Posted on Thu, Jan. 19, 2006

SANFORD’S STATE OF THE STATE ADDRESS
Governor focuses on growth, tax reform
Lawmakers applaud call for more black judges

Staff Writer

Touching on topics and geography that ranged from property taxes in South Carolina to Burma’s job market, Gov. Mark Sanford delivered a State of the State address Wednesday that challenged, admonished and praised the lawmakers sitting before him.

Sanford’s fourth State of the State was long on topics, but relatively short on specifics that Democrats — and some Republicans — say they were looking for. But for other lawmakers from both parties, the governor hit many keynotes.

Over the more than 45 minutes of his address, the governor was interrupted twice by applause for his proposals — once when he said he supported property tax relief and again when he called on lawmakers to help elect more black judges.

Sanford, a Republican who faces a primary challenger in less than five months, broadly called on the General Assembly to help move the state forward on education, health care, job creation and quality of life.

One of the few new proposals Sanford mentioned involved local funding. He said the state should consider an impact fee on new development so long-time residents are not forced to pay higher taxes for schools and roads for newcomers.

“Impact fees have been employed in Florida and other high-growth states, and I’m not averse to looking at this option in this debate,” he said.

Continuing a recent theme, Sanford warned that when it comes to 21st century economies, the world is flat. That is the thesis of a book by New York Times columnist Thomas Friedman. Friedman says Americans now compete with every economy in the world, thanks to the Internet and technology.

Sanford mentioned Friedman at least five times.

“For the first time in world history, a kid in Hampton County is directly competing with a kid in Shanghai, New Delhi or Dublin,” Sanford said.

On job creation and making the state’s economy more competitive, Sanford was most specific. He called on lawmakers to:

• Adopt changes in the state’s workers’ compensation system that he said could cost businesses $350 million more this year than in 2005

• Allow voters to consider a constitutional amendment that would limit annual increases in state spending

On the property tax debate that seems sure to dominate this session, Sanford offered a few broad edicts: Don’t raise taxes, examine existing sales tax exemptions, and be careful in doing it all.

House Majority Leader Jim Merrill, R-Charleston, on Tuesday called on Sanford to deliver “more red meat” in his speech. Wednesday night, Merrill said Sanford delivered when it came to property taxes.

“He did a very good job in restating his mission. It was characteristic of Mark’s nature.”

House Speaker Bobby Harrell, R-Charleston, said Sanford was spot on when it came to property taxes.

Senate Finance Committee chairman Hugh Leatherman, R-Florence, was more tempered in his praise. He said wasn’t sure he understood how you make the state more competitive for business if you adopt impact fees on new development.

“That seems counterproductive to me.”

Leatherman also said the speech was short on details on job creation in a state with the third-worst unemployment rate in the nation.

On education and health care, Sanford also offered few specific recommendations but praised efforts already under way.

Regarding the recent court ruling on the long-simmering suit over how the state funds public education, Sanford dedicated five sentences.

He asked for an inventory of what the state already does for early childhood education. He also echoed state Education Superintendent Inez Tenenbaum and many lawmakers in calling for the state to better utilize existing private pre-kindergarten programs.

Also on education, Sanford made no mention of his key education initiative from 2005 — the Put Parents in Charge tuition tax credit bill.

He called on lawmakers to adopt charter school legislation that makes it easier for the special public schools to form. He also called on the Senate to move more quickly.

“We’re meeting some artificial resistance in the Senate on this front. I ask that that loggerhead be broken.”

Leatherman said he was not aware of any resistance to the bill in the Senate, saying senators would likely take it up next week.

On higher education, Sanford repeated his call for a cap on tuition increases — but only as a beginning to an end he first proposed during the campaign.

“These caps are about forcing a long-needed conversation on coordinating our university system and, as a consequence, yielding more affordable tuition rates at universities.”

Sanford has long advocated creating a Board of Regents that would manage and oversee all the state’s public colleges and universities.

On health care, Sanford asked that lawmakers support his efforts to change the way the state-run Medicaid program is operated. That change is awaiting federal approval.

“Some of what the governor had to say was pretty decent,” said Rep. John Scott, D-Richland, specifically the cap on higher education tuition.

“The lottery was all about more children getting into college, and those schools have raised fees too high.”

Reach Gould Sheinin at (803) 771-8658 or asheinin@thestate.com.





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