The state’s business community made their voices heard again this week on the need for passage of comprehensive tax reform. As a result, it is expected the measure will be considered when the legislature returns to Columbia for a few days in mid-June. Business leaders, responding to a Legislative Alert from the South Carolina Chamber of Commerce, sent numerous e-mails this week to S.12 conference committee co-chairmen, Sen. Nikki Setzler (Lexington) and Rep. Brian White (Anderson), urging them to resolve differences and pass the bill this year. Other members of the conference committee are: Sens. Thomas Alexander (Oconee) and Phillip Shoopman (Greenville) and Reps. Jim Battle (Marion) and Jim Merrill (Charleston).

It is expected the conference committee on S.12 will meet between now and June 16, but it is still imperative the business community continue talks with legislators about the urgency for a comprehensive tax reform bill this year.

Legislation to restructure and stabilize the South Carolina State Ports Authority (SCSPA) passed the General Assembly Thursday. The legislation will now be sent to Governor Mark Sanford, who will likely veto the bill. The General Assembly will take up all gubernatorial vetoes when they return to Columbia on June 16.

The final port package ensures the SCSPA creates five and 20-year long-range development and financing plans. In addition, it prohibits the governor from removing port board members at-will and sells a portion of the land on Daniel Island, which the Ports Authority currently owns, with proceeds of any sale remitted to SCSPA. The SCSPA will continue ownership of land on Daniel Island that involves the disposal of dredged materials.

Assuming the General Assembly overrides an anticipated gubernatorial veto, the passage of the port restructuring legislation paves the way for the hiring of a world-class SCSPA CEO in the near future.

H.3305, legislation protecting a worker’s right to secret ballots in union elections, stalled this week as Sens. Phil Leventis (Sumter) and Robert Ford (Charleston) continued their objections to the bill. The legislation passed the House of Representatives in March on a bi-partisan vote and passed the Senate Judiciary Committee on a 17-2 vote. It then stalled on the Senate floor when Senate leaders failed to provide a Special Order slot for the legislation.

The business community has been working all session in conjunction with Rep. Eric Bedingfield (Greenville) and Sen.  Harvey Peeler (Cherokee), chief authors of the legislation. Both legislators continued to press senators to pass the legislation right up until adjournment Thursday afternoon.  H.3305, which amends the state constitution to protect South Carolina workers, has significant support among the overall Senate, but it stalled on the Senate calendar behind a number of contentious issues. 

On Tuesday, Governor Mark Sanford vetoed the main spending portion of the General Assembly’s budget and the section that spends federal stimulus funds, which he has advocated using to pay down state debt. The governor also vetoed 47 other items in the budget. The House and Senate quickly acted, overriding the stimulus funding portion and numerous other budget vetoes.

In response, Governor Sanford filed a federal lawsuit to stop the disputed funds from being spent in South Carolina unless they are used to pay down debt, saying the General Assembly’s attempt to compel him to apply for the money oversteps federal law and the state constitution. Though it appears the courts will resolve the stimulus issue, there is movement at the congressional level to change the way the federal stimulus legislation is written to enable dollars to come directly to state agencies, bypassing both Governor Sanford and the General Assembly.

On Wednesday, a new report evaluating the current condition of South Carolina’s highway transportation system was released at the State House. The report, Future Mobility in South Carolina: Meeting the State’s Need for Safe and Efficient Mobility, analyzes road and bridge conditions, traffic congestion, economic development, highway safety and transportation funding in South Carolina. It also contains lists of the most deteriorated roads and bridges and the most congested roads in the state.

Otis Rawl, president and chief executive officer of the South Carolina Chamber of Commerce, told the group, “When we talk about the health of our state’s overall business climate, poor infrastructure negatively impacts South Carolina as companies decide whether or not to locate or expand here, ultimately determining the number of good jobs for our citizens.”

The state’s unemployment rate rose to 11.5 percent in April, the South Carolina Employment Security Commission (ESC) reported today. This is a tenth of a point up from the March rate of 11.4 percent, perhaps signaling a leveling off of job losses in the state. The ESC is still paying approximately $20 million in unemployment benefits each week and has borrowed almost $300 million thus far from the federal government. Chester County moved to the top spot in unemployment rates, at 21.8 percent. Lexington County still has the lowest unemployment rate, at 7.6 percent. The ESC estimates they will borrow approximately $1 billion from the federal government that the business community could ultimately have to pay back.