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ISSUE 8.23
Jun. 05, 2009

RECENT ISSUES:
12/04 | 11/27 | 11/20 | 11/13

Index

News :
Sustaining a veto
Legislative Agenda :
Wait 'til the next week
Radar Screen :
TRACing outline
Palmetto Politics :
Sanford gets butt ‘kicked’ …er … ‘writ’
Commentary :
Solutions difficult for higher education funding
Spotlight :
SC Senate Democratic Caucus
My Turn :
A whale of a tale
Feedback :
Chickens now roosting in SC
Scorecard :
Up, down and in-between
Stegelin :
Help wanted?
In our blog :
In the blogs this week
Tally Sheet :
Back in December
Encyclopedia :
Operation Lost Trust

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NUMBER OF THE WEEK

0.6 percent

GROWTH:  0.6 percent.  Surprisingly, that’s how much the state’s economy grew in 2008, according to a new study U.S. Bureau of Statistics that is confounding some economists, pundits.  More: The State.

IN OUR BLOG

In the blogs this week

Backslap. W.J. Hamilton at Indigo Journal “congratulated” Gov. Mark Sanford on the outcome of the stimulus lawsuit:

“Sanford threw away most of a legislative session where nothing got done because the state's politics were tied up in knots. He ignored tens of thousands (maybe millions) of phone calls, letters, emails and petitions. He burned up thousands of hours of time of people who work throughout our communities, including plenty of Republicans, who were out trying to get the government to respond instead of meeting human needs. He pumped huge amounts of unnecessary stress and anxiety through state employees, educators, non-profits and local governments already struggling with fiscal challenges in the midst of the worst economic contraction in over half a century.”
 
Layoffs. The day after pro-voucher Gov. Mark Sanford got his stimulus hat handed to him, the Voice for School Choice blogged that lack of funding was not the reason for looming teacher layoffs.
 
“Now, recently released details from the District Five Comprehensive Annual Financial Report indicate the “cuts” are more likely the result of inflated staff growth spanning a decade, than a short term downturn in state funding."

TALLY SHEET

Back in December

Tally Sheet will resume in December when members prefile bills for the 2010 session.

ENCYCLOPEDIA

Operation Lost Trust

Operation Lost Trust was arguably South Carolina's largest and longest-running political scandal. Including the investigation, trials, and retrials, the Operation Lost Trust saga extended from 1989 to 1999.

The key player in the FBI's investigation into legislative corruption was Ron Cobb, a lobbyist and former member of the S.C. House of Representatives. He was arrested in April 1989 for trying to buy a kilo of cocaine in a deal orchestrated by the FBI for the purpose of securing his involvement as the front man in the Lost Trust investigation. He told members of the General Assembly that he represented the Alpha Group that was seeking support for a bill legalizing dog- and horse-track betting in South Carolina. Cobb recruited Representatives Robert A. Kohn and Luther Taylor to help in securing legislative votes by paying members money in exchange for their support and votes. The transactions were captured on surveillance tapes.
 

Former U.S. Attorney Bart Daniel of Charleston
The federal investigation resulted in the conviction of seventeen members of the South Carolina General Assembly, seven lobbyists, and three others for bribery, extortion, or drug use. All but five of the twenty-seven convictions were the result of guilty pleas.
 
In 1991 and 1992 five legislators were granted new trials because of legal errors. U.S. District Judge Falcon Hawkins then dismissed the charges against the five for alleged misconduct by the federal prosecution team led by U.S. Attorney Bart Daniel. Judge Hawkins's ruling was overturned in November 1998 by the Fourth U.S. Circuit Court of Appeals, which reinstated the criminal charges. During the period between 1991 and 1998 two of the five legislators died after long illnesses. The three remaining defendants were retried in 1999, and all three were convicted.
-- Excerpted from the entry by Jon B. Pierce. To read more about this or 2,000 other entries about South Carolina, check out The South Carolina Encyclopedia by USC Press. (Information used by permission.)

PALMETTO PRIORITIES

Palmetto Priorities Statehouse Report encourages state leaders to develop and implement Palmetto Priorities involving several issues to make the state better a better place. Click the link to learn more about our suggestions for bipartisan policy objectives.

Here is a summary of our Palmetto Priorities:

CORRECTIONS: Reduce the prison population by 25 percent by 2020.

EDUCATION: Cut the state's dropout rate in half by 2020.

ELECTIONS: Increase voter registration to 75 percent by 2015.

ENVIRONMENT: Adopt a state energy policy that requires energy producers to generate 20 percent of energy from renewable sources by 2020.

ETHICS: Overhaul state ethics laws.

HEALTH CARE: Ensure affordable and accessible health care.

JOBS: Develop a Cabinet-level post to add, retain 10,000 small business jobs per year.

POLITICS: Have a vigorous two- or multi-party political system of governance.

ROADS: Strengthen all bridges and upgrade state roads by 2015.

SAFETY: Cut the state's violent crime rate by one-third by 2016.

TAX REFORM: Remove outdated special interest sales tax exemptions as part of an overall reform of the state's tax structure to be completed by 2014.

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News

Sustaining a veto

Sanford has a shot at a win in a loss-filled season

By Bill Davis, senior editor

JUNE 5, 2009 -- Gov. Mark Sanford this week stayed the course by issuing 10 vetoes for roughly the same reasons he’s vetoed most bills in the past.

At least one of the bills he vetoed stands a decent chance of being sustained when the legislature reconvenes for three days starting June 16.
 
Despite confounded critics in the General Assembly -- and there are legions of them -- who say, “I’ve given up trying to guess what this governor is going to veto,” Sanford’s vetoes continued to revolve around the same old themes.
 
Shrinking government. Cutting taxes. Keeping Big Brother out of personal lives.
 
Sanford, a free-market libertarian, shot down a bill that would create what he saw as an unhealthy advantage for in-state vendors bidding jobs and services with state government. He also vetoed a payday lending bill that would placed further regulations on the industry. Why? Because it represented too much governmental intrusion into private lives.
 
The bill, approved as a compromise by the General Assembly, seeks to limit several aspects of the payday lending market, including how much could be lent and the number of short-term loans a person could carry
 
In his veto message, the governor said it was not the role of state government to protect individuals from their own actions, unless they impacted others. The impact of the payday lending veto could reverberate when the legislature returns next week.
 
Sen. Kevin Bryant (R-Anderson), who phoned the governor to ask him to veto the bill because, said, “the database the state would create to track the loans would be an invasion of privacy.”

Other vetoes on fire departments, exemptions, more

Sanford, the budget hawk, was a busy bee, vetoing bills that would extend grants to volunteer fire departments, as well as extend tax exemptions on improvements done on houses less than six years old, create a new statewide housing office and create “enterprise” campuses at five of the state’s technical colleges.
 
In his veto messages, the governor argued:
 
  • The VFD bill required a local match;
  • Tax exemptions on relatively new homes would shift $1.5 million in property taxes to current homeowners and businesses;
  • There was already a housing office that had $1 billion it could tap and had already helped put together more than 5,000 homes; and
  • More enterprise campuses could lead to more “ephemeral” research, like what has been done on the confederate H.L. Hunley submarine.
Sanford, the governmental streamliner, torpedoed a revamping of the State Ports Authority governance, because the proposed bill would strip his office from removing board members at his displeasure. The governor has fought long, and with middling results, to create a more executive branch-friendly form of state government.
 
Payday lending veto may pay off
 
That the governor vetoed the payday lending bill surprised few, and set the stage for what could be Sanford’s best chance of getting one of his vetoes sustained in the Senate, where fewer votes are needed to block a bill that already had left some questioning its wisdom and timing.
 
At the end of the session, with a House version in hand, the Senate worked late to pass a compromise payday lending bill.
 
Sen. Larry Martin (R-Pickens) said the push to complete a bill came, in part, from the Senate recognizing that there had been little legislative accomplishments this session.
 
Holding it over to next session, he said, wasn’t attractive because there was no guarantee anything would get accomplished because of expectations that House elections and a continuing bleak economic outlook dominating the legislative agenda in 2010.
 
“My personal view was that there was no way we were going to make this bill a whole lot better because there were too many disparate views on the matter,” said Martin.
 
He said that because of Sanford’s current political situation, having just been handed a major defeat over accepting $700 million in federal stimulus funds, “it would likely not be until the next governor before we could really get another shot at this.”
 
Martin agreed the debate came down to the same thinking going into a man getting a bad haircut. “It’s better than no haircut at all.”
 
Martin, whose coif resembles that of Murray from “The Mary Tyler Moore Show, said the concern in the Senate now was whether Sanford would be able to muster enough votes from sympathetic Senate Republicans and Democrats dissatisfied with the bill to block it.
 
Generally speaking, Sanford can count on about 12 Republicans in the Senate, the so-called “Juicebox Caucus,” on any given bill.
 
But he would need only four or five more Democrats, like Sen. Gerald Malloy (D-Hartsville), depending on how many senators made it back for the additional week, to sustain this veto.
 
Bryant, whose hair is reminiscent of Officer John Baker of “CHiPs” fame, said there was a “real chance” the veto would be sustained because five or six Republicans would object on privacy issues to go along with Democrats like Malloy.
 
“I haven’t made up my mind,” said Malloy, when asked if he was leaning toward sustaining the payday lending veto. “I haven’t talked to anyone else, and I need to go back and study the governor’s veto message.”
 
Malloy, whose hairline more resembles that of Kojak, led the fight against the payday lending in the final days of this year’s session, because he felt it didn’t go far enough to protect consumer interests.
 
Malloy, however, did criticize the thinking behind the governor’s payday lending veto, because, he said, a real free-market thinker would have allowed payday lending to die and let the market provide a solution.
 
“I would like to point out, using the ‘bad-haircut’ argument, that my dear friend from Pickens, Sen. Martin, wants only to go half-way, whereas I have gone whole hog,” said Malloy.
 
Crystal ball: Yes, Malloy was dissatisfied with the payday lending bill as it now stands. Yes, he’s got a great opportunity to shop his vote in exchange for something down the road he holds dear. No, Malloy is not going to lead a contingent of Democrats in voting to sustain Sanford’s veto. One, it’s what Sanford wants. Two, Malloy said increased regulation is required only because the legislature “created” the industry in 1998 in this state when it voted to allow it to take root in the first place. Three, Malloy knows nothing will get done next year and probably doesn’t like the idea of his constituents suffering until 2011, when a new governor takes office and the legislature can have a second crack at correcting the problem.

RECENTLY IN NEWS

5/29: 
Stimulus lawsuits in focus

Legislative Agenda

Wait 'til the next week

The legislature will not return in full to Columbia until June 16 for what could be a three-day session to deal with gubernatorial vetoes.
 
In related meetings, the Board of Economic Advisers will meet Thursday at 2 p.m., 417 Dennis Building.

Radar Screen

TRACing outline

Hard work is purportedly going into conference committee meetings over a tax realignment (TRAC) bill that could be reported out as soon as next week.
 
If it makes it out, it will be interesting to see how far the compromise will go. Will it address the state’s entire tax code, or will it just target state sales exemptions?  Some wonder if it should come out at all if work is not completed next week as that could result in a gubernatorial veto and an additional extra week of session for the legislature to address the potential veto. It may just be pre-filed in time for the legislative session to reconvene next January.

Palmetto Politics

Sanford gets butt ‘kicked’ …er … ‘writ’

In a unanimous decision handed down Thursday, the S.C. Supreme Court told Gov. Mark Sanford he had to accept the remaining $700 million in federal stimulus package dollars.
 
The Obama administration pushed a $789 billion federal stimulus package to overcome the nation’s current recession with roughly $8 billion in grants and tax credits dedicated to South Carolina over the next two years.  For months, Sanford criticized the plan and blocked the last sliver of money, meant for education and law enforcement. No more.
 
In handing out a “writ of mandamus,” the Court let Sanford know, policy differences with the General Assembly aside, it was his duty to accept the money fully. The decision was hailed by education supporters and derided by others as an erosion of the state’s already limited executive power.  Sanford, unchapped in public statements on his position following the Court’s verdict, has said he would not pursue the matter further and will accept the money.
 
 
Pre-souring the grapes
 
Gov. Mark Sanford took to his “whiny” pulpit earlier this week, making statements about his ability to get a fair trial before the S.C. Supreme Court on the issue of accepting the stimulus monies.
 
The governor was quoted this week as saying, “I think even where the court case ends up underscores in essence good people trapped in a horrible system … We have in this case a Supreme Court that is picked by the General Assembly. They regularly lobby the General Assembly for funding and other things …You could have five Solomons, but at the end of the day if you had to go to another group to get funded and to give you the goal posts, if you will, for your playing field it would be a very, very tough spot in which to operate.” 
 
Sen. Larry Martin (R-Pickens) said he regretted Sanford’s comments because “all he’s doing is ginning-up public mistrust of the system when he suggested the Supreme Court couldn’t be fair.”
 
This is transparent?

The S.C. Policy Council had big problems with this year’s legislative session. While others, like this publication, criticized the General Assembly for accomplishing little besides passing a new state budget, the council didn’t like how many bills passed under voice votes.
 
The council had added its voice to more transparency in government, called for more recorded votes and applauded when a rule change was passed requiring just that. But in reviewing what little the legislature did do this session, the Council claimed to have found a number of instances where important bills passed in each chamber on voice votes alone. Those included allowing airlines to avoid property tax if they operated a hub terminal facility in the state ; increasing license fees for distillers up to $50,000; and a bill that preempts a local government from passing an ordinance affecting the boundaries of an area where a convicted sex offender can live.
 
“Citizens should be able to know how their elected official voted,” said Council spokesperson Bryan Cox.

Commentary

Solutions difficult for higher education funding

By Andy Brack, editor and publisher

JUNE 7, 2009 – Higher education in South Carolina is in a funding flux. Public colleges and universities have some of the highest tuition costs in the region, which means there’s great demand to keep from raising tuition. Yet state underfunding through the years continues to put pressure to raise tuition or make cuts, both of which reduce competitiveness of the institutions.

As outlined in last week’s commentary, one response has been to raise tuition more for out-of-state students as a way to subsidize in-state students. But the worry about relying on more non-South Carolina students, who comprise upwards of a third of students at several colleges, is that in-state students have a tougher time getting into state colleges, which got started in the first place to educate our residents.
 
Regardless, what’s to be done to keep our public colleges and universities open and affordable to South Carolina students, all while trying to remain competitive nationally and make improvements? Here are a few ideas and reactions:
 
Tuition caps. The idea here would be to cap tuition to ensure college remained affordable for South Carolina students. But the notion seems to be universally despised by leading state legislators and college officials because they say it would take away flexibility for colleges to determine their destiny. 
 
State Rep. B.R. Skelton, a Pickens Republican who chairs the House Higher Education subcommittee,  said tuition caps weren’t realistic. 
 
“What the legislature wants to do is not fund our institutions of higher education and then put caps on tuition,” he said. “It just doesn’t work in the real world.”
 
Cathy Sams, chief public affairs officer at Clemson University, said the school was “philosophically opposed to arbitrary caps.”
 
“Our concern is that a tuition cap can easily become a quality cap,” she said. “Our students agree. They tell us that they didn’t choose Clemson because of the price. They chose it because of the quality.”
 
Enrollment caps. Another idea floating around that would impact funding would ensure more South Carolina students were able to attend state colleges by capping enrollment for out-of-state students. 
 
According to 2008 figures provided by the S.C. Senate Finance Committee, some 35.1 percent of Clemson students and 29.3 percent of University of South Carolina students were from out of state. Compare that to the University of Georgia and University of North Carolina at Chapel Hill, which had 17.1 percent and 23.8 percent, respectively.
 
“I would rather see a higher percentage of in-state students than out-of-state students, period,” said State Sen. John Courson, the Columbia Republican who chairs the Senate Education Committee. Skelton said he thought colleges should determine enrollment. 
 
“Out-of-state students strengthen and diversify our student body, and that benefits every student at the University (of South Carolina),” said USC spokeswoman Margaret Lamb. USC opposes enrollment caps, she said, emphasizing, “no qualified in-state students have been denied admission in favor of our-of-state students. We have not diminished access for our in-state students.”
 
At the College of Charleston, spokesman Mike Robertson said its board of trustees capped out-of-state enrollment a few years ago to ensure access for in-state students.
  • Click here to read full responses from Clemson, The Citadel, the College of Charleston and USC to FOUR QUESTIONS by SC Statehouse Report.
More state funding. State funding of higher education in the coming budget year ($576 million) is about the same as it was 15 years ago, which really is a cut if you account for inflation. A way to make higher education more competitive and relieve pressure is for the state to increase funding, not continue to cut higher education, many say.
 
Charleston Realtor Dan Ravenel, who chaired a Commission of Higher Education committee that developed a statewide higher education strategic plan, pointed to legislative funding support in North Carolina and Georgia. In the last five years, North Carolina has pumped $2 billion through bonds into university facilities, while Georgia has invested $800 million. During the same time, South Carolina has added a mere $200 million in improvement funding, he said.
 
“A lot of money has been spent on K-12 education here in South Carolina,” Ravenel reflected. “But North Carolina and Georgia are pouring money into colleges. We’re at the bottom of the heap. Look at what they’re doing.”

RECENTLY IN COMMENTARY
 

Spotlight

SC Senate Democratic Caucus

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 SC Senate Democratic Caucus. Organized almost 25 years ago, the Caucus has played an important role in many of the historic issues facing our state. As a vibrant minority party in the Senate, its role is to represent our constituents and present viable alternatives on critical issues. The SC Senate Democratic Caucus remains a unique place for this to occur in our policy process. Learn more about the Caucus at: www.scsenatedems.org.

My Turn

A whale of a tale

By Lynn Eldridge 
Alice Drive Elementary School, Sumter 
Special to SC Statehouse Report

NOTE: Teacher Lynn Eldridge provided an update this week on a story that was first reported by SC Statehouse Report in January and then picked up by media outlets across the state. We’re tickled pink that a compromise was reached on the northern right whale – and that students got to learn about the legislative process. It’s never pretty. That’s why they say it’s like making sausage (something you may not want to watch.)
 
SUMTER, S.C., June 3, 2009 -- WIS-TV announced today that "the children of Alice Drive Elementary School would be happy to know that the law has been passed making the Northern right whale the S.C. state migratory marine mammal." 
 
In a last-minute effort passed during the final 10 minutes of the legislative season, Democrats and Republicans passed a compromise bill naming the bottlenose dolphin as the state marine mammal and the northern right whale as the state migratory marine mammal.  A fine distinction, to be sure, but by doing so the right whale gained statewide recognition and a school's faith in the legislative process was upheld.
 
Children, teachers, staff, the district 17 family, the Sumter community, national environmental groups and Americans across the country became involved in this project, which met serious opposition from a special interest group.  Thanks to the efforts of everyone involved, especially Sen. Phil Leventis, the bill became law today.
 
Governor [Mark] Sanford, in a letter this morning to the speaker of the House, Robert Harrell Jr., wrote:  "We applaud the efforts of the students of the Alice Drive Elementary School in Sumter County for taking an active interest in the legislative process to recognize the endangered northern right whale as the official migratory marine mammal of South Carolina.  I am especially heartened that the children in our state recognize the importance of the northern right whale to our oceans."
 
This project demonstrated the real power of integrated learning.  Thanks to you, our state "made the right choice."
 
The kids have been so happy about this, although there are some mixed feelings from them.  Many still felt that the right whale should have been named the state marine mammal but they're happy that the right whale received some recognition after all their hard work. 
 
It was amazing to hear them talk about the project today.  Several said they learned about the right whale and the environment; others learned about the process on how a bill becomes the law; and what really made my day was when some students said that they learned you can't just watch TV and talk about things, you've got to go out and work for it. 
 
One student continued that train of thought and said she learned you have to keep working on something you want, no matter what blocks you, and that it takes a lot of hard work to reach your goal.  Insightful words from elementary children. 
 
Thank you for all your help and support.  Your reporting was crucial in getting the word out. 
 
What a way to end the school year.
 
Lynn Eldridge teaches art at Alice Drive Elementary School in Sumter.

RECENT MY TURNS
 

Feedback

Chickens now roosting in SC

To SC Statehouse Report:

Our governor, Mark Sanford, was previously Congressman Mark Sanford and one of the leading proponents for "Privatizing Social Security"...His opponents then stated that privatizing the program via Wall Street investments was unsound economically. 

Well, the "chickens have come to roost."  We now learn that South Carolina's budget is struggling to stay out of the red, so to speak, and its controllers are planning to cut out State Employees Privatized Retirement as a budget-balancing move since it invests its annuity funds in investments unrelated to government funding...
 
-- Bob Logan, Little River, SC

Vent
 
We encourage your feedback. If you'd like to respond to something in SC Statehouse Report, please send us an e-mail. We reserve the right to edit for length and clarity. One submission allowed per month. Submission of a comment grants permission to us to reprint. Please keep your comment to 250 words or less:
 

Scorecard

Up, down and in-between

Economy. Nationally, unemployment is improving and South Carolina’s economy actually grew in 2008. Of course that could mean bleaker numbers this year after summer tourism and farm work is done.
 
Education. You’re getting millions from the stimulus package. Try not to screw this up.
 

Cop out. In the final minutes of the legislative session, legislators passed a compromise bill naming the bottlenose dolphin as the state marine mammal, and the northern right whale as the state migratory marine mammal. Pick a side, ladies.

Guns. A new state bill will allow those with concealed weapons permits to carry their handguns with them on campus, as long as they are stored locked compartments in their car.  So, the next time a crazy shoots up a campus, there will be a run on pickups in the student parking lots. Great idea.  More:  Post and Courier.
 
Hotels. Occupancy is down 40 percent in Myrtle Beach.   Enough said.  More:  Post and Courier.

Clemson. Clemson may have "walked the fine line between illegal, unethical and really interesting" in its pursuit of a top-20 ranking.” More: The State.
 

Whiner. Governor, you knew you wouldn’t win in state court, so you filed your stimulus lawsuit in federal court. Before the state Supreme Court even heard arguments, you whined (like a little …) that you’d never get a fair trial because the state’s SUPREME Court was biased. If you were a dog, you’d be a Whiner-aner. (Apologies to William Wegman and Fay.)

Stegelin

Help wanted?


Also from Stegelin:  5/29 | 5/22 | 5/15 | 5/8 | 5/14/24

credits

Statehouse Report

Editor and Publisher: Andy Brack
Senior Editor: Bill Davis
Contributing Photographer: Michael Kaynard

Phone: 843.670.3996

© 2002 - 2024 , Statehouse Report LLC. Statehouse Report is published every Friday by Statehouse Report LLC, PO Box 22261, Charleston, SC 29413.
Excerpts from The South Carolina Encyclopedia are published with permission and copyrighted 2006 by the Humanities Council SC. Excerpts were edited by Walter Edgar and published by the University of South Carolina Press. Statehouse Report has partnered with USC Press to provide readers with this interesting weekly historical excerpt about the state. Republication is not allowed. For additional information about Statehouse Report, including information on underwriting, go to http://www.statehousereport.com/.