Local legislators skeptical about governor's budget

By LEE HENDREN, T&D Staff Writer

When the South Carolina House of Representatives returns to session this afternoon, what will be the first order of business?

(a) Erasing a multimillion-dollar deficit?

(b) Raising the sales tax?

(c) Increasing funding for education?

(d) Finding new money for health care for the poor, elderly and disabled?

(e) Considering Gov. Mark Sanford's sweeping proposals to restructure state government?

(f) Correcting violations of federal law in connection with the child support enforcement system?

The correct answer is none of the above. While all of those matters are certain to be discussed at one point or another, one of the first matters set to come up in the House is tort reform.

That deals with who can sue whom, under what conditions and for how much. The Judiciary Committee is set to take up the matter two and a half hours after the House reconvenes.

"Tort reform promises to be an early issue but not an easy one," said Rep. Doug Jennings, D-Bennettsville. "It promises a very spirited debate."

Some limited form of tort reform might make it through the Senate, but certainly not a wide-ranging bill, said Sen. Brad Hutto, D-Orangeburg.

"The House has been working on it, but we (in the Senate) haven't had that full, in-depth consideration," said Hutto, an attorney. "When it comes to the Senate, we're going to put it in committee and study it for weeks -- or months. We will scrutinize it carefully."

But first the Legislature needs to take up the governor's vetoes of bills from last year, said Rep. Thomas Rhoad, D-Bamberg. "We've got to get rid of last year's business before we start this new session. Until that happens, we don't know what's going to be priority this year."

The minibottles bill is expected to come up Wednesday in the House. South Carolina is the only state requiring that liquor by the drink be sold in mini-bottles.

"The number one priority for me, and what ought to be the number one priority for the state, is to try to resolve the financial crisis we find ourselves in," said Sen. John W. Matthews Jr., D-Bowman.

"It's clear to me, if we don't generate some revenue, we're going to have massive layoffs of teachers (and employees in) mental health, mental retardation and the highway patrol," Matthews said.

Matthews says he's "not going to vote for" the governor's proposal to reduce the number of income tax brackets, increase the cigarette tax and begin charging tax on lottery ticket sales.

Nor is he enamored with proposals to eliminate the property tax on homeowners and raising the sales tax by 2 percent.

"That is transferring the cost of government to the middle class and working families," Matthews said. "I've got no problem with that if the working people are going to benefit from it," but "those with incomes of $150,000 and up will benefit from the governor's proposal."

Hutto said one of his top priorities is to allow the Catawba Indian Nation to open its proposed bingo hall in Santee.

Another is to ensure that the University of South Carolina's Salkehatchie campuses stay open. The governor has proposed closing them in three years. In talking with legislators, "I don't find there is any overwhelming sense that needs to be done," Hutto said.

Hutto also favors an increase in the cigarette tax "to ensure full funding for Medicaid" and more funding for public education.

Hutto predicted that the school districts that are plaintiffs in the education funding lawsuit currently being heard in circuit court in Manning will succeed in proving that they have been under-funded.

The state "ought to go ahead and bite the bullet now" and provide more money for underprivileged public school districts, he said.

Hutto said the governor's proposal to slash funding for the Clemson University Cooperative Extension Service by about 40 percent "concerns me. The job they do for the community in general, and in particular the agricultural community, is something we cannot afford to lose."

Hutto acknowledged that the governor "did take a fresh approach" to budget-making. "I applaud his efforts," he added. However, "he makes some assumptions that may or may not be true."

In particular, Hutto said "some of the things he proposes may have merit but they would take time to implement" and would not instantly save money.

"The numbers may add up, but the concepts inside do not address the needs of the state," Hutto said. "We've got major needs in education and health care. He's doing some things around the margins, but he's not addressing the core issues."

Matthews said he could not see how shifting to a cabinet style of government would save any money. "I am not in favor of establishing a Washington style of government for the state," he said.

Rhoad said he is "tremendously opposed to doing away with USC Salkehatchie" and hesitant about closing the John de la Howe School -- both proposed by the governor.

"The governor's budget has got some good points and it's got some bad points. I don't think the school people like it at all," Rhoad said.

Even though he leases out tobacco fields, Rhoad said he won't oppose an increase in the cigarette tax. But he said, "That money won't bring in enough to do what we want to do."

"Tobacco, alcohol and gasoline taxes run this country, but tobacco is on the way out. It's about gone. We're going to have to find something else to replace that revenue we were getting from tobacco," Rhoad said.

Rhoad said the Quinn-Sheheen bill that would shift the tax burden from property taxes to sales taxes has "a lot of merit," but with seven competing proposals confronting legislators, "it will be a state of confusion."

"We need to put them all on the table and pick and choose the good parts of each of them and see if we can come up with one good plan that fairly funds education and at the same time gives relief to property owners," said Rep. Harry Ott Jr., D-St. Matthews.

Ott said another top personal priority is nurturing the newly established, bipartisan Rural Caucus which he co-chairs.

"We're going to work hard to bring some attention to rural needs across South Carolina," Ott said. "The money's tight, and we won't be able to find any new money, but we want to make sure rural counties and rural areas get our fair share of the tax money that is available."

Rep. Jerry N. Govan Jr., D-Orangeburg, said his top legislative priorities will be to help protect public education -- at the K-12 and higher education levels -- from budget cuts and to address health disparity issues, including Medicaid funding.

Another priority -- one that he shares with the Black Caucus -- is to pass legislation addressing "the issue of personal financial literacy, which is a major problem in this country, particularly among young people," Govan said.

"South Carolina very well could be one of the pilot states in the country in terms of legislation that hopes to address this situation."

Concerning Sanford's proposed budget, Govan said, "I'm willing to take a closer look at what he's proposing, but a lot of us believe we have ideas, too, that deserve to be heard."

"We're going to have to take our time and go through it. There's no reason to rush through it, in fairness to him and, even more, in fairness to the citizens of South Carolina," Govan said. "We need to look very closely at the details because the devil is always in the details."

Tom Davis, co-chief of staff and senior policy advisor to the governor, said Sanford "approaches things differently."

In a "radical departure" from the status quo, Sanford spent the summer conducting budget hearings, agency by agency, using "Socratic dialogue" and "creating uncomfortable moments" when necessary by asking questions that have no easy answers, Davis said.

Sanford also created the MAP Commission to "thoroughly examine every corner of state government" and recommend ways to make state government more efficient," Davis said.

The result was "a very real budget, a budget you could run the government with," and that is "very refreshing," said Rep. Bobby Harrell, chairman of the House Ways and Means Committee.

"They burned some midnight oil putting that budget together," Harrell said. "Ways and Means will use this as a starting point."

Rep. Gilda Cobb-Hunter, D-Orangeburg, said the governor "deserves a great deal of credit for the kind of process that he used" to develop his budget proposal.

"I'm a firm believer in open discussions and disclosure and allowing input," she added. "It seems to drive the politicians mad, but I think the public appreciates it."

"But the devil is in the details," she added, such as the proposal to further restructure state government. "We were told the original restructuring in 1993 would save all kinds of money, and I have yet to see anything that shows we save all that was promised."

"Another priority for me is trying to make sure the Department of Corrections is adequately funded. I'm very concerned about the officers' safety because of the short staffing," Cobb-Hunter said.

She said her top priority is trying to find additional money for K-12 public education in the event the court rules in favor of the districts that filed the education funding lawsuit.

"Second is this shortfall in Medicaid and trying to ensure there is adequate funding," she said. "I'm interested in what (the governor) is proposing for Health and Human Services. I don't understand his math."

Cobb-Hunter said she had not yet taken a position on the proposal to close USC Salkehatchie.

"Any time you talk about closing a college in a community there's going to be opposition," she said. "But I have long maintained we've just got too many institutions of higher education in the state. We cannot afford them all. At some point the General Assembly has to make a decision about reforming higher education in a meaningful way."

Cobb-Hunter is skeptical that the economy has turned around and says any money-saving changes will take time to implement.

"I have to admit overall a bit of skepticism about a budget based on projected growth and all this stuff happening on July 1," she said. "Logistically that cannot occur."

T&D Staff Writer Lee Hendren can be reached by e-mail at lhendren@timesanddemocrat.com or by phone at 803-533-5552.

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