House approves budget

COLUMBIA, S.C. (AP) - South Carolina House members gave key approval Thursday to a state budget that would cut income taxes, give state employees a pay raise and provide health insurance to poor children.

The budget passed 112-1, despite lengthy debate on more than 300 proposed changes.

Democrats tried unsuccessfully for three days to remove an $81 million income tax cut from the $7.3 billion budget. They argued the money would be better spent on health care, paving roads or other projects. They also suggested other ways to give tax relief, such as cutting property taxes or the sales tax on groceries. But the Republican-controlled House easily defeated every alternative.

Budget writers had roughly $1 billion in extra revenue to spend this year, largely from higher sales and income tax collections.

Thursday evening's vote was the key second nod given to the spending plan. Bills are rarely changed in the House before members take a so-called third reading Tuesday needed for final approval. The measure will then head to the Senate, which is expected to begin floor debate next month.

Republicans said taxpayers should benefit from the state's increased revenues.

''Republicans are about cutting taxes - that's what we do,'' said Rep. Dan Cooper, RPiedmont, chairman of the budget-writing committee.

Though disappointed the income tax relief went through, most Democrats voted for the budget because it paid for many of the state's needs. Rep. Ken Kennedy, DGreeleyville, cast the lone ''no'' vote.

''We did some good things. We just did it with one-time money,'' said Rep. Gilda Cobb- Hunter, D-Orangeburg, who wanted to use the $81 million to permanently put in the budget projects funded year-to-year. ''Where have all the fiscal conservatives gone?''

Gov. Mark Sanford thanked the House for approving the first of a three-year income tax reduction plan but said the tax savings didn't go far enough. The Republican governor, who's often at odds with GOP legislative leaders, criticized the budget as growing government too much and called on the Senate to increase the income tax cut.

An analysis from the state Revenue Department shows the tax cut would mean a $35 savings for a family of four with an adjusted gross income of about $45,000, and a $130 savings for a family earning $100,000.