Date Published: November 18, 2005   

Harrell addresses economic issues with Rotary club

By JOE PERRY
Item Staff Writer
jperry@theitem.com

State House Speaker Bobby Harrell, R-Charleston, focused on what he and many others in Columbia think is the state's No. 1 priority — growing the economy — in an address to the Sumter-Palmetto Rotary Club on Thursday.

Decreasing unemployment and increasing job growth are vital to everyone's interests statewide, he said. While realizing the importance of what he called "the big boys," referring to BMW, Nucor and Kimberly Clark, he stressed fostering the development of small businesses. While admitting that perhaps the Legislature hasn't been diligent enough in helping small businesses flourish, he said that was certainly a critical topic and one that needs further investigation.

However, the Job Creation Act (passed this year) allows a small business to qualify for a job creation tax credit after hiring only two people, so strides are being made, he said.

HARRELL

Harrell also spoke on the catalyst for job growth: venture capital.

"We have to get new ideas off the ground, and we have the potential to create new jobs, but it is particularly hard in South Carolina to find capital," he said.

Roads, construction and road maintenance are problematic all over the state, Harrell said, but "most people don't want to raise the gas tax."

He also discussed changes in Medicaid.

"Medicaid reform needs to matter a lot (to South Carolinians)," he said, before rattling off some revealing statistics. "Ten years ago, it (Medicaid) was 11 percent of the budget. Today, it's 19 percent. ... Fifteen years from now, Medicaid could be more (of the budget) than K-12."

Property taxes, Harrell said, concern everyone.

"I've talked to young, old, white, black, urban, rural, rich and poor ... we need to be able to deal with reform and we're going to try," he said.

Referring to committees looking into this issue, he said, "I hope what happens is we get close on what we agree needs to be done."

The future of the economy, Harrell said, depends on evolving from a manufacturing-based economy to a knowledge-based economy.

He presented North Carolina comparisons, saying that the Research Triangle was something that North Carolina started working on decades ago, and "we didn't do what they did."

When universities (UNC and Duke and eventually N.C. State and others) team up with industries and corporations, he said, not only are graduate students attracted, but often transition easily and quickly into their communities, establishing their own businesses.


Contact Staff Writer Joe Perry at jperry@theitem.com or 803-774-1272.