Tax collections down in South Carolina

A final look at tax collections in July has convinced South Carolina's comptroller general to call for a 1 percent cut in agency spending to avoid budget problems tied to a weak economy. Comptroller General Richard Eckstrom said Friday that July tax collections fell 2.9 percent behind year-ago levels. He's a member of the Budget and Control Board. That five member panel of the governor and top financial leaders meets Tuesday and Eckstrom says a state reserve account will be used to head off shortfalls in the $7 billion budget. But Eckstrom says that won't be enough and agencies will have to give up 1 percent, or about $60 million in spending. Other board members say a reduction of up to 2 percent or $120 million may be needed.

--Associated Press