By BOBBY HARRELL – Guest Columnist

Since the Legislature adjourned last spring, I have spent a great deal of time traveling all over our state and talking with citizens, community and business leaders and fellow lawmakers in order to get a good idea about what concerns you have and what we can do this year to better our state and the lives of our citizens.
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S.C. Rep. Bobby Harrell, Speaker, S.C. House of Representatives

That way, we may be adjourned “without day,” but we will not be adjourned without progress.

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Bobby Harrell,  Speaker, S.C. House of Representatives

Tomorrow is a solemn day of remembrance, Memorial Day. 

As we all enjoy this long weekend with our families, it is important we stop and remember what we are celebrating.  Tomorrow is the day we remember the brave men and women who have given their lives for our country.  A day to honor our defenders of freedom. 

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S.C. Rep. Bobby Harrell, Speaker, S.C. House of Representatives

Our previous legislative session was a very successful year and the people of South Carolina benefited from it.  The tax burden on our citizens was reduced, private property rights were protected and many steps were taken to improve our state's economy.  And on January 9th, the 117th General Assembly will return to Columbia to continue working hard for our state's citizens. 

A new year is upon us, elections are over, it is time for us to put partisan differences aside and put the needs of our state's citizens up front. 

Our state has a workers' compensation system that is in desperate need of repair.  Continuous double-digit rate increases and a second injury fund that has run out of control are beginning to hurt businesses.  We are becoming less competitive with our neighbors, which is detrimental when it comes to recruiting new businesses to our state.  We must take decisive actions that will result in the lowering of rates and the improvement of our business climate. 

Lowering taxes, making it easier for our businesses to hire workers and grow their business, and improving quality of life for our citizens are essential elements in creating a prosperous state.  We can accomplish all this by nurturing our state's economy. 

In this new legislative session we must continue our work of advancing South Carolina's economy.  One of the best ways to improve the lives of our citizens is to improve the economy in which we live.  It is new industries, thriving business communities and educated minds that make a community work.  That is what we are trying to build on here.

We are already off to a good start.  In the last few months there have been many bills pre-filed that will help us accomplish this goal for our citizens, particularly two bills that deal with the development of a new industry and the development of great minds.

Our nation is overly dependent on foreign oil and we need to do something about it.  Developing an industry around a viable alternative fuel will be like developing a new Silicon Valley.  In the coming decade hydrogen technology is expected to be an over $2.6 trillion industry.  With our state's hydrogen resources at Savannah River Site, University of South Carolina, Clemson and South Carolina State University, we have an excellent opportunity to be a major leader in this field. 

In December, we pre-filed legislation aimed at getting the private sector more involved in this movement.  It will take major companies, locating here and operating here, for us to take the next big step.  This plan is centered around two things, developing a clean alternative fuel and creating jobs for our citizens.  It is the challenge of our generation to do something about our dependence on foreign oil, and I believe South Carolina can make a huge contribution to that effort. 

There has been a great push lately for our state to develop a knowledge-based economy.  You can help develop many aspects of a high-tech industry but it will not be a success unless you have the manpower to run it.  Our children have the talent and the ability to inherit such an economy but we need to guide them toward this goal. 

We need to increase the opportunities our state's students have to contribute to tomorrow's knowledge-based economy.  That means we needed to focus on math, science and engineering fields.  Over the last ten years, our state has fallen behind our neighbors when it comes to students majoring in those areas.  To help gain ground we need incentives that would help our best and brightest choose to pursue careers in these fields. 

In a plan we unveiled before session, we do just that by utilizing our state's LIFE and Palmetto Fellows scholarships.  Students majoring in the math and science fields will receive a substantial increase in their LIFE or Palmetto Fellows scholarship.  More students will be receiving an education that will translate into a high paying job in tomorrow's knowledge-based economy. 

Helping to foster a knowledge-based economy that is run by our state's best and brightest minds should be a major focus of this legislative session.  If we want our state to be a player in the global market we must not hesitate, because it will be our children and our grandchildren who will benefit from this new knowledge-based economy we are trying to create for them. 

These are just a few of the important issues the General Assembly will be debating this year.  I, along with the other members of the legislature, thank the people of South Carolina for the great honor they have bestowed upon us by allowing us to be your representatives in the General Assembly, and hope that our service will lead to the betterment of our state.

S.C. Rep. Bobby Harrell, Speaker, S.C. House of Representatives

This election season you are hearing an outpouring of political rhetoric.  One of the biggest political sound bites out there is the Governor's claim that your General Assembly is growing government by astronomical figures.  That simply is not true.  Fortunately, we are not like the federal government.  We are required by our State Constitution to have a balanced budget.

The Office of State Budget is a non-partisan agency that provides all budget numbers for the House, the Senate and the Governor.  According to its numbers, since 1994 when Republicans took control of the House of Representatives, government growth has been held to an annual rate of 4.2%.  Even with this year's budget surplus, the Office of State Budget said this year's increase is a little over 9%.

Many of you remember the slow economy we recently experienced and how the General Assembly cut agency budgets deeply.  Our entire nation went through the economic downturn.  North Carolina, Georgia, Florida, and Tennessee all raised taxes to deal with the loss of revenue.  South Carolina did not.  We cut our budget and lived within our means.  Several members of the General Assembly, including me, have been named Friends of the Taxpayer by the SC Taxpayers Association for holding the line on taxes.

Our Governor does the Legislators, who stood their ground during that difficult time, a terrible injustice when he spreads the rhetoric he is spreading today.  Making those hard budget-cutting decisions and refusing to increase taxes is what has led to our economic resurgence.

The Governor threatened to call Legislators into an extraordinary session to address his vetoes at a cost of almost $100,000 a day to the taxpayer.  He said this was necessary so voters could see how their Representatives voted before election day.  The fact is only 26 out of 124 Representatives have a Primary opponent, and Senators aren't even up for re-election this year.  For over 20 years, the legislature has waited at least two weeks to come back and deal with the Governor's vetoes.  That allows time to review them before taking them up.
                                                                                                                                    
Every member of the House has voted on everything in the budget, not once, not twice, but three times.  There was a weeklong debate on the House floor in March.  The budget came back from the Senate in early May.  Then, in late May, the Conference Committee report on the budget was voted on by the House.

The reality is the Governor's campaign wanted to make a press splash before his primary election, even if it cost taxpayers $100,000 a day to do so.

It is sad to see a member of my own party base his re-election campaign on running against a legislature that is controlled by his political party.  Targeting the General Assembly makes for an easy sound bite.  Most voters like their Representative, but don't like the legislature.  Governor Carroll Campbell would have loved to have Republicans in control of the General Assembly.  He did amazing things when all the Republicans had was just over one third of the House seats.   

The problem is Governor Sanford needs the same people he is attacking to later support proposals he makes to the General Assembly.  We have asked the Governor many times to work with us; those cries have fallen on deaf ears.  Just when you think you are getting somewhere, his office sends out an attack press release, or they announce a fly around.

This year, we have done almost everything the Governor has asked of us.  He asked us to fully repay all of our state's trust funds.  We did.

Governor Sanford endorsed the House conference committee's position on property tax relief, and we passed it.

He asked us to use some of our surplus revenue to provide additional tax relief, and we did. We have lowered the sales tax on groceries from 5% to 3% effective October 1st and eliminated all sales tax for the two days after Thanksgiving.

He asked us to set aside some of the surplus revenue into a contingency fund.  We set aside $71 Million in a new rainy day fund, which is in addition to the $278 Million our other two existing rainy day reserve accounts already contain.

All totaled, over $1 Billion in this year's budget is being used for tax relief, trust fund repayment and rainy day funds.  That is one out of every six dollars in our state budget.

We have a lot of work to do in our state.  Our unemployment rate was the third best in the country when Campbell and Beasley were governors.  Now our unemployment is the third worst in the country.  Our per capita income was on the rise when Campbell and Beasley were governors, now it is not.  We passed the LIFE scholarship and the Education Accountability Act and now nowhere near enough attention is being given to education.

What we need today is less rhetoric and more leadership.  The Governor frequently quotes Thomas Friedman's book, The World is Flat.

Dale Carnegie wrote the book, How to Win Friends and Influence People.  Life is about relationships; so is the General Assembly.  Leadership is about being able to influence people.  The title of Mr. Carnegie's book tells how to accomplish that.

S.C. Rep. Bobby Harrell, Speaker, S.C. House of Representatives

I was distressed to learn that thirty-three USC law professors recently sent a letter of support to the president of the Forum for Academic and Institutional Rights (“FAIR”).  FAIR is currently mounting a First Amendment challenge before the US Supreme Court to the Solomon Amendment.  The Solomon Amendment is a federal statute that withholds specified federal funds from institutions of higher education that deny military recruiters the same access to their campuses and students that they provide to other recruiters.  Basically, the Solomon Amendment keeps many schools, particularly many law schools, from banning the military from their institution. 

The situation here is an easy one to understand.  Law schools across the country readily invite employment recruiters to come to their campuses and meet with students.  The recruiters provide the opportunity for students to learn about their firms or companies and pursue a job with them if they wish.  This is true, unless the job being promoted is for the Judge Advocate General.

The only reason recruiters from the armed services are now allowed into many law schools is because of the Solomon Amendment.  Many law schools only now allow military recruiters onto their campuses for fear of losing precious federal funding.  If there was nothing linking the decision about letting recruiters come to their school and the federal funding the schools receive, law schools could easily turn the military away.  The organization FAIR is trying to eliminate that link, and a group of thirty-three USC law school professors have just given their complete support to them.

Groups like FAIR take stances against the military.  They do not want to provide any assistance to our armed forces but are more than willing to take any benefits the military may provide.  The group of thirty-three want USC's law school to close its doors to the military.  I wonder what would happen if USC's law school campus were being attacked by Al-Qaeda, would they keep the same closed-door policy? 

This message by the group of thirty-three is nothing new in liberal, anti-military elitist circles.  This type of crusade has been going on for years.  In 2003 almost the entire student population of Yale signed a petition saying they would not meet with the Navy JAG recruiter that was coming to their campus.  The one, and only, student who scheduled a meeting with the recruiter canceled their interview due in part to the actions of the student body. 

There is nothing new about this subject, what is new is where the outcry is coming from.  I had no idea that our professors here at USC's law school viewed our brothers and sisters in arms in the same light as the elitist liberal colleges of the North East.  The kinship they share with their academic brethren of the North must be stronger than the patriotism they have for our soldiers, sailors and airmen who are risking their lives to defend freedom.

What concerns me the most is the message this action sends.  USC's law school has a strong JAG presence, what are those students to think?  Even worse, what does this say to law students who are considering a career in the military? 

Public schools do have the option, if they choose, to refuse military recruiters open access to their campuses.  However, if they do, they will not receive some of their federal funding from the government.  FAIR is in court now to change that rule so law schools can keep their money while telling the government to keep their recruiters to themselves. 

USC Law is a public institution that benefits from federal and state tax money.  In fact, the salaries made by the group of thirty-three are paid in large part from those tax dollars.  They seem to have a give and take relationship with the military of the government that pays them.  They will give a military recruiter a Keep Out sign with one hand while they take a check out of the government's pocket with the other. 

In the letter they sent, the group of thirty-three said the letter was written in their individual capacity, but the letter and press release that went out was sent using USC law school's equipment, two previous dean's signatures were included, and they clearly state in the first sentence how all members work at the University of South Carolina School of Law.  I just hope this is not the official opinion of USC's law school.  I urge the law school to come out against this message and support our military. 

The Solomon Amendment requires law schools to give military recruiters the same access they give to all other employment recruiters.  All the government is asking for is equal treatment.  It is this equality the thirty-three USC law school professors and their friends at FAIR disagree with.  It seems that law schools are truly the champions of diversity, or perhaps more accurately, they are the champions of selective diversity. 

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S.C. Rep. Bobby Harrell, Speaker, S.C. House of Representatives

Our state has received a wake up call.  When Standard & Poor's recently downgraded South Carolina's bond rating from the highest AAA level to AA+, it pointed to the state's sluggish growth and higher than average unemployment rate.  Moody's Investors Service recently reaffirmed our AAA, but gave us a “negative outlook” primarily because of our unemployment rate.  It praised our state's conservative debt and fiscal management while cautioning us about economic weakness and employment declines.

The news from S&P and Moody's and the fact that the state's unemployment rate has fallen from third-best in the nation to fifth-worst has brought to light that it's time to intensify our economic development and job-creation efforts.

We must reprioritize and refocus on economic development to bring about the kind of job growth that helped us to grow South Carolina's economy in years past. The bottom line is this: The General Assembly is committed to working with the governor and private- sector leaders to overcome every obstacle to economic growth. Together we must develop a strategic approach to stimulate job creation and raise income levels across the state.

The solution is tri-fold. First, we need to continue to aggressively recruit companies to South Carolina – companies that open up job opportunities for our citizens. Next, we need to identify and implement ways to help large and small South Carolina companies not only survive but also thrive, and in thriving create new and better paying jobs. Finally, we must transform our research universities into economic engines, the same way North Carolina did when they formed the research triangle 40 years ago.

Reformation begins with an in-depth look at the Department of Commerce's toolbox. We need to give this agency the tools and resources it needs to succeed. We also need to fully support the various economic development groups. With a spirit of cooperation among all regions of our state, we can better compete against the rest of the nation – and even the world.

In 2004, the hardworking folks at the Department of Commerce doubled the amount of capital investment they attracted to our state in the previous year. We need to build on this momentum. But again, that requires us to take a look inside the agency's toolbox and make sure it is equipped for success.

The availability of a well-trained workforce is also key to recruiting companies to our state. Knowing this, we must continue to work to build a first-rate educational system. We must strengthen our world-class workforce development programs offered by our technical college system.

The next step to reach these goals is identifying and implementing ways to help existing South Carolina companies – both large and small – thrive and create new and better paying jobs.  As President George Bush recently pointed out at the National Small Business Week Conference in April, small businesses create two-thirds of new private-sector jobs in America, employ more than half of all workers, and account for more than half the output of the U.S. economy. South Carolina must continue to support small businesses.

The General Assembly has built a solid record of enacting legislation to support the business community and companies of all sizes.  In fact, a sample of legislation from the 2005 session alone includes the Jobs Creation Act, the Tax Credit Carry Forward Act, the Small Business Income Tax Reduction Act, the Air Carrier Hub Terminal Facilities Act, the State Ports Authority Facility Investment Tax Credits Act, the Venture Capital Investment Act, the Innovation and Research Centers Act, the Motion Picture Industry Film Incentives Act, and comprehensive Tort Reform.  All of this pro-business legislation clearly demonstrates the General Assembly's strategic focus during the last session on building a business-friendly climate in South Carolina. 

When the next session begins, we must continue to proactively introduce and pass legislation that helps South Carolina companies experience the kind of success that is long lasting. That means keeping our finger on the pulse of businesses to determine what they need to grow.

Finally, we must transform our research universities into economic engines. South Carolina's economy is in transition.  We have seen declines in long-time economic staples, such as agriculture and textiles, since the 2001 recession.  South Carolina must position itself as a viable player in a changing economy. Two of the bills the legislature passed in the 2005 session, the South Carolina Innovation and Research Centers Act and the Venture Capital Investment Act, are meant to put us on the road to a knowledge-based economy.

It is going to take the cooperation of government and business leaders committed to working together as we transition to a knowledge-based economy.  At the end of the day, pointing fingers won't help us meet the challenge. We must prepare a roadmap that will take us from where we are to where we need to go. A renewed focus on creating new and high-paying jobs will raise income levels and improve the quality of life for our citizens. We must face our state's growth challenge head on, embrace our various roles in job creation, and turn the dream of a better life for South Carolinians into a tangible reality.

S.C. Rep. Bobby Harrell, Chairman
Speaker-elect, S.C. House of Representatives
Former Chairman, House Ways & Means Committee

This was a banner year in South Carolina. Members of the General Assembly worked together for the common good, largely setting aside partisanship for teamwork.  This unique spirit of cooperation allowed us to pass important legislation and to make great strides for our great state. 

We've addressed critical issues like job creation, education and health – and this is just the beginning. I am encouraged by what I've seen in the legislature this year and am committed to fostering continued collaboration in the coming sessions.

Legislation passed in 2005 will move South Carolina 's economy forward. For instance, the Job Creation Act allows a small business to qualify for a job creation tax credit after hiring only two people. In addition, the Tax Credit Carry Forward Act assists our state's manufacturers. And the Corporate Income Tax Moratorium Act provides a tax break that will encourage companies to create jobs in the state's rural communities.

Indeed, sparking economic development is a major focus of South Carolina lawmakers. The legislature also passed the Venture Capital Investment Act to provide capital to early stage research and start-up enterprises as well as the South Carolina Innovation and Research Centers Act, which will leverage the state's academic resources to increase research and drive economic development. And, tort reform bills now limit lawsuit awards in medical malpractice cases with a $350,000 cap on pain and suffering awards.  With a strong focus on pro-business legislation, we are creating an environment where businesses can grow and create quality jobs in our state.

Nowhere is bipartisanship more important than in educational initiatives. Our children are our future and South Carolina 's government has demonstrated its dedication to the next generation. For example, in 2005 we passed the Education and Economic Development Act. The bill enables students to begin a study focus such as health science, finance, information technology, or arts and humanities as early as the 10th grade.  This law is an important means of addressing the quality of life and standard of living for our graduates.

Then there's the Students Health and Fitness Act of 2005, which was widely supported by both parties.  This legislation tips the scales in the favor of South Carolina 's youth with a renewed focus on physical education and well-rounded nutrition in our state's schools. The goal of this bill is to combat obesity, reduce medical expenditures from state Medicaid funds, and ultimately help students perform better in school.

Though a large focus of 2005 was on job creation, education and health, the legislature did not neglect other key areas of importance to our state, such as highway funding. The Highway Funding/DOC Set Aside Act passed this year redirects an estimated $70 million generated by the vehicle and driving-related taxes to repair our state's secondary road and to fortify our state's infrastructure bank for future needs.

Most importantly, the 2005 legislative session was characterized by a spirit of cooperation and bipartisanship not seen in our state in more than a decade, and rarely seen in a legislative body. This year, we were able to build a bridge between political parties to create and pass legislation that serves our citizens.

Perhaps the biggest indication of strong cooperation is the fact that the state budget was unanimously passed in the House, something that has not happened in more than 25 years.  House members united behind a budget that prioritizes education and fully funds it to the Education Finance Act (EFA) levels.  For the first time in several years, we have fully funded the base student cost at $2,290, which raises total per pupil funding to $9,826.  This budget also provides for repaying the trust funds, hiring more law enforcement officers, giving raises to state employees, fully funding Medicaid, and incorporating many of the Governor's cost-saving strategies to help state agencies become more efficient.

Once again, I am encouraged. What we accomplished this year sets the stage and the tone for future sessions. We must continue with a spirit of bipartisan cooperation – and we will. I truly believe that both sides of the aisle want the best for South Carolina .  We are committed to working together to create a better educational system, a better business climate that generates jobs, and a better quality of life for citizens across our state.

As we move forward, the S.C. General Assembly is charged with looking closely at where the state needs to go, making a plan to get there, and turning the vision into reality. This year's tremendous progress on multiple fronts proves what we can accomplish when men and women, Democrats and Republicans, veterans and newcomers alike work together to improve South Carolina.

S.C. Rep. Bobby Harrell, Chairman, House Ways & Means Committee

The House Ways and Means Committee recently completed a $5.8 billion spending plan that offers more funds for education, law enforcement, Medicaid, and restoring our state's trust funds.

It is a great day for South Carolina when parties who have held such differing views on past political issues have unanimously passed this budget out of the
House Ways and Means Committee. The level of cooperation between the political parties and the desire to work together was unprecedented.  Then again, it shouldn't be hard for legislators to agree on a budget that focuses on the issues South Carolinians tell us are priorities. What brought us together is a commitment to making the very best choices for South Carolina 's future, and a spirit of cooperation that we have not seen in several years. 

Education is the top priority of this budget. During the past few difficult years, we said when times got better we wanted to focus even more on education, and we were pleased to announce that we are fully funding education to the Education Finance Act (EFA) level.  At the same time, we are repaying trust funds, hiring more law enforcement officers, and giving raises to state employees.

With this budget, the total per pupil funding for South Carolina will be $9,826, which includes the “base student cost” being fully funded at $2,290.  That is good news for students, parents and teachers.  What's more, teacher supply money was increased to $250, and teacher salaries will be increased so that they will continue to be $300 above the Southeast average.  Furthermore, the budget fully funds our state's scholarship programs:  LIFE, Palmetto Fellows and HOPE scholarships and continues to provide funding for tuition assistance to two-year institutions.

In addition to education, law enforcement is also a priority.  The budget adds 100 new Highway Patrol officers, 124 corrections officers, 20 SLED agents, 118 SC Department of Juvenile Justice officers, 10 SC Department of Natural Resources agents and four new criminal prosecutors.  State employees will receive a 4 percent pay raise for the first time in years with many law enforcement officers getting 10 percent raises, bringing their salaries more in line with the rest of the Southeast.  Medicaid is fully funded.  And, the House budget includes more than 170 of the Governor's cost-saving strategies, which require state agencies to operate more efficiently.

One very important aspect of this budget is that it completely restores forty of the trust funds from which money was borrowed over the last few years, including the Pinewood Fund, the Heritage Land Trust Fund, the Superb Fund, and the Patients Compensation Fund.  In addition, the budget puts $25 million back in the Barnwell Extended Care Maintenance Fund.  It is important that the General Assembly set a course to make sure that all trust funds are completely restored. 

A strong educational system is critical to a successful economy.  For our state to compete in the increasingly complex global economy, our citizens need top-notch training and academic preparation.  The rules to become successful are changing.  Most of today's jobs require higher-level skills and that means higher-level education.  As South Carolina continues to attract better, higher paying jobs, we must provide the skilled workforce to fill those jobs.

It all begins in the elementary, middle and high schools of our great state. While education initiatives will require additional resources from the state, the return on the investment will be significant and will help ensure prosperity for decades to come.

When the budget is debated in a couple of weeks by the full SC House of Representatives, you will hear state officials negotiate budget priorities. Some of us will make education our number one priority. Others will focus on paying back trust funds as the top initiative.  The bottom line is that both of these can and should be priorities.

It may look like a difficult choice to some, but it really isn't a choice at all. Our future depends on every South Carolinian contributing to the productivity of the state. We cannot afford to leave any child behind. It has been very gratifying to see everyone working so hard together on this budget.  This is the first time in a long time that we have seen such unified and overwhelming support from virtually everyone in the House of Representatives. Democrats, Republicans, men, women, veterans and newcomers alike are pulling together to ensure that South Carolina 's children are our top priority and are well prepared for the future.