They’re Back

The 2009 session of the S.C. General Assembly – a.k.a. “taxpayer-funded adult day care” – will be gaveled to order this morning as lawmakers return to Columbia to try and find new ways to waste money in one of the worst revenue years on record.

Among other things, the “Return of the Jokers” means that the statue of John C. Calhoun in the State House lobby will have some well-heeled company once again.

What sort of heels, exactly?

Well, we’re hearing from a few of our favorite State House fashionistas that the current snap of cold weather means lobbyists will likely be wearing boots as opposed to heels this week, but we’ll be sure to let you know what we manage to uncover on that front …

In addition to new footwear, there will be plenty of new faces at the Capital this year, as dozens of new members take their first turn around the inbred clusterfuck that is the S.C. “legislative process.”

So does any actual business get done on the first day?

Well, four subcommittees of the powerful House Ways & Means committee will meet to discuss the state budget tomorrow afternoon, and the House Election Law Subcommittee will meet, although it’s unclear whether or not they’ll take up the controversial appeal of former S.C. Rep. Wallace Scarborough.

Here’s the schedule of House business, in case you’re interested. No meetings were published for the Senate.

Basically, lawmakers are facing some of the direst financial straits in state history this year, which means there won’t be as many Scooby snacks to hand out to themselves or their lobbyist buddies.

It also means that every spending item lawmakers try to include in the budget this year will face additional scrutiny – assuming, of course, that they actually let us see how they’re spending our money this year.

Which leads us to the first of what we think will be the top four issues of the upcoming session …

TRANSPARENCY

This obviously isn’t the most important issue on the table, but unless it gets done, there’s no way to follow what lawmakers end up doing on the other really important issues.

So in a way, perhaps it is the most important issue on the table.

Anyway, House Speaker Bobby Harrell has already tried to short-circuit the debate on transparency, but conservative Reps. like Nikki Haley and Nathan Ballentine were having none of it.

Harrell exacted his revenge against both of them last month, quite coldly as a matter of fact, but in doing so he may have only strengthened support for precisely the transparency bill he fears – the one that opens up budget votes for public inspection.

Expect some form of government transparency to become law this year, but it remains to be seen how strong a reform package it will be.

Let’s just say the hypocritical Harrell will have plenty of chances starting today to demonstrate just how committed he is to opening up the most secretive legislature in the nation.

JOBBY-JOBS

With South Carolina’s unemployment rate heading for the stratosphere, this will be a year of big decisions when it comes to the economy.

Will our state follow the rest of the nation in raising taxes, thus creating a massive disincentive for job creation and capital investment?

Or will this be the year that South Carolina finally realizes that it is simply not competitive as a state, and that fundamental reforms to its tax code, regulatory structure, legal system, incentive packages and yes, industrial recruitment strategy, are not only necessary, but long overdue?

South Carolina has a rare opportunity to strike a competitive, conservative balance at a time when practically every other state will be veering hard to the left.

But bold ideas (i.e. tax reductions) must be proposed if that is to happen, not more of the same pocket-swapping, Peter-to-pay-Paul garbage.

Speaking of which, expect an ill-conceived property tax plan from 2006 to get another look, along with dozens of sales tax exemptions. Oh, and then there’s the cigarette tax debate, which Blue Cross Blue Sheild’s Ed Sellers is no doubt pushing full force again this year.

Yet while most lawmakers will no doubt try to tinker around the edges of an antiquated tax code in a desperate attempt to secure more money for government coffers, expect some sweeping tax proposals to come from a handful of conservative lawmakers, as well as a long-overdue debate on how the state’s Board of Economic Advisors assesses the impact of tax cuts on revenue projections.

Or rather how it doesn’t …

EDUCATION – FUNDING AND CHOICE

If there is one politician who is clearly “up against it” this year, it is S.C. Education Superintendent Jim Rex, who has basically run out of spin to deal with the further decline of what was already the nation’s worst system of public education.

Rex has grown his bureaucracy, resisted funding reform, fought legitimate school choice, and helped block transparency in disclosing education expenses – and fundamentally failed to move the state forward at the same time.

Obviously, that record isn’t going to cut it any longer.

The climate for change is dramatically improved this year now that RINO education chairman Bob Walker is no longer around, although it remains to be seen whether there is any appetite in either chamber for real education reform like expanded parental choice, “backpacking” funding reform, school district consolidation, merit-based pay, the creation of an online checkbook or any number of other common sense proposals.

SPENDING AND STRUCTURE

We’ve said it on dozens of occasions previously, but the roller coaster, boom-to-bust spending cycle that continually puts our state in these massive revenue holes simply cannot be sustained any longer.

Certain S.C. politicians have made noise about implementing revenue caps in the past, but there’s simply no good reason not to move forward with them now.

Oh, and if House Speaker Harrell wants to remain so insistent that state spending has only grown by 2.8% annually (editor’s note: whatever), then he shouldn’t have any problem whatsoever in supporting a cap of 3% growth each year.

Similarly, 2009 could bring a much-needed debate on government structure as lawmakers like Murrell Smith (R-Sumter) are pushing comprehensive overhauls of some of our state’s most sacred institutional cows.

And this is the year to do that, given the revenue hole we’re facing and the need for cost savings.

Just as any new spending items will receive greater scrutiny this year, so too will any wasteful, inefficient or duplicative item that’s currently being funded.

Frankly, even after shedding a billion dollars last year, there are still millions of dollars in waste out there just waiting to be cut.

Whether proposed or existing – taxpayers are simply in no mood to tolerate any excess at a time when they are being forced to cut left and right just to make ends meet.

Of course, in stark contrast to Smith’s reform efforts, Speaker Harrell will spend this year pushing a massive expansion of the size and scope of government’s involvement in the private sector.

Which means that similar to all of the other issues discussed here, it will be a “time for choosing” on structural reform, as well.

Stay tuned to FITS throughout the session to find out what choices our lawmakers end up making on all of these issues. It’s “accountability with an attitude,” as our founding editor likes to call it.

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