Last year, lawmakers used all of these mega-movie metaphors to describe tackling statewide property tax reform. Until its passage in May, that proposal eclipsed most other bills.

Without such a major issue to dominate debate, the legislative session beginning Tuesday will focus on at least a dozen smaller issues that could affect residents’ bottom line.

“When was the last time South Carolina had the opportunity to be at the forefront of an issue like we have the opportunity with hydrogen?” said House Speaker Bobby Harrell, R-Charleston. “Rice and indigo.”

TAXES

Debate should be short and sweet on most tax hikes this year; lawmakers said raising taxes with a $1.1 billion budget surplus would be nearly impossible.

There likely will be extended debate on raising the state’s cigarette tax. At 7 cents a pack, it’s the lowest in the nation.

The question is whether a cigarette tax increase would pay for health care costs or whether it would be tied to a $205 million income tax cut as proposed by Gov. Mark Sanford.

Senate President Pro Tem Glenn McConnell, R-Charleston, and Majority Leader Harvey Peeler, R-Cherokee, said raising cigarette taxes only has a chance if connected to income tax cuts.

After the approval of $600 million in property tax relief and reduction of grocery sales taxes last year, less time will be spent on tax cuts this year. Harrell said the House will discuss further cutting the sales tax on groceries.

Proposals to raise South Carolina’s relatively low taxes on gasoline or alcoholic beverages also could be introduced.

RESTRUCTURING

Residents should know in the first few weeks whether the Legislature is willing to overhaul state government.

Sanford has proposed rolling most statewide elected positions, such as education superintendent, agriculture commissioner, adjutant general and others, into his Cabinet. The constitutional change, which he says would save $19 million a year, requires voter approval.

McConnell said he would know soon whether past opponents of the plan would be able to scuttle the bills this year. The House has approved some of the plan in the past.

One area in which change is almost certain is reforming the Department of Transportation, whose executive director stepped down after a state audit criticized spending. The agency has complained that it is running out of money and that needed repairs are piling up.

“Everybody in the General Assembly believes there is some additional money needed in DOT,” said Rep. Annette Young, R-Dorchester, “but we’re not going to give them one penny until we see some reform.”

A House committee has recommended scrapping the current commission system that oversees the transportation department. Instead, the governor would appoint a transportation secretary and lawmakers would elect a six-member governing commission.

The Senate is still working on a DOT reform plan.

JOBS

Harrell said this is a key year for the state to recruit companies to invest in research and then stay and hire South Carolina workers.

A House proposal would offer tax credits and other incentives to companies, especially for those conducting hydrogen research.

The Senate also will examine Department of Commerce funding and decide which programs are working best.

Both houses will try to reform workers’ compensation laws, attempting to stem quickly growing rates paid by businesses. Workers’ comp changes are a priority for Sanford, too.

OTHER ISSUES

One major budget item will address future health care costs.

Because of a change in accounting rules, the state now must begin saving for the estimated $9 billion it will pay retirees for health care during the next 30 years. Lawmakers said they must establish a trust fund but do not know how much money they will need to add this year. Sanford has proposed starting the account with $439 million.

Credit agencies say the state should add $50 million each year after creating the account.

Retiree benefits are not at risk, but failing to save could lower the state’s credit rating.

McConnell said insuring coastal homes will be a major issue, as more homeowners are unable to find affordable or adequate insurance for hurricane and flood damage.

Reach O’Connor at (803) 771-8358.