Legislature
hamstrings local government
SOUTH CAROLINA, population 4 million, has more than 900 local
governments, which jealously guard their power and often refuse to
work together. That’s an average of one government, with all its
expenses, for every 4,400 residents.
Richland and Lexington counties alone have two county
governments, 13 municipalities, seven school districts and at least
a half dozen special little governments that were created to provide
a single service, be it recreation or water or fire protection.
You couldn’t do worse if you were trying to create a system that
wastes money and encourages officials to act against the public
interest. The duplication, turf battles and lack of accountability
that this system produces make even state government look good.
But don’t bother marching on City Hall. The folks there have no
power to reduce the number of competing governments, or even to make
them work together.
The problem is at the State House.
Local governments are the entities closest to the people, where
citizens have the best chance to influence decisions, at least when
they are kept to a reasonable number, so citizens can keep track of
them. It is their actions that most affect our daily lives. But in
South Carolina, local government isn’t controlled by local
officials. It’s controlled by state legislators, to the detriment of
both local government and state government.
Legislators appoint and protect most of the 500 or so special
little governments that provide water, sewer, fire and recreation
services to tiny segments of the public.
They prevent cities and counties from consolidating and school
districts from merging. They keep cities from expanding and
providing the municipal services that urban residents demand.
They force duties down on local governments, then force them to
use the hated property tax to pay the bill.
To make matters worse, all this meddling robs our part-time
legislators of the time and energy they need for the full-time job
of overseeing a $17 billion state government and dealing properly
with issues such as education, tax policy, tort reform and insurance
law.
The result is that in a poor state, we pay top dollar for
bottom-tier services.
A PROMISE BROKEN
This was supposed to change in 1973, when legislators amended the
constitution with the Home Rule Act.
And much did improve.
Legislators stopped writing county budgets, which freed them up
some to tend to the state. County councils got to set taxes and
decide how to allocate money and how to provide local services. They
got to decide such purely local matters as zoning.
But much did not improve.
Many expected Home Rule would mean an end to those 500 special
purpose districts; it didn’t. Legislators simply stopped creating
more of them.
Home Rule was supposed to put an end to special laws written for
each county; it didn’t. Local legislators still write laws dictating
tax policy, spending decisions and even personnel matters within
their counties.
The Legislature has even taken away some of the power that voters
thought they ordered it to give local government. Home Rule gave
cities the power to enact any laws the Legislature didn’t prohibit,
but when they started finding ways to raise money without relying on
the property tax, the Legislature stopped them.
FORCE DUPLICATION
The consequences of legislators’ refusal to yield power are
widespread and diverse:
• Drive through just about any
urban area, and you’ll see a city garbage truck plucking up refuse
from one side of the street, a county truck from the other; city and
county police play the same game of duplication. That’s the result
of our restrictive annexation laws.
New residents don’t stop demanding city services just because
cities can’t take them in. So counties have to provide garbage
pickup and police crowded urban areas. That means duplication on the
streets, and in the front office.
A reasonable solution would be for a city and county to
consolidate once counties make the turn from rural to urban. But the
Legislature has refused to allow that. Twenty years after voters
demanded it, the General Assembly finally passed a law in 1992 that
claimed to allow city-county consolidation; but local officials
quickly found that the way the law was written made any merger a
technical impossibility.
• Cities are allowed to
consolidate, but there’s no incentive to do so. To the contrary, the
state encourages their proliferation. That’s what happened in
Charleston County when some residents decided they didn’t want to
pay for city services. They formed the town of James Island, which
rented a storefront for town hall but provided no police or fire
protection, no zoning, nothing.
When the Supreme Court ordered the town dismantled last year,
because it had been formed illegally, it had $1.2 million sitting in
the bank. That’s money the county and state gave it just because it
was called a municipality — money that was meant to help real cities
provide services to residents.
• In 2003, the Richland County
Recreation Commission spent $65,000 essentially to buy the
resignation of an employee who pleaded guilty to embezzling public
money. Later that year, the commission let its new Ballentine
Community Center sit idle for months during a dispute with the
County Council. The council couldn’t do anything in either case
because the recreation commission is controlled by legislators.
So is the Irmo-Chapin Recreation Commission, which serves half of
Lexington County while the Legislature’s Lexington Recreation and
Aging Commission serves the other half. And the Richland County
Election Commission, which had to mothball nearly $400,000 worth of
new voting machines the county purchased in the 1980s because local
senators didn’t like the brand.
• Columbia and Richland County
can’t use money from their new restaurant tax to pay for school
teachers, police, road repair or anything else residents need; they
must spend it on arts programs and athletic facilities. Smaller
counties have it worse: They can only use the money for
tourism-related infrastructure, so they have to raise property taxes
to run the programs that use the new infrastructure. That’s because
the Legislature constrains not only how local governments can raise
money but also how they can spend it.
Ironically, it is this compulsion to control local government
finances that has created one of legislators’ biggest headaches —
the property tax backlash. Local officials have begged for decades
for more taxing options, so they don’t have to rely almost
exclusively on property taxes to pay for local services and schools,
but the Legislature has largely refused. So as rates remain stable
or rise slightly on other taxes, they spiral upward on the tax that
most people hate the most.
ONE STEP FORWARD, ONE STEPBACK
There have been a few grudging steps toward local autonomy since
the initial burst of action — and inaction — following Home
Rule.
When the original Power Failure series was published 14 years
ago, legislators still controlled local road-paving. The Supreme
Court later took that power away, and today many county councils
control the so-called C-funds.
Another big problem for local governments in 1991 was the
Legislature’s habit of ordering them to upgrade their jails,
increase school funding or perform any number of tasks without
providing money to pay for it.
Lawmakers have since passed a law that requires them to calculate
how much any new law will cost local governments; that bit of
sunshine has slowed the unfunded mandate flood to a trickle.
(Unfortunately, legislators also have failed to adequately fund the
public schools and other public services, which has forced
responsible local governments to pick up the slack.)
Other improvements weren’t so clear-cut.
In 1998, the Legislature finally passed a law that allows voters
to dismantle special purpose districts. But no one has used the law
because it requires that an unrealistic 40 percent of property
owners sign a petition, and then two-thirds of voters approve the
dissolution.
Two years later, the Legislature loosened up the annexation law,
which had prohibited cities from taking in land without the approval
of at least 75 percent of the property owners, who owned at least 75
percent of the property. It still isn’t easy, but now cities can
grow if 25 percent of the residents sign a petition, and half the
residents vote to be annexed.
More recently, legislators have become aggressive in pushing in
the other direction. Every year brings stepped-up attempts to
restrict annexation authority, to place shackles on how cities and
counties spend money, even to scale back that most basic of local
powers — zoning decisions. Most of these assaults have been
defeated, but still they keep coming.
TOO MUCH GOVERNMENT
The early resistance to true Home Rule isn’t so difficult to
understand.
Most of us take for granted the idea that governmental functions
that can be performed at the local level should be performed at the
local level, where government is closest to the people it serves;
that the state should assist the local body in carrying out its
tasks, and ensure that citizens across the state are served.
For legislators in the early 1970s, these were radical ideas —
ideas that took away much of their power.
But since then, a whole new generation — and a whole new breed —
of legislators has been elected.
Today’s Republican legislators talk about the virtues of local
authority. They talk about the virtues of limited government, of
fiscal restraint, efficiency and low taxes. And yet they tie up our
small state with 900 separate local governments. They force those
governments to duplicate each others’ work. They make it nearly
impossible for some of the governments to cooperate. At a whim, they
step in and change the rules those governments operate by. And all
the while, they do a lousy job running the state government, often
because they simply don’t have the time for it.
Our legislators are right: We do have too much government — at
the local level. We do waste money on duplication and inefficiency.
We should be able to do more with less. But they won’t let us.
Wednesday: An independent Legislature and judiciary can balance a
strong executive. Read this series and more at www.thestate.com/mld/thestate/10646771.htm. |