House rule change
could improve budget process, hasten tax reform
By CINDI ROSS
SCOPPE Associate
Editor
ON THE first day of this year’s legislative session, House Ways
and Means Chairman Bobby Harrell told reporters that Gov. Mark
Sanford’s income tax bill was so important that he was pushing
consideration of it ahead of the budget bill, so it wouldn’t get
bogged down behind that time-consuming matter.
That doesn’t sound like such a major concession to most people;
the House doesn’t take up the budget until March, a good two months
away.
But it was a big deal, because Ways and Means gets started on the
budget even before the Legislature convenes; one budget-writing
subcommittee met on the first day of the session, another was taking
testimony on the second day, and by the second week of the session
five were hearing budget requests from state agencies. The pace
doesn’t let up until the massive budget document has to be pried
from the full committee’s fingers in early March in order to get
compiled and printed in time for mid-March debate. Then in mid-May,
Mr. Harrell and two other members of the committee, along with much
of the committee’s staff, have to plunge into budget negotiations
with the Senate, which generally last through the end of the
session.
That leaves about a month and a half in the middle of each
legislative session for the committee charged with examining tax
policy to dig into that subject. That means that pretty much all
that gets considered are straightforward bills that deal with
discrete tax changes (creating yet another tax loophole, for
example), or else measures that the House majority has decided in
advance to push through, even if there’s no time to consider all
their complexities.
And that means the comprehensive overhaul of the tax structure
that our state so desperately needs always gets put off to “next
year.”
Rep. Kenny Bingham is tired of waiting for next year to come, and
he has made a very smart proposal for transforming it into “this
year”: Divide the two jobs of the Ways and Means Committee between
two committees. A new Appropriations Committee would write the
budget and review bills that involve spending money, and Ways and
Means would handle changes in the state’s tax laws.
That frees up the Appropriations Committee to delve more deeply
into how state agencies operate, so it can make better proposals
about how to spend money, and it allows the Ways and Means Committee
to do a better job of thinking through the implications of
individual tax proposals and to actually consider more sweeping
tax-law changes.
This would have seemed a strange idea a few years ago, when the
Legislature routinely made most tax changes through the budget bill.
And the two still are closely related: You can only spend as much
money as you collect in taxes, and how much money you collect in
taxes should be related to how much you need. But now that the House
and Senate have all but outlawed raising or lowering taxes in the
budget bill, there is no longer as much reason to tie the question
of how and where to raise money together with the question of how
and where to spend it. And, Mr. Bingham notes, there are plenty of
reasons to separate them.
The prospect of finally dealing seriously with tax reform might
be the most promising part of his proposal (although having a panel
that could spend more time examining state spending is nothing to
sneeze at), and it is Mr. Bingham’s primary goal. A Lexington
Republican starting his third term in the House, Mr. Bingham was one
of the heavy lifters in the Quinn-Sheheen tax overhaul bill that
never saw the light of day last year; he has taken on one of the
lead roles in trying to revive that plan now that Vincent Sheheen
has moved to the Senate and Rick Quinn has been involuntarily
retired from public life by the voters.
Comprehensive tax reform isn’t the most exciting topic for most
House members, but that doesn’t mean the rules change is doomed. Mr.
Bingham’s trump card is the 25 new power positions his plan would
create.
“Right now you’ve got Judiciary, and you’ve got Ways and Means —
those are the power committees; we all know it,” he says. “Now
everybody’s plowing ahead to be on one of those committees. But once
you get there (on Ways and Means), the workload is incredible, and
then you have other committees that don’t have nearly the
workload.”
And it’s getting worse, as House Speaker David Wilkins sends more
and more bills to Ways and Means that used to go to the Judiciary
Committee and elsewhere. The result is that the work of the entire
House increasingly revolves around the budget-writing schedule,
which might aid centralized control but certainly isn’t the most
productive way to do things.
Mr. Bingham’s bill would leave it to the speaker to make
committee assignments, as he does now. In order to keep the other
panels full, it would allow 25 representatives to serve on two
lesser committee, instead of one. Mr. Bingham believes this would
encourage House members to branch out a bit, rather than being stuck
in what can be single-issue roles on some committees.
There would be logistical matters to work out — where to house
the new committee, how to staff it. But the biggest problem likely
would be convincing current Ways and Means Committee members to cut
their scope or responsibility in half. It’s worth the effort, if the
payoff is a more thorough examination of spending policy as well as
tax policy.
Ms. Scoppe can be reached at cscoppe@thestate.com or at
(803)
771-8571. |