State of the State review: Road map takes our global economy into account

ED McMULLEN, For the Herald-Journal

Gov. Mark Sanford's State of the State address presented a road map for South Carolina based on the same issues he has always defined as critical to moving forward: efficiency in government, education reform and tax relief. The governor was right to put all of those issues in the larger context of competitiveness in a global economy -- without reform in those key areas, South Carolina will fall behind other states and the rest of the world.

The governor underscored both a positive trend and a potential problem for our state's economy -- we are rapidly attracting new residents but much faster than we are growing jobs to employ these newcomers. The governor pointed out that in the past three months our work force has grown at the fastest rate in the continental United States. In this changing economy, South Carolina needs to pick up the pace on job creation, and we need to do it quickly.

Gov. Sanford made it clear that if we are to keep our state moving forward, our state must adopt a comprehensive strategy that educates our work force, fosters a growing economy and reduces the size of government.

South Carolina simply cannot compete unless we change our failing education system, and those who continue to defend that system with the "stay the course" mantra should move aside for reform-minded educators and policy-makers who are ready to make positive and real changes to a broken system. The governor has always understood that competition makes the whole system better, and he reiterated his commitment to providing choices for parents whose children are in schools that continue to fail them. The governor's firm language on education reform should leave no doubt that he does not plan to sit by and watch the status quo continue to prevail and to fail.

The governor also made a strong case for government restructuring, a measure designed to bring our system into the 21st century so it will cost less and be more effective. He applauded the General Assembly for starting "the ball rolling on administrative restructuring" but made it clear it should move forward and finish what Gov. Carroll Campbell started a decade ago.

In order to be competitive, there must be a prevailing vision for the state on all fronts. Education, health care and economic development are not separate issues -- they are all interlinked, and the governor should be able to provide leadership through a Cabinet form of government in all those areas.

The governor also gave South Carolinians his assessment of property tax relief, making it clear that any tax relief should be good overall for the economy and not result in a net tax increase. His promise to veto any plan that ultimately raises taxes is encouraging and should be helpful to conservative leaders in the House and Senate who want a plan that is good for homeowners and for businesses rather than one that simply placates voters in an election year.

Legislative leaders and taxpayers were pleased to hear the governor argue that any tax relief plan is pointless without caps on growth and spending. The governor raised the need to address local government and school spending, but where he really drove the point home was with his proposed Taxpayer Empowerment Amendment. He asked the General Assembly to "let the people decide" how much they want their government to grow.

There would be no greater safeguard against bigger government and higher taxes than a mandated cap on how much our state spends each year. The governor's proposal would provide the teeth necessary to force government to remain lean in tight budget years and not to grow bigger in good years just because it can. This is a proposal the General Assembly will likely act on quickly.

There is one area in which the governor should consider available research and rethink his consideration of impact fees. The governor is under the impression that growth does not pay for itself -- there is a clear argument that the opposite is true. Of greater concern is the impediment that impact fees pose to low-income home ownership.

As a whole, the governor has been supportive of encouraging a climate in which it is easier, not more difficult, for low- and middle-income families to own property. Impact fees simply drive up the cost of housing to the detriment of those who cannot afford to pay them, and imposing them to offset property tax relief could prove harmful to those families.

The governor understands that a vibrant economy is the key to success in our state, as it has been in the past. It was encouraging to hear him stand up against government growth, for South Carolina property owners and also for our children trapped in a failing school system. Most of the leaders in the General Assembly agree with the governor and have already been debating tax relief and restructuring. Many of those leaders have been fighting for reform for a decade and will likely appreciate the governor's speech as a rallying cry.

The State of the State was a reminder that the governor's vision is not just his own but that of the majority of citizens in our state. He said nothing different in that speech than what he said in his campaign four years ago -- smaller government is better, the private sector drives economic growth, and education reform is critical to competition.

The voters of South Carolina who gave the governor a majority, and who sent conservatives to lead in the General Assembly, will likely expect results this year. Hopefully, policy-makers are ready to deliver them.

Ed McMullen is president of

the South Carolina Policy

Council, a nonprofit,

nonpartisan public policy research organization

in Columbia. For more

information about the

Policy Council, go to www.scpolicycouncil.com.