Category Archives: Spending

Stop trying to oversimplify things, people! It doesn’t help.

Above, you see my results from an exercise offered today by The Washington Post that promised to show me “what kind of budgeter you are.” It was offered, of course, within the context of the debt ceiling “debate” going on in Washington.

It is laughable. Apparently, since I’m not, I don’t know, a member of AOC’s “squad” or something, I “believe that the national debt is the foremost crisis.”

It says that, even though I said a flat no to “Cut Defense Spending.” So go figure. I also, by the way, said no to “Enact House GOP debt ceiling bill.”

“Play our budget game,” the headline that led to the above brilliant conclusion. As though I were a child to be entertained. But at least they admitted that it was a game, and didn’t claim it bore any resemblance to real budgeting on the federal level — which, like everything else in government, is a tangled web of conflicting priorities.

Bottom line, as a more-or-less rational person, I believe we should reduce the debt. And I don’t see any way we get there without doing both of the following:

Cutting some spending.
Raising some taxes.

In fact, it will involve both cutting more spending, and raising more taxes, than most people even want to think about. Still, note the “some” in each case. Only a fool would cut all spending in sight or raise every tax suggested. The decisions to be made along the way are staggeringly complicated, and neither ideology nor simple rule of thumb will not guide you to anything that could remotely be recognized as wise governance. The process requires discernment and deliberation.

And putting silly labels on yourself or others — especially simplistic ones assigned by such a “game” as this — doesn’t help you acquire those qualities…

Sheheen takes step in right direction on higher ed

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When I read this yesterday morning…

A South Carolina lawmaker has a plan to stop college tuition from going up — just don’t expect it to get passed this year.

State Sen. Vincent Sheheen, D-Kershaw, will file a bill to fix what he sees as the four biggest issues in higher education: tuition increasing at “an astronomical, unsustainable rate,” colleges recruiting out-of-state students to balance their budgets, fixing campus buildings that have fallen into disrepair and “streamlining a bureaucratic mess.”

Sheheen will unveil the proposal — and detail the plan’s specifics — Tuesday at an 11 a.m. news conference on the first floor of the State House….

… I resolved to drop by the State House to hear the proposal. I did so, however, knowing what I’ve known for years: If lawmakers want to stop the rise in tuition, the solution is obvious. You have to start funding higher education again.

Back when I was in school and tuition was dirt-cheap, the state actually funded “state-funded” colleges and universities. Now, the state’s taxpayers are minor contributors, providing a percentage of operating costs that long ago dropped into single digits. University presidents spend the lion’s share of their time trying to scrape up funds from other sources — and yeah, tuition is one of those other sources.

So there’s always been a great deal of phoniness in many legislators’ hand-wringing over rising tuition — unless they’re willing to address the actual problem. It’s always been completely within the power of lawmakers — as a body — to do this.

But I expected that Vincent Sheheen knows this, probably better than I do, so I went over expecting to hear something real. And I did. Or rather, since I arrived just as the presser was breaking up, I read something real on this handout before briefly interviewing Vincent and others present, such as USC President Harris Pastides:

It’s not much — it probably won’t even pull state funding back out of the single digits (a Senate Finance Committee staffer is running down the numbers on that for me, but I don’t have them yet).

But yeah, providing more funding from the state is the one thing that’s needed for keeping down tuition. So, while this will do little more than slow the rise, it’s something. And it’s honest.

And note that it even meets Doug’s test: If you want more money for something, findi it somewhere in the budget that exists, rather than raising taxes.

So, you know… something for everybody…

Deaths at Lee County prison shouldn’t be a surprise

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Lee Correctional Institution, via Google Maps

You’ve probably seen this, which made national news:

At least seven inmates are dead and 17 people are injured after hours-long rioting at a maximum-security prison in South Carolina, according to the state’s corrections authorities.

Several fights broke out among inmates in three housing units at the Lee Correctional Institution about 7:15 p.m. Sunday, and it took authorities more than 7½ hours, until 2:55 a.m. Monday, to secure the prison, officials said.

No officers or staff members were harmed, the corrections department added….

We can at least be thankful for that last part. But the fact that an “hours-long” riot can occur at one of our prisons, with authorities unable to stop violence that killed seven, should tell us we were lucky on that score. Two officers were stabbed at this same institution in 2015.

What I said in response on Twitter is pretty much all I have to say before turning the topic over to y’all:

After years of locking up too many, and spending too little to keep prisons secure… “7 inmates dead, 17 injured after hours of rioting at South Carolina prison” https://t.co/iCsgDePQL6

— Brad Warthen (@BradWarthen) April 16, 2018

Good to have SOME adult supervision for Richland County

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Here’s what I don’t like about ideologues is that they don’t know when to make an exception to their rules.

Folks on the left and right dismiss those of us in the middle because they think we don’t believe in anything. I believe in quite a few things — but I know when to make an exception from the principles I espouse.

Cindi Scoppe’s the same way. She and I hold quite a few principles in common. One of them — which you can describe as subsidiarity, or devolution or decentralization or federalism or some other word that’s not coming to mind because I had a beer at lunch — is the idea that, generally speaking, governing decisions should be made as locally as possible.

But there are exceptions. And personally, I prefer the term “subsidiarity” because it assumes exceptions, since the rule is that “matters ought to be handled by the smallest, lowest or least centralized competent authority.” The key word being “competent.” When the smaller entity can’t do the job, the larger one needs to step in. Which came into play in Cindi’s column today about the state Supreme Court jumping on Richland County for misspending penny tax money:

But honestly, even as someone who believes passionately that local governments should have broad authority to act without state interference, I can’t help being relieved to know that there are going to be some grownups looking over the county’s spending.

Not all of it, of course. The County Council still has control over property taxes and restaurant taxes and all sorts of other revenue the county collects.

It still has the ability, unsupervised by grownups, to sell prime real estate at a ridiculously low price without marketing it, or even announcing that it was on the market, as it did with the former sheriff’s department site on Huger Street.

It still has the ability, unsupervised by grownups, to hire a new transportation director with absolutely no experience in … wait for it … transportation.

It still has the ability, unsupervised by grownups, to spend $1.2 million to renovate its own meeting and office space, and then announce less than four months later that it’s relocating its chambers and the whole complex, bulldozing the adjacent building (to build a new courthouse) and turning the just-renovated space into a ceremonial courthouse.

And to secretly concoct a plan to move some of its offices to a nearly abandoned mall — which might be a good idea, but for the “secretly” part, which applies not just to the specific property being purchased but also to the whole plan. And to wrap it all up with a gaudy “Richland Renaissance” bow that also covers such dubious projects as a business incubator, a critical care medical facility (don’t doctors usually build those?) and, my personal favorite, a competitive aquatics center.

For which the cost is at best speculative. And no funding source has been identified. And about which it agreed to hold a legally required public hearing only after one of my colleagues in the news department kept hounding the county.

But I digress….

Maybe she got that from me. The digressing thing. (In her defense, she’s far more disciplined about it than I am.)

But back to her original point: Yes, it’s good to see the county get some adult supervision. And it could probably stand with a little more. Vote Grownup Party!…

We have public libraries. Why not public broadcasting?

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Last night’s reception at the library.

Last night I was pleased to attend a reception unveiling the remodeled portions of Richland Library, which also served in a way as a celebration of the fact that the library was recently named one of the nation’s best.

The library is indeed something that we have to be proud of in this community, even though some of us (ahem!) aren’t allowed to check books out because we sleep across the river. Seriously, though, it’s awesome. (At this point I must note that ADCO did the library’s rebrand awhile back, and my daughter-in-law works there.)

Anyway, this came back to mind this morning when I was reading George Will’s Sunday column harrumphing about funding the Corporation for Public Broadcasting. (“Public broadcasting’s immortality defies reason.”)

He trotted out all the usual libertarian, market-oriented objections, such as:

It might have been all well and good in the 1960s, when it was started as part of LBJ’s Great Society (about which, as you’d expect, Will has snotty things to say). Back then, it increased most people’s TV choices by 33 percent. But if it were gone today, it would reduce folk’s choices from, say, 500 channels to 499.
The elite snobs who like it are generally affluent enough to pay for their chosen recreation and edification themselves, without forcing Joe Sixpack to cough up taxes for it.
If Big Bird et al. have value (and Will is willing to stipulate that they do, in a market sense, which to him is what counts), advertisers and broadcasters would line up to eagerly purchase them and take over would CPB cease to be.

Here’s how I answer those:

That’s like saying we don’t need libraries because there are (or used to be) bookstores, and Amazon. Well, yes, those things are fine enough for those who can afford them, but they have a tendency toward the lowest common denominator — reality TV and other garbage. Occasionally, commercial TV has started to do what CPB does — remember how A&E and Bravo started out, before sliding into what Will would term inanition — but the market has yet to produce anything that regularly airs such material as “King Charles III” or “The Civil War” (just to name a couple of personal faves; you may have others.)
Sorry, but even if everyone doesn’t want it, public amenities — from parks to libraries to public schools — are there to better our communities in ways that the market will not. And Joe Sixpack has the same ability to vote for what he wants our tax money to be spent on that I do. Not everyone will agree with every expenditure, but these are the little trade-offs involved in living in communities rather than as hermits. The government (in this country) is not some separate thing out there doing things to us. It is us, and every one of us has the right and the obligation to express what we want it to do — which I am doing at this moment. (Oh, and not all elite snobs are made of money, just as an aside in response to an assertion that is neither here nor there.)
Yes, they may, and then we’d have to watch commercials every 10 seconds. And eventually, all that we would get would be the content that maximized profits, and we’d lose other things that might make a little money but not enough, things that very well be the best of the lot. The marketplace gives us all sorts of wonderful things, from iPads to, um, iPhones (if I had more time, I’d surely think of something else), but I think an important function of the public sphere is to give us good things that the market will not. And if you wonder what sorts of things those might be, go watch some PBS or listen to NPR.

Finally, Will makes a point that in the abstract is devastating and unassailable, especially if you’re a journalist:

America, which is entertaining itself to inanition, has never experienced a scarcity of entertainment. Or a need for government-subsidized journalism that reports on the government. Before newspaper editorial writers inveigh against Mulvaney and in support of government subsidies for television and radio, they should answer this question: Should there be a CPN — a Corporation for Public Newspapers?

Well, no, of course not. But then, we’ve long made a distinction between the press and the use of the public airwaves. The Fairness Doctrine and so forth.

Still, it’s a powerful argument: Government-run news, globally, is the mark of the totalitarian, repressive state.

But then we have the actual fact, right in front of us, of PBS and NPR news programming. And to any objective observer (especially a professional one), they are of such such vastly higher quality than commercial broadcast news that it’s stunning. They are every bit as fair and impartial if not more so, and the depth and quality puts everything (except the better print outlets) in the shade.

It shouldn’t be so. But in reality, it is.

I’m reminded of something The New Republic published a few years back: “Enough Acton: Power corrupts and absolute power corrupts absolutely, except when it does not.” (Of course, some of my friends will object that the magazine said so in support of the Iraq invasion, so there’s that — but it was still a very true observation, a warning against overgeneralization.)

Government-backed media is a scary thing. Except PBS news is so very good. I don’t know how to explain it, but I know that — as an informed observer of news — I’d be sorry to lose that source. (Also, consider — this is news that gets a subsidy from government. As disturbing as that sounds, it’s a far cry from government-run news, which is something I do take an absolute, Actonesque stand against.)

And ultimately, that’s what I have to say about public broadcasting overall. At our house, except for maybe the weekly cold open on SNL, PBS is the only broadcast TV we watch at my house. We use our TV for that, and Netflix and Amazon. That’s it. And the reason why is that the rest of the broadcast universe offers nothing else as good.

And whatever the abstract arguments presented pro and con, I don’t want to lose that. So, to the extent I get a vote, I say let’s keep it.

Graham: Trump budget could cause ‘a lot of Benghazis’

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And you know that, coming from Lindsey Graham, that’s a bad thing.

Here’s what The Washington Post is reporting:

The Trump administration’s fiscal 2018 State Department budget proposal irresponsibly cuts diplomacy and diplomatic security in a way that could cause “a lot of Benghazis,” according to Sen. Lindsey Graham (R-S.C), chairman of the Senate appropriations subcommittee on the State Department and foreign operations. He promised that Congress would reject the cuts.

“If we implemented this budget, we’d have to retreat from the world and put a lot of people at risk,” Graham said on the day the Trump administration is releasing its detailed budget proposal for next year. “A lot of Benghazis in the making if we actually implemented the State Department cuts.”

Overall, the Trump administration is proposing to cut the budget for the State Department and USAID, from the $54.9 billion estimated total in fiscal 2017 to $37.6 billion in fiscal 2018 — a reduction of $17.3 billion, or 31 percent. Not counting emergency funding, known as Overseas Contingency Operations funding, the Trump budget would cut the State Department and USAID by 29 percent.

“A 29 percent cut means you really have to withdraw from the world because your presence is compromised,” Graham said. “That may be the goal of this budget. It’s not my goal. This guts soft power as we know it.”…

As is usually the case when Graham tries to hold Trump accountable, I agree wholeheartedly…

Micah Caskey’s thoughtful words on gas tax bill

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When I first met Micah Caskey last year, I was still toying with the idea of running for the House seat he was seeking. My interview with him put that out of my head, I was so impressed with him. I agreed with him on so many things, and was so impressed by the thoughtful way he approached every issue even when I didn’t agree, that it occurred to me that if I did run against him, I might be tempted to vote for him anyway.

The statement he posted on Facebook regarding the roads bill just passed over the governor’s veto provides a sample of what I’m talking about. When I posted in passing about him and the bill yesterday, I had not yet seen this.

I’m not sure if this is the same statement he made on the floor of the House yesterday, but whatever he said there also made an impression, judging by multiple Tweets from @cassielcope and @AveryGWilks, reporters for The State.

An example:

Overheard on the House floor after @MicahCaskey‘s speech: “Damn!”

— Avery Wilks (@AveryGWilks) May 10, 2017

As I said, an impression was made.

Here’s what he said on Facebook:

The #1 issue in South Carolina is improving our state’s transportation infrastructure. Our roads are in terrible condition and we’ve got to fix them.

Micah Caskey

I want to address my position on the roads. This is a rather long post, but I think it’s important that I share where I stand on the issue. I ran for office promising folks that I would call the balls and strikes as I saw them, even if it wasn’t politically popular.

Well, ladies and gentlemen, it’s time to pay the piper. It’s time to raise our state’s gas tax.

Sadly, the Governor hasn’t had anything helpful to say about fixing the roads. Instead of drawing a roadmap for how things can be improved, he’s chosen to do what we’ve come to expect from career politicians:

1. Put head in the sand
2. Yell “CONSERVATIVE!”
3. Hope nobody pays attention to reality

In the absence of Executive Branch leadership, the task of fixing roads has been taken up by the Legislative Branch. Unfortunately, crafting the law to fix the roads in the General Assembly as been incredibly contentious. There are a lot of cooks in the kitchen and everybody thinks his or her solution is best.

The 124 members of the S.C. House gave it our best shot in House Bill #3516. And, as is their custom, the 46-member S.C. Senate returned the House bill will something that looked very different. (To their credit, the Senate did at least manage to break from their tradition of not passing a roads bill out at all.)

When the House and the Senate don’t agree on versions of a bill, the parliamentary rules require there to be a “Conference Committee”, made up of 3 members from each body, to sit together and negotiate a compromise.

If you think of each body’s initial bill as a compromise from within that respective body (you need a majority vote to get out of the body, after all), the Conference Committee’s version is a Compromise of Compromises.

An ugly baby, to be sure.

I have broken down the Conference Committee version of H.3516 below. Like me, there’s probably a lot you don’t like about it. But, ultimately, the two must-haves (for me to vote for it) are there:

1. Gas tax money goes ONLY to roads (no sidewalks, parks, etc.)

2. There is reform in governance at DOT so that citizens can rightfully hold the Governor accountable for the performance of his agency.

This bill has both. (1) All new revenue must go into the Infrastructure Maintenance Trust Fund for existing infrastructure improvement only. (2) The Governor directly appoints all of the DOT Commissioners, with approval by the entire General Assembly — not just the Senate — and can remove a Commissioner at-will, on his own.

In truth, I think we need to eliminate the DOT Commission entirely and elevate the Secretary of Transportation to a Cabinet seat, but my view is a minority view in the 170-member General Assembly (we lost an amendment vote to do that in the House 33-84). Nevertheless, I think the Conference Committee version gives citizens the ability to hold the Governor accountable when the Commissioners he appoints stray from his priorities.

South Carolina deserves action. If past Governors or General Assemblies had acted in the past, we wouldn’t be in this position. However, since we can’t go back in time, our choice is simplified.

I don’t think raising taxes is a good answer, but I also see it as the only realistic answer for this problem. There’s no magic roads fairy coming to fix this. Waiting on the ‘perfect’ answer doesn’t work in the military, and it doesn’t work here.

I will vote to adopt the Conference Committee Report, and if the Governor chooses to put his own career ahead of South Carolina’s best interest, I’ll vote to override his veto.

Certainly don’t let me get in the way of your government-hating. I encourage you to be skeptical. I implore you to scrutinize SCDOT more than ever. I certainly will. Whether through the Legislative Audit Council, Inspectors General, or the Legislative Oversight Committee, I will be working to ensure SCDOT delivers a better investment return of tax dollars than they have in the past. I invite you to put your energy toward the same.

From where we are today, a gas tax increase is the only responsible solution.

-Micah

—-

Conference Report on Roads Bill
GOVERNANCE AND REFORM

● Provides real accountability and transparency at the Department of Transportation (public records, mandated meetings, ethical requirements for commissioners)

● Gives Governor complete control of the Commission with a clear line of authority and at-will removal

● Highway Commission organized to reflect regional representation with 7 Congressional districts and 2 statewide at-large members appointed by the Governor (adds 1 member to current structure)

● Requires General Assembly, not just the S.C. Senate, to approve all 9 Highway Commission appointees

● Strengthens DOT’s control over project authorization and financial decisions by the State Transportation Infrastructure Bank
FUNDING

● Creates a long-term and sustainable funding stream by increasing the motor fuel user fee by 2 cents/gallon over the next 6 years, not exceeding 12 cents/gallon

● Safeguards taxpayers from future automatic tax increases by not indexing for inflation

● Protects SC taxpayers from continuing to solely foot the bill for infrastructure repair by not using General Fund dollars and captures 30% of the motor fuel user fee revenue from out-of-state motorists

● Creates an Infrastructure Maintenance Trust Fund to ensure all new revenue collected from the motor fuel user fee is used only for existing infrastructure needs

● Does not increase or change fees for South Carolina driver’s license applications or renewals

● Increases funding for County Transportation Committees targeted to repair rural and secondary roads

● Captures revenue from alternative energy motorists by creating a biennial registration fee for all hybrid and electric vehicles

● Established a road use fee to capture revenue from out of state truckers

● Raises the cap on motor vehicle sales tax to $500 and creates a $250 out of state maintenance fee

● Incentivizes road construction industry to return to SC with responsible infrastructure investment

● Provides $640 million in new annual revenue for infrastructure maintenance needs when fully implemented

TAX RELIEF

● Includes responsible tax relief to offset the user fee increase for South Carolina residents

● Offers a refundable income tax credit equal to the motor fuel user fee increase that must be reauthorized prior to 2023

● Enhances already existing College Tuition Tax Credit for every South Carolina tuition-payer to enhance workforce development

● Contains a non-refundable Low Income Tax Credit for working families (not federal model)

● Increases the maximum income tax credit from $210 to $350 for dual income household joint filers

● Reduces SC manufacturers property tax burden by $35 million using a phased-in approach over 6 years

I’m proud he’s my representative. We need a lot more like him. Keep up the good work, Micah!

Robert Samuelson reminds us vegetables must be eaten

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I wish to call to your attention this piece by Robert Samuelson of The Washington Post Writers Group.

An excerpt:

Let’s be clear: America is an undertaxed society. Our wants and needs from government — the two blur — exceed our willingness to be taxed. This has been true for decades, but it’s especially relevant now because the number of older Americans, who are the largest beneficiaries of federal spending, is rising rapidly. Unless we’re prepared to make sizable spending cuts (and there’s no evidence we are), we need higher taxes.

To the extent that President Trump’s proposed “tax reform” obscures or worsens this inconvenient reality, it is a dangerous distraction. We cannot afford large tax cuts, which are pleasing to propose (“something for nothing”) but involve long-term risks that are not understood by the president or, to be fair, by economists. Piling up massive peacetime deficits is something we haven’t done before. We cannot know the full consequences….

Looks like Samuelson’s bucking to be named patron saint of the Grownup Party, noting matter-of-factly that not only are vegetables good for us, but we must eat them.

By the way that line, “America is an undertaxed society,” goes double — no, triple, nay, 100 times — for South Carolina. I just thought I’d point that out for those still confused, especially the senators who think you can’t raise a tax that badly needs raising — the gas tax — without lowering some other taxes that has nothing to do with it.

About this insanity of cutting State Dept. by almost 30 percent

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Can’t let the day go buy without a post about Trump’s (and Mulvaney’s) insane proposal to cut the State Department by almost 30 percent:

The State Department faces cuts of nearly 29 percent, with $10 billion shaved off its core program funding under proposals to eliminate climate-change initiatives and to slash foreign aid, contributions to the United Nations and cultural exchanges.

The basic budget for the State Department and USAID, which houses many U.S. development and economic aid programs around the world, will shrink from $36.7 billion to $25.6 billion. The Trump budget also calls for $1.5 billion for Treasury International Programs, a 35 percent reduction from the previous year, a figure the White House included in its discussion of State’s budget. The administration also proposes $12 billion for operations in war-torn areas such as Syria, Iraq and Afghanistan, down from more than $20 billion this year. Overall, the budget would shrink from $52.8 billion to $37.6 billion.

The proposal reflects a dramatic shift in U.S. foreign policy to an “America First” focus on whether programs meet specific U.S. interests. Many of the spending cuts are in programs whose missions are deemed poorly managed or insufficient in advancing U.S. foreign policy goals….

I’ll also share this from U.S. Global Leadership Coalition’s President and CEO Liz Schrayer:

“America First starts with protecting our national security and as our military leaders are the first to say: hard power alone will not keep America safe. The danger of cutting one-third of our civilian forces at a time of such extreme global threats, famines of historic proportions, and a refugee crisis not seen since World War II is unimaginable.

This debate between hard and soft power is a relic of the Cold War that ended after 9/11. Congress must recognize that we face complex 21st century threats from the rise of ISIS to the pandemics that can show up on our shores. Reject these dangerous cuts to diplomacy and development and invest in smart power – military and civilian tools alike. The stakes are just too high for America to retreat.”

Note the statements from religious, business, NGO and military leaders linked from that page.

Incidentally, the USGLC is the outfit that SC GOP Chair Matt Moore is leaving to go work for.

Here’s a statement on this stuff from Lindsey Graham:

“Historically, presidential budgets do not fare well with Congress.

“I appreciate that this budget increases defense spending, yet these increases in defense come at the expense of national security, soft power, and other priorities.

“I look forward to working with my colleagues in Congress and President Trump to create a budget that is fiscally responsible, makes our country safer, and preserves wise investments in our future.”

Graham isn’t alone. Overall, his budget is not faring well with Republicans in Congress:

Defense hawks, rural conservatives and even some of Donald Trump’s most vocal supporters in Congress sharply criticized the president’s first budget proposal on Thursday, pushing back on the huge potential hike in defense spending as insufficient and decrying some other cuts to federal agencies and programs.

Capitol Hill Republicans, however, did not seem terribly worried about the prospect of such a budget being enacted, stating matter-of-factly that it is Congress, after all, that controls the purse strings.

“Presidents propose, Congress disposes,” said Rep. Hal Rogers (R-Ky.) the former chairman of the House Appropriations Committee. “We’ve not had our chance yet.”

Rogers was one of several GOP lawmakers to dismiss Trump’s budget as a pie-in-the sky wishlist with little hope of surviving negotiations in Congress. Most Republicans gave passing support to Trump’s general goal of increasing defense spending while reducing costs elsewhere in the budget. But none would embrace the specific White House blueprint….

You notice something? All these people who know something about governing are on one side, and the new “outsider” president is on the other. You know why? Because he and his loyal retainers, who wouldn’t know a fact if it bit them on the… ankle…, don’t have a clue.

Thank for the leadership, Speaker Lucas

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If seems that Grover Norquist no longer runs the South Carolina House of Representatives.

Jay Lucas does. And he’s doing a good job. Along with Rep. Gary Simrill and everybody who voted for his bill yesterday.

It shouldn’t be remarkable that the House just voted to increase the state gasoline tax by (eventually) 10 cents a gallon. After all, everything about the situation would tend to lead any reasonable person to take that action:

We need road repairs.
We lack money for road repairs.
We have a tax that is dedicated to paying for road needs.
That tax is among the lowest in the country.
It hadn’t been raised for 30 years.

But as we know, our Legislature hasn’t been inclined to make calm, objective decisions with regard to taxes since the GOP took over in 1995. Since then, taxes have been for cutting, no matter the situation — because ideology rather than real-life conditions have ruled. And that approach, as the Speaker says, “simply places politics above responsible public policy.”

Speaker Jay Lucas

Of course, you don’t have to be an anti-government ideologue to have reservations about a tax increase. And in this instance, it would have been wrong to give DOT more money without reforming the governance of the agency. But this bill takes care of that, too.

Is this a done deal? Nope, because it still has to get through the Senate, which unlike the House isn’t run by anybody. As a body, it has been as allergic to DOT reform as the House used to be to tax increases. And that’s not the whole story. There’s also Sen. Tom Davis, whom The State today described as “libertarian-leaning,” which made me smile. Tom leans toward libertarianism the way Donald Trump leans toward self-aggrandizement.

But I want to praise Speaker Lucas and the House for getting us this far.

Folks, let’s pay for our roads ourselves, OK?

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Good for these House members:

A plan to raise S.C. gas taxes by roughly $60 a year was approved Tuesday by a panel of S.C. House members.

The bill will be considered by the full S.C. House budget-writing panel on Thursday.

The proposal is an effort to address the the $1 billion a year the Transportation Department has said it needs to repair and maintain the state’s existing road network….

And good for Speaker Jay Lucas and the other leaders who’ve gotten behind a bill to do the obvious: raise the gas tax to improve our roads.

I haven’t written about this courageous and rational move because I hadn’t fully made up my mind what to say about it. It’s basically a laudable, long-overdue proposal that is nevertheless seriously flawed.

The reasons why it’s laudable and long-overdue are obvious to all but those rendered blind by ideology:

This tax is our state’s mechanism for paying for roads.
We need road repairs, and don’t have enough money.
Our gas tax is one of the lowest in the country.
It hasn’t been raised since 1987.

So, you know, duh — raise it. Especially since we no longer have a governor who absurdly (and we’re talking Alice in Wonderland absurdity) threatened to veto a gas tax increase that wasn’t accompanied by a much larger decrease in other taxes, thereby more than erasing any benefit from raising the gas tax.

But here’s the rub: It’s not paired with reform of the state Department of Transportation. And it needs to be. That agency needs to be more accountable before we give it more money.

Unfortunately, after last year’s non-reform of the agency, the most recent in a long line of non-reforms our General Assembly has handed us, there’s little appetite or energy for trying again this year, knowing the same obstacles exist. As Cindi wrote today, “the reality is that if our best advocate, House Speaker Jay Lucas, isn’t pushing reform, we’re not going to get reform.”

So that’s that. (Oh, and if you decry the power Hugh Leatherman regained upon his re-election as president pro tem of the Senate, this is an issue where you have a point — he’s a big obstacle to reform.)

Bottom line, we need to raise the tax, and we need reform. I haven’t yet fully decided what I would do were I a lawmaker. But I do admire the courage of those who finally broke the ridiculous taboo in that committee vote today — while I hope against hope for some reform to get attached to it later in the process.

But while I’m torn on that, I’m not on this: I’m not in favor of “solving” the problem by asking our new governor’s buddy Donald Trump to just give us $5 billion for infrastructure.

To begin with, it’s not a solution. Since $4 billion of that would go to roads, that kicks the problem down the road four years, no more. Which, conveniently, would be after the date that Henry McMaster hopes to be elected to stay as governor.

Given what we’ve seen from this Legislature over the last two decades and more, it is highly unlikely that it will be in the mood to raise the gas tax or any other tax four years from now. The fact that the House leadership is ready to do so now is something of a miracle — possibly resulting from giddiness over the departure of Nikki Haley — and unlikely to be duplicated.

Then there’s the fact that the federal government exists to fund and address national needs and priorities. There is no proposal currently on the table (that I know of) that would provide this level of funding nationally, so why should South Carolina — a state that with its super-low gas tax has refused even to try to pay for its own roads — be singled out for such largess? And no, “Because the president owes our governor big-time” is not an ethical answer. It probably makes sense in the deal-oriented private world Donald Trump has always inhabited, but to say the very least, it’s not good government.

My position on this is much the same as my reasoning against the state lottery way back when — public education is a basic function of the state, and if we want good schools, we should do what responsible grownups do: dig into our pockets and pay for them, not try to trick someone else into paying for them.

Similarly, if we want safe and reliable roads, we shouldn’t rely on some deus ex machina — or worse, cronyism — to deliver us from the responsibility of paying for them.

I see now that Henry is saying raising the gas tax should be the “last resort.” No, governor, trying to pay for our own needs ourselves should be our first resort. At least, it should come well before taking the begging cup to Washington. Besides, we’ve avoided doing this for 30 years now. How long do you go before it’s time for the “last resort?”

The bad news: Our $206 Trillion Fiscal Gap

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Laurence Kotlikoff, Joseph Von Nessen and Doug Woodward.

There was good news and bad news today at USC’s 36th Annual Economic Conference.

To be more specific, there was mildly, moderately good news, and really Terrible, Horrible, No Good, Very Bad news.

I’ll start with the good, which is on the local level. USC economists Doug Woodward and Joseph Von Nessen said that while growth has sort of leveled off in South Carolina, we’re in for a fairly good 2017. Advanced manufacturing remains strong, and things are going really well in construction — particularly along the coast — and retail. Merchants should have a good Christmas. If there’s a concern, it’s that employers are now having trouble finding qualified employees, particularly ones who are up to the challenges of automation — humans who can work with robots, basically.

On the other hand, we’re basically doomed.

That’s the message I got from the conference’s keynote speaker, Laurence Kotlikoff of Boston University, who started out noting that few Americans seem to have a clue what a fiscal hole we’re really in. Political leaders don’t speak of it, he said, pausing to complain about the “content-free election season” we just experienced. (Of course, you’d expect him to be dissatisfied with that, since he actually ran for president — unsuccessfully, he added dryly.) Oh, sure, they might speak of the $20 trillion national debt — which he noted isn’t really that, since the Fed has bought back $5 or 6 trillion of it — but they ignore the bigger problem.

That’s the true Fiscal Gap, as he calls it, which includes the liabilities that have been kept off the books. You know, Social Security, Medicare and the like — liabilities that aren’t acknowledged in the federal budget, but which are obligations every bit as binding as if the future recipients held Treasury bonds.

That adds up to $206 trillion.

There’s more bad news.

If we think in terms of what it would take for the nation to deal with that liability, our government is currently 53 percent underfinanced. That means that to meet these obligations, we’d have to have 53 percent across-the-board tax increases.

It gets worse.

If we don’t raise taxes by 53 percent now (or make drastic cuts to current and future spending that might somewhat reduce that need), then they’ll have to be raised a lot more on our children and grandchildren.

Dr. Kotlikoff has been raising the alarm about this for years. Here’s an oped piece he wrote for The New York Times in 2014. As he concluded that piece:

What we confront is not just an economics problem. It’s a moral issue. Will we continue to hide most of the bills we are bequeathing our children? Or will we, at long last, systematically measure all the bills and set about reducing them?

For now, we blithely sail on. But prospects aren’t good. None of the three economists, who spoke at a press conference before the event, had anything good to say about incoming political leadership on the national level. In fact, quite a bit of concern was expressed about 3 a.m. Tweets, any one of which could trigger a trade war with China before the day is out.

I came away feeling a bit like Damocles — or rather, like the nation is Damocles, since the sword fell on my head sometime back. And we just elected a guy who thinks he’s a national hero because he interfered with one business that was going to send some jobs out of the country (an interference in the market that none of the economists think was a good idea).

I’m not holding my breath for any leadership on closing the Fiscal Gap. (Nor would I be had the Democrats swept the elections.) Are you?

“What’s THAT hanging up there?” “Oh, that? I call it the Fiscal Gap…”

Do you have questions about the penny tax?

Your thoughts about a TIF for Finlay Park?

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This doesn’t move me much either way, but I was just wondering whether any of y’all have strong opinions about this proposal floated by the Columbia mayor:

A multimillion-dollar renovation of Finlay Park and a pedestrian-friendly remodeling of parts of two major downtown streets might be within reach if local governments will agree to a controversial financing plan being floated by Columbia Mayor Steve Benjamin.

Benjamin said last week that he’s working on a proposal to create a small taxing district that would capture property taxes on buildings along Assembly Street stretching north to Laurel Street, west to just behind the rundown park and south to Washington Street.

The largest source of income would come from a proposed $60 million to $70 million, 15-story apartment building called The Edge that a Chicago-based company wants to construct near the Richland County library, Benjamin said….

Mayor Steve may propose this at an August council meeting, so you’ve got time to either encourage him or head him off with a tidal wave of protest…

This was the only picture of Finlay Park that I could find in my archives — it’s from a rehearsal of “Pride and Prejudice” in 2012.

Penny program starting to emphasize some results

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penny

The Penny tax program, with all its troubles, has realized that it had better start showing some results.

Hence the above release I received via e-mail yesterday.

It doesn’t erase their problems, but it’s smart of them to point out, “Hey, we’re doing something!”…

Penny Tax leads to… a sidewalk! So all you critics shut up, OK?

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Yikes!

I got an email announcement from the Penny Tax program (maddening tagline, “Pennies Impacting People,” which I am not making up) trumpeting a triumphant milestone in the tax’s transformation of our local infrastructure:

A new sidewalk in the county has officially opened thanks to funding by the transportation penny sales tax. Richland County and the Richland Penny Program held a ribbon-cutting ceremony Friday, May 20 for the Windover Street Sidewalk Project.

“Completing projects and improving the quality of life for our residents is what the Transportation Penny Program is all about,” said County Councilman Torrey Rush. “The sidewalk may seem like a small project compared to the road widenings we have on the list, but this project is a big deal to the surrounding community.”…(read more)

Yeah, it kinda does. Seem small, I mean. Yeah, I know, if you live on that road and have to get around in a wheelchair this is a great improvement for you. But if you’re one of the taxpayers wanting some answers on what benefit you’re getting… it’s not so great.

At least Paul Livingston had the good sense to list some larger projects that are getting built…

No, wait. He didn’t. He referred us to the website, which touts…

Yikes again…

An exchange regarding county’s handling of the Penny Tax

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Richland County Council’s Paul Livingston stepped out into the line of fire today with an unabashed defense of the county’s doings with an op-ed piece headlined, “Facts show Richland penny tax is a success.”

If I’d been standing near him at the moment the piece hit the Web, I’d have moved away quickly. (But I’d have been cool about it, acting like I’d suddenly remembered something I need to run home for or something. Wouldn’t want to look cowardly or anything.)

An excerpt:

Paul Livingston

What began as a welcome audit of the program has morphed into an effort to undermine one of the best hopes Richland County has of reaching its full economic potential while providing a consistent, quality transit and transportation network that enhances the quality of life for all citizens.

I have not seen any evidence to support claims of illegal activity and corruption on the county’s part. Integrity is extremely important to me, and I take it personally when someone attacks my integrity.

County Council has only followed the will of the people. We haven’t done anything different than what voters requested and approved….

The fact is that a solid foundation has been laid to deliver on the promise of a modern bus system and better roads, bikeways, sidewalks and other special projects that will improve transportation.

The fact is that the COMET, crippled by a 45 percent reduction in service a few years ago, is now flourishing: It has restored lost service, introduced new routes, improved bus stops, adopted new technology to enhance riders’ experience, and more. Ridership has increased 150 percent.

And our roads and sidewalks are being fixed. Already, 76 roads have been paved or resurfaced, and other dirt road paving and resurfacing projects are underway….

But go read the whole thing at thestate.com.

An alert reader has pointed me to a tough rejoinder posted by Susan Quinn, a Facebook friend of mine (and, a quarter-century back, a student of mine that one semester that I taught a newswriting course at USC).

Here’s what Susan said:

Susan Quinn

While Mr. Livingston basks in the glow of a few dozen county road getting their potholes patched thanks to the Penny Transportation Tax, let’s recap some of the facts he evidently doesn’t wish to deal with.
FACT 1: The Penny Tax Development Team LLC has never obtained the required city or county business licenses and could be required to repay fees and possibly fines.
FACT 2: Millions of taxpayer dollars have been filtered to numerous outside PR firms when the County itself has a full-service PR department. I’m referring to Banco Bannister and Campbell Consulting (which, BTW, provided no documentation for work performed). I’m also referring to other businesses who have been awarded (using the phrase, “allowed to steal” has such a negative connotation) thousands of taxpayer dollars for alleged PR services (including one business …Strategic Business and Politics, LLC…which received $169,687 and which has its office in a UPS Store…sound fishy?)
FACT 3: The Penny Tax Development Team LLC has submitted exorbitant monthly invoices for items such as cars, cell phones, computers, internet services, printer paper and gourmet coffee. They’ve even submitted invoices for pest control services! And those pest control services did nothing to control the pests robbing us taxpayers! These expenses totaled over $35,000 FOR ONE MONTH, according to information obtained under a Freedom of Information request. And these are just some of the expenses the county will actually admit to!
FACT 4: Let’s not forget the $300,000 deals to people paid who had no training to do the work they were hired for, like the former City Councilman attorney who needed training on doing title searches and the former USC cheerleader turned real estate agent.
FACT 5: And let’s also recall the hundreds of thousands of dollars filtered to select individuals through the “Mentor-Protégé” program…a phony program that never even existed!
These are just a few facts that have come to the surface in the cesspool that is Richland County government. There are bound to be more as our county leaders get away with their multi-million (billion?) dollar blatant fleecing of us tax payers.

Perhaps you’d like to weigh in as well…

Graham gets award that won’t help him with the base, but really should

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This just in from Lindsey Graham:

Graham Named ‘Fiscal Hero’ For Work To Address National Debt

WASHINGTON – U.S. Senator Lindsey Graham (R-South Carolina) was named a ‘Fiscal Hero’ by the Campaign to Fix the Debt for his work during the 114th Congress to improve the nation’s fiscal future and address the core drivers of the national debt.

“Senator Graham has worked through a variety of channels to draw attention and find solutions to the nation’s fiscal challenges,” said Maya MacGuineas, Head of the Campaign to Fix the Debt. “While many lawmakers have chosen to bury their heads when it comes to these issues, Senator Graham has shown courage and leadership and has been willing to stand up for what is right for the country – even when it’s not easy to do so.”

“The longer we wait, the more severe and difficult the choices will be to fix the debt,” MacGuineas continued. “Yet very few Members of Congress take this problem seriously. Those who do, like Senator Graham, deserve our thanks and praise.”

Honorees included 26 members of the House and 21 Senators from both parties, covering a range of political views.

To be named a Fiscal Hero, lawmakers distinguished themselves by casting fiscally responsible votes; pushing their party leaders to make addressing the debt a priority; leading bipartisan policy efforts; and engaging and educating constituents.

The Campaign to Fix the Debt is a nonpartisan movement to put America on a better fiscal and economic path. More information on the group can be found on its website:http://www.fixthedebt.org/

#####

The nice thing about this organization is that, unlike too many other groups these days, it is transparent about who is behind it.

Here’s the steering committee of Fix the Debt. Starting with Erskine Bowles and Alan Simpson themselves, the list includes such luminaries as Ed Rendell, Michael Bloomberg, Pete Domenici and Sam Nunn. I see a list like that and I think, I may not automatically agree with everything these guys come up with, but I’m certainly going to give it a respectful listen.

But these are just the kinds of folks that the great populist mass is rising up against these days, isn’t it?

So Lindsey Graham should be proud to have the praise of such a group, but it’s not going to do much to heal the divisions between him and the restive members of his base…

Speaker Lucas is right to trash the Senate GOP roads plan

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SCRoadsBandaidAriailW

I understand from various sources that the Senate today is debating, and plans to vote on, the “roads plan” that I excoriated last week. Here’s hoping it’s not going well.

As Cindi wrote the other day, the GOP proposal has its good parts, including real reform in governance of DOT. But it also contains an absolute dealbreaker, ladies:

If the legislation skipped over Section 4, Gov. Nikki Haley would be correct to say it’s “exactly what we need.” We would have the reform we need, and the Legislature could devote some one-time money to roads again this year and adopt a long-term funding plan next year that befits the reformed Transportation Department.

Unfortunately, it doesn’t skip Section 4, which commits not just this General Assembly but every General Assembly in perpetuity to siphoning $400 million out of our state’s general budget fund and giving it to the Transportation Department.

The result is a bill that promises to break trust with the voters and strangle out other state obligations and, at bottom, isn’t worth the paper it’s written on.

For as long as we have been paving roads, we have collected a gas tax and driver fees to build and maintain those roads, on the theory that people inside and outside of South Carolina who use our roads the most should pay the most for them.

We have collected sales and income taxes to pay for our schools and courts and state police and child protection and economic development and environmental protection and most other state services.

The Senate plan changes that, dramatically. It diverts $400 million in sales and income taxes — more than 5 percent of the state budget — to pay for roads. That means we have $400 million less — not just next year but every year going forward — to pay teacher salaries, including extra pay to reward and attract the best teachers for the neediest students, to pay cities and counties for holding elections and performing other duties the state requires them to perform, to hire caseworkers to protect vulnerable children from abusive parents, to employ the judges who lock up the bad guys and the prison guards who keep the bad guys from escaping and the scientists who test our water to make sure it’s safe to drink, and everything else.

The roads diversion breaks trust with voters, in much the same way lawmakers do when they raid trust funds….

Make no mistake: A proper roads bill includes both proper reform and a gas tax increase. And it most assuredly does not include an open-ended raid on the funding for everything else the state of South Carolina does.

If Harvey Peeler manages to ram through this awful mess today, it will be up to the House to kill it. And Speaker Jay Lucas said it best last week:

“For 323 days, the Senate has had every opportunity to show leadership and propose a real, long-term solution for road repair in South Carolina. The current Senate amendment simply kicks the can further down the road and frankly, into a pothole. The General Assembly has been using general fund dollars to slap a band-aid on roads for years with very little to show for it. I urge the Senate to give this issue the attention that it requires and rally around a proposal with a long-term solution that keeps our families safe and our economy thriving.”

That’s no roads deal. It’s a cut-everything-else deal…

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I’m running from meeting to meeting today, but here’s a topic to get y’all started:

Then it’s no roads deal. It’s a cut-other-essential-services deal: “Senate reaches roads deal without gas-tax hike” https://t.co/4KbdJetlEQ

— Brad Warthen (@BradWarthen) March 3, 2016

The “good” news is that they don’t cut income taxes — which, of course, was always an insane, utterly irrelevant condition imposed by the governor.

So basically, it’s a wash. It’s a deal that does nothing to address the need for an adequate revenue stream for roads…

bradwarthen.com

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