COLUMBIA --- South Carolina legislators voted Wednesday to keep a $10 million loan to the state's only PGA Tour tournament in the state budget.
The House voted 69-43 to lend the money if the Heritage golf tournament on Hilton Head Island can't find a sponsor to replace Verizon, which says this is its final year as sponsor. If needed, the loan would come from the state's insurance reserve fund.
Opponents said it didn't make sense in a year of deep cuts to services, including layoffs of teachers, state law enforcement, public defenders and Juvenile Justice workers, and possible cuts to services for the disabled.
Rep. Nikki Haley led an effort to remove the loan from the state's $5 billion spending plan -- which is down from $7 billion two years ago.
"In a budget year like this, they raided the insurance trust fund -- a fund that's meant to protect consumers after hurricanes and natural disasters -- to lend money to a golf tournament. That is so far removed from what our taxpayers want," said the Lexington Republican.
She criticized federal bailouts of banks and car companies, adding, "Now, we're going to bail out golf courses. When's it going to stop?" She asked whether South Carolina would next lend money to steeplechase races.
Democrats and Republicans argued the tournament -- held in April after the Masters Tournament -- supports hundreds of jobs and pumps tens of millions of dollars into the state. According to a Clemson study, more than 70 percent of spectators live outside Beaufort County.
"This is a proven moneymaker for the state of South Carolina," said Rep. Richard Chalk, R-Hilton Head Island.
While acknowledging golf can be an elitist sport, Rep. Jim Merrill said the tournament boosts South Carolina's image worldwide in a state that relies on tourism, which includes golfing at 360 courses statewide. The Daniel Island Republican said the state must show its support or risk seeing the tournament go elsewhere.
"The minute we don't show support for these tournaments, Georgia will, North Carolina will, Virginia will. We've got to be a player in these things," Merrill said.
The nonprofit Heritage Classic Foundation -- the tournament's general sponsor -- reported giving more than $1.3 million to charities in 2009, bringing the total to $19.8 million since 2007.
Heritage tournament director Steve Wilmot did not immediately return a message Wednesday from The Associated Press.
COLUMBIA --- South Carolina legislators have voted to keep a 30-cent cigarette tax increase in the state budget.
The House refused on Wednesday by a 106-12 vote to remove the increase from the state's $5 billion spending plan.
South Carolina's 7 cents-per-pack cigarette tax is the nation's lowest and has not changed since 1977. Lawmakers have repeatedly rejected efforts to raise the tax by more than 30 cents per pack.
Raising the tax to 37 cents a pack is expected to generate $88 million. Most of that would go to a trust fund for future Medicaid expenses.
Legislators continued debating on proposals for higher increases.
-- Associated Press
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