McConnell says federal stimulus money shouldn’t be used to patch state budget holes
January 30, 2009 by senatormcconnell
Senate President Pro Tem Glenn McConnell says federal stimulus money shouldn’t be used to patch state budget holes.
McConnell, R-Charlestion, said Thursday the money approved by the U.S. House would be a time bomb and artificially inflate the state’s revenues only delaying a deficit.
The $819 billion stimulus plan includes $3.2 billion for South Carolina. The state gets money for schools and bridge and road projects. But it also would pump $905 million into a state budget that’s lost $1 billion to budget cuts since July.
Gov. Mark Sanford wants to derail it the plan, but. U.S. House Majority Whip Jim Clyburn, D-S.C., inserted language into the legislation that allows legislators to get around Sanford’s objections.
McConnell pitches bill to restructure ports board
January 30, 2009 by senatormcconnell
South Carolina senators have introduced a bill changing the leadership structure of the State Ports Authority.
GOP Sen. Larry Grooms of Bonneau says the measure will add stability to the board to ensure the ports remain an economic driver for the state.
Charleston was once the second-largest container port on the East Coast. It’s now fourth. And the port’s largest container carrier, Maersk Line, has announced it would leave Charleston next year.
The Senate proposal would set qualifications for board members. It would also prevent Gov. Mark Sanford from firing them at will before their terms are up.
Spokesman Joel Sawyer says the measure takes away Sanford’s sole tool to ensure accountability, and he would likely veto it if that provision made it to his desk.
McConnell proposes restructuring plan to make Port leader more accountable
January 30, 2009 by senatormcconnell
A group of 13 people from around South Carolina, including a current and a former ambassador, will lead the way in finding a leader for the State Ports Authority.
But the local maritime community worries it’s underrepresented.
Choosing a search committee marks the first step in replacing Bernard S. Groseclose Jr., who resigned abruptly as chief executive officer of the powerful agency Jan. 21 in the middle of a semiannual job evaluation.
Former SPA board member John Hassell serves as interim chief executive, and board member Bill Stern, a Columbia businessman, heads the search committee.
“I think the group is well-respected, and I think they’ll be well received by many stakeholders in the maritime community,” Stern said after the SPA released the list.
But Robert New, owner of Charleston Port Services, disagreed. He said Thursday’s search committee announcement included an impressive group of names but left him disappointed.
“There’s nobody who actually works on the docks,” he said.
The committee includes some current and former SPA board members and others, such as retired banker Robert Royall, former ambassador to Tanzania, and former Upstate legislator David Wilkins, outgoing ambassadorto Canada
Stern said the group’s first step will be finding a search firm as quickly as possible.
The search committee announcement coincided with the filing of a bill in Columbia that would overhaul the port’s governing body.
Sen. Larry Grooms, R-Bonneau, drafted legislation that would change qualifications for SPA board members and establish a host of other rules for the agency. Senate President Pro Tem Glenn McConnell, R-Charleston, and Sen. Robert Ford, D-Charleston, are co-sponsors of the bill.
The bill would require screening for all board candidates while eliminating the governor’s ability to remove members at will.
The bill also would require an annual performance review of the executive director with a written report to the governor and the General Assembly. The SPA has said it has no records of Groseclose’s past job evaluations.
Each board member would need five years of experience in one of the following fields: maritime shipping; organized labor in maritime shipping; overland shipping; international commerce; finance, economics or statistics; accounting; engineering or law.
The bill would also establish an eight-person SPA advisory board with a governor-appointed member recommended by each of the following groups: the S.C. Stevedores Association, the Charleston Harbor Pilots Association, the International Longshoremen’s Association, the Propeller Club of Charleston, the S.C. Manufacturer’s Alliance, the S.C. Chamber of Commerce, the S.C. Trucking Association and a major railroad company providing local service.
The proposed bill says the SPA must consider public-private partnerships and develop a long-range development and capital financing plan. It also must maintain on its Web site a transaction register of all purchases over $100.
Grooms said the SPA lacks accountability, management and oversight and that this bill seeks to change the direction of the agency. He said the state must act quickly to restore global confidence in the SPA.
McConnell said the bill should find strong bi-partisan support because of the port’s influence on the economic health of the entire state.
The legislation is expected to be heard in the Senate Transportation Committee, which Grooms chairs, on Tuesday. With favorable reception, a vote could come on the floor as early as Feb. 10. It would then move to the House for consideration.
By Allyson Bird
The Post and Courier
McConnell: “You can’t borrow money and spend your way out of recession.”
January 30, 2009 by senatormcconnell
Two key leaders of South Carolina’s Legislature said Friday they would have problems agreeing to accept some of the federal stimulus money passed by the U.S. House if Gov. Mark Sanford decides not to ask for it.
U.S. Rep. Jim Clyburn of Columbia, House majority whip, included a provision that would allow state legislators to bypass governors to seek the money if a governor doesn’t request the funding. Sanford opposes the stimulus plan because he believes it will simply add more debt to a government mired in borrowing.
State Senate President Pro Tempore Glenn McConnell and House Speaker Bobby Harrell, both Republicans, said while they wouldn’t turn down funding for infrastructure needs such as roads, bridges and sewer systems, they wouldn’t be so enthused about funds aimed at aiding the state’s budget, an estimated $905 million over two years.
“It’s a time bomb,” McConnell said. “I’m not warm to budget aid because it’s going to grow government without a permanent source to pay for it. Unless the economy recovers, we’ve allowed the budget to swell without a recurring revenue base to pay for it. I think we have to be very careful.”
Harrell said he would want to talk to other legislative leaders before accepting such money because of similar concerns. “Adding one-time money into the budget does not solve the budget problem — it just puts it off for a little while,” he said.
South Carolina’s $7 billion budget passed last year has been cut by almost $1 billion since last summer due to lagging state revenues, and lawmakers are wrestling with a shortfall of several hundred million dollars for the budget year beginning in July.
A spokesman for Sanford said this week the governor hasn’t made a decision on what to do about the stimulus package.
The U.S. Senate is crafting its own plan, different from the House, and a conference committee likely will work out the final version.
The U.S. House passed the $819 billion stimulus bill Wednesday evening aimed at jump-starting the nation’s weak economy and creating millions of jobs. Much of the money would be directed to help, directly or indirectly, ailing state governments that have seen revenue drop but health care and education needs continue to grow.
McConnell said he sides with Sanford in his opposition to the plan passed by the House, which didn’t pick up any Republican support.
“They are throwing money around like candy at a Christmas parade,” McConnell said. “You can’t borrow money and spend your way out of a recession.”
McConnell said he considers the stimulus plan to be a menu, and he will look at each category and decide if it makes sense for South Carolina. One category he is sure he would approve is money for roads and bridges.
“The state would be foolish to refuse that,” he said. “We’ve got a deteriorating road system. It’s one-time money. It’s our money. We haven’t gotten our fair share of the money in the past, in my opinion, and it’s going to go to another state if we don’t take it. So don’t get mad enough to cost yourself money.”
Senate Finance Committee Chairman Hugh Leatherman said, “I’m going to do whatever we need to do to get this money coming to South Carolina. We have so many needs here.”
However, Leatherman said if budget aid money is accepted, he would want it directed to critical services and not just thrown at agencies because they have been cut this year.
Sen. John Land, leader of the Senate Democrats, said he hopes the Legislature will accept the money.
“If our United States Congress decides as a matter of national policy that this stimulus bill is the law and is good for the country, then I think it is incumbent on us to take it,” he said. “It’s just that simple.”
The House plan would include $1.1 billion for Medicaid payments in South Carolina, $291 million for public schools and universities and $468 million for road, highway and bridge work in the state.
The state Legislature can request funds from the economic stimulus bill 45 days after its passage if the governor doesn’t seek the money, said A.J. Jones, policy director for Clyburn. The measure added by Clyburn wanted to be respectful of the governor’s authority but also ensure that the state wouldn’t lose out on federal money, he said.
If the bill passed in mid-February and the Legislature voted to seek funds for various programs in the stimulus, it could officially ask for the money about early April, Jones said.
If neither the governor nor Legislature seeks the money from many programs, the funds could go to other states, he said. South Carolina taxpayers would still have to pay the taxes required to fund the stimulus bill regardless of whether they received the benefits, he said.
The Clyburn provision was adopted in the manager’s amendment to the stimulus bill and is expected to remain in the final legislation unless both the House and Senate vote to remove it, Jones said.
By Tim Smith
GreenvilleOnline
McConnell pushes plan to restructure state ports authority
January 30, 2009 by senatormcconnell
Members of the South Carolina Senate today took action and filed a plan that restructures the State Ports Authority. The plan forces strict accountability and stability to ensure that the State Ports Authority will remain a primary economic engine for the state. Introduced by Senators Glenn McConnell (R-Charleston), Larry Grooms (R-Berkeley), Hugh Leatherman (R-Florence), and John Land (D-Clarendon) the plan’s most substantive reforms create additional legislative oversight and restructures the governance, management, and planning structure of the State Ports Authority.
South Carolina’s economic growth is directly linked to the success of the Port of Charleston. Unfortunately, while its competitors have seen consistent growth over the past several years, container traffic through the Port of Charleston has dropped precipitously. Once the largest port on the east coast, the Charleston port has dropped to the fourth ranking and now faces the risk of losing its biggest client. All while port officials take exorbitant bonuses and critics blame management and the lack of transparency and stability within the State Ports Authority.
“The port is too important to the economic vitality of our state to be used as a political tool. We’ve got to take the politics out of the port’s operations and demand that it be run like a business,” Senator McConnell stated. “Job creation comes with long term planning, not political trade winds.”
Senate Transportation Committee Chairman Larry Grooms agreed. “One in ten South Carolina jobs are tied to our port. We must send a strong signal to the world’s shippers that we are demanding stability.”
Grooms continued, “The port is a tool for investment and an enterprise for job creation. Our plan demands accountability and oversight and ensures that well qualified Board members will lead the port to success. It develops long-range goals that will boost our state’s economy and put many families back to work.”
The restructuring plan:
Demands stability and strong management.
Emphasizes long-range and strategic planning, oversight, accountability, and transparency.
Increases stability by ensuring that Board members can only be removed with just cause.
Ensures that Board members have experience relevant to the Port’s mission. The plan sets all duties and qualifications for the Board members and the Executive Director.
Creates an Advisory & Oversight Board to assist in developing a long-term policy for Port success. The Advisory & Oversight Board will carry out oversight duties and provide annual financial reports to the General Assembly.
Requires the SPA to create a twenty-year strategic plan, which must be reviewed by the General Assembly.
News2 Charleston, SC
McConnell limits Senate session to save money during tough economic times
January 30, 2009 by senatormcconnell
The South Carolina Senate has decided to meet only one day next week to save taxpayer money.
Senators will be in regular session Tuesday, but only subcommittees will meet Wednesday. Senate President Pro Tem Glenn McConnell says that includes fewer than half of the 46 senators. None will meet Thursday.
The move will save taxpayers thousands of dollars in fuel reimbursements and meal and hotel allowances. Like other agencies, the legislative budgets have taken cuts.
House members will meet in regular session next week.
Last week, both chambers were out and saved taxpayers tens of thousands of dollars. The House and Senate also plan to take furloughs around Easter. Leaders hope to end the legislative session two weeks early in mid-May.
The Associated Press
GoUpstate.com
Long-term fiscal fix
January 28, 2009 by senatormcconnell
The current fiscal crisis has forced the state of South Carolina to sharply cut budgets, reduce services and furlough employees, and the bad economic news might not be over yet. At least state legislators have apparently learned something by the bitter experience.
A proposal to impose a spending cap on the state budgetary process, to limit the consequences of economic ups and downs, already has passed the Senate Judiciary Committee by a 22-0 vote that should herald early Senate approval. The Senate’s Republican majority has put the spending cap at the top of its reform agenda for the legislative session.
Sponsored by Senate President Pro Tempore Glenn McConnell, R-Charleston, the proposal would limit spending based on the average of revenue coming to the state over a 10-year period. Any excess would be placed into a reserve fund from which the state could draw during bad economic times.
Sen. McConnell says the current method of budgeting is based on “a financial roller coaster,” creating unpredictable results.
“We hire when times are good and we fire when times are bad,” the senator said in a statement following the committee’s action on Tuesday. A spending cap will provide “a constitutional bridle that will even out state government spending and provide needed funds during trying economic times like we are now facing,” he said.
Ultimately, voters will decide the constitutional issue in a referendum in 2010, assuming the bill’s approval by the full Legislature. Considering the difficulties experienced during the continuing downturn, neither legislative nor public approval should be in doubt.
McConnell’s Teacher Protection Act Moves Foward
January 28, 2009 by senatormcconnell
Students assaulting teachers would face tougher penalties under legislation the Senate Judiciary Committee sent to the floor Tuesday.
The bill, which passed on a 22-0 vote, would send students to jail for up to 30 days and fine them up to $500 for simple assault on school officials including teachers on school grounds or at school events. Students convicted of assault and battery of a high and aggravated nature face up to 10 years in prison and up to $5,000 in fines.
The committee also approved bills that allow for searches without warrants for juveniles and adults who are on probation or parole and that bar some financial information from being available to the public in family court case files.
18 Republican Senators Join Fight To Protect Workers’ Rights
January 28, 2009 by senatormcconnell
Senators Introduce Bill To Guarantee Secret Ballots for Unionization Votes in South Carolina
South Carolina Representative Eric Bedingfield recently filed a plan to protect South Carolina’s workers from union intimidation and today seventeen South Carolina Republican Senators introduced the plan in the Senate.
Deceptively named the “Employee Free Choice Act,” the liberal plan has been more appropriately dubbed the “Secret Ballot Elimination Act” by US Senator Jim DeMint. The legislation would strip workers of their right to vote for unionization by secret ballot, opening them up to what State Senator Greg Ryberg calls “intimidation and harassment” by unions. Read more
Spending Caps Bill On Fast Track Through State Senate
January 28, 2009 by senatormcconnell
During a time when South Carolina’s budget woes are forcing cuts to essential services, Senator Glenn McConnell (R- Charleston) is pushing a common-sense plan that caps state government spending and creates a “rainy day fund” that will help during these uncertain economic conditions.
The McConnell Plan is moving fast through the State Senate. Today the bill took the key step of passing out of Judiciary Committee by a vote of 22-0. It now heads to the Senate floor. Read more
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