S.C. might borrow $500 million

COLUMBIA - A bill calling for the state to borrow $500 million for college research and economic development projects got a blessing from a key legislative committee.

A House and Senate conference committee is working out differences in versions of the bill that have passed each chamber, and the bill still needs the committee's final approval before it can move to the House and Senate floors.

Legislators said this week that blocking the bill could keep some companies from locating in South Carolina.

Sen. Hugh Leatherman, R-Florence, said Tuesday that failing to pass it could keep a pharmaceutical company from moving to the Upstate. Leatherman did not identify the company.

A spokeswoman at the Department of Commerce said more than a handful of out-of-state companies are waiting to see what happens with the legislation.

In addition to borrowing money for research and development projects, the bill also sets up a state-run venture capital operation to encourage startup business, expands college programs and protects two-year colleges from being shut down. It also makes pharmaceutical companies eligible for the same range of economic development incentives that manufacturers already get.

But a tacked-on proposal that would allow the University of South Carolina's Sumter campus to offer four-year degrees could be a sticking point. Gov. Mark Sanford is opposed to the plan, as are some USC officials and the Commission on Higher Education.

Leaders in the House and Senate are trying to line up votes in case of a Sanford veto. Rep. Bobby Harrell, R-Charleston, said the House should get the required two-thirds vote to override it. "It would certainly be a lot of work over a long period of time for nothing if we don't," Harrell said.