House hopefuls Ceips, Schwartz differ on tax plans
Published "Monday
By GREG HAMBRICK
Gazette staff writer
As state road needs and Medicaid continue to struggle under ever-dwindling budgets, the two candidates for the District 124 seat in the state House of Representatives are offering differing plans on how to ease the strain.

While incumbent Rep. Catherine Ceips, R-Beaufort, is calling for sweeping reforms to better spend money already allocated to the state Department of Transportation and Medicaid, Democratic challenger Ben Schwartz is calling for incremental increases in some taxes to pay for the needed services.

The state's gasoline tax, the primary source for Transportation Department dollars, has remained at 16 cents for 15 years while state maintained roads continue to take on more travelers. A 2002 needs assessment by the S.C. Department of Transportation found a $1.86 billion annual shortfall in state road maintenance.

Ceips, who is running for a second term for the District 124 seat that represents most of northern Beaufort County, said the state must first ensure that all the money collected from the gas tax goes back to the Transportation Department before considering a tax hike. Money collected through the gas tax now goes into the state's general fund and is funneled back to the Transportation Department.

"People right now just aren't begging for a tax increase," Ceips said. "They just can't take it anymore."

But Schwartz said he supports a gradual increase toward the national gas tax average of 23 cents, adding that the money to take care of the state's road needs isn't in Columbia.

"We've got to get the funds from somewhere," he said.

Ceips also opposes increasing the cigarette tax to raise more money for Medicaid. The state can't fill the hole in Medicaid with cigarette money, she said.

"Those numbers don't come together," Ceips said.

Schwartz said he supports a cigarette tax increase if it's matched dollar for dollar by cuts in other budgets, adding that some of the money should go toward mental health awareness.

Both candidates support a 20 percent cap on property reassessments, a hot issue for Beaufort voters that will receive their tax bills on or near Election Day.

The cap would mean a property that was assessed at $100,000 last year and $200,000 this year would be taxed at $120,000.

A recent S.C. Chamber of Commerce study showed 73 percent of Beaufort County residents would see a tax increase under the proposed cap.

Ceips dismisses the study and said the county can take care of the shift in the tax burden by cutting its budget.

"The county may want to do what the state is doing and tighten its belt," she said

Although he backs the cap because it is widely supported in District 124, Schwartz said residents should understand its ramifications.

"The folks whose homes have not appreciated are going to see the tax burden shift," he said.

Both candidates have spoken strongly on the campaign trail about reforming the state's schools.

Ceips said she supports the governor's proposed tax credit program for parents sending their children to private schools.

"I'm going to side with the parent," she said. "They have the least amount of power, but need the change."

Schwartz said he is opposed to tax credits and vouchers of any kind for private schools.

The state should redistribute lottery revenue to put more money in pre-kindergarten and other elementary programing, he said.

"The education gap is too wide by the time you get to seventh and eighth grade," Schwartz said.

In other races, Hilton Head Island residents will be selecting a new House member for District 123. Rep. JoAnne Gilham has decided not to run for another term, leaving the seat to either Republican Richard Chalk or petition candidate Greg Wynn.

Other local state legislators have no competition for their seats, including Sen. Clementa Pinckney, D-Ridgeland; Sen. Scott Richardson, R-Hilton Head; Rep. Bill Herbkersman, R-Bluffton; Rep. Thayer Rivers, D-Ridgeland; and Rep. Walter Lloyd, D-Walterboro.

Copyright 2004 The Beaufort Gazette • May not be republished in any form without the express written permission of the publisher.