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Frustrating session sets up more work for next year

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Published Monday, June 7th, 2004

Next year's big-ticket legislative agenda won't look much different from this year's. That's because state lawmakers, who ended their session Thursday, didn't pass many major initiatives this year.

So the front burner for next year is already full. On the legislative stove will be renewed efforts to restructure administrative rules to minimize duplication, boost efficiencies and change how constitutional officers are selected.

Also on tap will be a major effort to review the state's tax code. This year, a plan by Gov. Mark Sanford to reduce income tax rates failed, as did plans to cut property tax rates. Next year, lawmakers may take a bigger-picture approach to figuring out how to reform the state's tax structure to ensure adequate revenues, but reduce the burden of property tax -- even though economists say the state's taxing structure is relatively well-balanced.

Lawmakers also will take another crack at reforming the civil justice system -- so-called "tort reform." A deal to change rules on venues and to cap damage awards for some kinds of business lawsuits fell victim to filibustering and obstinance of some doctors, lawyers and business interests.

"All of it bogged down," Senate President Pro Tem Glenn McConnell said about moves to pass restructuring, tax relief and tort reform. "All of it will be back."

State Sen. Jim Ritchie, R-Spartanburg, blamed lawmakers' sloth on the coming 2004 elections in November in which all House and Senate seats are up for grabs.

"After an ambitious start, the pressures of the election cycle took over," he said. "We were able to handle the fundamentals well, such as the budget, paying off the deficit, and reforms to campaign finance, telecommunications and economic development, but we left unfinished restructuring, tax reform and tort reform."

House Democrats gave the Republican-controlled General Assembly a big failing grade in education, health care, economic development, public safety and budget efforts. Among other things, they said lawmakers underfunded public education, failed to reform Medicaid to provide a stable source of revenue for affordable health care and presided over a time of record-setting job loss without a plan to fix it.

The only non-failing grade issued to the GOP by House Democrats was a C-minus on the environment. The main reason for the barely passing grade appears to be because the state kept a $10 million commitment to fund the new Conservation Land Bank. But Dems complained about erosion of environmental protections and failure to restore trust funds raided in the past from conservation accounts.

House Minority Leader James Smith, D-Columbia, was blunt in his criticism: "The governor and Republican majority in the House and Senate have squandered the trust the people have given them in the power of governance."

Still, state lawmakers did get some things done this year. While not as sweeping as proposed restructuring or tax reform, these initiatives will change people's lives:

  • Property tax cap. Lawmakers approved a 20 percent property tax reassessment cap, which will provide relief for rich folks and poor folks with valuable property. In growing areas, it means middle-class homeowners may pay more

  • Economic development. Members approved a bill to allow the state's three research universities to borrow more to fund research and passed a venture capital fund to help lure technology companies.

  • Tax conformity. They approved changes to state law to conform to federal law on estate taxes and to eliminate a marriage tax penalty -- income tax cuts worth more than $50 million to South Carolinians.

  • Deficit. Gov. Mark Sanford deserves credit for putting the state's $155 million deficit on the legislative radar screen. After lawmakers found extra cash due to better economic projections, they paid off the deficit in one fell swoop.

  • PSC overhaul. Legislators changed the way members of the Public Service Commission are elected and how it operates.

  • Education. They provided $150 million more for basic education spending, but still fell about $300 per student short of state mandated levels. They also approved measures to allow USC Sumter to open as a four-year campus and for Trident Tech in Charleston to start a culinary arts program.

  • Minibottles. They approved a measure to let voters decide on a constitutional amendment whether to allow free-pour liquor in bars and restaurants.

    Bottom line: State lawmakers laid the groundwork this year for some major changes but put significant efforts off until next year.

  • Andy Brack is editor and publisher of Statehousereport.com; .

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