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Story last updated at 7:12 a.m. Sunday, July 20, 2003

Hoping for more taxpayer benefits from the SPA and Santee Cooper

We can't remember the last time, if ever, a governor launched serious discussions about getting the taxpayers a hard cash return from the state Ports Authority, not to mention a larger contribution from another huge state business enterprise, Santee Cooper. Gov. Mark Sanford did just that in Charleston last week. His budget hearings around the state are producing some badly needed, stimulating discussion that not only could put more money in the state budget, but lead to a better operated state government.

Take Santee Cooper, for example. The Moncks Corner-based electric and water utility, which now serves more than a quarter of the state's population, is controlled by a board appointed by the governor. This governor reportedly raised some overdue questions with the staff and board on Thursday regarding the size of Santee Cooper's annual contribution to the state, not to mention its rate structure as compared to investor-owned utilities. There also reportedly was a lengthy discussion about the sale of some of Santee Cooper's real estate holdings.

Santee Cooper currently contributes about 1 percent of its gross revenue to the state, or some $10 million annually. At the least, that formula, which apparently was approved some years ago by the Budget and Control Board, needs to be re-evaluated. It may well be that more funds could go to the taxpayer as opposed to being re-invested in the utility and its operation.

The same holds true for the Ports Authority. In fact, not since the early 1960s has anyone in authority even suggested that the SPA should return money to the state. The proposal was made then, amid great controversy, by the man who was running the authority, former state Sen. Cotesworth P. Means. It was Mr. Means who authored the legislation that established the SPA in 1942, and it was Mr. Means who had the strong philosophical belief that the authority should operate as a free enterprise agency. That meant, in his view, the SPA should repay the bulk of the $21 million bond issue that financed major port development. He wanted to raise a variety of rates that he argued were too low and subsidized private waterfront interests. He lost his argument and was removed from power.

Those who disagreed with Mr. Means argued at the time that paying off the bonds was a small price for the state to pay in view of the economic benefits the port produced. Since then, it has become an even greater economic engine. While the SPA gets no state funds for general operation and now issues revenue bonds, the state will have spent some $47 million over the last five years as its share of harbor deepening. After much discussion, it has agreed to make a $45 million contribution to the new Cooper River Bridge, which will directly benefit its operation.

But what about an annual contribution to the state? The governor raised that prospect amid discussions of potential savings by closing down the unprofitable Port Royal terminal operation and taking a hard look at the size of the administrative staff. Further, one of the board's new members raised the prospect of turning its Daniel Island property into a major source of revenue by becoming a co-developer rather than simply selling the raw land.

The operations of the state's two most unusual agencies have gotten too little scrutiny over the years from the state's chief executive. Because he's new to state government, Mr. Sanford is giving those agencies, along with the rest of state government, the kind of fresh look that is long overdue. Further, because his approach is inquisitive rather than hostile, he's engaging those involved in the agency's operations in the thought process. That's the kind of leadership that can make a difference.








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