Goals for the 2001 Legislative Session

January 3, 2001

To the Citizens of South Carolina:

In my first two years as governor, education has been my top priority. I am pleased to report that our state is firmly on a path toward excellence in our public schools.

In the year 2000, South Carolina led the nation in SAT improvement. More children tested ready for the first grade than ever before. In just one year, South Carolina increased the number of its National Board certified teachers by 800 percent -- from 39 to 370. For the first time since the 1950s, we provided a massive investment in school construction and renovation, putting over $1 billion into our schools and universities without raising taxes.

We have launched an aggressive effort to prepare children for the first grade. This initiative, called First Steps, is off and running in all 46 counties. In Greenville County alone, two out of three at-risk students in a First Steps summer initiative have now tested ready for the first grade. Our recent success stories in education prove that we can dramatically improve our schools if we hold fast to our priorities.

Our top priority must continue to be education. During the last few years, we have put the basis of teacher accountability in place. With this in mind, I propose we take a major step forward. My first and highest priority for this year will be winning $68 million from the legislature to increase teacher salaries to $1,000 above the southeastern average -- the first step of our six-year initiative to raise teacher pay to the national average.

With increased salaries, we should demand more from our teachers. Parents deserve to know how their schools measure up to a set of standards. Schools that don't perform well will need our assistance to reach new heights. Therefore, we must budget $50 million to fund fully the requirements of the Education Accountability Act, including teacher and principal specialists to improve at-risk schools.

We will be asking more of our teachers, but we will be giving them the tools to reach their goal. And we will be treating teachers like the professionals they are. I challenge the legislature to make this vital commitment to improving education their number one priority for the year as well.

In keeping with our commitment to education, I have also exempted $2.7 billion worth of appropriations for public education, LIFE scholarships, and tuition grants from budget cuts.

Overall, my budget includes $481 million in tax relief. My budget replaces the temporary food tax relief enacted last year with a permanent, across-the-board $25 million food tax credit. The budget devotes $55 million to maintain the senior homestead exemption. Furthermore, my budget proposes that a second "sales tax holiday" be held in February. I am pleased that this very successful, targeted tax relief has become a model for similar "sales tax holidays" around the country. It is a boon to working families and retailers across South Carolina, and its modest cost makes it a worthwhile investment.

Our revenue has been dedicated to our twin priorities of improving public education and maintaining targeted tax relief. At the same time, we will begin to reverse substantially the trend of annualizations which currently plagues the budget. My Executive Budget contains an almost two-thirds reduction in annualizations -- from $702 million to $250 million, of which $150 million is to continue educational improvements.

Unfortunately, there is no revenue to maintain other initiatives at their current levels. Consequently, this will be the year we downsize state government.

Despite this downsizing, we expect state agencies to maintain service quality in the face of reduced resources. All state agencies should align their priorities with those contained in my business plan for state government -- EnVision South Carolina -- in order to guide them as they face this challenge.

I urge the members of the General Assembly to fund our priorities in education and tax relief, so that we may continue the progress we have made. As governor, I stand prepared to assist them in this effort.

Sincerely,

Jim Hodges Governor