A Tale of Two Tax Proposals

Despite lawmakers’ disingenuous claims that South Carolina has some of the “lowest taxes in the nation,” the truth is that South Carolina taxpayers and businesses pay far too much to the state. The principle is simple: Taxes should be low and equitable, and South Carolina’s tax structure, for the most part, is neither. Consider: South [...]

DoT’s Budget – How not to fund an agency

The South Carolina Department of Transportation has one of the largest budgets in state government, yet it can’t afford to maintain the state’s roads. Why? Because most of DoT’s money isn’t state money – it’s federal.  The mission of the Department of Transportation is to maintain a public transportation system “that is consistent with the [...]

The Citizen’s Guide to Restructuring

What’s wrong with the structure of South Carolina’s government? All the power
is held by five-member boards, like the State Financial Affairs Authority and Budget
and Control Board. Major functions should belong to either the executive or
legislative branch; these boards have members from both, making it difficult to hold
any single elected official or legislative body accountable for major decisions.

Creating a Department of Administration – An Update

A new amendment to the Department of Administration bill has hit the Senate floor. Although it’s a moving target, here’s an overview of what the bill would do with state government’s most basic functions. Download as pdf by clicking here. Eliminated: Budget & Control Board, State Financial Affairs Authority The Senate’s first shot at eliminating the [...]

Restructuring Done Right, Part II – A guide for the perplexed

The Senate is currently debating potentially the most important government restructuring legislation in decades (H.3066). The bill is intended to concentrate accountability by separating executive from legislative functions. But what’s “intended” and what gets signed into law are often two different things, and for that reason it’s worth taking a closer look at what the bill would actually do and whether it can be improved.

Restructuring Done Right: Separate and Diffuse Power, Concentrate Accountability

The Senate is currently considering legislation (H 3066) that would eliminate the Budget & Control Board (BCB), devolving the BCB’s responsibilities to a cabinet-level Department of Administration and a newly created entity called the State Financial Affairs Authority (SFAA). The Budget & Control Board would also continue to manage the state retirement system until July 1, 2013, at which time the BCB would be abolished and the retirement system would come under the purview of a new agency, the Public Employee Benefit Agency.

What to watch in 2012

The new legislative session has officially begun, and scores of bills are scheduled for consideration. Here are just a few we’re keeping our eyes on. TRANSPARENCY H.4432 wouldn’t kill the “incentives racket” whereby well-positioned companies lobby for, and get, millions in taxpayer-supported favors that don’t apply to their competitors. What it would do is bring [...]

How (and how not) to cap government spending

If the last few legislative sessions prove anything, it’s that almost nothing can compel state lawmakers to exercise spending restraint. A report released by the National Association of State Budget Officers (NASBO) revealed South Carolina increased state spending by 26.5 percent from 2010-11. The most recent budget is a little under $22 billion, making it [...]

Strings Attached: How State Lawmakers Invite Federal Control

Every year, South Carolina becomes more dependent on the federal government, and every year the state loses more control over its own affairs to Washington DC. The federal government has its hands in education, social services, economic development – and just plain waste. So who’s responsible? State lawmakers say they can’t do anything about it. But the South Carolina Code states that “no agency may receive or spend federal funds” that are “not included in the appropriation act.” In short: Just because the federal government offers money doesn’t mean state lawmakers have to take it.

When writing the state budget: Follow the law

For decades, South Carolina lawmakers have cobbled together the state budget with little input from anyone but lobbyists and bureaucrats. Except for vetoes on the back end, the governor had almost no influence on the budget.