from fitsnews.com
“YES OUR ROADS AND BRIDGES ARE IN BAD CONDITION – BUT THAT’S NOT BECAUSE OF UNDERFUNDING”

|| By TOM DAVIS || Many of you have asked why I attended the Senate GOP Caucus’ press conference last week if I did not support the roads plan it presented. I did so because the massive tax-hike bills previously passed by the House and Senate Finance Committees were moving forward very quickly, with all of the major lobbying groups and the mainstream media outlets in full support. For that reason, I believed it was critical that the public-policy conversation somehow be changed from simply “increase our taxes to fix our roads” to one that focused on greater and better use of existing General Fund revenues and on structural reform to the South Carolina Department of Transportation (SCDOT).

The state Board of Economic Advisors (BEA) projects that General Fund revenues will increase at an average rate of $355 million annually over the next ten years, and the Senate GOP Caucus’ plan uses that projected growth to “fund” a cut in the state income tax that returns about $700 million to South Carolina taxpayers over the first five years. The plan also provides for an increase in the gas tax and other fees – specifically dedicated to roads – that raises approximately that same amount. This is, of course, a simplified summary, but it gets to the point of the plan.
I do not believe this “lower income taxes in exchange for higher gas taxes” plan is the right approach, and my objections to this and other aspects of the Senate GOP Caucus plan are set forth below. That said, however, the press conference held by the Senate GOP Caucus has unquestionably had the desired effect of changing the political conversation away from a massive tax increase to one that focuses on how to best use the projected growth in existing General Fund revenues. Prior to that press conference, no serious consideration was being given to any proposal other than a straight-up tax increase. Sen. Harvey Peeler, the Senate GOP Caucus Leader, deserves tremendous credit for putting last week’s press conference together and fundamentally redirecting the debate.

Here is where I stand, and why: First, I reject the premise that our state does not appropriate sufficient funds for our transportation needs. It does; the money just isn’t wisely spent. Total annual spending in South Carolina on roads and bridges in 2009 (the first year I served in the State Senate) was $1.051 billion, whereas the budget passed by the State Senate last week for the upcoming fiscal year appropriates $1.627 billion – an increase of 54.8 percent. Yes, our roads and bridges are in bad condition, but that’s not because of underfunding; it’s because decisions on how to spend the appropriated money are being made by a politically motivated and legislatively controlled state agency.

Even if one concedes more money should be spent on roads and bridges, it does not then follow that taxes must be raised. Last week, the State Senate passed a budget that appropriated an additional $69 million in recurring revenue toward roads and bridges, and that was on top of the $50 million increase in recurring revenue appropriated in 2013. Additionally, in the so-called “supplemental section” of that budget (which appropriates money collected by the state during the fiscal year that wasn’t certified at the time the budget was passed) the State Senate dedicated all revenues in excess of the first $27.6 million collected to funding local government C-fund resurfacing projects (instead of doling it out to a laundry list of pet projects as usual). If prior year supplemental revenues are any guide, and everything we are hearing from the BEA says they are, then that’s at least another new $100 million going toward roads and bridges in this year’s budget. Here are the BEA projections in General Fund revenue growth – that is, new recurring funds – over the next ten years (rounded to the nearest million):

FY 16-17 $337 million
FY 17-18 $278 million
FY 18-19 $341 million
FY 19-20 $303 million
FY 20-21 $374 million
FY 21-22 $330 million
FY 22-23 $410 million
FY 23-24 $340 million
FY 24-25 $450 million
FY 25-26 $392 million

The average amount of recurring annual growth over this ten-year period is $355 million. If 30 percent of this annual growth – or about $100 million a year – were dedicated to roads and bridges, then after seven years there’d be enough new recurring revenue to satisfy even the high-end estimates of our transportation needs. That’s not simply wishful thinking that has no political chance of ever happening; just look at what the State Senate did in this year’s budget!

image: http://fitsnews.com/wp-content/uploads/2015/05/davis-282×370.jpg

TOM DAVIS
TOM DAVIS

I believe dedicating a portion of the General Fund’s revenue growth over a series of years is a better plan than the tax-swap proposed by the Senate GOP Caucus. Yes, there are similarities in that both take into account the projected growth in General Fund revenues over time, with my proposal using a portion of the growth to fund roads and bridges and the caucus plan using it to “fund” the income tax cut. My primary concern about tax-swaps is that the legislature, in future sessions, would allow the tax increase to occur but suspend the tax cut. I realize the Senate GOP Caucus plan is for the tax increases and cuts to travel in tandem, with a suspension in one resulting in the automatic suspension of the other, but my concerns remain. It’s much simpler and cleaner, not to mention safer for the taxpayers, to fund roads and bridges out of the growth in existing revenues, rather than engage in a more complicated tax-swap.

Another way I think the Senate GOP Caucus proposal falls short is in regard to restructuring the SCDOT. To its credit, the caucus plan has the governor appointing all of the SCDOT commissioners, and this helps put accountability for expenditure decisions where it belongs – with the governor. However, the commissioners selected by the governor in the caucus plan have to meet with the approval of the legislatively controlled Joint Transportation Review Committee (JTRC). The JTRC approval should be deleted from the plan; better yet, the commission should be abolished entirely, and expenditure decisions should be made by a cabinet-level Secretary of Transportation, appointed by the governor and confirmed by the State Senate.

It is also important, I believe, for any roads plan passed by the legislature to involve the state devolving control over some roads to local governments. According to research published by the South Carolina Policy Council (SCPC), there are approximately 65,800 miles of roads in South Carolina, with 63 percent of them being controlled by the state. By way of comparison, the average state DOT controls only 19 percent of roads in other states. Road miles should be transferred by the state to local governments along with an appropriate share of gas tax revenue. The SCPC summarized the benefits of this as follows: “Local governments would have better knowledge than a centralized entity of local road conditions. Further, local governments’ proximity and accountability to the citizens who use the roads in their borders would provide them an incentive not to neglect rural or residential roads that currently receive little attention from DOT. Currently they can simply blame the state – with some justification. Road devolution would take away that excuse.”

These are my thoughts on how to best maintain our state’s roads and bridges and on the plans being considered. The State Senate will probably start debating the bill passed by the Senate Finance Committee (a straight-up tax/fee increase of $700 million annually) next week, and will likely continue debating it through the end of the current session – 5 p.m. on June 4th. Things will be moving very fast at the State House over the final three weeks of session, and my decisions along the way will be guided by the principles and concepts discussed above. I welcome and encourage your thoughts, comments, and criticisms on this issue of vital importance to our state, so please let me know what you think.

Tom Davis represents Beaufort County in the South Carolina Senate.

I have used parliamentary procedures for several weeks to block the gas tax hike. Unfortunately, the bill is up for debate. I voted against this motion. There is no way I will ever support a $800 million tax increase on the citizens of The Palmetto State.

Now, we must see if we can amend the bill to make it less abhorrent. Hopefully, we can offset the gas tax with an income tax decrease. Also, we must reform the department of transportation, because it is a very inefficient agency. They do not use enough of the money they get to repair and maintain our crumbling roads and deteriorating bridges.

 

May 7, 2015

For immediate release

Contact: Brian Symmes, 803-673-9437

BrianSymmes@gov.sc.gov

 

Techtronic Industries Expanding Operations In Anderson County

$85 Million Investment Expected To Generate More Than 216 New Jobs In The Upstate

  

COLUMBIA, S.C. –Techtronic Industries (TTI), a global leader in the design, manufacturing and marketing of quality consumer, professional and industrial products, is expanding its manufacturing and distribution operations in Anderson County. The $85 million investment will create at least 216 new jobs in Anderson, S.C. over the next five years.

 

Founded in 1985, TTI has continuously expanded around the world through organic growth and strategic acquisitions.  TTI now boasts among its portfolio some of the world’s most famous and iconic brands.  The company’s brands include Milwaukee®, AEG®, Ryobi®, Homelite®, Hoover®, Oreck®, Vax® and Dirt Devil ®. As a global leader in the home improvement, construction and consumer product markets, the company employs more than 20,000 workers worldwide.

 

To expand its Anderson County operations, TTI will construct a new 1.3 million-square-foot distribution, assembly and reconditioning center.  The new distribution center will be constructed near the I-85 / S.C. Hwy. 81 interchange. This expansion will significantly improve efficiency and productivity at the company’s Upstate operations, as well as increase the distribution of TTI’s outdoor products and power tools.

 

The facility is expected to be up and running by the end of the second quarter of 2016. For more information on the Techtronic Industries, visitwww.ttigroup.com.

 

The Coordinating Council for Economic Development has approved job development credits related to the project.

 

QUOTES

 

“Investing and expanding our South Carolina operations is a critical component of our continued success. The new facility will allow us to better serve our customers and enhance our leadership position in the U.S. Power Tool and Outdoor Products Marketplace. We’d also like to thank our South Carolina partners – Governor Nikki Haley, the South Carolina Department of Commerce and Anderson County – for helping this project come to fruition.” –TTI Power Equipment, Power Tool & Outdoor Product Presidents Mike Farrah & Lee Sowell

 

“It really is a reason to celebrate when a company doing business in South Carolina succeeds and makes the decision to expand and create more jobs here. TTI’s latest investment, and the 216 new jobs it will create, will make a real difference in Anderson, and we look forward to watching this great company continue to thrive there for many years to come.” –Gov. Nikki Haley

 

“International investment continues to drive our economy, providing opportunities for South Carolinians in all corners of our state. I congratulate Techtronic Industries and our Upstate community on this milestone announcement and look forward to the continued success of this partnership in the years to come.” –Secretary of Commerce Bobby Hitt

 

“SC Ports Authority congratulates Techtronic Industries on their expanding footprint in South Carolina and looks forward to serving their growing import needs. The Upstate is home to a large concentration of port users and rising number of distribution centers that serve the booming Southeastern consumer population. Techtronic’s announcement is significant to the Port, and it reflects our connection between international manufacturers and access to inland markets for retail distribution.” –SC Ports Authority President and CEO Jim Newsome

 

“Today’s announcement by Techtronic Industries further confirms South Carolina’s position as the premier destination for businesses that want to expand, grow, and be successful in today’s global economy.  TTI has already been a positive corporate citizen in Anderson and I am proud and excited that the company has committed to bring additional jobs and increase its significant investment in Anderson County.” –SC State Representative Brian White, District 6

 

“Anderson County is so pleased to join our longtime industry partner, Techtronic Industries, as they share this exciting announcement. Their investment in this expansion into a new facility on Highway 81/Exit 27 demonstrates their consistent commitment to our entire community.” –Anderson County Council Chairman Tommy Dunn, District 5

 

“Techtronic Industries has been a key player in Anderson County’s economic vitality for many years. Their latest investment of $85 million will bring 216 new jobs to the Upstate.  Visitors entering our County will be greeted with the new TTI Campus, which will greatly enhance the landscape of I-85’s exit 27. On behalf of the residents and businesses of District 4, I am thrilled to welcome TTI’s expansion into our area of the County and I look forward to working together toward a bright future for both TTI and Anderson County.” –Anderson County Council Member Tom Allen, District 4

 

FIVE FAST FACTS

 

•           Techtronic Industries (TTI) is expanding operations in Anderson County.

•           $85 million investment creating 216 new jobs.

•           TTI was founded in 1985 and is headquartered in Hong Kong.

•           The company will construct a new 1.3 million-square-foot facility.

•           As a global leader, TTI employs more than 20,000 workers worldwide.

 

About Techtronic Industries (TTI):

 

Founded in 1985 and listed on the Stock Exchange of Hong Kong Limited in 1990, TTI is a world-class leader in quality consumer, professional and industrial products marketed to the home improvement, hardware, and construction industries. An unrelenting strategic focus on Powerful Brands, Innovative Products, Exceptional People and Operational Excellence drives our success. TTI’s powerful brand portfolio includes MILWAUKEE, AEG® and RYOBI® power tools, accessories and hand tools, RYOBI® and HOMELITE outdoor products, EMPIRE layout and measurement products, and HOOVER, ORECK , VAX and DIRT DEVIL floor care and appliances.

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