The State
April 27, 2009
Contenders would use federal aid
By JOHN O’CONNOR
joconnor@thestate.com
South Carolina’s GOP contenders for governor said they would accept $700 million in disputed federal aid.
But most said they understood Gov. Mark Sanford’s push to pay off state debts. The four candidates – two announced, two weighing bids – had different priorities for the money. But, they say, state taxpayers who will pay the bill should enjoy the benefits.
All said they did not or would not have supported the stimulus bill. However, they said, lawmakers and Sanford should work out a compromise to spend the money, though none could say what that plan might look like.
The $350 million in federal aid allotted to South Carolina over each of the next two budget years is meant to help states pay for education, colleges, police and other services as state tax collections decline during the national recession.
Sanford has held the money up, arguing the state should use an equivalent amount of the one-time windfall to repay unemployment loans, prepare for future retirement costs or pay off school bonds.
The issue is likely to be a top concern among GOP primary voters in 2010. Polls show voters are divided.
Two recent state polls found a majority disapprove of Sanford’s opposition to accepting the stimulus money. However, an Elon University poll released Friday showed 53 percent of S.C. respondents disapprove of President Barack Obama’s economic plan – of which the federal stimulus and state budget aid is a major plank.
“The fact of the matter is the stimulus passed,” said U.S. Rep. Gresham Barrett, R-Westminster, an announced candidate for the 2010 GOP nomination for governor. “South Carolina is hurting, and it is law.”
Barrett said he applauded Sanford for thinking about debt reduction and does not fault him for using the stimulus money as leverage to restructure state government.
But Barrett, a former state legislator, said he would approve the money with the caveat that state agencies start preparing for another budget crunch in two years – when the stimulus money is spent – by saving money now.
“Agencies need to understand these are temporary monies,” Barrett said.
Lt. Gov. Andre Bauer, who is weighing a run for the GOP nomination, said he would accept the money and push for spending it on the state’s highest priorities. Federal rules require 81 percent of the money be spent on K-12 and higher education; the rest can be spent on public safety and other needs.
“We should fund the most important things first,” Bauer said, “like making sure we didn’t have to kick people out of prisons.”
Bauer said his experience as a lawmaker meant he could work with the General Assembly on a compromise. But Bauer also said he understood many S.C. residents are skeptical of the stimulus bill, adding the issue is worthy of debate.
“People are frustrated. They’re outraged,” Bauer said. “More and more, people are scared of their government.”
Attorney General Henry Mc-Master, also considering a bid for the GOP nomination, said accepting the money is a “lose-lose” proposition, calling the stimulus bill a “disgrace.”
“If we accept the money, we’re part of this spending,” the Columbia Republican said. But, he added, “The state should accept the money but appropriate it very wisely.”
McMaster said he would push to spend as much of the money on one-time expenses as allowed by law. McMaster said Sanford has done well pointing out the deficiencies of state government throughout his time in office.
“He’s correct,” McMaster said of Sanford pushing for restructuring. “Important issues have been raised on both sides.”
Furman University professor Brent Nelson said an important issue is being neglected during the stimulus debate: creating jobs in a state with the third-highest jobless rate in the country. Last month, 11.4 percent of South Carolinians were jobless.
“I could not sit back and watch money – that the taxpayers of the state will be forced to pay for anyway – go to North Carolina or Minnesota just to score political points,” Nelson said.
The Greenville Republican said the state faces hard choices but should not “sacrifice the future” for politics. The state can reduce spending and also pay off debt, he said.
But preparing students for the workplace is the top priority.
“We must invest in providing our children with a world-class education system in South Carolina,” Nelson said. “I would focus the funds on fixing an education system that is failing our kids.”
Copyright 2009 – The State
