Capitol Information Affiliates, LLC Volume XXVII Issue 6 February 19,2016
W&M Committee Completes Budget Work
Davis & Bright Filibuster Roads Bill
Setzler Point of Personal Interest
Senator Setzler took the Senate floor Tuesday on a point of personal interest regarding the amount of educational testing in South Carolina. He recounted a story from a teacher about a third graders frustration over testing. “The teacher believes in this child regardless of testing,” said Setzler.
H.3579
Senator Davis resumed his filibuster Tuesday. He discussed South Carolina being a legislative state saying, “We have had some degree of chipping away at this.” He discussed S.22, which took the procurement functions of government and gave it to the Governor. He voted against the bill because the Senate Finance committee amendment passed which gave procurement to the Department of Administration. He then moved on to the DOT and the SIB saying the state could not continue to have the DOT and the SIB. Davis said he was curious about his Democratic friends who are in favor of a gas tax increase instead of using the General Revenue Fund to fix the roads and bridges. He reviewed the state’s standing in the use of gas. Senator Johnson told Davis that his people wanted an increase in the gas tax. He said that poor people would not be helped by an income tax reduction. Davis responded that the gas tax is a regressive tax. He said the reason he was at the podium was S.22 and mentioned that the Legislative Audit Council recommended giving state procurement to the Governor. Senator Grooms said he supported reforming the DOT and added that the state’s highway dollars “have not received optimum use in the last several years.” Davis pointed out 31 states have a SIB with South Carolina being the only state with a separate board and that the SIB only funds new construction. “We need to have most of this money going to repairs statewide. We don’t have a statewide perspective and accountability.” Davis discussed road funding. Senator Campbell said they could not repair existing roads with bond money. He said his counties instituted a 1₡ tax to fix the roads. He added, “If all 46 counties raised a penny sales tax it would bring in more than $700 million. Davis suggested locals should play a role in repairing and maintaining state roads. Senator Bright asked Davis to enumerate the organizations that are interested in road projects. Davis said the groups came up with a number. He said they contracted with DOT on a personal basis. “This suggests a commission problem to me,” said Davis. He said he wanted the Governor to appoint the Secretary of DOT. Davis said the Sun Light Foundation said there were 17 earmarks for South Carolina that are unobligated. When Senator Rankin said that Davis was rebutting what he told the Senate last Thursday Davis said he had gotten new information. Their discussion continued especially concerning I-73 and I-85. They disagreed about the current structure of the DOT. Rankin saidthe people communicating with him are not concerned about reform.”They want you to sit down and let us vote on
fixing roads and bridges.” Davis responded they could sit him down anytime they wanted to. Senator Hutto and Davis had a discussion where Davis said he wants to see the DOT Secretary accountable only to the Governor. Hutto disagreed saying the commissioners were the eyes and ears back home and thatdistrict engineers are then sent out to assess the problems. Senator Sheheen agreed with Davison the gas tax. He said the problem with road funding was with the SIB. Senator Setzler reviewed the DOT. Davis said Seltzer’s remarks “crystallizes for me that we have a dysfunctional commission. Setzler said he had an amendment on the desk to restructure everything not just the commission. SenatorLourie asked Davis how they can get to a vote. Lourie discussed higher education funding. Davis responded, “You are telling us why you want to kill this bill.” Davis and Lourie then discussed the underfunding of state government. Davis then spoke about Highway 51and ended the day’s debate by going through the states and giving their governance of DOT appointments.
Davis resumed the debate Wednesday. Rankin handed out an article on repurposing funds that were not being pursued for projects. Davis said Christy Hall identified $36 million of repurposed funds. Rankin pointed out that there were no obligated funds for I-73 and that perhaps they should speak with their Congressional delegation. Scott asked how earmarks work and Davis explained the process. The discussion then turned to education funding and its importance. The debate continued until an exhausted Davis gave up the podium. Senator Bright then took the podium to continue the “education” of the Senate. The Senate adjourned.
Bright took the podium Thursday and said his people do not support a gas tax. Senator Peeler said the House Ways and Means Committee had new C Fund money in the budget for roads. Bright wants to take care of existing roads. Scott said they had to find a compromise. Bright and Bryant talked for a while. Jackson asked Bright if he is willing to roll back taxes to the 1986 level and Bright said they should reduce the income tax. The Senate adjourned with Bright retaining the floor.
Auto Closing Fees
The House of Representatives passedH.4548regarding auto closing fees. The first amendment defines closing fees and was adopted. The second amendment corrects the language on what they can charge for. The South Carolina Automobile Association and the House LCI chairman did not oppose the amendment. Amendment three by Representative McLeod was tabled. Amendment four by Representative Bamberg was also tabled. Both amendments addressed retroactivity.
House Ways and Means on the Budget
The House Ways and Means Committee began their budget debate Tuesday afternoon addressing provisos not tied into dollars. They moved the John de la Howe School under the purview of Clemson. They have been unable to raise their number of students. Clemson will follow the core of the John de la Howe plan and will also keep the name. The Committee also approved the movement of the Confederate Relic room to Charleston. Representative Limehouse said he wants to consolidate and save money. Chairman White indicated the Department of Administration has looked at all state-owned property and that now they can look at consolidations. Representative Clemmons offered an amendment which passed to require DNR to capture and tag three coyotes in each district. If they are killed, $1000 bounty goes to the hunter. Clemmons said they needed to encourage hunters to kill coyotes.
Ways and Means finalized their actions on the FY 2016-17 State Appropriations and Capital Reserve Fund Bills this week. Some highlights of their funding recommendations include:
Public Education K-12
→adding $351.6M to public schools that would increase the base student cost by $130 to $2,350 per student; technology and school bus driver salary increases; they targeted areas to address the Abbeville Law Suit; and an additional $8.5M for Rural Teacher Initiatives
→EIA: funded First Steps and allotted $750,000 for teachers’ supplies
→Salary Increases: Teachers were give an 2% base pay increase with 1% from EIA and 1% from EFA
October Flood Disaster - Dam Safety and Road Repair
→$661,500 was included DHEC for the dam-safety program
→$72M for the state portion matching funds for the flood recovery costs thru FEMA
→$37.3M for DOT for road repairs made as a result of the October flood disaster
→$9.5M for Department of Administration for flood disaster recovery
→$5M to Adjutant General for repairs to National Guard Armories
State Employee Pay Raises
→$16.2M for a 1% base pay increase for state employees (teachers get 2% plus step)
→State will pick up the health care costs for state employees
Rep. Cobb-Hunter said more priority should be given to state employees; she prefers 3%. She has a $48M amendment to offer on the House Floor.
Local Government & Roads; Economic Development/Agriculture
→$250M for roads, of which $185M will go to County Transportation Committees and $65M from sales tax on motor vehicles which can be bonded.
→$212.5M to maintain the same amount that was allotted for the local government fund last year.
→$17M for closing fee for the Department of Commerce: $10M non-recurring and $7M recurring
→$1.5M grant program for Rural Infrastructure Bank
→$1M Dept. of Agriculture for truck scales
→$1M to Clemson PSA for continued research and avian flu prevention plus $1M in non-recurring for the T Garrison Facility
→$1.5M non-recurring for Jasper Terminal Permit Program
→$5M non-recurring for Aeronautics airport up fit
→$40M thru PRT for beach renourishment
Health and Human Services
→$129 million more DHHS for annualization and MMIS Vendor Payoffs;
→USC School of Medicine – $2M recurring + $2M non-recurring for Rural Health Initiative
→$10M Water Quality Monitoring; Safety Inspections of Gold Mines; Infectious Control; Home Health
Higher Education & Technical Colleges
→Did not fund new programs or new construction; their budgets have grown. Tuition and fees have grown. Merrill said their goal was to bring colleges up to speed and to lower tuition.
→Merrill said a maintenance bond was to be introduced on the floor for deferred maintenance.
→SC State: Merrill said the state had made a heavy investment in SCSU, and the subcommittee chose to allow them forgiveness of the $12.5M loan if they reached certain benchmarks, e.g., balanced budget, new president, increased enrollment and accreditation.
→The committee voted to fund the following HiEd TEC Institutions from CRF
$ 4.6MSCSU – Truth Hall
$5.0MUSC Honors College
$ 3.5MUSC Sumter Science Building
$ 4.5MWinthrop Music Conservatory/Byrnes Auditorium
$ 1.5MMUSC – Children’s Hospital
$ 3.5MAiken Tech College Life Science Building
$10.0MCentral Carolina Tech College Workforce Center
$ 3.5MHorry Georgetown Tech Advanced Manufacturing Center
$ 3.5MMidlands Tech Welding Center
$ 5.0MOrangeburg Calhoun Tech Nursing Building
$ 3.5MSpartanburg Community College Academic Building
$ 3.5MLowcountry Tech New River Workforce Development Center
$ 4.0MTri-Co Tech Oconee Workforce Development Center
$ 1.0MTri-Co Tech Industrial Technology Center Phase V
$ 1.0MTri-Co Tech College Central Plant
$16.0MTrident Tech Aeronautical Training Center
$ 3.5MWilliamsburg Tech Science and Technology Building
$ 7.0MYork Tec College
H.4937
The House of Representatives passedH.4937 this week establishing the Education and Economic Development Coordinating Council. Representative Stringer said the bill does not address specific changes but brings about accountability measures. Representative Loftis agreed saying. “This should put more accountability on the Department of Education and the schools.”
Medical Services
The House Judiciary Special Laws Subcommittee adjourned debate Wednesday on H.3067 to provide an extension of tort liability funds to physicians and dentists for services in clinics offering medical services for no payment other than Medicaid. Representative Goldfinch began the discussion by saying that there is a lack of health care in rural areas of the state. He said he has many physicians who want to provide their services for free but would cost about $50,000 in medical malpractice insurance. Grant Gillespie from the Insurance Reserve Fund said the bill would take them into the business of insuring
individuals “which we don’t currently do.” He said their concern was the financial stability of the fund. He later added that they had no idea “what it will do to our fund.” Goldfinch asked that it be reported out of the Subcommittee and said he would get a fiscal impact statement before they debated the bill in Committee.
Matthews Point of Personal Interest
Senator John Matthews took the Senate floor Wednesday on a point of personal interest regarding health care. Matthews said there was no health care in the Bamberg, Allendale and Barnwell area of the state. Senator Sheheen said they could accept Medicaid dollars instead of sending it to other states. Senator Coleman said rural hospitals could draw down money if they were aligned with larger hospitals. Senator Lourie said 31 states have now accepted Medicaid money and that the DISH money had disappeared. Matthews said they could not take care of uninsured patients.
Coal Ash
S.868 received second reading in the Senate Thursday. Senator Malloy wants to amend on third reading waiving the 3/5 vote. This motion passed. S.1065 creating a study committee also received second reading. There will also be amendments on third reading on this bill waiving the 3/5 vote.
McElveen Point of Personal Interest
Senator McElveen took the Senate floor Thursday on a point of personal interest regarding the roads bill. He said they had been burning up legislative time while they could be taking up amendments. He said last year the state saw a 16% increase in road fatalities. Senator Jackson said Senator Leatherman had appointed a bipartisan committee to work on these issues. He said, “Two individuals have held us up for a week and refused to let us take a vote.”
Lourie Point of Personal Interest
Senator Lourie took the Senate floor Thursday on a point of personal interest on his perspective on the Senate and their responsibilities. He said the Senate is on trial in the court of public opinion. He said it bothered him that some do not believe the bill will pass. “It’s now more than roads, it’s our system of government,” said Lourie.
Special Order
The Senate set H.3184 regarding ethics reform for Special Order on Thursday.
Real Estate Licensure
The Senate Labor, Commerce and Industry Committee met Thursday and gave a favorable as amended report to S.1013 regarding real estate licensure. The bill updates laws to modern practices. The subcommittee amendment strikes references to property managers and adds language for confidentiality.
DHEC Reorganization
The Senate Medical Affairs Committee met Thursday and returned S.550 reorganizing DHEC, back to the subcommittee. Chairman Peeler explained that DHEC would essentially be separated into two agencies – one dealing with health, and the other with environment. The proposed Department of Behavioral & Public Health would also absorb DAODAS and the Department of Mental Health. Catherine Heigel, DHEC Director, was called to the podium. She stated that DHEC had a governing board that had not yet taken a position on the matter, and until they did, she would not. Senator Hutto asked if any of the staff actually merged or shared responsibilities given the agency’s dual health and environmental missions, or if there was any cross-training. Heigel replied that there are actually 4 sections of DHEC – Health Regulation & Licensing, Health Services, Environmental Regulations, and Protections. Senator Scott interjected and asked Peeler why the bill had not gone through subcommittee or a study committee given the complexity of the issue and the number of agencies involved. Peeler replied that he was certainly open to that but wanted it presented in full committee first to “get the conversation started.” Senator Cleary agreed saying he thought there was a benefit to discussing it in full committee. Senator Thurmond asked why Peeler was bringing this up now, and what is it that needs to be fixed. He worries that creating two agencies from one would actually grow government. Peeler responded that the intent is to make government more efficient, not to grow it. Thurmond persisted, asking if he could point to something that was lacking or falling down at DHEC that makes this (bill) necessary – to which Peeler replied, “If I thought everything was hunky-dory I wouldn’t have introduced the bill!” Bob Toomey with DAODAS was called up next. He remarked that his first impression of the bill was that it wouldn’t have any major impact on the agency. DAODAS gets state and federal funds, and uses those to contract with providers. They do not deliver services directly, but via the 301 system. His main concerns would be the impact on clients, and the impact on capacity and delivery by the 301 network. He said the bill does not impede or detract from DAODAS’ ability to perform duties and serve clients. Cleary said he was under the impression there is some concern over combining a public agency with private providers. He asked, “Isn’t DHEC more of a top-to-bottom agency, whereas DAODAS is more independent?” Toomey replied that yes – county boards do perform more independently. Cleary noted that those cultures could easily conflict if/when the agencies combined. Senator Hayes asked how other states operate. He referenced SC having two agencies that deal with water issues (DHEC/DNR) and noted NC had only one (DEQ). Hayes suggested looking at neighboring states to see how their departments are organized. Courson mentioned the issue of bifurcating DHEC had come up 5 years ago. He agreed that the size and structure of the agency needed to be reviewed. Hugh Weathers, Commissioner of Agriculture gave brief remarks, stating “We support the goal of more efficient government, and stand ready to support whatever the committee wants to do.” Alvin Taylor, Director of DNR echoed Weathers’ statement. He reminded the committee that DNR has a governing board also, and they had not taken a position on the bill. He offered to answer any questions about how