(Gaffney, SC) State Senator Harvey Peeler today announced his efforts to establish the I-85 Cherokee Spartanburg Corridor Authority to oversee the recommendations of Department of Transportation’s I-85 widening report, which was issued back in June 2007. Senator Peeler believes the DOT has been lax in taking up the recommendations and it’s costing our region the opportunity for new jobs.

“We’ve seen money pouring into the coast and yes, Boeing was a good investment, but its time for equal economic development vigor in the Upstate, particularly I-85, Peeler said. “We can’t recruit new high paying industry without a strong infrastructure and the I-85 corridor between Cowpens and the North Carolina line need attention for economic development and safety reasons.”

Senator Peeler continued “it’s become pretty obvious that the state’s DOT is going to continue ignoring this problem, so I’m making I-85 my new Highway 5 (Highway 198 and Highway 5 between Blacksburg and York) effort.

The new authority will comprise of seven members – three appointed by the Senate, three appointed by the House and the President of Spartanburg Community College. Its mission is to work with any and all agencies to fund the I-85 widening and necessary water and sewer projects through grants, public and private donations, gifts and federal funds.

“Our region has been hit hard during this economic downturn and its time we hit back,” Peeler said.

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“I’ve appointed these senators to serve on the subcommittee because of their leadership in health care issues”, Senator Peeler said. “I want their political DNA to be on health care restructuring before the bills are passed out of the Medical Affairs Committee.”

The subcommittee will begin its work this Fall.

Legislation Details:

S. 384 – Sen. Leventis and Sen. Courson
Establishes DHEC as a cabinet agency with a Secretary of Health and Environmental Control appointed by the Governor.
Creates two boards under the Secretary: a Board of Health and a Board of Environmental Control. Each board consists of 3 members appointed by the Governor

H. 3199 – Rep. Jim Harrison
Creates a Department of Behavioral Health Services – a cabinet level agency. The new agency merges the Department of Mental Health, the Department of Alcohol and Other Drug Abuse Services, and the Continuum of Care.

H. 3314 – Rep. Jim Harrison
Establishes the Department of Disabilities and Special Needs as a cabinet agency with a Secretary appointment by the Governor. The current DDSN Board becomes an advisory board.
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State Sen. Harvey Peeler is correct when he points out that the state needs a shock absorber to even out the jolts from poor spending decisions.

The senator’s metaphor describes the situation well. A shock absorber takes up some of the impact of holes in the road, evening out the ride of a car by limiting the up and down movement of the suspension.

South Carolina has been made car sick by the ups and downs of state spending and budget cuts. The cycle of legislative spending is clear. When the economy is growing, the General Assembly spends all the money it can, every dime that is forecast to come into the state’s coffers. Lawmakers give no thought to the inevitable economic downturn. For instance, last year, lawmakers spent more than $1 billion in revenue growth.

When the economy falls, the state cannot support the bloated budget lawmakers have created, and dramatic budget cuts are necessary. Because that $1 billion was spent last year, lawmakers had to cut the budget 7 percent this year.

There is nothing to soften this up and down cycle, but a cap on spending would limit the highs and lows, absorbing the shocks.

When lawmakers find themselves with millions in new money to spend, a limit would force them to put aside some of the money. This would restrain the growth of the state budget and give the state a cushion of savings with which to handle economic troubles.

The state’s budget would not rise so high in good times, and fewer cuts would be needed in a recession. For instance, if lawmakers had instituted a cap that was proposed in 2004, the state would be enjoying a $200 million surplus this year rather than calling an emergency session of the General Assembly to pass major budget cuts.

There are two major versions of the spending limit proposed. Gov. Mark Sanford advocates a limit based on the state’s population growth plus the inflation rate. The theory is that such a limit would not allow the budget to grow faster than the state.

Senate President Pro Tem Glenn McConnell proposes an alternate cap based on a 10-year average of state revenue increases. This would keep spending from outstripping the state’s income.

McConnell and other legislative leaders are recognizing the need to stop what he calls “the feast or famine budgeting cycle.” Lawmakers have proven that they cannot restrain themselves. They need an imposed limit on their spending. And citizens who fund and depend on state services need an end to this unstable cycle. Lawmakers should adopt one of these state spending caps.

Spartanburg Herald-Journal
October 28, 2008

Giddy with the smell of cash in good times, South Carolina lawmakers send money to every corner of the state. Then come the bad times, and legislators must take back large chunks of the bounty.

With the bad times comes a familiar song and dance, a tune that ends with lawmakers on both sides of the aisle singing never again. And that’s where the story ends.

Fade to black, roll the credits and start the show over again.

The scene played out again in Columbia last week when lawmakers gathered to cut 7 percent, or about $490 million, from the state’s $7 billion budget. The special session was mostly ceremonial – the bill sent to Gov. Mark Sanford’s desk was the product of a deal struck between the House Ways and Means and the Senate Finance committees.

It was the last act for Smith, R-Spartanburg, who is retiring after 16 years in the House. But he said the new cast of characters will follow the same script unless the Legislature acts to limit spending.

“If there’s money there, people want to spend it,” Smith said. “Nothing is going to change until we have a true spending limit that people can understand.”

Smith has pushed for a spending cap since the last downturn, in the first years of the new century. He said his idea wasn’t as warmly received as he imagined it would be.

“Spending was my big issue, and I never felt so ostracized as I did when I advocated for spending limits,” Smith said. “There were some who suggested I was betraying Republican concepts by saying we needed a limit. But that doesn’t resonate in homes across South Carolina. I don’t think there’s anybody at home right now thinking it’s a good time to go out and spend more than they have.”

There are strong signs that the idea is catching on – although there is still disagreement about the best method.

Sanford, who has sought to lower spending since his election in 2002, prefers a formula based on inflation plus population growth. Had lawmakers instituted such a cap in 2004, the state would have a $6.2 billion budget this year and would be sitting on a surplus of about $200 million, according to figures from the Governor’s Office.

Sanford spokesman Joel Sawyer said a spending limit wouldn’t be a magic bullet.

“A spending cap doesn’t mean that government won’t have hard choices to make,” Sawyer said. “But they could be made over time instead of all at once. But if they introduce caps, politicians are going to have to do their least favorite thing – and that’s say no to people.”

An idea that was pitched, and rejected, during last week’s budget-cutting session was to base the budget on the previous year’s actual tax collections – rather than estimates from the state’s Board of Economic Advisors – and to put any extra money into a reserve account.

Another option, offered by Senate President Pro Tem Glenn McConnell, R-Charleston, last March would use a 10-year rolling average to limit the amount of revenue the state could raise. Any amount above the limit would have gone into a reserve fund. The Senate debated the bill in May, but returned it to the Judiciary Committee.

Sen. Harvey Peeler, R-Gaffney, said the frustration level in the General Assembly, and in the general public, could provide the needed incentive to implement a spending limit next session. He said he shares Sanford’s preference for the inflation-plus-population-growth formula.

“That’s the ultimate goal, but at the very least we need what Senator McConnell is pushing,” Peeler said. “I call it a shock absorber. In good times we’d have a reserve fund, and we could access it in bad times and not have midyear cuts like this. It’s past time.”

By Robert W. Dalton
Spartanburg Herald Journal
October 26, 2008

“Absolutely,” Sanford said during a lunchtime visit to Daddy Joe’s Beach House and Barbecue. “Those who don’t learn from history are destined to repeat it.”

The Gaffney stop was part of Sanford’s 10-city, two-day tour to renew his call for government restructuring, which has been a hallmark of his six years in office. Comptroller General Richard Eckstrom and state Rep. Nathan Ballentine traveled with Sanford, and state Sen. Harvey Peeler joined them at Daddy Joe’s.

Sanford said spending limits are needed to prevent the ups and downs of the economic cycle from wreaking havoc on the budget. He said he favors limiting spending increases to a formula of population growth plus inflation.

“We need to put on the speed brakes,” Sanford said. “When times are good, we spend too much. When times are not so good, we cut right past muscle and into the bone.”

Sanford also urged lawmakers to create the Department of Administration, which would take over many of the duties of the Budget and Control Board. He said creating the department would give South Carolina’s governor the same power enjoyed by governors in the other 49 states.

“I ain’t asking on my behalf,” Sanford said. “I’m going to be gone in two years. I’m asking on behalf of future governors. It is essential to provide the proper balance of power.”

Ballentine, R-Irmo, said one of his top priorities in the session that begins in January would be to push legislation requiring on-the-record votes.

A bill that Rep. Nikki Haley has said she would pre-file in December would require roll-call votes on certain legislation, including every section of the budget,

second reading on all bills, third reading on any bills that were changed after second reading and committee reports.

By Robert Dalton
The Spartanburg – Herald Journal
October 17, 2008

“Absolutely,” Sanford said during a lunchtime visit to Daddy Joe’s Beach House and Barbecue. “Those who don’t learn from history are destined to repeat it.”

The Gaffney stop was part of Sanford’s 10-city, two-day tour to renew his call for government restructuring, which has been a hallmark of his six years in office. Comptroller General Richard Eckstrom and state Rep. Nathan Ballentine traveled with Sanford, and state Sen. Harvey Peeler joined them at Daddy Joe’s.

Sanford said spending limits are needed to prevent the ups and downs of the economic cycle from wreaking havoc on the budget. He said he favors limiting spending increases to a formula of population growth plus inflation.

“We need to put on the speed brakes,” Sanford said. “When times are good, we spend too much. When times are not so good, we cut right past muscle and into the bone.”

Sanford also urged lawmakers to create the Department of Administration, which would take over many of the duties of the Budget and Control Board. He said creating the department would give South Carolina’s governor the same power enjoyed by governors in the other 49 states.

“I ain’t asking on my behalf,” Sanford said. “I’m going to be gone in two years. I’m asking on behalf of future governors. It is essential to provide the proper balance of power.”

Ballentine, R-Irmo, said one of his top priorities in the session that begins in January would be to push legislation requiring on-the-record votes.

A bill that Rep. Nikki Haley has said she would pre-file in December would require roll-call votes on certain legislation, including every section of the budget,

second reading on all bills, third reading on any bills that were changed after second reading and committee reports.

By Robert W. Dalton
Spartanburg Herald Journal
October 17, 2008

Lawmakers will return to Columbia Monday to begin hacking away at the state’s $7 billion budget.

The state’s Board of Economic Advisors last week cut revenue estimates for the fiscal year by 6 percent, setting the stage for the Legislature’s special session. House Speaker Bobby Harrell and Senate President Pro Tem Glenn McConnell said in a statement they would seek to reduce spending by 7 percent, or about $490 million.

“We’re literally plowing new ground here,” said Sen. Harvey Peeler, R-Gaffney. “We’re going in to make targeted cuts, and the entire budget is the target.”

In lowering the revenue projections, the Board of Economic Advisors cited faltering sales tax collections. Peeler said that was no surprise given that the state’s tourism industry has been decimated by the global economic crisis.

“When you hang your hat on tourism, it’s great when people are on vacation,” Peeler said. “But when people don’t have the money to fill up their gas tanks, it hits us right in the pocketbook.”

The House Ways and Means Committee will meet at 10 a.m. Friday to approve a bill containing targeted cuts. The full House convenes at noon Monday.

The Senate Finance Committee also meets Monday to begin working on its proposal.

The bill must receive three readings in each chamber. Harrell and McConnell said legislators will not be paid for the special session, which will last at least a week, but they will be reimbursed for mileage and lodging.

The state Budget and Control Board in August ordered 3 percent across-the -board cuts after the Board of Economic Advisors first reported that tax collections were down. Gov. Mark Sanford, who sits on the Budget and Control Board, opposed the move, saying he preferred targeted cuts that prioritized spending.

When they adjourned in June, lawmakers passed a resolution clearing the way for a special session if revenues were off by at least 4 percent.

Peeler said his goal next week would be to protect public education, public safety and health care.

“I think we have to hold those three harmless,” Peeler said. “But everything else is on the table.”

Rep. Scott Talley, R-Moore, also said lawmakers would have to take a “long, hard look” at education and public safety before trimming there. He suggested that a good place to start cutting would be to reconsider Gov. Mark Sanford’s budget vetoes that were overridden.

Rep. Keith Kelly, R-Woodruff, said it was unlikely that any agency would escape unscathed.

“In this economic downturn, there’s not a ‘sacred cow’ alive,” Kelly said. “(Spartanburg School District Four Superintendent) Rallie Liston has already told me he’s preparing for the worst.”

Kelly said that in addition to declining tax collections, the problem is compounded by the Legislature’s elimination of two income sources – the sales tax on groceries and the elimination of the bottom income tax bracket.

“People seem to forget that we cut two streams of revenue,” Kelly said. “So we’re taking in less money by design, and then you have the economic downturn.”

By Robert W. Dalton
Spartanburg Herald Journal
October 15, 2008

The issue has been pushed by Gov. Mark Sanford and is supported by some House members and Senate President Pro Tempore Glenn McConnell. House Speaker Bobby Harrell has questioned the need for it and the cost of such a change.

Rep. Nikki Haley of Lexington unsuccessfully pushed a bill during the last session to require roll call voting for all legislation dealing with spending matters. She said she is introducing such legislation again.

Peeler said he will file a companion bill in the Senate as well as urge a rules change on the first day of the session.

“We will not fix South Carolina’s economy until legislators can be held accountable for their votes on government spending,” Peeler said in a statement released today. “Roll call voting will shine a light on the entire system, creating the transparency needed by legislators and deserved by taxpayers.”

According to a study released in August by the S.C. Policy Council, the vast majority of votes taken in the Legislature last year on bills that passed occurred without individual lawmakers recording how they were voting. Instead, most legislation passed on voice votes, making it difficult to determine which lawmaker supported which issue, according to the study.

Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana and Mississippi, according to the study, require roll-call votes on final passage of all bills. Tennessee requires roll calls on all appropriation bills, according to the study, while North Carolina requires roll calls on all revenue bills up for second or final reading.

House and Senate leaders at the time took issue with the study’s conclusions. According to a House tally, it took 1,102 roll-call votes over the past two years, including bills that didn’t pass.

South Carolina requires roll calls on elections by lawmakers, vetoes by the governor, contested bills in the House, amendments to the state’s Constitution and any time 10 or more House members or five or more senators request a roll-call vote.

By Tim Smith
The Greenville News
October 2, 2008

(Columbia, SC) – South Carolina Senate Majority Leader Harvey Peeler today released the following statement on roll call voting legislation:

“There’s an old hymn we sing in church that goes ‘when the roll is called up yonder, I’ll be there.’ That’s the tune I’ll be singing next session and I’ll be passing song sheets around the Senate Republican Caucus so that my colleagues can sing with me.

South Carolinians are angry…and they should be. Although the current national financial crisis is stealing many of the headlines, South Carolina is facing a $70 million budget shortfall and the highest unemployment levels in fifteen years. Individual accountability and more government transparency highlight almost every conversation I have with constituents.

Editorials, press releases and blogs are great for bringing attention to an issue, but it takes real work to bring about change. It is time we start doing the work South Carolinians elected us to do. It might create more work. It might require us to work longer. It might even make us sit in a room with people we don’t particularly like. As leaders we must put petty political arguments and partisanship aside and focus on what is best for South Carolina, not the next election.

It starts with roll call voting. We will not fix South Carolina’s economy until legislators can be held accountable for their votes on government spending. Roll call voting will shine a light on the entire system, creating the transparency needed by legislators and deserved by taxpayers. There are two ways to accomplish this mission in the State Senate. The first is through a rules change on the first day of session, which I will be rallying our Caucus members around. A rules change is the easiest and quickest way to ensure transparency.

In addition to the rules change, I will file companion Senate legislation to Representative Nikki Haley’s House bill, which requires a roll call vote on spending bills and all other bills other than resolutions and recognitions.

Critics have two complaints. Many say that roll call voting will slow the Senate down. My response…so be it. We need to slow our work down and deliberate more on legislation. Far too often wasteful spending is inserted into bills and passed quickly without debate.

Other critics say that we already have roll call voting. All we need are five Senators to call for it. Well, we already have standardized business practices, but that did not stop the financial crises on Wall Street, and our current rules have not stopped wasteful spending in South Carolina.

Putting our state back on a course that leads to job creation and economic growth must be top priority for the General Assembly next year. And, I think it begins by joining hands and singing a song of transparency and responsible spending. ”