REPUBLICAN STATEHOUSE REPORT
Columbia, South Carolina
January 30, 2010
CREATING JOBS IN SOUTH CAROLINA
The government should not create jobs. The government should get out of the way and do whatever it can to help the private sector create jobs. The House Republicans took action this week to get the government out of the way and let the private sector flourish and create jobs.
Spurring us to action was this week's Legislative Audit Council report on the Employment Security Commission. It was an audit that went far beyond the assumptions and allegations of mismanagement that the General Assembly was working with.
ESC reform is a top priority for the House Republicans, and a committee led by House Majority Leader Kenny Bingham is working on a sweeping package of reforms. Two weeks ago, the House approved several systemic changes that arose from the committee's hearings, including restricting state payments to employees fired for gross misconduct or drug use and restricting claims by employers who cost the system more than they contribute. The audit revealed many shocking facts:
- The commission did not warn the General Assembly that the unemployment trust fund balance plummeted from a $835 million surplus 10 years ago to an $800 million deficit today.
- That the agency did not properly investigate mismanagement.
- S.C. workers fired for misconduct collected $171 million over three years — equating to 10 percent of the jobless benefits paid during that three years.
- While the ESC is charged with helping South Carolinians find jobs, the audit found that only 40 percent of the jobs available in our state are listed with the agency.
This week's audit shows that it is vital that we reform the ESC from a check-writing agency to a job placement agency that helps businesses find the employees they need to grow the economy. I hope this audit spurs the quick reform Republicans want.
The House Republicans also filed two pieces of legislation this week that we hope will get government out of the way of business as the economy begins to recover. House Speaker Bobby Harrell, introduced economic development legislation written from the recommendations of a panel of South Carolina's business leaders. The panel was comprised entirely of private sector industry leaders, the economic development group worked closely with business leaders, industry experts, the Department of Commerce and other economic development entities to address this unified goal of growing our state's economy.
Some of the major recommendations included in the bill are the elimination of the Corporate Income Tax, Restoration of the Closing Fund and various improvements to our economic incentive tools. The economic development group also expressed their support for other legislative initiatives being sought by the House this year -- Tort Reform, ESC Reform and Dual Rail access at the Port of Charleston. These are private sector solutions, not government solutions, and the kind of solutions that will move our state forward.
The second piece of legislation was filed by Republicans Dwight Loftis and Ralph Norman. It extends the expiration dates of development permits due to the slow economy. The legislation extends the life of any permits issued by the state for development through 2010 and applies retroactively to permits applied for since 2008. It covers statewide permits by various state agencies such as the Department of Transportation and the Department of Health and Environmental Control. Typically, permits expire after a certain amount of time if work has not started on a project. Once permits expire, applicants must re-apply for the permits. Businesses say it is not unusual for the re-application process to take a year or more. Such a delay could prolong the recession and delay economic recovery.
Thank you for the privilege of serving you in Columbia.
