IT HAS BECOME A standard question during Gov. Mark Sanford's
budget hearings with state agencies: Got any surplus property you
can unload?
The question grows out of a 1999 Legislative Audit Council report
that identified 53 parcels of "potentially surplus" land worth more
than $13 million that various state agencies are holding onto; there
likely is more surplus land in the state's million-acre holdings,
since the audit covered only six state agencies.
The audit called for establishing a centralized land-management
system and looking to sell off property the state doesn't need. But
as The Greenville News reported last month, legislators haven't
lifted a finger to follow those common-sense proposals. One
legislative leader who requested the audit said he had assumed the
Budget and Control Board had handled the matter. It hasn't, although
Mr. Sanford, who chairs the board, did recently convince that body
to impose a 90-day moratorium on state property purchases while
procedures can be examined to encourage agencies first to consider
land and buildings already owned by the government before looking to
the private sector. It's unclear how much more the board can do
without legislative approval.
The problem with our current system is that it's pretty much up
to each agency to determine whether it holds on to unnecessary
property. Since the agencies generally don't get to keep the
proceeds, they see little incentive to sell. So they keep unused or
underutilized property because they might someday want to use
it.
That's a reasonable consideration, but it's only one
consideration. Even agency directors who care more about the good of
the entire state government than their own agency often overlook the
bigger issue: The biggest cost of the state holding on to
undeveloped or underutilized property is borne not by the state
government but by the local community, in lost economic development
and lost property taxes.
While some communities are so hungry for jobs that even a prison
is a welcome addition, others see massive tracts of government-owned
land as a drain on the economy; the government jobs that center
around that land are more than offset by the loss of private
development and the jobs and taxes it would generate. That's why
Columbia officials were so excited last month to learn that the
Department of Mental Health is looking to sell 178 acres of prime
real estate; it's why Port Royal officials jumped for joy when the
governor suggested that the tiny state port there be closed and the
property sold for private development.
Selling unused property isn't always wise. But state agencies too
often don't consider another option, of turning it over to other
agencies. Some agencies automatically look to the private sector
when they need more or new space. And some aren't willing to part
with "their" property, even if that can keep it in government hands.
Both situations need to change.
But as we look to make changes, we need to be realistic about
what selling off government property can and can't accomplish. No
one should view such changes as a panacea for the budget crisis.
First, it's not that much money. And while there may be some annual
savings from not having to maintain unneeded property, the bulk of
any money from sales will be available one time only. It shouldn't
be used to fund ongoing needs, and it mustn't be used to fund
expanding programs, as we are wont to do with one-time money. In
fact, the main reason to sell unneeded property isn't to raise
money, but to make sure it is put to its best use.