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reprint or license thisSanford addresses insurance quandary
By Zane Wilson
The Sun News
COLUMBIA - Gov. Mark Sanford proposed a three-point approach to the homeowners insurance crisis along the coast on Wednesday in his State of the State address.
Local legislators said they welcome the governor's attention to the issue and want to study it, but are unsure it is enough to solve what some say is a serious threat to the coastal economy.
"He didn't seem to have any solutions for us along the coast," said Sen. Dick Elliott, D-North Myrtle Beach, adding that Sanford's proposals are insufficient to deal with the problem.
Through most of his speech, Sanford repeated his requests to legislators to reform government and help make the state more competitive by cutting income taxes.
On government reform, he said his top priority is to make the state Department of Transportation a cabinet agency under his control, rather than the independent bureau it is today.
Sanford's insurance approach includes a catastrophe pool that would be paid for by the businesses and homeowners in the affected area; tax credits for making property more storm-resistant; and a self-insurance plan that would work similar to a health savings account.
He also said part of the problem is the rapid growth along the coast combined with climate change, and proposed "a climate change stakeholders conference" and sessions with experts on land planning.
"We need to take a closer look at the rate of growth," the governor said.
"I don't know how a summit on global warming and listening to a land-use planner is going to have a direct, immediate impact for people on the coast," said Sen. Luke Rankin, R-Myrtle Beach.
Sen. Ray Cleary, R-Murrells Inlet, said Sanford's proposals are good for the long term, but that "I think he needed to have more on short-term solutions to the insurance crisis."
Rep. Nelson Hardwick, R-Surfside Beach, said he is interested in looking at Sanford's proposals, but less-dense growth probably won't work because people who are moving to Horry County want good-sized houses and yards.
Rep. Tracy Edge, R-North Myrtle Beach, said he is pleased Sanford wants to do something about the insurance problem and is looking forward to working with him on it.
"I am glad he focused on the fact that there's something that has to be done with the crisis in homeowners insurance," said Rep. Thad Viers, R-Myrtle Beach.
Most local legislators are uncomfortable with making the DOT a cabinet agency or changing the way the DOT commission is chosen.
Elliott said the insurance department is a cabinet agency and that did not prevent the insurance problem, and Viers said the Department of Social Services is a cabinet agency that has been struggling for years with complaints that it is not functioning properly.
But Cleary said Sanford is "on the mark" with his DOT request. The DOT is at issue this legislative session because of a critical performance audit that found contracts were paid when work was not done, and funds were manipulated.
Sanford also called again for school choice. Several attempts at forms of school choice have failed in the past few years. Edge, the author of one of the school choice bills last year, said he was glad to hear Sanford is willing to continue to work on the issue.
Sanford also urged lawmakers to reduce the 85 school districts to one for each of the 46 counties, one of three spots where he drew applause. Hardwick said he started that applause because having one school district for each county would save taxpayer money.
And as for the expected $800 million extra that is coming into the treasury this year, "I implore you not to spend all the money," Sanford said. Money should be put into reserves to help cover an expected shortfall in employee health insurance, he said.
Contact ZANE WILSON at 357-9188 or zwilson@thesunnews.com.
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