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ISSUE 8.29
Jul. 17, 2009

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

Index

News :
Correcting Corrections
Legislative Agenda :
Education, agency meetings ahead
Palmetto Politics :
Digital trail reviewed
Commentary :
Online schools are changing education
Feedback :
Energy debate needs to be cap-tivating
Scorecard :
Up, down and in the middle
Stegelin :
Gone fishin'
Number of the Week :
$211 million
Megaphone :
Starting to really hurt
In our blog :
In the blogs
Encyclopedia :
Louisville, Cincinnati and Charleston Rail Road Co.

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NUMBER OF THE WEEK

$211 million

OFF BY $211 MILLION.  Here we go again. That’s how much the state Board of Economic Advisors said this week needed to be cut from state tax revenue projections in the coming year due to continuing and rising unemployment. This represents a 15-percent drop in June revenues compared to the same time last year. A $200-million across the board cut will be considered at the state Budget and Control Board next month.   More: The State.

MEGAPHONE

Starting to really hurt

“These are people cuts now. This is a gut-wrenching recession, and it’s not over yet.”

-- State BEA chairman John Rainey at this week’s meeting, where the board reduced tax revenue estimates for the next year by $211 million, thanks to worsening economy and continued unemployment. More.

IN OUR BLOG

In the blogs

Dysfunctional. A writer at the National Journal just rated South Carolina as the fifth most dysfunctional state in the nation, thanks in large part to Gov. Mark Sanford’s South American sojourn:

“Rather amazingly, some in South Carolina have decided that, despite all this baggage, the state would be better served by having Sanford stay on, rather than resign and hand the governorship to Lt. Gov. Andre Bauer. While Bauer is credited with being a skilled campaigner, many in the state see him as unseasoned in policymaking, and they worry about a few widely reported incidents in which he got away with speeding on state highways, allegedly because he pulled rank.”
  
Integrity. The Cotton Boll Conspiracy accused The Greenville News of selling out its integrity for the sake of a powerful local company this week, for not reporting that the founder of a major local bank had stepped down, despite the story breaking in other papers.

“His resignation from the board was part of a settlement of two shareholder lawsuits over the $18 million golden parachute. (Mack) Whittle kept his retirement package but agreed to contribute $250,000 to help the bank.”
 
ExpensesThe Wolfe Reports roiled over the travel expenses of “budget hawk” Gov. Mark Sanford:

“In 2007 on a trip to China, Sanford racked up a bill of $12,172 for good food, drinks and a better chair. The report states that Rep. Nikki Haley, who was also on the flight, had a flight cost of $6,842. And that is even more than actual state employees whose bills ran between about $1,905 and $3,963.”

ENCYCLOPEDIA

Louisville, Cincinnati and Charleston Rail Road Co.

This railroad represented the most ambitious dreams of the antebellum Charleston business community: a transportation connection to the markets of the Midwest that would return their city to national prominence. Agitation for such a route began early; an 1832 proposal to survey a route from Columbia to Knoxville failed when North Carolina and Tennessee refused to put forth any money.

In 1835 a committee of citizens headed by Robert Y. Hayne proposed surveying a route to Cincinnati, Ohio; that same year the group convinced the South Carolina General Assembly to spend $10,000 to cover the surveys. The company was chartered on December 19, 1835, to connect Charleston and Cincinnati. Louisville was added two months later to appease a Kentucky legislature reluctant to support any project that would benefit only Cincinnati.

In 1837 the company purchased stock in the South Carolina Canal and Rail Road Company in an effort to secure a source of revenue. That same year the company began constructing a sixty-mile line from Branchville to Columbia - the only track it ever built. Its charter was later amended by the General Assembly to grant banking privileges in an effort to finance the project. The company in turn organized the South Western Rail Road Bank, but efforts to secure a charter for the bank in the other states along the route proved fruitless.

Despite initial fanfare, the Louisville, Cincinnati and Charleston Rail Road soon foundered because of the inability of the various states to agree on the level of necessary financial commitment, the difficult economic climate following the Panic of 1837, competition from neighboring projects, and the death in 1839 of Hayne, the project's most vigorous supporter. Consolidation with the South Carolina Canal and Rail Road was considered as early as 1840, and in 1843 the two companies were joined to form the South Carolina Rail Road Company. While Charlestonians would still dream of western trade, the search for a single route connecting their city and the Ohio Valley was effectively over.

-- Excerpted from the entry by Aaron W. Marrs. 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

Correcting Corrections

Embattled department receives draft of audit report

By Bill Davis, senior editor

JULY 17, 2009 -- A big part of a two-year process came to a head quietly on Thursday when the state Legislative Audit Council sent draft findings to the state Department of Corrections of an investigation of into embattled state agency.

It’s likely, though, that things won’t be so quiet when the report becomes final – and public.
 
Two years ago, the state Senate began the process of reviewing the management and administration of the department. But senators felt thwarted by political interference. So they asked the award-winning audit council to step in and investigate.
 
LAC audits have carried considerable weight in Columbia. For example in 2006, the LAC reported the state Department of Transportation squandered upward of $100 million through past improper management decisions. Subsequently, the DOT experienced a department-wide overhaul.
 
In May of last year, the council began its investigation of the Department of Corrections to much media fanfare. Then the department’s director, Jon Ozmint, went on the public offensive by criticizing the council and its efforts as unfair, biased and worse.
 
The department has had rough time publicly over the last few years. It has run annual budget deficits of several millions of dollars for multiple years.   Last year, an inmate was able to grab a prison guard’s gun during a visit to an outside hospital and shoot herself in the head. And just last week, a federal district court upheld a verdict against high-ranking department officials who had been found guilty of civil conspiracy against a former warden. At this point, those officials, not the department, will have to pay $510,000 in damages.   
 
Within the next week, Ozmint’s office is expected to respond to the draft audit report, which was not made public per state policy. One person familiar with the process said initial findings didn’t rise to the level of the Transportation audit.
 
Three areas of concern
 
The final Corrections report should be available to the public in four to five weeks, according to LAC head Tom Bardin, who added the report would include findings about three basic areas at Corrections:
 
Fiscal practices. These have been highlighted by battles between Gov. Mark Sanford and the legislature. Sanford, backed by Ozmint, has accused the legislature of woefully under-funding the department, which houses more than 20,000 inmates.
 
Legislators have responded that the agency is the only one in state government that routinely runs a deficit. Coupled with Ozmint’s attack on the LAC’s efforts last year, the department‘s actions, some have criticized, seemed to fly in the face of two of the governor’s favorite topics: governmental transparency and fiscal responsibility.
 
Incidents. The report will highlight controversial incidents that have happened in and around the prisons, and the events that led up to them and the department’s planning and responses to the events.
 
Manpower. Finally, the report will highlight the department’s hiring and firing practices, including the possibility of recruiting problems.
 
 
Run-ins with Ozmint
 
Sen. Phil Leventis (D-Sumter) said was eager to look at the report because he was working on a draft letter to the governor to ask for the removal of Ozmint as the agency’s head because of his temperament and management style.
 
Leventis, who has had a series of run-ins with Ozmint in the past, said he expected Ozmint to “do everything he can to change the focus to the whole thing about him being victimized by the process and singled out.”
 
Corrections spokesman Josh Gelinas said his agency and Ozmint would “honor the process” and refrain from commenting on the draft report until the final report is made public. He would not say if the department had instituted any policy or procedural changes as a result of the audit.
 
Gelinas even declined to comment on how many pages the report was. “Stay tuned,” he said.
 
Considering how forthcoming the agency had been in criticizing the LAC audit in the past, including maintaining a webpage with links to all of its gripes (http://www.doc.sc.gov/news/lac.jsp), the relative quiet at Corrections has been welcomed by some as a sea change.
 
Sen. Mike Fair (R-Greenville), the chair of the Corrections and Penology Committee in the Senate, said he was glad to see a passing of the “false pride” he believed has typified Ozmint’s past public responses.
 
Fair said he was not trying to “put a smiley face on the situation,” but that he hoped the audit would provide an opportunity to bleed out of the process what he referred to as “the pretentiousness of it all.”
 
Fair said some of the quiet at Corrections might be a result of a similar sea change happening within Sanford, as he has attempted to win back the state after revelations of his trysts with a South American paramour.
 
Sanford has always favored Ozmint among others in his cabinet, according to multiple sources. But with Sanford politically crippled, the governor may not be able to cast his considerable protective shadow over Ozmint.
 
Leventis said he hoped his colleagues in the legislature wouldn’t overreact to some of the findings when they become public, and instead “stayed true to their responsibility of oversight.”
 
In a separate matter related to the civil conspiracy verdict mentioned above, Gelinas declined to comment on whether the cash-strapped agency had identified any part of its own budget to cover the damages for its two employees.  Last year, a proviso was inserted into the House’s initial version of the 2008-09 budget to cover the two Corrections administrators should they lose on appeals. It was not included in the final budget. “We haven’t decided what we are going to do yet,” he said.
 
Crystal ball:  If there are no bombshells in the audit, Ozmint will survive. If there are, then Ozmint will be gone, as a weakened Sanford can no longer protect his “golden child,” as some have derisively referred to Ozmint. Regardless, expect Ozmint to break ranks and become aggressive.  A tiger, we’re told, doesn’t change his stripes. 

Legislative Agenda

Education, agency meetings ahead

Members of the Senate and the House will be in attendance for a series of Education Oversight Committee meetings on Monday. At 10 a.m. in 410 Blatt, the Academic Standards and Assessments subcommittee will convene; at 1 p.m. in 201 Blatt, the Public Awareness subcommittee will meet.
 
In related state agenda news:
  • The state Department of Social Services will host a CFS Project Executive Committee Meeting on Monday, July 20 at 2 p.m. in the offices of Nexsen Pruet, First Citizens Bank, 1230 Main St., Suite 700, Columbia.

  • The next scheduled meeting of the S.C. Arts Commission board will be Tuesday, Aug. 18 from 1-2 p.m. at its main offices at 1800 Gervais St., Columbia.

  • The next meeting of the state Budget and Control Board will be held Aug. 18 at 10 a.m. in the Governor's Conference Room, First Floor, Wade Hampton Building on the Statehouse grounds.

  • State election officials have set the calendar for a special election to fill the state House seat held by Carl Gullick (R-Lake Wylie), who has resigned his District 48 seat to move outside the state. Primaries will be Sept. 15, with Sept. 29 set aside if runoffs are necessary, and elections to coincide with municipal elections on Nov. 3.

Palmetto Politics

Digital trail reviewed

Newspapers around the state finally got what they were asking for (or FOIA-ing for) this week when Gov. Mark Sanford’s staff released copies of all of his emails sent on his official e-mail account. They also released a good many messages from his personal account.
 
Email correspondences were used to unearth Sanford’s dalliances with an Argentinean woman.  The upshot of his latest round of electronic snooping?  Not much.  Instead of finding more embarrassing love letters between the fated lovers, the emails showed a guy too busy for long-winded responses with staff and close political allies.  They also did not reveal that his staff had made any effort to conceal his whereabouts during his six-day South American tryst.
 
Fleeing friends

Sen. David Thomas (R-Greenville), considered to be an occasional ally of the governor in the past, has called for a Senate panel to investigate Gov. Mark Sanford’s disappearance last month over the Father’s Day weekend.
 
 Thomas, apparently unconvinced by a recent SLED investigation into the matter, has asked for sworn testimony from gubernatorial staffers to make sure state money wasn’t used to cover the costs of his trips to South America, when traveling ostensibly to gin up economic activity for the state.
 
“Do I trust the governor?” asked Thomas Friday morning. “Well, he said a lot of things before the press conference, during the press conference and after the press conference that have proved to be untrue.”

Commentary

Online schools are changing education

By Andy Brack, editor and publisher

JULY 17, 2009 – Two more online charter schools will open next month bringing the total number of South Carolina students who attend virtual schools to about 5,000. Another 3,000 South Carolina students in traditional public schools will take at least one class online.

Welcome, girls and boys, to a new kind of education. 
 
“We’re now moving into the click and mortar learning instead the brick and mortar schools,” said Dee Appleby, head of the state’s Office of E-Learning. 
 
By the end of the decade, Harvard researcher Clayton Christensen predicts half of secondary school learning in the U.S. with be done online due to improved technology, rising costs and teacher shortages, among other things.    According to a recent article by Scholastic, online learning is growing at 30 percent a year nationally.
 
Dr. Darrell Johnson, executive director of Provost Academy South Carolina, has experienced that growth - - and his virtual charter school doesn’t even open until next month. Approved for 1,000 students in grades 9 to 12, it had 980 slots filled this week. It has preliminary approval to accept up to 1,500 students this year, he said.
 
“The majority of our students are coming from public education,” said Johnson, whose students from across the state will receive a free computer, scanner, printer and monthly stipend to connect to the Internet so they can “attend” classes. In turn, the state provides a $5,100 reimbursement for each student. 
 
 “They are rich and poor, urban and rural, of color and not. The demographics have proven out this program is for all students,” Johnson added. “It’s a unique opportunity. We’ve got 21st century kids - - now we have 21st century schools.”


 
At Provost Academy, students will start the school day at a computer at home. They will click on the class they want to start and a computerized lesson will open.  After an automatic review of the previous lesson, students will get new instructions. Then there’s an assignment, followed by an assessment. Because of how the virtual school works, it’s easy to see if a student is struggling with a concept and needs extra, individualized attention from an online instructor, Johnson said. 
 
Via email and instant messages, students can ask questions of instructors. They proceed at their own paces. And through guidance counselors, they create their own individualized learning plans.
 
“It’s revolutionary,” Johnson said. “It’s going to make all of our high school better because we are more competitive. “
 
Online public education started with a General-Assembly-approved pilot program in 2006 that allowed students in traditional schools to take online classes through the state Department of Education. That program matured statewide and continues. Then last year, a new statewide charter school district approved three virtual schools to operate; two more open next month. 
 
Advocates say online schools are good because they offer more classes than regularly available and provide flexible schedules for students, particularly those with a lot of outside activities. Experts predict virtual schools will keep bored students energized and help to improve the state’s generally-low dropout rate. 
 
Critics say online schools create social distance because students don’t have the same peer social interactions as students in regular schools. But as noted by Dr. Timothy Daniels, superintendent of the state charter school district, there’s a lot of research about how unchecked peer interaction in the pesky high school years creates problems.
 
Daniels, who has worked with online learning for several years, says this new kind of educational opportunity started out somewhat controversial in South Carolina, but has “turned out to be so widely accepted, non-controversial and satisfying the educational customer, which is SC’s families.”
 
If the five online charter schools that are open continue to experience expected growth and success, it’s clear as the writing on the blackboard (or, perhaps, computer screen) that virtual education offers lessons for us all in how we think about education. State lawmakers need to take a good look at what’s happening to ensure all South Carolina students benefit sooner, rather than later. And in these tight times, they might find some better ways to spend our tax dollars.

RECENTLY IN COMMENTARY

Feedback

Energy debate needs to be cap-tivating

To Statehouse Report:

The least we should demand in the debate over energy policy is honesty.  Otis Rawl, with the South Carolina Chamber of Commerce, has unfortunately chosen to disregard that basic consideration in his response to the Statehouse Report’s article on federal cap and trade legislation.

Here is an excerpt from the text of his commentary:

Also in last week’s article, Dana Beach of the South Carolina Coastal Conservation League said increasing costs on South Carolinians is “not a price too dear to pay.” I think most citizens in this state, who are struggling just to make ends meet, would disagree. Beach is out of touch with reality and what is important to everyday working families. I hardly think he is a fair judge of how much the majority of South Carolinians, of which 12.1 percent are unemployed, are able to shoulder. Imagine increasing power bills by $100 or $200 per month.

What Otis conveniently omits in his characterization of my position is the number 175.  That is the additional annual dollar cost per family projected as a result of the legislation, based on estimates by the Congressional Budget Office.  Here is what the article said:

“But Beach... said $175 per-family annual cost the Congressional Budget Office recently calculated the bill would cost, was not a price too dear to pay.
           
“That’s far less than the ‘Greatest Generation’ sacrificed during World War II,” intoned Beach.

Otis warns the reader of $100 to $200 monthly power bills increases.  This translates into $1,200 to $2,400 per year.  Fortunately for the public, those numbers are indeed drawn solely from his imagination.

This debate demands a high level of integrity as we consider the important benefits associated with low or no-carbon energy sources and at the same time acknowledge that the transition will not be cost free.  The Chamber of Commerce should be honest with its constituents and present the facts as best we understand them today, instead of resorting to fear-mongering and name-calling.

-- Dana Beach, executive director, Coastal Conservation League, Charleston, S.C.

Fair Tax would help in tax debate

To Statehouse Report:

One of the options the TRAC [News, 7/10] has been tasked with studying is the FairTax, which would eliminate the exemptions in the sales tax code and eliminate the personal and corporate income taxes.  It would include a monthly rebate payment that would credit households with the sales tax on spending up to the poverty level.

-- John Steinberger, Charleston, SC

Scorecard

Up, down and in the middle

Bolden. Columbia native and former astronaut Charles Bolden was unanimously approved by the U.S. Senate this week to become the next NASA head.  More: The State.
 
Foreclosures. Up 108 percent in the Midlands, but down 20 percent or more in portions of the Lowcountry and Upstate.
 
Wind. Up: Turbines built at a South Carolina plant will be used to power a wind collection facility in Missouri. Down: Not South Carolina.   More.
 
Economy. When will the bottom come? Unemployment and hundreds of millions behind in state tax collections? Maybe we should all move to Ohio when the tourists go home.
 
Media. How scummy can the New Media be? Click here to check out the offers “reporters” made to Sanford staffers in hopes of landing an exclusive interview with the governor after the story of his whereabouts become known.

Stegelin

Gone fishin'


Also from Stegelin: 7/10 | 7/3 | 6/26 | 6/19 | 6/12 | 6/5

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/.