South Carolina's intake of income taxes, the single largest contributor to its general operating fund, fell more sharply than every state except Arizona, underscoring the impact of the recession and unemployment on the Palmetto State's economy.
South Carolina collected roughly $2.3 billion from workers through income tax returns and withholdings during its last fiscal year, according to a U.S. census bureau study released Tuesday. That's 29.6 percent less than what was collected during the 2008 fiscal year.
The decline is nearly three times higher than the 11.8 percent decrease for the nation as a whole. Arizona topped the list with a 42.5 percent decline, while Tennessee and New Mexico ranked third and fourth with declines of about 23 percent each.
John Rainey, the state's chief economic adviser, said the high unemployment rate was to blame for the lower tax collections. South Carolina's jobless rate ranks fourth behind Michigan, Nevada and Rhode Island.
"We're running at a 12.6 unemployment rate right now, which translates into some half a million people who are underemployed or unemployed" or have given up looking for a job, he said. "You've got less people paying taxes because of the unemployment rate no matter how you count it."
The census study shows how closely the unemployment rate ties to the statewide budget crisis. The Board of Economic Advisors expects South Carolina's spending budget to amount to about $5 billion for the upcoming fiscal year, which is about $2 billion less than two years ago.
As a result, state agencies have had to lay off employees, trim staff hours and cut services.
Income taxes make up the largest piece of the state's revenue intake. The second-largest contributor, sales tax revenue, could recover more quickly as consumer spending picks up.
- The (Charleston) Post and Courier
Young to call it quits after nearly 20 years
One of the state's most influential female lawmakers said Tuesday she will not seek re-election.
State Rep. Annette Young, R-Dorchester, said in a news release she wanted to go from being a part-time lawmaker to a full-time grandmother.
Young is vice chairwoman of the House Ways and Means Committee, overseeing the subcommittee that handles jails, courts and other public safety agencies. She is also a key vote counter during House floor debate, prodding fellow Republicans to hold the party line.
The mother of two and first-time grandmother was first elected to the House in 1990, and is tied for fifth overall as the chamber's longest-serving Republican.
She served as House majority leader in 1995-96, when she became the chamber's first Republican majority leader since Reconstruction, and she remains the only woman ever to have held the job. She has sat on the powerful budget-writing committee since 1998, and is currently its first vice chairwoman.
Young is among just 17 women in the Legislature. South Carolina continues to rank last nationwide in the percentage of female legislators.
- From Staff and Wire Reports
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