Senate Majority Leader Harvey Peeler’s “Jump Start” jobs plan was reported out of the Senate Finance Committee Tuesday afternoon and will now be considered by the full Senate. The legislation will provide tax credits to South Carolina businesses that hire previously out-of-work South Carolinians from the unemployment rolls.
“Government can’t create new jobs, only private businesses can. This bill goes a long way towards giving those businesses the opportunity to hire new employees, expand and get our state’s economy going again,” Peeler said. “Last year, the Jump Start plan passed unanimously in the Senate but died in the House. I’m looking forward to getting the legislation out of the Senate quickly, and hope the House will take it up this year.”
The bill gives a particular business a $100 tax credit per month per formerly unemployed S.C. resident, for a maximum of $2,400 over a period of 24 months. Eligible people would have to have been out of work for at least four weeks, be employed by the business for at least four weeks while working at least 35 hours a week and provide a notarized affidavit confirming legal residency. The tax credit cannot exceed the amount of taxes the business pays in a year, but any excess can be carried forward into the next year.
Companies in South Carolina are already hurting from higher unemployment insurance taxes. They are in need of a tax break. Sens. Kevin Bryant, Greg Ryberg, Shane Massey, Mike Rose and Nikki Setzler are cosponsoring the legislation.
###

In 2008, The South Carolina Illegal Immigration Reform Act was ratified by the South Carolina General Assembly. The Act requires both public and private employers to verify the work authorization of all new employees, either through the use of the free federal online E-Verify system or by checking the employee’s driver’s license.

The E-Verify online employment verifications system is administered by the Dept. of Homeland Security and the Social Security Administration and lets employers know whether information presented by a new employee matches government records.

To verify work authorization using the employee’s driver’s license, the license must be a valid South Carolina license or identification card issued by the South Carolina Department of Motor Vehicles, or a valid driver’s license or identification card from a state with driver’s license requirements as strict as South Carolina’s requirements.

Most recently, the South Carolina Senate passed a Bill that would give local law enforcement officers the authority to detain a person while determining whether the person is in the country legally, but, only after the person has been stopped on suspension of another crime. The Bill allows an investigation into the person’s immigration status could only begin if the person failed to present a valid ID.

In addition, the Bill proposes the creation of an Illegal Immigration Enforcement Unit within the SC Department of Public Safety to serve as a mediator between local law enforcement and ICE. Other provisions include making it a felony to provide an illegal immigrant with fake identification, and a $5 fee on some wire transfers of money going from South Carolina to locations outside of the United States. The Bill, S. 20, is now in the South Carolina House of Representatives.

w9

The SCRS carried in 1999 and unfunded liability of $179 million with a 2-year amortization period. Today it currently carries an unfunded actuarial liability of over $13 billion with another $5 billion in the smoothing pot and a 37-year amortization period. State and local governments, furthermore, now contribute approximately $600 million per year to carry the unfunded liability. In order for the 37-year amortization period to fall to 30, which is the upper limit according to federal guidelines, state and local governments will have to contribute $700 million next year. The annual contribution by state and local governments, just to carry the unfunded liability, is projected by the current actuaries to rise to almost $2 billion by 2030.

How did we get here? Unfortunately, lawmakers have been making political promises, sidestepping the real issues, and kicking the can down the road. We cannot ignore this problem. The System in its current condition is unsustainable. I look forward to a serious discussion about these issues. I will make every effort to maintain the current benefits for our retirees, but if we do nothing then soon nothing will be left.