S.C. Code Ann. § 11-11-200 – Spending limit; use of surplus revenue

(A) In addition to all other applicable limitations on general fund appropriations and notwithstanding any other provisions of law, for fiscal years 2004-2005 through 2008-2009, except as provided in subsection (C), total general fund appropriations for the fiscal year may not exceed appropriations for the preceding fiscal year by more than three percent. The Office of State Budget shall certify to the Governor and the chairmen respectively of the House Ways and Means Committee and Senate Finance Committee the total general fund appropriations allowed for a fiscal year pursuant to this section. In calculating the limitation, there must be removed from general fund appropriations for the preceding year any amounts determined by the Office of State Budget to be nonrecurring. Before the Governor may submit the proposed budget for these fiscal years, the proposal must include the certificate of the Director of the Office of State Budget that the proposed budget conforms to the limitation imposed by this section. The annual general appropriations bill may not be given third reading in the House of Representatives and Senate unless a similar certificate is received by the presiding officer in each house from the Director of the Office of State Budget before the bill is given third reading.
(B) Notwithstanding any other provisions of law providing for the uses of surplus general fund revenues, for any fiscal year 2004-2005 through 2008-2009 for which the Comptroller General reports a surplus pursuant to Section 11-11-180(A) of the 1976 Code, to the extent any fiscal year 2001-2002 accumulated general fund operating deficit remains:
1. (1) the State Treasurer shall transfer to the appropriate depository accounts the amount of any surplus necessary to address any remaining fiscal year 2001-2002 accumulated general fund operating deficit;
2. (2) should any surplus remain after item (1) is accomplished, the remaining surplus must be applied to restore the General Reserve Fund to the amount required pursuant to Article III, Section 36 of the Constitution of this State and Section 11-11-310 of the 1976 Code; and
3. (3) should any surplus remain after items (1) and (2) are accomplished, the balance is deemed Capital Reserve Fund revenues and must be appropriated in the manner and used for the purposes provided by law for the Capital Reserve Fund.
(C) When the fiscal year 2001-2002 accumulated general fund operating deficit is repaid and the General Reserve Fund is fully restored pursuant to Article III, Section 36 of the Constitution of this State and Section 11-11-310 of the 1976 Code, the provisions of this section no longer apply.