February 10, 2012

Survey claims using stimulus dollars would cause massive job losses

Gov. Sanford and one-quarter of the senate joined officials of a conservative think tank in Columbia to unveil a study showing a negative economic impact from taking the stimulus money, saying that taking the money would actually cost the state up to 35-thousand jobs, including government jobs..

South Carolina Policy Council Director Ashley Landis.  “Because South Carolina already has such a high percentage of government spending, this spending money will have a more harmful affect on our state than it might on others.”   Landis says the percentage of government spending verses private sector output is already 58 percent, and she says the addition of stimulus money would push that percentage up to 61 percent, which she asserts is much higher than any other state.

And Landis says the real impact will be felt when the stimulus money disappears in two years.  “So if we’re truly spending this money keep teachers employed, and to keep prisons open, and keep law enforcement folks working, then in two years we’re going to have to cut this program anyway.  We’re going to have to assume the cost ourselves.  So South Carolinians will have to pick up the cost of at least a billion dollars, and that’s conservative.”

Legislators thought they could override Sanford’s plan to use stimulus money for debt reduction. Now South Carolina Attorney General Henry McMaster says, in his non-binding opinion, that the governor must approve the use of the federal money. According to Congressman Jim Clyburn’s office, state legislators cannot work to override the governor until after the Friday deadline passes.

State senator in finance committee suggests that governor might be ready for a considerable stimulus compromise

It’s the latest episode in the saga of “The Governor Who Won’t Take the Stimulus Money.”
“So Mr. Chairman, you know I’m a big believer in body language.  And I see the body language of the governor as wanting some type of compromise.” That’s Cherokee County Republican Harvey Peeler, before Tuesday’s meeting of the Senate Finance Committee.

That led Finance Chair Hugh Leatherman to extended an open invitation to the governor to address the budget writers. Sanford said at Furman University Monday that he would accept the remaining stimulus funds if state lawmakers use an equivalent amount to pay down debt over the next two years. Friday is the deadline for all governors to accept the funds. Leatherman says the governor is welcome any time.  “I haven’t had one word from this governor.  Have you?  Has any member of this committee had a word from the governor to try to resolve this issue?  If you have, please let me know.  Until the governor comes to us with a proposal, and to me that’s not a proposal I can even pay attention to…come to us with a proposal to resolve this…if the governor wants to come to us and propose a very small paydown to get rid of this debt, now I’ll pay attention to that, say 25 to 30 million dollars, we’ll pay attention to that.”

Leatherman said he didn’t know how it would be possible, to pay down 360 million dollars in debt service, and still meet the needs of South Carolina residents.  But meanwhile, White House officials said Wednesday that Sanford may be able to block stimulus funds headed to the state’s general fund. [Read more...]

State awards stimulus money to help with foreclosed homes

In 2008, the Bush Administration passed the Housing Economic Recovery Act, which included a Neighborhood Stabilization Program to help with foreclosed homes.

The South Carolina State Housing, Finance and Development Authority has awarded communities and organizations the state’s portion of that act, to help companies buy foreclosed homes to sell or rent at reasonable prices.

The Lowcountry Housing Trust, a non-profit organization that serves Charleston, Berkeley and Dorchester counties, will get $7.4 million of the $44 million allotted to South Carolina – that’s more than any of the other 18 state recipients.

Tammie Hoy, director of the Lowcountry Housing Trust, says that More than 3,000 of the 14,000 foreclosed homes in the state came from this three county area and it’s time to reduce that number.

“The funding is very specific. It’s meant to acquire and rehabilitate foreclosed bank-owned properties. So, the resource is not meant to help people who are in foreclosure or mitigate foreclosure, but once the properties have been foreclosed upon and are now bank-owned, the idea is to use these resources to acquire and rehabilitate minor rehab to these foreclosed properties and resell them or rent them,” says Hoy.

Hoy says the idea is true neighborhood stabilization and it aims at tackling a cluster of foreclosed homes, not just one here or there.

“Part of the problem with foreclosures is when you have lots of foreclosures in one neighborhood you have a lot more negative impact, meaning crime, or blight, or obviously reduction in property value,” says Hoy.

This year’s federal stimulus plan includes $2 billion for the program, but details are not expected until May.

White House letter to Graham addresses SC options on stimulus funds

Senator Lindsey Graham recently released a written statement about the stimulus package. As Governor Mark Sanford’s deadline approaches as to whether he will except the stimulus money intended for education ($700 million) or if he will refuse it, Graham wrote, “We can refuse to accept it, but we cannot refuse to pay it back. Based on that dilemma, I believe it is in South Carolina’s best interests to apply for these funds.”

White House Budget Chief Peter Orszag wrote a letter to Senator Graham in an attempt to clarify the implementation of the the stimulus funds. You can read that letter by clicking here.

Consumer expert says skipping medications to save money is not the answer

According to a recent report by the health consumer organization Families USA over 34 percent of South Carolina residents under the age of 65, 1.3 million persons had no health insurance for at least a month between 2007 and 2008. 75 percent of those persons were uninsured for six months or more during that time. As unemployment rolls grow and the economy continues to falter more people, especially those with chronic conditions like hypertension and diabetes are cutting back on health care spending to save money. Consumer expert Jim Miller is editor of the “The Savvy Senior” information service. Miller says many persons on low or fixed incomes are not getting their prescriptions filled or skipping doses of medication thus jeopardizing their health. Miller says persons with long or short term illnesses should used their doctors as a resource for finding medications at lower costs.

“It’s important that people always talk to their doctor or pharmacist to find out is there is a cheaper alternative medication that they may be able to get. Most people when they get a prescription from their doctor they take it and get it filled at their pharmacist and don’t ask any questions. It is important to be inquisitive to ask the questions necessary right up front because that might be able to save you a significant amount of money if there is a cheaper alternative.”  Miller says though economic times are tough persons should never compromise on their health to save a few dollars.

Miller says persons can often save money on their medications by buying in bulk. “A 90-day supply is often cheaper than a 30-day supply. Pill splitting is a great way to save money that a lot of people don’t think about, where you get a double dose of the medication that you’re required to take, split the pill in half and you can cut your cost in half.” Miller says it is a good idea to check with your local health associations and support groups in order to obtain the medications you need to maintain your health.

Miller says even if you have health coverage it is a good idea to check and see if you can get medications at the lowest possible costs. “It’s important that people to always check with their health plan or their pharmacist to make sure their getting their medications at the lowest possible co-pay because depending on the plan that you have or the medications that you are taking it can vary so you can save some money that way.”

Miller says persons can help themselves stay healthy the old fashioned way by eating healthy and exercising.