Viers, would have capped tuition at last year’s levels.  The second, introduced by Rep. Nikki Haley, would have capped tuition at the current Higher Education Price Index (HEPI), or 3.6% on the condition that institutions accepted Federal Stimulus dollars.

Clemson E&G

The House concurred with the Ways and Means Committee’s recommendation to take state agencies to FY05-06 funding levels.  The Federal Stimulus Bill contains approximately $700 million in designated funding over two years for education (K-12 and higher education) for South Carolina.  As a result, $119.5 million in one-time monies was appropriated to fill the shortfall in higher education and bring public colleges and universities to FY05-06 funding levels.

Clemson University received $17.5 million in Federal Stimulus dollars, which added to the current base budget to date ($87.7 million), brings the University above FY05-06 funding levels.  The Stimulus monies however, are one-time dollars.

Clemson PSA

The House also concurred with the Ways and Means committee’s recommendation for Clemson PSA - a reduction of $246,681 bringing the base budget to FY05-06 funding levels.

Included in the House budget are three provisos requested by Clemson that allow Clemson Regulatory Services to raise revenues from fertilizer inspection fees, lime inspection fees, and non-commercial pesticide applicator licensing fees.  Funds generated from these fees will be used to maintain the services of the Agriculture Services Lab and the Fertilizer Inspection Lab. 

The House also adopted provisos that require Clemson PSA to maintain the Boll Weevil Eradication Program and the State Meat Inspection Program.  These two provisos were not requested by Clemson.

On Wednesday, March 11^th, President Barker, Vice President John Kelly, and Student Body President Callie Boyd presented Clemson’s PSA budget request to the Natural Resources and Economic Development Subcommittee of the Senate Finance Committee. Trustees Tom McTeer, Bob Peeler, and Nicky McCarter also attended the hearing on behalf of Clemson.

Clemson, along with USC and MUSC will make a budget presentation to a joint meeting of the Senate Education Committee and the Higher Education Subcommittee of the Senate Finance Committee on March 25^th.

The Senate Finance Committee is scheduled to debate the budget the week of March 30th. 

Natural Resources and Economic Development Subcommittee

Senator Yancey McGill – Chairman

Senator Larry Grooms

Senator Ronnie Cromer

Senator Ralph Anderson

Higher Education Subcommittee

Senator John Courson – Chairman

Senator Danny Verdin

Senator Darrell Jackson

Senator Dick Elliott

Board of Economic Advisors (BEA)

The Board of Economic Advisors met on Wednesday afternoon and lowered their estimate for both FY08-09 and FY09-10 by 1%.  Clemson has factored into its FY08-09 budget plans alternatives to cover this reduction and any additional reductions that are likely between now and June 30, 2009.   Additionally, the Administration is developing multiple funding scenarios for FY09-10 that will address these reductions and other potential funding levels. 

HOT BILLS

H.3104 – Representatives Murrell Smith and Joan Brady – A bill to create a SC College and University Board of Regents – pending in the House Education and Public Works Committee.

H.3365 – Representative Cooper – This bill provides regulatory reform for the state supported research universities and the four year comprehensive institutions in SC. This bill is a collaborative effort by these institutions to propose regulatory reform in the areas of human resources, facilities, finance and procurement – pending in the Budget and Finance Subcommittee of the House Ways and Means Committee.

H.3378 – Representative Cooper and others – A bill to provide for the terms and conditions of mandatory state agency furlough programs – pending in the Senate Finance Committee.

S.1 – Senator McConnell and others – A Joint Resolution to amend the SC Constitution to establish spending limits and establish a budget stabilization fund – given a favorable report by the Senate Judiciary Committee. 

S.2 – Senator McConnell and others – This bill implements an annual limit on the appropriation of state general fund revenues – pending in the Senate Finance Committee

S.12 – Senator Leatherman and others – This bill creates the Taxation Realignment Commission to conduct a comprehensive study of the state’s tax system – pending in the House Ways and Means Committee.

S.84 – Senator Ford – A bill that would allow arrest warrants to be made available for public inspection and copying without a written request if the requestor appears in person – tabled by a Senate Judiciary Subcommittee.

S. 147 – Senators Campsen and Elliot – A bill to require the passage of a joint resolution prior allowing a bond authorization prior to the introduction and passage of a bill or joint resolution to authorize bonds for a given year – given an unfavorable report by the Sales and Income Taxation Subcommittee of the Senate Finance Committee.

S.182 – Senator Setzler and others – This bill is similar to S.12 and creates a permanent Tax Research Commission to study and make recommendations on sales tax exemptions and the state’s tax system – continued by the Senate Finance Committee.

S.351 – Senator Grooms – A bill to restructure the organization of the SC State Ports Authority – pending in the House Judiciary Committee.

S.517 – Senator Davis and others – A Joint Resolution requiring certain fees charged by state agencies that are set by regulation  to be approved by the General Assembly – carried over by the Sales and Income Tax Subcommittee of the Senate Finance Committee.

For a complete list of bills being tracked by Governmental Affairs please go to the State Relations page of the Office of Governmental Affairs Web site: http://www.clemson.edu/governmentalaffairs/.

FYI

On Wednesday, March 4^th, Clemson, Coastal Carolina University and USC, on behalf of the four-year state institutions of higher education, made a presentation to the Higher Education Subcommittee of the House Education and Public Works Committee on H. 3365, the Higher Education Efficiency and Administrative Policies Act. This bill is a collaborative regulatory reform package aimed at allowing institutions more flexibility in operating procedures.

The House and Senate Agriculture Committees have approved regulations requested by Clemson’s Regulatory Services Division in PSA that address quarantine requirements for Asian Citrus Psyllid and Plum Pox Virus. These are plant pests that could have a devastating effect on South Carolina’s peach industry.

The House is on furlough the week of March 16^th and will not be in session. They will return on March 24^th. The Senate will be in statewide session on Tuesday, March 17^th but will meet only in a perfunctory session on Wednesday and Thursday in order to have Committee meetings to consider legislation.