I was going to write a post about the current legislation before the Senate known as the “Sembler Bill”, but Sen. Tom Davis (R-Beaufort) articulates this issue very well:

By Sen. Tom Davis || The Sembler Company recently ran a full-page ad in local newspapers in Beaufort County attempting to rally public support for its 280-acre, 1.5-million-square-foot mall in Okatie. Beneath a huge banner headline that read “NEW JOBS – EXPANDED TAX BASE – ENVIRONMENTAL PROTECTION,” the ad asked “What’s wrong with that?” before answering its own question: “Nothing’s wrong with it.”

And I agree: there is nothing wrong with Sembler building a new mall that would straddle Beaufort and Jasper Counties, especially if best management practices were employed (as promised) in its construction to protect the headwaters of the Okatie River.

Capital investment is good. Creating new jobs is good. Increasing choices for consumers is good.

But what’s not good — and what’s not mentioned in the ad — is a law now being considered by state lawmakers that would give Sembler over $100 million in taxpayer assistance to build this new mall.

This would be bad: Because it will not create any additional economic activity; and because it perpetuates our state’s failed (and corrupt) “pay to play” system of economic development.

A recent study of tax incentives for “extraordinary retail operations” by the economist Michael J. Hicks concluded that the entrance of large-scale specialty retail stores has a negligible impact on the economy of the surrounding counties. The overall economic pie does not grow; there is simply a shift in retail consumption patterns. In short, it’s a bad investment of taxpayer money.

But beyond its ineffectiveness as a means of promoting economic activity, the proposed deal is symptomatic of a larger problem – “crony capitalism.” The key to getting ahead in America used to be having a good idea and then working hard to implement it. Now the key is milking government connections in order to get special favors that provide a leg up on the competition.

Government at both the national and state levels has become a “favor factory” for those who can afford this “pay to play” game. The rules are simple: contribute money to elected officials, hire lobbyists with personal connections to committee chairmen, retain the private attorneys who actually draft the complicated tax bills, and then watch as the (taxpayer) money comes rolling in.

Politicians love doing these deals; it’s a win-win for them. They get money for their campaign coffers and credit for “doing something” to create jobs.  They simply ignore the boring economic studies showing how these special deals are awaste of the taxpayers’ money.  That sort of grim data simply doesn’t play well on television, but ribbon-cutting ceremonies for incentivized deals sure do.

This statist approach to “economic development” is rotten, and one reason why special tax breaks in South Carolina doled out by the General Assembly have skyrocketed in the past decade from $32 million to $254 million a year.

And the sky is the limit: There are currently 377 lobbyists representing 534 companies and organizations at the State House, and far too many are simply scratching and clawing to get favors and unfair competitive advantages for their clients.

This is “crony capitalism,” pure and simple, a corrupt merger of big business and big government. And it is the antithesis of the free market — of a system where companies are forced to improve productivity, reduce prices and innovate, and where consumers are rewarded with lower prices, higher quality and wider choice. In a system of “crony capitalism,” companies don’t achieve success in the marketplace by innovating or competing; they buy it at the State House.

I don’t blame Sembler for hiring lobbyists, lawyers and PR consultants to seek $100 million-plus in public assistance for its new mall; that’s simply good business. A study by economic professors at the University of Kansas found that for every dollar spent in lobbying, $220 worth of special favors are obtained. Sembler would be committing corporate malpractice if it didn’t play the game.

But I do blame lawmakers for providing special treatment for a select few when they should be looking out for the public good. There is a growing sense that South Carolina has a political system that is about dispensing favors, with people buying access and Columbia picking winners and losers. And I think people are sick of it.

Political favors and backroom deal-making have hurt our state enough already. We need to end the corrupt politics of favoritism and cut taxes for everyone, across the board, so that all citizens and businesses pay lower taxes, not just the politically connected. Lower taxes for everyone promotes free market entrepreneurship and discovery — the true sources of prosperity.

“NEW JOBS – EXPANDED TAX BASE – ENVIRONMENTAL PROTECTION” – what’s wrong with that? Absolutely nothing.

Just take your hand out of my pocket

Press contact: Pamela Lyda, 864-205-7316

Early Act First Knight Ethics Program has its first Assembly of Champions Knighting Ceremony at Powdersville Middle School

GREENVILLE, SC (February 2010) – EarlyAct FirstKnight (EAFK) had its first Assembly of Champions Knighting Ceremony on February 22, 2010 at Powdersville Middle School. Sponsored by the Greenville Evening Rotary Club, EarlyAct FirstKnight is a revolutionary character and ethics education program for schoolchildren in grades K-8 that puts Rotary into daily mainstream public education for the first time ever.

On February 22, 2010, the EAFK program was received with much excitement from the Powdersville Middle School student body, faculty, and parents. Ed Irick of the Greenville Evening Rotary Club started off the morning by speaking to the audience about Rotary’s purpose in the community. Then during three ceremonies, deserving 8th graders became honorary knights, 7th graders became honorary squires, and 6th graders became honorary pages. Each teacher called his or her student to the stage, where the student knelt in front or Sir Jefferson or Sir Timothy, of the Knights of the Guild, and the teacher read why this student was selected and recognized. Their parents were also invited to come forward and congratulate their child. The student was then congratulated by the principal and the teacher, and then took one of the seats on stage until all had been recognized.

The EarlyAct Club of Powdersville Middle School was charted on January 29, 2010.

During this ceremony, a history of the EAFK was given as well as information on how it came to be at Powdersville Middle School. Greenville Evening Rotary Club President, Ann Golden, along with Rotary District 7750 President Elect, Rebecca Faulkner, inducted the EarlyAct Club President, Naimek Patel, as well as its student body members. EarlyAct is the Rotary sponsored club for elementary and middle schools, while Interact and Rotaract are the Rotary sponsored clubs for high schools and colleges respectively.

EAFK is a program of The Knights of the Guild, a non-profit education services organization, led locally by Jefferson Pike. Developed by Dr. Randall Parr of San Antonio, TX, the EAFK program teaches business ethics based upon the historic theme of noble knights and the Rotary Motto of “service above self.” The daily curriculum, which is based on the “Rotary Four-Way Test” and teaches principles like Responsibility, Confidence, Perseverance, and Service, will be used in cooperation with monthly knighting ceremonies, where students will receive medals based upon their implementation of the curriculum.

The second Assembly of Champions Knighting Ceremony and the Tournament of Champions live jousting event is scheduled for Friday, March 26, 2010. The Knighting Ceremony is scheduled to begin at 8am and at 1 pm, the Tournament of Champions live joust between Sir Jefferson and Sir Timothy (good guy versus bad guy) will commence on the school grounds.

The Greenville Evening Rotary Club is the primary organization responsible for the annual Reedy River Duck Derby fund raiser, whose 2010 beneficiaries will include Mauldin Miracle League, Greenville Area Interfaith Hospitality Network, Ready4Reading, PolioPlus, and Partners in Agriculture. The club also participates in numerous local service projects that most recently include house building with Habitat for Humanities, donating dictionaries to Cashion Elementary School, and visiting with the residents of Oakmont West Nursing Home to add some holiday cheer. Rotarians traditionally develop community service projects to address many of today’s most critical issue, such as children at risk, poverty and hunger, the environment, illiteracy and violence.

National Federation of Independent Business Roundtable – Are taxes, frivolous lawsuits, health insurance and unemployment issues plaguing your business? I’ll be part of a small business roundtable with NFIB/South Carolina on March 15 at 6:30pm at Mama Penn’s in Anderson. If you’d like to attend, let me know. This event is open to members and non-members of the NFIB. Cost is $15 per attendee.

 I will be a panelist in the Sunshine Week Kick Off at 6 pm on Friday, March 12th. The event will take place at the Civic Center of Anderson in the main ballroom. The Civic Center is located at 3027 MLK, Jr. Boulevard, Anderson, SC 29625.

In early 2009, Anderson County’s website was promoted to an A+ grade by the Sunshine Review for our efforts in making the County’s financial and other pertinent public information available online. Our desire is to continue on the journey to become more open and transparent and to restore our resident’s trust in local government.

Anderson County gets favorable review from Sunshine Review:

• Council members listed and individual contact information is provided. Meeting schedule, minutes, and agendas available.^[1]
• Financial audits and budgets available.^[2]
• Zoning information^[3] and building permits available.^[4]
• Administrative officials listed under respective departments.
• The contract bidding process is online.^[5]
• Tax assessments and other tax information is available online.^[6][7]
• Information on how to make a public records request is provided on the site.^[8]
• Lobbying statistics and information are posted on activities from 2002 to 2008.^[9]