Moving targetBudget "free for all" or free-fall?By Bill Davis, senior editor FEB. 13, 2008 -- House Ways and Means chairman Dan Cooper (R-Piedmont) announced this week the House would delay bringing the state’s 2009-10 budget to the floor for debate until the federal bailout/stimulus package was completed.
 “The worst case scenario would be for the stimulus package money to come through and the budget be on the floor of the House for debate and none of the federal money accounted for,” said Cooper. “It would be a free-for-all.”
Cooper also said he didn’t want the House to pass a budget over to the Senate and then the federal money appear. The House has until the last day in March to approve a budget.
“It would be really hard to hit a moving target,” said Cooper, referring to the differing plans in both the Congress and Senate.
When the U.S. House of Representatives first passed its own version of the bill a few weeks ago, when the amount of the stimulus was appreciably higher, $838 billion in the House, South Carolina’s take was estimated to have been in the $2 billion range.
 But, Cooper warned, that proposed $2 billion could be paid out over several years and only in specific ways.
The latest iteration of the stimulus plan, almost $790 billion hammered out by the end of the week, pared down the amount dedicated to new school building, increased the amount of bailout money going toward General Motors and the construction of high-speed rail lines. Under the plan, individuals will see a $400 tax cut; couples $800.
Congress will vote on the latest version of the bill today, with the Senate to follow by the weekend, according to the Associated Press.
Support for the bill seemed to fall along party lines, with Democrats led by President Barack Obama touting it as a last-ditch effort to stop a spiraling economy and Republican lawmakers deriding the idea of more debt being the pathway to less debt.
Understanding what it all means
Cooper said Ways and Means staffers would begin poring over the minutiae of whatever final bill emerges, to understand “all the strings attached” and when the state would have to “buy” the federal monies through matching funding.
 He said the delay would be “procedural and mechanical” in nature, and needed because of the variety of “buckets of money” from Washington that could be headed Columbia’s way -- like a $670 million state stabilization fund.
The delay, argued Cooper, was “a management tool.”
It remained to be seen exactly how much of any stimulus package could be used to plug the state’s drained budget. Two billion dollars over two years sounds simple, but since the money would come with strings, one statehouse financial wonk said it would only replace about $400 million in state funding, mostly in Medicaid spending.
As a result of the Monday meeting of the state Board of Economic Advisers, which downgraded tax revenue projections for the 2009-10 fiscal year, Cooper said next year’s baseline budget had dwindled to $5.5 billion -- a far cry from the heady $7 billion-plus days of two years ago.
That’s a nearly $400-million reduction from this year’s skeletal budget. Historically, the newly proposed baseline returns the state to funding levels of 2005-06, and represented a financial roller-coaster ride that returned the state to the very spot it began at five years ago.
Waiting for the fat lady
And the screaming may not be over.
Gov. Mark Sanford has taken to the bully pulpit over the last few months to decry the stimulus as “more of a spending bill.”
The noted budget hawk who never voted for a bill that would create a new tax during his six-year tenure in Congress, has signaled in the past that he would prefer to turn-away the money, but has not said so definitively.
A series of requests this week to Sanford’s office -- in person, on the phone, and over the Internet -- for clarification on his position have gone unanswered.
One of the questions posed to Sanford’s office was if a provision championed by Congressman Jim Clyburn (D-S.C.), which would stop governors from blocking the stimulus package pass, would he instruct agency heads in his cabinet to not spend the money.
One of the questions coursing through the Statehouse was, “What if the stimulus doesn’t work, what if Sanford is theoretically right?” Then, it was feared, the country, and by extension, the state would have created an even bigger deficit the economy couldn’t be overcome.
Another question was, “If we get this extra money, will legislators have finally learned the lesson on not spending one-time money on recurring programs?”
Crystal ball. The stimulus bill will pass. Republicans, who voted for a $700 bailout when a Republican Treasury Secretary asked for it in October, will now say they hate it. Democrats will say they love it. Sanford won’t block the money, even if he could, and won’t instruct his cabinet to ignore the extra funding. And it just might -- might -- work. But, in two years, when the spending horizon on big chunks of the stimulus package ends, if the state and national economies aren’t back on track, the people of South Carolina, the United States, and the interconnected portions of the world are in for rough, rough, times. Or another bailout/stimulus package.
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Slow week aheadWith the Ways and Means Committee in a holding pattern until the federal stimulus package becomes more firmed up, there will be a relatively light agenda in the Statehouse next week.
Little major work is expected on the House floor as committees will be active. In the House committees:
Judiciary. The full committee will meet Tuesday, Feb. 17 at 2:30 p.m., or an hour and a half after adjournment, in 516 Blatt to discuss bills that could change voting practices and other issues. More.
Education. The full committee will meet Tuesday at 3 p.m. in 433 Blatt to discuss a host of transportation and education bills, including one to regulate snacks and food sold at schools. More.
3M. A subcommittee will meet Wednesday at 9 a.m. in 427 Blatt to discuss a study of childcare available to working South Carolinians. More.
Ag. The full committee will meet Wednesday at 2:30 p.m. in 410 Blatt to discuss committee rules and a host of pending bills. More.
Also ahead:
Legal. S.C. Supreme Court Chief Justice Jean Toal has been invited to address both chambers of the General Assembly from the floor of the House on Feb. 25 at noon.
Sentencing. Members from the House and the Senate will meet Feb. 26 at 2 p.m. in 105 Gressette for a joint meeting of the Sentencing Reform Commission.
Campaign reform. Former U.S. Assistant Secretary of State Hodding Carter III, now a professor at the University of North Carolina, will speak 7 p.m. Wednesday about campaign finance reform. The event is at Furman University's Riley Institute. More.
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Money, money, money
House Ways and Means Chairman Dan Cooper (R-Piedmont) has delayed budget-crafting meetings for a week to prepare for a soft landing for any federal stimulus monies the Obama administration will be able to shake out of Washington’s money tree.
His hope is to upset any “free-for-all” the money could cause. He may stop the gold rush, but he won’t be able to stem the rhetoric of hungry politicians calling for funding for their pet projects, while demanding accountability and restraint out the other side of their faces.
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Burning issue, moreThe state DHEC board voted 4-2 this week to approve an air pollution permit for a proposed $2.2 billion coal plant to be constructed in the Florence area, despite some heavy lobbying.
Gov. Mark Sanford came out this week against the plant, citing drops in projected state energy needs and the cost involved in mitigating the environmental damage a coal-burning, mercury-producing plant would cause. Sanford’s weighing-in came on the heels of the state Department of Natural Resources coming out against the plant, which angered some.
“Why would they wait until a few days before the DHEC hearing to do that?” asked state Sen. Hugh Leatherman (R-Florence), chair of the Finance Committee. Leatherman, a big-time supporter of job development, denied rumors that he’d been approached by industry representatives to cut DNR’s budget as punishment for their position.
“I’m not that kind of legislator,” he said. Actually, according to one source, he may be just that kind of legislator, because that’s what Statehouse leadership needs to do to say in power: “punish and reward.”
ESC fate still hanging
A Senate subcommittee voted unanimously this week to permanently move the state Employment Security Commission into Gov. Mark Sanford’s cabinet.
Sanford had been railing against the unemployment check shortfalls the agency had been posting over the last few months, leading to federal loan program bailouts. Sanford hailed the vote, which still has to survive committee and floor votes in the Senate before it heads over for similar scrutiny in the House, as a positive step toward accountability.
But as far as it being a victory for restructuring state government, a Sanford keystone issue, it falls a little short. The ESC is damaged goods; the legislature may be grateful to have it and its deficits off its plate, and on to Sanford’s, potentially clearing the way for more legislative heckling. Sanford had yet to make good on threats fire and replace members of the ESC board serving there at his pleasure.
Preemptive (toilet paper) strike
“Did you see how they decorated my office?” groused Rep. Don Bowen (R-Anderson) Wednesday morning. “They completely covered it in toilet paper.”
Bowen wasn’t sure who was at fault for the white-out, but had it happened after a roll call vote in the House later that day, the list of suspects would have been larger.
“Bowen switched votes on us,” complained former Majority Leader Re. Jim Merrill (R-Daniel Island) after a close 83-81 vote swung the other way in a judicial election that day. Had Bowen voted the other way on the candidate, then Merrill’s preferred judge may have survived a second vote.
Juxtaposition
An $80,000 black sports car belonging to Rep. Todd Rutherford (D-Columbia) is parked these days in the underground legislator parking lot just outside the escalator into the Statehouse.
Rutherford’s Nissan GTR is a beast that hits 60 mph in 3.2 seconds, and tops out at 195 mph and is capable of generating uncalled-for g’s in the turns while running door-to-door with top-shelf Ferraris.
That the newly-married Rutherford is driving a whip named the 2007 Super-Car of the Year by BBC’s influential and entertaining “Top Gear” during a national recession and time of state budget cutting is not the greatest irony.
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What happens when some get power, money to burnBy Andy Brack, editor and publisher
FEB. 13, 2009 - - Cynic P.J. O’Rourke says giving power and money to the government is like giving car keys and whiskey to teenage boys.
 With the way things have been going in recent weeks in South Carolina policy and politics, there must be a lot of whiskey flowing.
Hats off to Gov. Mark Sanford for his opposition to building a new coal-fired power plant in the Pee Dee. But he was late to the party, coming out against the $2 billion plant the day before the state Department of Health and Environmental Control board voted 4-2 to allow an air pollution permit for Santee Cooper’s plant.
Sanford’s voice is part of growing grumbling in opposition of the plant. Just last week, the director of the state Department of Natural Resources said his agency opposed the facility for what should be patently obvious - - that the plant’s emissions pose a threat to wildlife and the environment.
What’s maddening about the whole thing is the arrogance of Santee Cooper - - that it wants to forge ahead without giving much more than lip service to realistic alternatives, such as energy efficiency and conservation in our state, which has the dubious distinction of wasting more electricity at home per capita than all but four other states. Add to that how alternatives, such as power from offshore wind energy, are glossed over. A study is being done, we are told, even though a Georgia Tech study from a couple of years back lauded the amount of wind energy off the southeastern coast.
Ah, well, that’s what happens when power and money are the testosterone that fuel public policy - - big boys wanting bigger toys to pad egos and resumes.
Just look at what’s going on with the state Employment Security Commission, the agency that keeps up with unemployment statistics. The governor seems to want to don a cape and fix how the statistics are reported in what blatantly appears to be an effort to make our jobless rate look a little less worse than it is.
Earth to governor: Changing the definitions aren’t going to lessen people’s pain. Instead of fiddling with the process, might it not be better to get to work to create conditions to bring jobs here?
Oops, we forgot. That’s tough because so many workers are failing drug tests. Yep, that’s the finger-pointing by Commerce Secretary Joe Taylor. Instead of owning up to the fact that his department has utterly failed in spreading the word about South Carolina’s competitive work force and work climate, Taylor actually had the gall to say during a Feb. 9 cabinet meeting, “One of my concerns - - and I get in trouble sometimes because people don’t like to hear it - - but one of the complaints that I hear out there are drug-test failures.”
 Geez.
A brighter spot comes from the S.C. House, which finally has approved new rules to curb payday lending practices. These short-term loans have created havoc among some low-income residents who seek a little help, but can’t pay back the notes quick enough to avoid very expensive interest costs. The House has approved a measure to raise limits for loans from $300 to $600, but to require payday lenders to have a database to ensure someone can’t have multiple loans. While it might be better to just get rid of the practice, something is better than nothing. A similar measure has been introduced in the Senate, which now will consider the House measure.
But all is not hunky-dory in the General Assembly. Not only are legislators grappling with a billion-dollar shortfall in revenues compared to last year at this time, they still get sidetracked. Some continue to push narrow social agendas, such as a proposal to mandate life-saving treatment to aborted fetuses or to make a woman wait 24 hours for an abortion after seeing an ultrasound - - the viewing of which they mandated last year.
Earth to legislature: People want jobs, a better economy, better schools, better health care and a clean environment. How about working some on those priorities?
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SC Association for Justice The public spiritedness of our underwriters allows us to bring SC Statehouse Report to you at no cost. This week's spotlighted underwriter is the South Carolina Association for Justice, a non-profit, non-partisan, professional association dedicated to advancing the rights of individuals and small businesses in the civil and criminal justice system in South Carolina. For more information about how the association works to protect individual rights and keep families safe, go to: www.scaj.com.
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Collaboration makes SC more competitiveBy MIRIAM HAIR and OTIS RAWL
Exclusive to SC Statehouse Report
FEB. 13, 2009 -- The economic situation our state is in today requires a new approach to solving problems. No longer can we afford an adversarial relationship between businesses and local governments. It takes both entities working together for the future success of our state and our economy.
 While sometimes it may appear the interests of the business community can be at odds with the priorities of local governments over certain issues, the reality is we are all working toward the same goals — making our state more competitive, bringing jobs to our communities and providing a quality of life that attracts and keeps businesses thriving.
Successful businesses are drawn to strong cities and towns with good schools, stable infrastructure and safe streets. The success of our state’s economic development efforts is directly tied to the strength of our cities and towns to provide the quality of life, services and amenities that residents and businesses demand.
 The two of us move into the leadership of the South Carolina Chamber of Commerce and the Municipal Association of South Carolina at a time of unprecedented challenge and change in our state. It’s easy in bad times to see everything through the lens of problems to be solved rather than opportunities to be seized. But both of our organizations recognize this economic downturn is a unique opportunity to build on the idea that when times are bad, people tend to look closer to home for the things that are most important to them - good job opportunities, safe neighborhoods, quality education and high-quality recreational space – which are all tied to the quality of life in our hometowns.
The Toft study that the South Carolina Chamber has commissioned to measure the state’s competitiveness points to quality of life as one of the six drivers we must measure to make our state more competitive. This study called Break Away South Carolina provides an annual benchmarking review that reflects how well the state is performing year by year in terms of business competitiveness relative to neighboring or comparator states in these key driver areas.
While quality of life is a phrase that’s often discussed as an economic attribute, it’s rarely defined and difficult to measure quantitatively. There’s no set formula for defining quality of life…we know it when we see it. But increasingly the workers of the new economy are seeing quality of life in our cities and towns of all sizes as a real draw for our state.
This new “creative class” of increasingly mobile workers who will fill the knowledge economy jobs of the future will demand features like universal broadband access, recreational opportunities close to work and home, accessible arts and cultural amenities, and affordable housing and transportation. These new demands will require business, government, education and other private sector leaders to work together with a more deliberate and planned approach than ever before.
Now, more than any time in recent history, we have public and private sector leaders around the state moving us toward a single goal of increasing our state’s competitiveness to ensure the economic well-being of our citizens. We are committed to working with the leadership from all sectors of the community – local elected leaders, business owners, residents and public policy decision makers – to move our state in a positive direction and support initiatives that bring jobs to the state, keep education at the top of the agenda and recognize cities and towns as economic engines.
Miriam Hair is the new executive director of the Municipal Association of SC. Otis Rawl is the new president of the SC Chamber of Commerce. Both took their new positions on Oct. 1, 2008. Both organizations are underwriters of S.C. Statehouse Report.
RECENT MY TURN COMMENTARY
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2/8: Statehouse Report is great resourceTo SC Statehouse Report:
I'm a new South Carolinian and your Statehouse Report is helping me become knowledgeable in politics. Until Obama, I've never been interested or thought I could make a difference. Now I want to be politically astute and take action for important and necessary change.
Thank you. Thank you. Thank you!
-- Reba Pettit, Johns Island, SC
2/8: More figures would be helpful
To SC Statehouse Report:
After reading your column in the Florence Morning News and Ben Gregg's in The State, I think it would be helpful to know why S.C. has the fifth highest consumption of electricity, per capita, in the nation. I wonder if figures are available to show our residential consumption and our industrial consumption, separately. And I wonder if the figures are actually consumption, and not generation. Seems to me this figure (consumption per capita) is important enough to warrant some better analysis or explanation than I have read.
Another, similar, figure that I think needs analysis is Gov Sanford's statement that state government in SC costs more per capita than in any other state. It would be so much more helpful if we knew where our costs are so much higher: What is the cost of K-12 education per capita, of higher education, of DOT, of DHEC, of Corrections, and so on -- compared with, say, NC and GA.
Thank you for your attention. And for your thoughtful, enlightening columns.
-- Ben Williamson, Darlington, SC
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Up, down and in-between  Sanford. Big ups for opposing proposed coal plant . If only you could better guide the state more toward renewables and away from nuclear. More.
DNR. Ditto.
 Payday lending. It’s great that payday lending could be regulated for the first time, thanks to a measure that passed the House this week; it would be better if banks were required in South Carolina to carry similar loans. More: The State.
 DHEC. Exactly who still wants a new coal plant, beyond four DHEC board members? Oh, yeah: Santee Cooper. More: The State.
Taylor. State Commerce head Joe Taylor said one of the reasons unemployment is so high (9.5 percent and rising) was because of South Carolina workers failing drug tests. Hmmm, what state job has seen 100 percent turnover of late thanks to drugs? Oh, yeah: State Treasurer.
Irony. Faced with mounting budget shortfalls, legislators are considering first downsizing state employees who are taking advantage of the TERI program, which ironically, stands for Teacher and Employee Retention Initiative. More: The State.
Bongs. Michael Phelps admits to smoking pot at a Columbia party and seven people associated with the party -- none of them Phelps, mind you -- get charged? Yeah, that makes sense. More: The State.
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Aquatic antipathy
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