Author: Paul Gable

Gasoline Taxes and Roads on Tap in Columbia

An increase in the gasoline tax is part of the SC General Assembly debate on road funding and tax considerations this week.

This debate will potentially be the one that affects taxpayers the most in the coming years.

One thing I believe you can count on is that before this debate is finished and by the time next year’s budget kicks in, gasoline taxes in the state will have been increased.

South Carolina’s current 16.75 cents per gallon tax on gasoline is one of the lowest in the nation. Last year, the SC House passed a proposal to increase that tax by 10 cents per gallon.

The SC Senate Finance Committee is currently considering a proposal to increase the gasoline tax by 12 cents per gallon.

When both Houses of the legislature are considering a tax increase, it’s a pretty good bet one will be forthcoming.

Additionally, with gasoline prices as low as they’ve been in 10 years, this is the perfect time to raise gasoline taxes because consumers have been accustomed to paying much more than the $1.60 or so per gallon currently charged at the pumps.

Along with the gasoline tax debate are proposals to reduce the state’s income tax.

This ploy was introduced by Gov. Nikki Haley last year and the legislature has picked up on it.

If you can get the taxpayers concentrating on how much they could save in reduced income taxes, maybe they won’t notice, or at least oppose, a gas tax increase.

Haley’s proposal last year even went so far as to call the increased gas tax combined with the reduced income tax “revenue neutral.”

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James Frazier Resignation Stills Questions

The resignation letter submitted by Horry County Council member James Frazier last week stilled questions that have been making the rounds lately.

Frazier is the record holder for service on county council having been the representative for Horry County District Seven since the county established single member districts. He has represented the citizens of District Seven for 35 consecutive years.

Recently, however, Frazier became notable for his absences, having not attended a council meeting since September 2015.

State law provides that three straight unexcused absences, by elected or appointed officials, create an automatic vacancy in the seat they hold. The law further provides that the chairman of the council, board, commission or committee the absent member sits on is required to immediately notify the governor of the vacancy.

This was not done in Horry County. Frazier missed six straight council meetings beginning in October 2015, but no notification to the governor was given. While Frazier was absent due to medical conditions, numerous sources agreed they were conditions from which he would not recover.

This is not about individuals or their service. The law is in place to assure continued representation to the citizens affected by these absences.

Frazier’s letter makes his resignation from his seat on council effective March 1, 2016. It could be argued, according to a strict interpretation of state law, a vacancy has existed in the District Seven seat since November 2015.

James Frazier served the county long and honorably for 35 years, a record not in danger of being broken. Like many athletes and politicians, he probably stayed a bit too long, but knowing when to quit is often difficult for the person involved.

Below is a Public Servant profile featuring Frazier that I did for Carolina Weekly several years ago:

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I&R Committee Hears Charleston Recyclable Update

The Horry County Infrastructure and Regulation Committee heard an update on the Charleston recyclable deal yesterday.

As with any new operation, several months of experience is needed to determine if projections in the deal are becoming reality.

With five months of solid numbers now in place, it is possible to look at what Horry County residents can and cannot expect from the Charleston deal.

First and foremost, the HCSWA can forget any expectations of making a $1 million dollar per year profit on the contract that brings recyclables from Charleston County to Horry County for processing.

When Horry County Council reconsidered second reading of a budget amendment needed to approve the deal, council member Harold Worley asked if this deal would make money. HCSWA officials answered yes.

Not realizing too much of a loss will be considered a good result.

There are several reasons for this. The assumption of 14.5% reject rate of recyclables processed is much too low. The reject rate has been in the mid to high 20’s range and that is with the best interpretation of exactly what constitutes rejects.

For example, the months of Aug through Dec 2015 saw 21,382 tons of recyclables processed at the HCSWA. Of that amount, 13,192 tons of recyclables have been sold, leaving 8,190 tons not sold.

The HCSWA does not consider all of the 8,190 tons as rejects. Some is glass that is ground up and sold at $5 per ton by the HCSWA. In December, approximately 200 tons of glass was processed, according to the HCSWA. Another 600 tons remained processed on the floor waiting to be shipped out.

You get the idea, assuming only 14.5% rejects was a pipe dream.

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SC General Assembly Bolsheviks?

It didn’t take long for ‘stupid’ to raise its head in the current legislative session of the SC General Assembly.
Yesterday state Rep. Mike Pitts (R-Laurens) introduced a bill to clamp down on the media in the state.

Called the “South Carolina Responsible Journalism Registry Law”, Pitts proposes to set requirements for journalists working in the media, including registration requirements with the Office of the Secretary of State and fee payments.

Even Pitts acknowledges his bill stands no chance of passing (it is unconstitutional as well as being plain stupid). But, such is the way of the General Assembly in most years.

According to reports, Pitts told one media outlet his bill is meant to stimulate discussion of how the Second Amendment is treated in the press (according to Pitts’ interpretation of articles at least.)

If I get this right, we have a South Carolina lawmaker who wishes to violate the First Amendment, “Congress shall make no law…abridging freedom of speech or of the press,” in order to guarantee the Second Amendment is not criticized.

That’s virtually straight out of Lenin and his Bolshevik revolution – grab control of the press so you control the message and eliminate all opposition to your political views.

I seriously doubt there is a nascent Communist Party rearing its head in Columbia, but ‘one never knows do one?’

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Charleston Contract Costing HCSWA

The contract between Charleston County and the Horry County Solid Waste Authority for the HCSWA to process Charleston County recyclables is costing Horry County money.

With five months (Aug thru Dec) of solid numbers behind us, the HCSWA has lost approximately $130,000 processing Charleston County recyclables.

When the HCSWA entered into the contract with Charleston County, it was estimated the contract would bring a profit of approximately $1 million per year. That certainly does not seem to be the case with revenues from sale of recyclables over those five months totaling approximately $1.860 million and expenses totaling approximately $1.990 million.

The only thing saving the HCSWA from even greater losses was a three month amendment to the contract, which allows Horry County to not pay Charleston County for transportation costs related to bringing the Charleston County recyclables to Horry County.

The contract calls for Horry County to pay Charleston County $425 per truckload of recyclables shipped from Charleston County. These payments have been suspended for December through February. The suspension allowed the HCSWA to realize a modest $20,000 profit in December.

Several other line items are puzzling from the HCSWA’s latest report. Expenses associated with Charleston recyclables are less than expenses associated with Horry County recyclables. However, Charleston County recyclables are approximately double the amount of Horry County recyclables.

Additionally, a total of 21,382 tons of recyclables have been processed in the five months while only 13,192 tons have been sold. This leaves 8,190 tons of recyclables unsold.

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Roads, Schools and Pensions Top Legislative Agenda

SC House Ways and Means chairman Brian White listed roads, schools and pensions as three priorities in the current SC General Assembly legislative agenda.

Since the Ways and Means Committee writes the budget, White’s priorities are important.
White issued the following press release yesterday as the General Assembly opened its legislative year:

FOR IMMEDIATE RELEASE

January 12, 2016

Ways and Means Committee Begins Committee Work

House Budget writers start deliberations

(Columbia, SC) – House Ways and Means Chairman Brian White (District 6-Anderson) today released the following statement:

“The Ways and Means Committee and its subcommittees have been meeting since November on the impact of the historic flooding and to hear budget requests but now that the legislative session has arrived we begin fully our comprehensive and open deliberations to fund state government for fiscal year 2016-17.

Our state’s excellent recent economic growth and prudent budget decisions the General Assembly made last year have resulted in $1.2 billion in unobligated general funds that are available in this year’s appropriations process. We also begin this year with significant obligations such as flood costs, the Abbeville school lawsuit, transportation funding, and a growing pension problem, not to mention state agency requests of over $2.1 billion. Ways and Means will weigh the requests and our responsibilities and be sensible stewards of taxpayer dollars while also providing for an accountable and responsible state government,” stated Chairman White.

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HCSWA Board Hubris Round Three

Horry County Solid Waste Authority board chairman Lance Thompson sent a letter to Horry County administrator Chris Eldridge last month notifying Eldridge of the 5-2 vote by the HCSWA board recommending removal of Dan Gray from the HCSWA board.

The letter and its accompanying documents were obtained by GSD through a Freedom of Information Act request to Horry County government.

Included in the accompanying documents was a letter to Gray that states in part, “While the Board regrets having to make this decision, it has determined that you have engaged in an ongoing course of conduct, which appears to be designed to undermine the Board’s actions and to hamper the functioning of the Board in a deliberative manner.”

I submit the above statement is one of opinion, not fact. I further submit the HCSWA board rarely acts in a deliberative manner.

The HCSWA board certainly did not deliberate long on the decision to spend over $1 million of public money with a lobbyist to advocate against changing state law and local ordinances with respect to flow control of waste streams.

County council ultimately amended the county flow control ordinance over the objections of the HCSWA and its lobbyist.

I submit the entire issue of removing Gray from the HCSWA board is one of personal agendas of certain HCSWA board members, certain HCSWA staff and certain Horry County Council members. In other words, Horry County politics at its worst.

The HCSWA board has taken its vote and sent its letter. I expect that is as far as the issue will go.

Gray is a nominee of the League of Cities approved by vote of Horry County Council.

Council chairman Mark Lazarus has said he will not put the issue of removing Gray on council agenda if the League of Cities does not support the HCSWA vote.

Despite behind the scenes phone calls by some HCSWA board members to mayors in the county, sources tell me the League of Cities is firmly behind Gray remaining on the HCSWA board.

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New Year for Horry County Council

The New Year is starting out in strange fashion for Horry County Council as its first meeting will be held Thursday night.

Regular council meetings are normally held the first and third Tuesday’s of each month. I understand scheduling conflicts for some of the members moved the first meeting in January two days.

The New Year is starting out where last year left off as far as changes with council are concerned.

Horry County experienced a 44% turnover rate in council membership in 2015 with three new members elected to begin the year and two more new members joining the council in special elections during 2015.

The last of those new members, Jimmy Washington from District 3, won election December 22nd and will be attending his first meeting Thursday night.

The two newest members, Washington and Cam Crawford from District 6, won special elections for unexpired terms that end this year. They will be facing re-election contests in 2016.

But, it wasn’t just membership that changed on Horry County Council in 2015.

In my opinion, there was a rather cavalier attitude toward spending the people’s money that was much more disturbing.

Not only did a majority of council pass the largest property tax increase in county history in 2015, they also increased road vehicle tax by 67%.

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Presidential Politics 2016

On the first working day of the New Year, my thoughts are of presidential primaries.

For the next seven weeks, South Carolina will be in the national spotlight as candidates travel throughout the state hoping to convince supporters they are the best person to be our next president.

Of course, this will be mostly on the Republican side as South Carolina is one of the most intensely conservative states in the nation.

Right now that looks like it means Donald Trump and, possibly, Ted Cruz against the field.

The Trump phenomenon is holding, even gaining a little momentum as the voting nears. Cruz, who must be considered another outsider in traditional Republican circles, has been coming on strong in the minds of South Carolina voters for the last month.

More traditional, establishment candidates, such as Jeb Bush, are trailing miserably.

If nothing else, this is a year of protest against the system, something traditional politicos have been slow to pick up on.

And what better state to lead that protest than South Carolina?

When Trump first announced his candidacy, I thought we would have a couple of months of fun with his outrageousness, then, he would fade from view.

That hasn’t happened.

The more outrageous Trump’s pronouncements are, the more his support grows.

Because the general feeling throughout the country is the system needs change.

I have been socially liberal all my life, but, when Trump calls for an end to all Muslim immigrants into the country, it strikes a sympathetic cord within me.

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Taxes, Flag Top 2015 News Stories

Taxes, Flag Top 2015 SC Newsies

Local tax increases and removal of the Confederate battle flag from the statehouse grounds topped the 2015 news stories.

Horry County Council passed the largest single tax increase in county history with a 7.2 mil increase in property taxes. Just for good measure, council also increased the road tax charged on every vehicle registered in the county by 67%.

Sold to the public as a means to increase public safety, the tax increase was really Horry County Council bowing to the will of county employees for a pay raise.

As council member Harold Worley said during debate of the tax increase, “Not one penny of the tax increase will go toward putting one extra officer on the street. Response times will not go down nor will community policing increase because of the tax increase.”

Adding insult to injury, the road annual tax was increased from $30 to $50 per vehicle, ostensibly to provide more money for maintenance of roads in the county road system.

Just a few months later, county council voted to use approximately $16 million in excess revenue from Ride II tax collections not for roads, but to buy a new radio system for public safety.

Five county council members will be up for re-election in 2016, but only one, Gary Loftus, voted to increase taxes.

Five of the six council members voting to raise taxes were elected or re-elected in 2014 and hope the voters will not remember this tax increase in 2018 when they face election again.

The statewide issue that was most intriguing was the removal of the Confederate battle flag from statehouse grounds.

This was done in just several days of a special session called by Gov. Nikki Haley. It demonstrated the General Assembly can act quickly when it wants to.

This special session followed a five month regular session when the General Assembly did absolutely nothing about the most important issues in the state – road maintenance and repair, ethics issues and school funding.

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