FINANCIAL OVERVIEW
The following sections detail revenues and expenditures of the State's General
and Special Revenue Funds. In addition, for the fiscal year ended June 30, 1997,
other financing uses exceeded other financing sources for these funds by
$694.487 million.
Revenues
The State's most significant sources of revenue are its 5% retail sales tax, its
individual income tax (2.5% to 7.0% tax rates) and Federal grants. The following
schedule summarizes revenues of the General and Special Revenue Funds for the
fiscal year ended June 30, 1997 (expressed in thousands) and the amounts (expressed
in thousands) and percentages of increases (decreases) in relation to prior year
revenues:
Revenues
1996-97
Interest and other investment income were higher than the previous year
because more cash was available to invest.
Expenditures
The following schedule presents a summary of General Fund and Special
Revenue Funds expenditures for the fiscal year ended June 30, 1997, (expressed in
thousands) and the amounts (expressed in thousands) and percentages of increases
(decreases) in relation to prior year expenditures:
Expenditures
1996-97
During fiscal year 1995-96, the Department of Education purchased school
buses to transport children using Capital Improvement Bond proceeds. Education
expenditures decreased during fiscal year 1996-97 when the school bus project was
completed.
Administration of Justice expenditures increased with the construction of the
Kershaw Correctional Institution and renovations to existing facilities. Expenditures
for correctional officer salaries and for health services and rehabilitation of inmates
also increased.
Debt Service expenditures for Capital Improvement Bond principal payments
increased for two refunding bond issues. As older debt is retired by the paying agent
when scheduled, more funds are available to pay the newer debt on the refunding
issues.
Status of Fund Balances
GAAP-basis fund balances for the General Fund and Special Revenue Funds
at June 30 (expressed in thousands) for the last five years were:
The reserved component of fund balance represents amounts legally required
to be segregated and amounts that cannot be appropriated for future expenditure. The
unreserved component of fund balance is computed as total fund balance less reserved
amounts. Even for years in which the total fund balance in the General Fund was
positive, the unreserved component of fund balance was negative because the reserve
requirements exceeded total fund balance.
The designated portion of unreserved fund balance reflects tentative plans for
future use of available financial resources.