SCHotline Press Releases

South Carolinians deserve to know how their elected leaders vote when making financial decisions that have an impact on the pocketbooks of taxpayers. Roll call votes are the default practice for legislation with fiscal impact in every single Southeastern state, except for South Carolina.  In the Palmetto state roll-call voting is the exception rather than the rule. 

Voice votes make it impossible for citizens to determine how their elected official voted and this practice should be avoided whenever possible. An attempt by lawmakers to give themselves an anonymous pay raise this week highlights the severity of this problem.

What happened

House Bill 4673 was approved Tuesday via a non-recorded voice vote to give an automatic 2 percent cost-of-living increase to retired lawmakers and state employees each year. Given the Bureau of Economic Advisors’ forecast of a $90 million shortfall in state revenue, citizens deserve to know which lawmakers voted to give themselves a pay raise while state agencies face cuts.

After an outpouring of criticism over granting a pay raise anonymously, Representative Herb Kirsh attempted to reopen debate on the bill through a motion to reconsider. Representative Dan Cooper instead moved to table the motion to reconsider, effectively shutting down any further debate.

Representative Kirsh then called for a roll call vote to force lawmakers to commit themselves, and the House voted 72 to 25 — Click here for individual lawmaker votes on H.4673 — to reject tabling the bill. Lawmakers then held another anonymous voice vote and rejected the previous motion to reconsider and passed the bill on to third reading.

Typically, the third and final reading is just a formality, meaning the bill will pass out of the House and move to the Senate.  However, public outcry continued to build and taxpayer-friendly Representatives rallied, gathering enough votes Wednesday to block passage during the third reading and instead send the bill back to committee on a 58 to 51 vote. Click here for individual lawmaker votes — this move effectively killed the legislation. 

Representative Cooper then submitted House Bill 4992, which would grant the two-percent cost-of-living adjustment to all state employees except for the General Assembly. House Majority Leader Representative Jimmy Merrill objected, and the bill was referred to the Ways and Means Committee.

The lesson

State lawmakers understand voice votes are an effective way to pass legislation their constituents oppose while shielding themselves from personal accountability. Keep in mind, legislators are part-time officials who have regular full-time employment to provide for their retirement. No other part-time state employee is eligible for state retirement – lawmakers have given themselves a generous perk and should be held accountable for the attempt to now pad that benefit.

Just 19 percent of private-sector employees participated in a defined-benefit pension plan in 2007, according the U.S. Department of Labor. Seventy-eight percent of state employees participated in a pension plan. The result is that taxpayers struggling to fund their own retirements are forced to limit their own savings in order to subsidize the lavish retirement packages afforded government workers.

Legislators are citizen-representatives and should not lump themselves in with retired full-time state employees that rely on pensions for the bulk of their retirement income. Taxpayers currently contribute four dollars for every one dollar lawmakers contribute to the legislative retirement fund. This benefit is already more substantial than any plan offered to the average taxpayer.

What retirement plans look like in the Southeast

During the last two decades the number of American companies providing worker pension guarantees has dropped from 39 percent to 19 percent – the Southeast is even lower at just 13 percent.

Even among large employers with more than 100 workers, less than a third receive defined benefit plans, according to the 2007 Department of Labor National Compensation Study.

Lawmakers should not be allowed to vote off-the-record when they spend taxpayer dollars. Voice votes on fiscal legislation make it impossible for the average taxpayer to hold their elected officials accountable – clearly South Carolina citizens deserve more transparency in government.

Summary

As the South Carolina Policy Council has previously cited, roll call votes are the default practice in Georgia, Alabama, Mississippi, Kentucky, Florida and Tennessee. In North Carolina, roll call votes are required by law for all bills with a fiscal impact. In South Carolina however, electronic roll call voting is the exception rather than the norm. 

This week’s events illustrate why South Carolina must fall in line with its fellow states and mandate roll call voting. Such practices are critical for taxpayers to make informed decisions regarding their legislators and for personal accountability in government.

Bryan D. Cox

Communications Director

South Carolina Policy Council

1323 Pendleton Street

Columbia, SC 29201

Phone: (803) 779-5022 Ext. 4

Cell: (803) 521-1988

Fax: (803) 779-4953

STATE OF SOUTH CAROLINA

THE SENATE

For Immediate Release

Senate Summary

Week of April 8 - April 10, 2008

Quote of the Week: “Today’s decision was one of the toughest I have made in my 28 years in the Senate. No one has fought harder for state employee benefits than I have, and as we move the budget process forward I will try to find ways to hopefully increase the pay for our hard-working, dedicated state employees.”

Senator Hugh Leatherman, Senate Finance Committee Chairman, commenting on the committee’s 

decision to eliminate a 2% pay increase for state employees after the BEA reduced its estimate 

of expected state revenue by $90 million for fiscal year 2008- 2009.

Finance Committee – Emergency Meeting (Tuesday, April

The Senate Finance Committee held an emergency meeting this week to take another look at the budget and further reduce spending after the Board of Economic Advisors projected a $90 million revenue shortfall for the budget year beginning July 1, 2008.

Just over a week ago, on Thursday, April 3, Senate Finance Chairman Senator Hugh Leatherman (R-Florence) and Vice-Chairman Senator Harvey Peeler (R-Cherokee) touted a “pork-free” budget that was responsible and balanced. Among other priorities the proposed budget fully funded education and provided a two-percent pay increase for state employees.

During the meeting this Tuesday, the Finance Committee voted to take the two-percent raise for state employees off the table in order to reach the additional $40 million in spending reductions needed to balance the budget.  

The full Senate is expected to begin its budget debate on Tuesday, April 15.

Common Law Marriage Recommitted to Judiciary (Thursday, April 10)

The debate on common law marriage continued this week after a two-week break. The issue has been debated at length since it first came to the full Senate in late February. After a final attempt to end the debate failed, the Senate recommitted the bill to the Judiciary Committee. 

Drug Testing Bill Gains Key Senate Approval (Wednesday, April 9)

In an effort to “restore the trust and confidence of the public” in elected officials, Senator Harvey Peeler                 (R-Cherokee) this week offered amendments to the Candidate Drug Testing Bill (S.1070) that provide guidelines for candidates who voluntarily submit to a test for illegal drugs and the publishing of the test results.  

The State Election Commission will publish the results of the test on its website along with the candidates full name and the office sought. The results of the test would be available thirty days prior to the election and would remain on the website for ninety days after the election.

The bill sets the same testing standards as those currently applied to commercial drivers.

EMSAP One Step Closer to Replacing PACT  (Wednesday, April 9)

The Senate Education Committee gave favorable approval this week to a bill (H.4662) that would replace the Palmetto Achievement Challenge Test (PACT) with the Elementary and Middle School Achievement Program (EMSAP). The committee’s decision makes it possible for the EMSAP in place by the 2008-2009 school year. Educators are supportive of moving to a new year-end assessment test because the current test does not provide teachers and students with a timely and useful evaluation of the student’s current level of achievement. This is also the final year of a ten-year contract with the company that produces the PACT.

The committee did delay the expansion of the formative test assessments until 2009-2010. Currently, formative test assessments are given to students in grades 3-8, the proposed changes would expand the assessments to grades 1-9. Committee members were concerned the extra funding needed to expand formative test assessments to grades 1-9 may not be available given the recent downward estimate of state revenue by the Board of Economic Advisors.  

After the committee voted to give the bill a favorable recommendation a minority report was placed on the bill, which could delay further action in the Senate unless the bill is placed on Special Order. 

State Ports Authority Nominees Approved by Transportation Committee (Wednesday, April 9)

The Senate Transportation Committee, Chaired by Senator Larry Grooms (R-Berkeley), gave a favorable recommendation to all three of the Governor’s nominees to the South Carolina State Ports Authority Board.

 Nominees Richard Hagins, a former Navy commander, and Douglas Robertson, a long-time corporate businessman, are both up for initial appointments with terms set to expire on February 13, 2010. William Stern, the third nominee, is the current vice-chairman of the State Ports Authority Board and is up for re-appointment to the board. Stern’s term will expire on February 13, 2015.  

The nominations now go before the full Senate for consideration.

Wireless Broadband Misconceptions Dispelled (Thursday, April 10)

Senator Glenn McConnell (R-Charleston) along with Senators Luke Rankin (R-Horry) and Brad Hutto      (D-Orangeburg) provided much needed clarity to the misinformation surrounding the status of a statewide wireless broadband network this week during Senator McConnell’s weekly ETV show, ‘This Week in the Senate.’

ETV is under a federal mandate to restructure its closed circuit educational broadcast spectrum. The closed circuit spectrum provides education-specific programming to school and other organization, and is not part of ETV’s public broadcast signal. The restructuring of the closed circuit spectrum will create excess capacity for other uses like wireless broadband.

Legislation (H.4735) is currently under consideration in the Senate to establish the South Carolina Educational Broadband Service Commission, which will accept and review all proposals from private entities desiring to lease the excess spectrum. Estimated market value of the spectrum ranges from $70 million to over $137 million.

The April 10 episode of  ‘This Week in the Senate’ can be seen on ETV’s website.

Workers’ Compensation Commissioner Confirmed by Judiciary Committee (Tuesday, April

After more than a half-hour of questions the Senate Judiciary Committee gave a favorable recommendation to the re-appointment of current Workers’ Compensation Commissioner Derrick L. Williams. Williams was first appointed to the Commission in March of 2007, to complete the term of J. Michelle Childs.  The committee’s recommendation now goes to the full Senate for consideration. 

Samuel F. Painter was also up for consideration as a Workers’ Compensation Commissioner, but has decided to withdraw his name.  

Workers’ Compensation Commissioners serve a six-year term.   

Coming Up Next Week

The Senate is expected to begin debate on the General Appropriations Bill 2008-2009 (H.4800) and the appropriation of funds from the Capital Reserve Fund for Fiscal Year 2007-2008 (H.4801) when it convenes on Tuesday, April 15, at 12:00 PM.

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FOR IMMEDIATE PRESS RELEASE

Contact: Chad Connelly

chad@sandlappergrp.com

“This is why I’m running for House District 2. This is just one more glaring example of why the people of South Carolina need change in the way business is done in Columbia. I want to go on record now that when I’m your representative, not only will I not vote to give myself a pay raise in the midst of a budget crisis, but I don’t want, don’t need, nor will I even accept a pension from the State of South Carolina for my service in the House of Representatives,” said Republican Ed Rumsey when informed of the backdoor pay increase the legislators gave themselves this week in Columbia.

SC Club for Growth Denounces SC House Giving Legislature a Backdoor Pay Increase

Bill increases total cost to underfunded retirement system by $2.4 billion

April 8, 2008 - The South Carolina Club for Growth today called on the South Carolina Senate to show fiscal discipline and reject the House of Representatives’ backdoor pay increase for legislators.

Today’s new legislative perk, hidden inside a larger bill which increases the state’s unfunded liabilities, increases legislators’ pensions by 2% each year one day after the state’s Board of Economic Advisors cut state revenue estimates by $180 million over the next two years.  The legislative pension system is already three times more generous than the regular state employee system - and the regular system is reportedly more generous than 90% of similar public plans around the country according to a study done by the state Chamber of Commerce.

“It’s appalling that the House would pass this legislation without considering the long-term impact.  Our state faces $20 billion in unfunded benefits to retirees and today’s decision adds billions in guaranteed new expenses to the retirement system.  Press reports today quote an outgoing legislator telling a constituent to ‘get elected like I did’ if he wants a similarly generous retirement.  We think it’s time for some legislators to get unelected given their disdain of the taxpayers.”  

“In their haste to pad their own pockets, Legislators seem to have forgotten who pays their bills.  Like other changes to the retirement system that have put us billions of dollars in the hole, this bill amounts to fiscal child abuse as the costs eventually must be borne by future generations,” said Matt Moore, Executive Director of SC Club for Growth.

“On top of that, House members evaded responsibility to their constituents by passing the bill without a roll-call vote.  It’s shameful that in an election year these Representatives are trying to hide their actions from their constituents.  We’re hopeful the Senate will recognize the problems with the bill and reject it.”

Related items:

One legislator tells a constituent to “get elected” if he wants a similar retirement http://blogs.thestate.com/bradwarthensblog/2008/04/a-senator-expla.html

The State’s Cindi Scoppe says legislators shouldn’t sweeten their “uber-generous”  pension system

http://www.thestate.com/editorial-columns/story/367517.html

For Immediate Release:

Contact:

Scott Malyerck

(803) 734-2665

State Treasurer calls upon General Assembly to support revised bill

(Columbia, SC)…Today’s press release and commentary from the governor’s office on the bill that addresses the unfunded liability of the

state retirement systems is misleading, irresponsible and shows a lack of understanding of the huge potential financial problem the state faces.

The release states, “…the (bill) would add significantly to the long-term debt of the retirement system.” Wrong. The cost of granting an additional

1% funded COLA will be offset by the simultaneous increase in the earnings assumption. The current unfunded liability liquidation period is 28.9 years and the current funded ratio is 67.7%. After implementation of this legislation,  the unfunded liability liquidation period would be 28.5 years and the funded ratio would be 69.6%

Sound complicated…you bet. Our statistics factually correct…no question.

The bottom line is that if this legislation passes, it would result in no additional cost to the taxpayer.

Also, the governor’s office release states, “…the new assumed rate of return (of 8%) in the bill would be 11 percent higher than the national median for public

funds, 33 percent higher than Georgia’s retirement system, and 43 percent higher than North Carolina’s retirement system.”

Wrong again. The governor’s office assertion that the 8% return assumption contemplated by the bill is “11 percent higher than the national

median for public funds” implies the the national median is 7.21%, and the governor’s office statement that it is, “a full 43% higher than North

Carolina’s retirement system” implies that North Carolina’s assumption is 5.59%. Both of the assertions are in direct conflict with the reality that the

national median is 8%. In fact, North Carolina’s assumed rate of return is 7.25%.

The governor’s office release also states that they believe, “…we ought to be able to cover real liabilities with real assets.” The COLA task force plan recognizes that we are likely to realize substantial growth in our investments as a result in changes that both the governor and the voters supported by constitutional referendum in 2006, permitting the state to invest in more modern investments. These changes position the state on equal footing with other states whose investment portfolios have realized significantly higher actual returns over time. Our expectations for future returns should be no less.

The governor’s office calls this landmark legislation, “..a smoke and mirrors move.” Well, if there is smoke, it seems to be clouding the governor’s

office understanding of a very important financial issue that the state must address.

It’s true that for years the state has not effectively dealt with this issue, but a real consensus was reached earlier this year and it’s time to act.

It is unfortunate that the governor’s office is implying that the State Treasurer, the governor’s past appointee as Treasurer, the Comptroller General, business leaders, teachers, law enforcement organizations, our state’s retirees, state employees, and many other top financial leaders are wrong…and that they are right.

This bill does not add to the long-term debt, but in fact systematically reduces the state’s liability.

The fact of the matter is that if this legislation does not pass, the State Budget and Control Board will face the choice between not granting a COLA

to retirees for the first time in 40 years, or, granting a COLA and passing the cost on to South Carolina taxpayers.

This is a complex issue that needs to be addressed through responsible leadership. Now is not the time for games and grandstanding. The people of South Carolina deserve more. It’s time to take politics out of this issue and insert some real leadership.

# # #

CONTACT: Sandra Courie, Office of the Lieutenant Governor

803-734-2080

FOR IMMEDIATE RELEASE

April 10, 2008

COLUMBIA - Lt. Governor Andrè Bauer’s office today announced the 180 winners of the 2008 Lt. Governor’s Writing Awards Program. The annual event recognizes the state’s public, private and home-schooled student writers at the fifth and eighth grade levels.

All of the winners will be recognized at 10 a.m. Monday during ceremonies at St. Andrews Baptist Church, 230 Bush River Road in Columbia. Recipients, parents, guardians, school and district officials have been invited. About 1,000 people are expected to attend.

The Lieutenant Governor’s Writing Awards Program began with Lt.

Governor Nancy Stevenson in 1979. The first meeting was held with district superintendents in the South Carolina House Chamber on May 7, 1979. Since that time, award ceremonies have been held in congressional districts, and regional statewide locations.

All fifth and eighth graders participate in the writing contest. Each class selects one top essay to be submitted to vie as the school winner.

The school winner is chosen and sent to a district coordinator who facilitates the selection of a district winner. A judging panel made up of the Lt. Governor’s Writing Award Executive Committee reads the approximate 80 essays from the private and home schools and chooses four Regional Winners.

“Our purpose in making these awards is to promote stronger writing skills, greater reading interest, and superior communication skills in our state’s next generation,” said Lt. Governor Bauer. “We are excited that through the generous support of some South Carolina businesses, both the writing awards program and the summer workshop are provided without the use of tax dollars and are free for the children who participate.”

The Lt. Governor’s Writing Program Executive Committee members are:

Deloris Brown, SCANA Corporation; Dr. Kathy Coleman, Clemson University; Jeanie Ferrer, former public school teacher; Patsy Grimes, School District Five of Lexington and Richland Counties; Linda Montague, former teacher at Gilbert High School; Jean Beilly, retired public school teacher; and Richard White, USC Research Foundation. The program is administered by Sandra Courie, State Coordinator for the Lt. Governor’s Writing Awards Program.

FOR IMMEDIATE RELEASE

Contact: Neil Mellen

(803) 212-1051

Dan Cooper has been caught with his hand in the cookie jar. He and his big-spending friends in Columbia were trying to sneak themselves a pay hike, just as economists announced the state is strapped for cash.

The controversial bill includes annual increases, with more money for legislative pensions every year. Their lavish perks include payments over three times state employees’ and threaten to raise the retirement system’s debt to a whopping $2.4 billion.

“This is a shameless money grab,” explained Randy Page, President of South Carolinians for Responsible Government.

Cooper is also pushing for nearly $20 million worth of pork and “grants” 

to special interests. The bills were introduced despite news that South Carolina is already running a $50 million deficit for the year. Money promoting tourism and economic development had to be stripped from the budget for “lack of funds.” Only once reporters published details of the pension bill did Cooper and others quietly return the legislation to committee.

“These fat cats have pushed for higher taxes and more spending every year. Now, as the money slows, they are still enriching themselves –and their friends– at the public’s expense.

Spending in Columbia is out of control. For years, government growth has outpaced wages and prices. Now, as government revenues begin to dip, selfish lawmakers are scrambling to expand and enshrine their own benefits. Voters will not forget this unapologetic greed in November.

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STATE OF SOUTH CAROLINA
THE SENATE

For Immediate Release
April 3, 2008

Senate Finance Committee Passes Lean Budget Eliminates $30 Million in Special Projects - Education Top Priority

Columbia, SC - The Senate Finance Committee today completed budget discussions that clearly demonstrate education is a top priority.  The
$7 billion budget fully funds the Education Finance Act, maintains the school bus replacement program, and continues four-year-old kindergarten among other priorities.

“The Senate had to bite the bullet and eliminate special projects from the budget and as a result I think we have a very responsible appropriations bill,” says Senate Finance Chairman Senator Hugh Leatherman (R-Florence). Based on warning signals from the Board of Economic Advisors the Senate budget process started with $50 million less than the House budget.

Details of the budget include funding the Education Finance Act with
$2,578 per student, replacing 551 school buses this year as part of the 15-year cycle program, funding teacher salaries at $300 above the Southeastern average, and provides a 2% pay raise for other state employees.

Money from the SC Education Lottery was used to fully fund Life, Hope and Palmetto Fellows Scholarships eliminating the need to use money from the general fund. The Senate version of the budget also provides continued funding to four-year-old kindergarten programs in 35 school districts.

“The budget process required tough decisions, but I think we have achieved a pork-free budget that is lean yet balanced and reflects the reality of the state’s economy,” says Senate Finance Vice-Chairman Senator Harvey Peeler (R-Cherokee).

The Finance Committee eliminated more than $30 million in special projects some of which had been in the budget for years. State agencies received an average 3.6% cut in funding.

“This year we had to tighten our belts, but as the economy improves we will restore funding to agencies that felt the effects of our current economic environment,” says Senator Leatherman.

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James M. Miles the former Secretary of State of South Carolina is to be named Lt. Governor Andre Bauer’s Chief of Staff according to sources close to SCHotline. We will continue to follow this story as it develops, stay tuned to SCHotline.com for ‘Insider politics from across the State of South Carolina’.