Published Tuesday, January 03, 2012 2:23 PM
Updated Tuesday, January 03, 2012 2:24 PM
So, some good news!!! South Carolina is ending 2011 on a brighter economic note than it began. Indicators in the past few months have rendered several encouraging economic forecasts for S.C.!
S.C. Economy Continues to Recover: By measuring the state's sales and income tax collected, SC's economy is continuing its slow recovery. The state's general fund revenue was up 6 percent in November from the same month a year ago. We're apparently buying more – sales tax collections were up nearly 5 percent. Personal income tax collections were up 4 percent while corporate income tax collections were up a whopping 118 percent. Moody, the credit rating firm, has restored S.C.'s top rated AAA credit to 'stable status'. Earlier this summer, Moody had issued warnings to five AAA rated states saying the debt problems with the federal government could affect their credit worthiness. It also allows the refinancing of a series of bonds saving SC taxpayers $24 million.
More Tax $$$ = More Government Spending? I will continue to work to keep that from happening! We all recognize the tendency for government to increase spending when more of your dollars are collected in taxes. Previous estimates show the legislature will have $900 million more available for the 2012-2013 state budget. Unofficial estimates now put that at 1.3 billion! Our priority must be to adequately fund core functions of government, not grow unnecessary programs. Just one example: recession cut-backs diminished our state trooper ranks by nearly 20 percent.
Forecasting the 2012 Legislative Agenda:
1. Comprehensive Tax Reform: Overall South Carolinians pay lower taxes than most other states but we can do a better job! The House GOP Tax Committee, on which I serve, met numerous times during the recess and is moving swiftly to recommend reforms in sales tax exemptions, and property, income taxes and how we can make South Carolina a more fertile ground for both large and small businesses. As part of comprehensive tax reform, I would like to see a complete overhaul of education funding in South Carolina.
2. Continuing Quest for Equitable Education Funding: We made small strides last year when the S.C. House passed H. 3716 which reformed the “EFA formula” and replacing this decades old formula with a “per pupil weighted unit” in its place but the Senate did not take up the bill. We are hopeful that the Senate will take up this bill or similar bills in 2012. With the backing of the Dorchester County Council & School Board, we will continue this work in reforming our state’s antiquated education funding system.
3. Major Pension Reform: With S.C. tackling reform of its state pension program in the coming year, it's a topic we will continue to hear about. Some of the options being discussed involve increasing the years of service for state retirement from 28 to 30 years. Keeping our state retirement system vital is important and will be a large part of this upcoming session. For more information regarding the recommendations of the House ad Hoc Retirement Study Committee visit the following link (http://www.scsea.com/SCSEA_NEWS_12-15-11.pdf).
4. A Responsible Budget: As mentioned above, more revenue is forecast but how it is spent is vital to our state’s well-being. Having extra revenue doesn’t mean that we have “extra” money. The State of South Carolina owes millions to the federal government to keep the unemployment compensation system solvent. Appropriately funding core functions of government, making sure that you the citizens see a value in how your tax dollars are invested in our state and not allowing agencies to operate in deficits are important to our state’s fiscal health. We also must remember that when we have debt, it must be paid back and we should save and have adequate funds in the state's rainy day fund.
Thank you for the privilege of serving you. Should you have any questions or comments, please don't hesitate to call or write.
Representative Jenny A. Horne
jennyhorne@schouse.gov
www.jennyhorne.com
SC House District 94 – Dorchester & Charleston
843-873-1721