Monday, Jun. 18, 2007

3 days, 3 issues

An overhaul of the Transportation Department, income tax cuts, and the state budget — will dominate the discussion when the General Assembly returns to Columbia on Tuesday to complete work left unfinished. Lawmakers have three days to get it done.

Transportation overhaul

What the House wants: To add $40 million — half for the Transportation Department and half for the state infrastructure bank, which provides loans and other assistance to communities for transportation projects. That money would increase to $200 million a year. In addition, the House wants the governor to be able to fire district engineers and opposes requiring Senate approval of the governor’s appointees.

What the Senate wants: Supports giving the agency money only once until the overhaul is given a chance to work. Wants tenure for district-level engineers and to approve the governor’s appointees to the board.

Key players: Rep. Annette Young, R-Dorchester, has led House efforts to overhaul the agency; Sen. Larry Grooms, R-Berkeley, has spearheaded Senate efforts; Sen. Tommy Moore, D-Aiken, will want to ensure any compromise meets Senate Democrats’ approval, retaining some local control of road selection.

Odds on a deal: Better than even. The House and Senate agree on much but deeply disagree about the money.

Income taxes

What the House wants: To apply the tax cut to the top tax bracket, targeting those who pay the most in taxes. Under the House proposal, those earning $2 million or more a year would save an average of $9,342. The average earner, making slightly more than $30,000, would see a tax cut of $31. Gov. Mark Sanford supports the House’s plan.

What the Senate wants: To apply the tax cut to the bottom tax bracket, ensuring benefits for all taxpayers. Under the Senate plan, anyone paying state income tax would get an additional $67.50 back from the state.

Key players: House Ways and Means chairman Dan Cooper, R-Anderson, will argue for the House version; Senate Finance chairman Hugh Leatherman, R-Florence, wants tax cuts more equally distributed; also, tax cuts have been a top priority for Republican Gov. Mark Sanford since taking office in 2003.

Odds on a deal: It’s very likely a compromise will be reached. The Senate got its wish: eliminating the sales tax on groceries over three years. Look for the House to win the income tax debate.

State budget

What the House wants: The plan includes House proposals to turn South Carolina into a center for technology research, especially hydrogen power. There is money for college scholarships and tax incentives to encourage research and development. The budget also includes $176 million in tax relief supported by both houses.

What the Senate wants: Several proposals for new spending, such as $28 million to pay for elementary school nurses. The budget also pays for expanded health insurance for children, and drugs for HIV and AIDS patients. Many local projects proposed by the Senate, and criticized by Sanford, also are included.

Key players: House Speaker Bobby Harrell, R-Charleston, must be satisfied before the budget can be approved, and it is his plan to bolster state technology research; Leatherman controls the purse strings in the Senate; Cooper is the House’s chief budget writer.

Odds on a deal: It all depends on a Transportation overhaul deal being struck. However, if a final budget can be approved, most programs will benefit because of the state’s flush financial year.

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