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Article published Jan 27, 2005
Spending tops Sanford's address

ROBERT W. DALTON
Staff Writer

COLUMBIA -- Saying he sees economic storm clouds ahead, Gov. Mark Sanford on Wednesday night said that South Carolina needs to prioritize and limit spending to get its finances in order.Sanford, making his third State of the State address before a joint session of the Legislature, touched on familiar themes as he outlined the proposals that he said are key to strengthening the economy and raising incomes.First and foremost on his list was his proposal to reduce the state's top income tax rate from 7 percent to 4.75 percent. He said cutting the rate would create jobs by cutting the amount small businesses would have to pay in taxes; would make the state more attractive to wealthy retirees; and would make the state more competitive in going after white-collar jobs.Sanford said the idea behind the tax cut is tied to his belief that that individuals and businesses are better equipped to spend their own money than those in the government."… It is again a time for choosing between a tax system that holds us back and a tax system that allows us to better compete with the rest of the world," Sanford said.EducationSanford also devoted a large portion of his speech to the need for education reform and pushed his "Put Parents in Charge" school-choice proposal.The plan would give tax credits to families to send their children to private schools, another public school inside our outside of their district, or for home-schooling.Competition, Sanford said, would improve South Carolina's public schools, which rank last in the nation in SAT scores and 49th in graduation rates."One half of all the kids transiting our educational system don't make it," Sanford said. "That, one student at a time, in human terms, is a disaster. There are good people in our state, and I don't think that if people really comprehended the faces behind these numbers that they would accept any system that perpetuated this kind of outcome."Changes in legal systemSanford once again called for changes to the state's legal system, saying it was neither fair nor efficient. He said tort reform was needed to make small businesses and healthcare providers more competitive."I believe it is time to follow the other 26 states that have modified their legal systems over the last few years, or get ready for a lot of U-Haul trailers headed down I-85 or I-95 with jobs and investment bound for some other state that would have come here if we had changed things," he said.Sanford prodded the Legislature over government restructuring, saying that the people should be allowed to decide whether constitutional officers should continue to be elected or instead be appointed by the governor.DUI lawsHe also talked about several initiatives to improve the quality of life in South Carolina, including strengthening the state's DUI laws."Our .08 legislation needs to be fixed, and I think there is a real conflict when people in this chamber make money as lawyers as a result of the current system and then stymie efforts to strengthen .08 legislation," Sanford said.State Sen. John Hawkins, R-Spartanburg, said law enforcement officials have a difficult time prosecuting drunken drivers under the current law."We need to tighten it up and get more drunk drivers off the road," Hawkins said.Reaction to the speech followed along party lines.Sen. Glenn Reese, D-Boiling Springs, was especially critical of Sanford's education proposals."It seems like he's determined to destroy the public school system to develop a major private school system," Reese said. "That will be his legacy, and it will be a bad one."In contrast, House Speaker Pro Tem Doug Smith, R-Spartanburg, said Sanford's comments should answer any questions about his desire to improve public education."We need to take some bold steps to improve things for kids that are in the third grade now," Smith said. "We've got to put aside our fears and stop protecting the system is we want to get ahead of other states instead of just keeping pace."Sen. Jim Ritchie, R-Spartanburg, said he appreciates Sanford's push for a reduction in the income tax rate, but that reforms need to be on a much larger scale. He said the Legislature needs to address property taxes, the sales tax and the way the state taxes industries and utilities."(The income tax rate) is just a small piece of a greater problem," Ritchie said. "I'm hopeful that the governor will work with us in creating comprehensive tax reform that may include income tax reform."Sanford opened the speech by talking about the "substantial threats" to the state's economy, including the war in Iraq that is costing about $6 billion per month. He also took the federal government to task, saying it was no longer capable of setting priorities."The federal deficit was $422 billion this year," Sanford said. "Add to that the United States' current account deficit is on its way to more than $650 billion this year – about 6 percent of the country's (gross domestic product) and that's relevant because a 5-percent reading for any third-world nation normally is enough to trigger an IMF intervention."Trade issues also pose a threat to the state's economy, Sanford said."… The end of the Cold War – and the addition of the former Soviet Union, India and China into the trading system – has effectively doubled the global labor force from 1.5 billion to 3 billion. Ask any textile worker in the Upstate about this and they'll tell you it's not at all an abstract concept."The focus on national issues had Reese wondering whether Sanford had his mind on a higher office."That was a wonderful presidential campaign speech," Reese said.Ritchie, however, said Sanford was just adding a long-range perspective."It's always important to bring global context to local challenges," Ritchie said.Robert W. Dalton can be reached at 562-7274 or bob.dalton@shj.com.