Sanford points to lower taxes as growth key

e-mail this story Related Related stories: • Text from Gov. Mark Sanford's 2004 State of the State address • Speech gets mixed reviews from Upstate residents

In Sanford's second State of the State Address since taking office last January, the governor said his plans, if passed by the Legislature, could lead to a more responsive, efficient and less costly state government for taxpayers.

Some of his ideas were repeated from last year's speech while others came from his recently released budget plan.

The Republican governor listed as his top priorities the restructuring of state agencies and the creation of new jobs, which he said could be helped by reducing the state's income tax using a hike in cigarette taxes.

State Rep. John Scott, a Columbia Democrat, said Sanford would likely get some of what he wants but not all.

"I think overall he came to the General Assembly with a good plan," he said. "Some of the things in his speech and I liked and some need a lot more work."

Speaking in the Legislature's House chamber, Sanford unveiled plans for an education tax credit tied to school choice, a proposal to restart education programs in the state's prisons and called for a sunset commission to consider striking unneeded laws and programs from the books.

He said government reforms were urgently needed in light of the state's $350 million budget shortfall and a lack of accountability.

"I just know we have to change to prosper. It's what I believe thousands of South Carolinians have told me over the last couple of years," he said.

Sanford's $5.1 billion budget plan would consolidate 15 agencies and phase out the University of South Carolina's campuses at Union and Allendale. It also would make seven constitutional officers, now elected statewide, gubernatorial appointments, privatize some functions of government and sell surplus land and some of the state's fleet of vehicles.

House Speaker David Wilkins of Greenville said the speech contained no surprises.

"I don't think you ever get everything you want," he said. "But we're going to try and work together to try and find the consensus to get a lot of this accomplished. The work has already started. I'm optimistic."

Sen. Thomas Moore, an Aiken County Democrat, said Sanford's plans were "sincere," but he said his blueprint for education was incomplete and tax plan could not be considered without looking at the state's entire tax system. He said additional revenue needs to be considered, not just tax cuts designed to be neutral.

"You don't get out of a revenue ditch by remaining in neutral," Moore said.

Sanford used a chart of job growth and tax rates in neighboring states to make his case for lowering South Carolina's income tax rate.

"I passionately believe that cutting the income tax will stimulate job growth in this state," he said. "We need jobs and we need to improve our economy and I don't think we can afford to delay. People are hurting out there."

He said he would consider competing and more comprehensive tax reform plans as long as they aren't used to raise taxes.

Sanford urged lawmakers to continue his restructuring work, saying his own efforts within cabinet agencies have saved millions of dollars.

"I would report to you that within my cabinet restructuring has produced real savings and even greater accountability," he said. "I would also report to you that I have gone as far as I can go. For restructuring to continue it will require legislative action."

Both chambers are working on restructuring proposals, lawmakers said, including a mammoth bill recently introduced by Senate President Pro Tem Glenn McConnell of Charleston.

Sanford also called for reforms in education, charging that while funding has increased by more than 130 percent over the last 30 years, the state continues to lag behind the rest of the nation in standardized test scores and its graduation rate."We've got to gore some sacred cows in education," he said.

Sanford said he would announce next month details of a plan for an education tax credit aimed at giving parents more choices on where to place their children in school.

His education comments sparked criticism afterward from State Education Superintendent Inez Tenenbaum, a Democrat running for the U.S. Senate. She said the state has made great gains in education and Sanford's continued attacks on the system demoralize educators.

"I'm very disappointed the State of the State focused on the negative aspects of education," she said. "The facts defy what he said."

Sanford also called for change in higher education, arguing that recent moves to make USC-Sumter a four-year school, opposed by USC's president and trustees, are an example of politics driving the process and why tuition at state colleges has increased over the national average.

Sanford discussed accomplishments in the past year, ranging from cost-saving moves by his cabinet agencies to changes adopted at the Department of Motor Vehicles, campaign finance reform and his decision to meet with ordinary citizens in "Open Door After 4" visits to his Statehouse office.

"All of this has been about changing the culture of the way things are done in Columbia," he said "My hope is we're making an impact on people's attitudes."The governor also challenged citizens to become more physically fit and invited anyone interested to join him in a bike ride across the state this spring.

The challenge, which prompted laughter from one lawmaker, is designed to help citizens improve their health care by improving their health, the governor said.

Lawmakers applauded Sanford eight times, including a standing ovation when he recognized his wife, Jenny, who was seated in the balcony with their four sons.

Sanford closed with the story of Capt. Josh Byers from Anderson, a soldier killed in Iraq, who before his death wrote to his parents "although the sacrifice is great, the rewards of service are so much greater."

"If we could bring to each of our jobs just a fraction of the leadership, courage and unity our men and women in uniform have shown - there is truly nothing that can hold us back as a state," Sanford said.