(Washington, D.C.) – The Council for Citizens Against Government Waste (CCAGW) today applauded South Carolina Governor Mark Sanford’s (R) signing of S. 1026, a bill allocating $105 million of South Carolina’s budget surplus to repay a deficit caused by the state’s former accounting practices.  The methods used to pay the state’s bills in 1991, 1993, and 2002 created a GAAP (generally accepted accounting practices) deficit.

“Budget gimmicks are tempting as a short term fix, but carry costly long-term consequences,” CCAGW President Tom Schatz said.  “The commitment shown to honest and open accounting will yield great benefits for South Carolina taxpayers.”

South Carolina Comptroller General Richard Eckstrom uncovered the $105 million deficit in the fall of 2005.  The deficit was caused by adding an extra month of taxes and fees to the state treasury in 1991, 1993, and 2002 when the state fell short of expected revenue.  Eckstrom brought it to the attention of the General Assembly, which agreed to find a prompt solution.  The passage of S. 1026 will help reinstate South Carolina’s AAA credit rating.

“At all levels of government, taxpayers are deceived by budget gimmicks, phony surpluses, and hidden fees and taxes,” Schatz said.  “Reversing those damaging practices takes strong leadership.  Once again, Gov. Sanford and South Carolina set an example for sound fiscal stewardship.”

Citizens Against Government Waste is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.