I’ve been called for a special meeting of the SC Senate Finance Committee to be held on Tuesday, April 8 at 10 am. I understand the BEA has determined some new bad news. We’ve been dealing with a shortfall of at least $50 million and I think this number will get bigger. I could rant and rave because we didn’t cut taxes enough to jump start our anemic economy last year with a surplus of $1.5 billion.  I could plea: why did we allow government to almost double in my first term alone? I could holler: I told ya’ll so! I could continue to spew at the granite columns in the statehouse…they may listen. As you already know, common sense in Columbia is not common. You’ve heard these tunes many, many times already. 
                    
What do we do now? Continue to scrutinize the budget for more special projects to cut? Gaze at each Agency for inefficient spending? Stay tuned…

 
                            
In what is supposed to be a lean budget year, the Senate Finance committee passed S. 1124 which calls for an automatic increase of State Employee retirement COLA (cost of living adjustment) of 2% every year. I was open to this notion at first. This is all well-and-good for our dedicated state employees, but here’s the big catch: it includes the retirement for members of the General Assembly. Upon further research, I have found how the retirement system for legislators is superior than that of our teachers and our D.O.T. crewmen. It would be good for us to reconsider the inclusion of the General Assembly’s system in this increase.
                       
Here’s the basic difference between the Legislator’s Retirement and the State Employees retirement.
State Employees: 1.42% x years of service x salary
General Assembly: 4.82% x years of service x salary
Since the 2% increase is across the board, the gap between the two will be even greater.

• Members of the Transportation & Finance Committees met with members of the SC Ports Authority on Wednesday, March 26^th. Below are highlights:

Harbor Deepening = $2.4 million Requested This Session for State Match-Corps Preparing to Close Out Project-$7.03 million in Carry Forward Funds-Approximately $7.9 million in Additional State Funding Needed Beyond Carry Forward FundsRequest for Proviso Change – Update Year in Ravenel Bridge Proviso

-To-date, SCSPA Has Paid $25 million of $45 million Commitment

-Twenty (20) $1 million Payments Remaining (FY08-27)

Charleston Port Development Update

-Status – Permits in Hand; 171-Acre Phase I is Underway; Demolition and Detention Pond Work Already Started

-Terminal Will Be Internally Financed Without Any Taxpayer Dollars or Taxpayer-Backed Debt

-Port Access Road – Permitted; State/Federal Funding Totals $182.5 million

-$167.5 million in Contingency Reserve Funds Appropriated Last Year to SCSPA – Held by Treasurer

Jasper Project – Intergovernmental Agreement

-Joint Project Office (JPO) Formed; Consists of a Six-member Board plus Four Ex-Officio

-Effectively Ends Condemnation; Land To Be Jointly Owned; Initiates Easement Work Along with Environmental and Market Analysis

-Eventually Result in Bi-state Compact; Will Require Approval of Legislatures/Congress

Port Royal Sale

-Properties Back on the Market Following Termination of Pending Contract

–NAI Avant will Continue to Market the Property

On Tuesday afternoon, the Senate Finance Committee met to debate H. 3567, or cigarette tax bill. The bill was amended to call for a 7¢ to 57¢ per pack cigarette tax increase. All of the revenue will go towards Medicaid. I could not in good conscience vote for this plan for several reasons. First, it increases the number of people dependent on government welfare rolls. It is funded by unreliable funds. It only exacerbates the problem of healthcare costs. It depends on matching funds from the Federal Government. What if these matching funds cease to exist or are decreased? We’d have to remove citizens from the benefits or increase taxes. Neither are pleasant.
           
There were several amendments introduced that I did support, but so far, these efforts have failed.
              
The subcommittee chaired by Sen. Thomas Alexander reported out a good starting point. The subcommittee worked with an organization called the Covering Carolina Collaborative, a committee made up of insurance companies, the SC Hospital Association, the SC Chamber of Commerce and others.
               
The subcommittee’s plan calls for an increase from 7¢ to 57¢ per pack cigarettes taxes. This increase would generate approximately $160 million. This money would go into a pool called the “Insure SC Trust Fund”. This fund will be allocated to individuals that purchase health insurance in the form of income tax credits.
              
The interest from this fund will be used in a special account called the “Smoking Prevention and Cessation Trust Fund”, which is obviously for smoking prevention education. The interest should accumulate about $5 million. I voted in favor of this amendment for the simple reason it is much better than the bill the House sent us.
                
There are shortfalls with the plan, however. One is that the tax credits only go to individuals not receiving healthcare currently. In other words, we’re punishing the employers that are currently providing health insurance.
                  
Also, I’m convinced that HSA’s (health saving accounts) are the only concept that will actually curb healthcare costs. The CCC plan isn’t clear as to if the tax credit can be placed in an HSA.
                 
Sen. John Courson will be introducing an amendment on the floor that will be my favorite plan, but getting the votes will be tough. His amendment will be short and simple. Raise cigarette taxes to 57¢ and give an income tax cut. Let the taxpayer decide how he or she will spend the money. Simple enough?

The Green party has lined up strong opposition for Sen. Danny Verdin (R-Laurens). Son of Norwegian immigrant, Lirpa Loof, has filed to run against Sen. Verdin. Working out of his home based lab in Clinton, Dr. Loof is an scientist for Sierra International, a firm base out of Seattle. Since Sen. Verdin is chairman of the SC Senate Agriculture, we can expect an interesting race. Stay Tuned!