Go read this article from The State (out of South Carolina). It gets into a pretty good discussion of the "dilemma" (if only all our States had this kind of dilemma) facing South Carolina. In the wake of increased revenues and a recovering economy, GOP-lead South Carolina faces an interesting conundrum: spend that extra money, or give it back to tax-payers. On an encouraging note, Governor Nikki Haley and the House appear to want to return that money to tax-payers.
Less encouraging: the Senate appears to want to spend the money.
Honestly, this is an honest disagreement to have, even if I know which side I would support, if I lived in SC. South Carolina, like so many other states, has had to cut spending massively during the 'Lesser Depression.' So, now that they have more revenue available, there is an argument to be made for restoring funding which had been slashed. On the other side, fiscal conservatives are pointing out, not without cause, that the State has functioned quite adequately for the last couple of years despite those budget cuts, so obviously it doesn't need that much money.
That this discussion is being had is encouraging. That the House and the Governor's office are supporting the tax-payer over the Government is even more encouraging. Hopefully the Senate, too, will realize their primary responsibility is to tax-payers, not to Government Employees or Tax Leaches, and will also agree to lowering taxes. As an added incentive, lowering taxes will actually probably result in yet more revenue. As taxpayers and businesses flee high tax, business oppressive states like California, Illinois, and New York, they will flock to low regulation, low tax states, thus increasing the tax-base, never mind the general increase in revenue which tends to occur when taxes are lowered.