By Dan Hoover STAFF WRITER dchoover@greenvillenews.com
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Top state officials would be required to speak "with one voice"
to credit rating agencies under a bill Sen. Brad Hutto,
D-Orangeburg, said Tuesday would be pre-filed for the 2007
legislative session.
The proposal -- for which no specifics were available -- was
sharply criticized by spokesmen for Republican Gov. Mark Sanford and
GOP state treasurer nominee Thomas Ravenel. But it drew support from
Democratic Treasurer Grady Patterson, who has blamed Sanford and
Republican Comptroller General Richard Eckstrom's meetings with the
agencies for the 2005 loss of the state's top AAA credit rating.
Hutto said those sessions had "sent a horrible signal."
Patterson, who has been battling Sanford and Eckstrom over their
contacts with the private ratings agencies for more than a year, has
said he is the lone constitutional officer empowered to talk to the
agencies.
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He said Tuesday that he has not seen the bill or talked with
Hutto, but "the concept is a good idea. It eliminates these
political stunts we've seen in the last couple of weeks." He
referred to Ravenel's meetings last week with bond rating officials.
Jason Miller, Sanford's campaign manager, said, "The horrible
signal to credit agencies was the willingness of the General
Assembly, including (Democratic gubernatorial nominee) Tommy Moore,
to spend every dime that comes into Columbia."
He said if Sanford and Eckstrom win second terms on Nov. 7 and
Ravenel is elected, "South Carolina will speak with one voice to the
credit agencies, and it will be a fiscally conservative voice."
Rod Shealy, Ravenel's political strategist, said, "Try as they
might, the Democrats cannot shift the blame for our credit downgrade
and multibillion dollar unfunded liability away from the incumbent
treasurer and his caretakers. He's been asleep at the wheel, and
they're trying to rouse him in time for the election."
Shealy said the AAA rating has been lost twice under Patterson
and was restored the first time by the efforts of Republican
Treasurer Richard Eckstrom," then in office after defeating
Patterson in 1994. He lost to Patterson in 1998, but was elected
comptroller general in 2002.
"Now, Thomas Ravenel is simply following Eckstrom's formula for a
healthy dialogue with the rating agencies, which has been lacking,"
Shealy said.
Hutto said in a news release issued by the Senate Democratic
Caucus that the bill is intended "to prevent fractured messages from
being presented to the firms responsible for setting the state's
bond credit rating," one that was downgraded from the top AAA rating
14 months ago.
"State leadership and potential leadership need to be speaking
with one voice," Hutto said. "Restoring our state's credit rating is
serious business and should not be used for political stunts," he
said referring to meetings with the rating agencies by Sanford,
Eckstrom and Ravenel.
Just how the other officials would be required to speak "with one
voice" wasn't clear.
Phil Bailey, political director for the caucus, said the details
are "still being worked out (but) the goal is for state leaders to
present a unified message to the rating agencies. Sanford and
Eckstrom have every right to speak their mind. Hutto believes that
when state officials are communicating with the rating agencies,
they are speaking for all of South Carolina, not just their
political agendas."
Sanford and Eckstrom met with rating agencies in New York in
April 2005.
Democrats contended that Sanford used the trip to promote a tax
break for the wealthy.
Hutto said that "Sanford and his sidekick, Richard Eckstrom's,
big adventure to the Big Apple sent a horrible signal. Their rogue
trip to sell this reckless plan triggered alarm bells that helped
cause our credit downgrade," said Hutto.
Because of that meeting, Hutto said Patterson "was forced to make
a trip to meet with the credit rating agencies and explain that
Sanford's plan was not likely to pass the Legislature."
Standard and Poor's rating agency cited the General Assembly's
rejection of Sanford's tax plan in their press release as a positive
step. But the damage from the Sanford-Eckstrom trip was done.
S&P downgraded the state's credit in July, 2005.
Hutto said Ravenel's meeting last week with the agencies was a
cause for concern because it "sent another troubling message to our
credit-raters. If he misrepresented one fact or figure, it would be
a setback to our efforts to restore our perfect credit," Hutto
added. |