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WEDNESDAY'S EDITORIAL

Comptroller offers outlook to appreciate

THE ISSUE: Richard Eckstrom's Orangeburg address

OUR OPINION: Comptroller's assessment of economy is good news

S.C. Comptroller General Richard Eckstrom is drawing praise these days for action regarding the state's fiscal affairs. As much as the Republican can contend it was his responsibility as comptroller to act, moving nearly $105 million in unbudgeted surplus money to an account out of the reach of the Legislature was a bold move.

In previous statements and again in Orangeburg on Tuesday, Eckstrom said the action was necessary to put the state's fiscal house in order after legislators dating back to 1991, 1993 and 2001 used surplus money generated by the equivalent of a 13th month of collections in each fiscal year.

Spending the money did not eliminate the state's expenditures for the same period, with the result being a continuing deficit. Eckstrom said the negative balance is one reason the state recently saw its AAA credit rating downgraded by one agency.

Beyond his action that might well meet resistance from lawmakers, Eckstrom told Orangeburg Rotarians media accounts about South Carolina's negative economy are misleading.

Comparing media reports to hysteria about the Y2K computer problems in 1999 and the initial overestimation of casualties from the 9-11 attacks, Eckstrom called the situation "another example of hype."

He proceeded to explain:

n The state finished the fiscal year 8 percent ahead of revenue collections from the previous year.

n Income tax growth a year ago was 10.4 percent.

n Sales tax growth was 5.3 percent.

n Corporate income tax growth was 23.2 percent.

n New jobs are being created at the same pace as recent so-called boom years, but textile and manufacturing jobs are being lost at a faster pace. "The state in essence is filling a leaking bucket." But the outmigration will level off.

n Retail sales are up.

n Housing starts are up.

n Accommodation tax collections in tourist areas are up, but revenue from the taxes are up markedly in the Upstate and non-traditional tourism spots.

n Exports from South Carolina set a record a year ago.

"We're seeing all these measures of economic growth," Eckstrom said. The state's economic health is good and stands to get better.

All talk of pessimism, hype or other aside, we hope the comptroller is on target. His recent official action stands to put the state's fiscal house in better order. And when he's not working in that official role for South Carolina, he certainly is a good salesman for the Palmetto State.