Senators to study state's taxes

Panel aims to see what residents think, investigate spending cap

COLUMBIA — A panel of senators will be traveling throughout South Carolina in the upcoming weeks to find out what the public says about state and local taxes in order to study a cap on government spending.

The committee convened by state Senate President Pro Tem Glenn McConnell, R-Charleston, wants to investigate amending the state constitution to limit spending. The committee got an earful from lobbyists and business groups last week at its first meeting. They want to see the purse strings tightened on local governments.

"South Carolina income levels are not growing at a pace fast enough to keep up with the growth of government," said Ashley Landess, vice president for public affairs with the nonpartisan South Carolina Policy Council.

Howard Duvall, executive director of the Municipal Association of South Carolina, defended local government spending by arguing that they are the ones closest to the voters and provide direct services, such as fire and police.

Mount Pleasant Town Administrator Mac Burdette agrees. He said governments need to maintain flexibility to provide the level of services demanded by the community.

"I have a mayor and eight council members," he said. "They stand for election every four years. If the citizens of Mount Pleasant think our council is not spending their money appropriately, then they will be held accountable."

For example, Mount Pleasant is anticipating the need for a new fire station in the next two years, but a spending cap could prohibit the town from providing one. It would take an estimated $1.5 million to build the facility, at least $500,000 for a truck and the salaries and benefits for 13 firefighters.

Burdette, who noted that Mount Pleasant hasn't implemented a tax increase in 15 years, said he's concerned that the call to set spending caps is election-year posturing, although not all of the panel members supported the idea.

Sen. Robert Ford, D-Charleston, a former Charleston City councilman, said he could not support a local spending cap. "Taxpayers want streets and sidewalks," he said. "They want decent services."

McConnell said the Legislature should pursue a spending cap at the state level, although he said he is anxious to get feedback on the issue of local spending, including whether the Legislature should revisit property tax reform.

The panel will hold meetings across the state, including one in Charleston in November.