May 17, 2012

Study: Natural resources affect SC economy

The Department of Natural Resources funded a study conducted by the University of South Carolina to find out what kind of economic impact natural resources have on the Palmetto State. According to the study, it is a major part of South Carolina’s economy generating $30 billion a fiscal year. Dr. Doug Woodward of the Moore School of Business at USC says that natural sources resources affect several areas of the economy.

“Imagine South Carolina’s economy if we were landlocked and baron and then think about how it is right now,” said Woodward. “That’s how important the natural resources are to everything in South Carolina and everything to do with its business conditions.

“It has widespread effects. What we wanted to do is look at a way of calculated these effects. It is not easy because it is so pervasive. You can’t capture everything. So, in a way, this just gives us a snapshot of how immense and how important our natural resources really are.”

Emmit Davis, Chairman of the South Carolina Natural Resources Society, says this study shows how important funding for DNR is saying, “Ladies and gentlemen, the DNR is stressed at this time. The funding has been reduced as they have been in so many agencies but this agency has been hit particularly hard.

“We need to do everything we can to encourage getting the funding back to its fullest extent so we don’t lose these fine officers and we don’t lose these fine people that are so important to the state.”

Dr. Woodward says the lack of funding may not be felt initially but could have a major impact on natural resources in the future.

According to Woodward, “I think the evidence will be more in the future if we don’t keep up. I mean the impacts won’t be felt right away. When you cut back on DNR and, for example, people who are out there maintaining the quality and integrity of our natural assets, it doesn’t impact right away. That will be something that will occur over a number of years and will be very difficult to reverse. That’s what we mean by sustainability. We need a sustainable approach to maintaining the integrity of our natural resources.”

Rex hopes for quick resolution

State Superintendent of Education Jim Rex says the clock is ticketing as the state’s public school system stands and waits as the battle over the stimulus dollars melodrama plays itself out in the court system. Rex says it’s important that a quick ruling on the issue is made because July first is the deadline for South Carolina to apply for the stimulus dollars.Governor Mark Sanford has petitioned for the suit involving the South Carolina Association of School Administrators be moved from the State Supreme Court to federal court. Rex surmises that the Governor has many reasons for prolonging the case, but he adds as the case drags on it is the state public school system that is ultimately hurt. Rex says he’s thinking of asking the U.S. Department of Education for an extension on the deadline for applying for the funds.

“I don’t know of any precedent for what we’re talking about here. We probably would request it until a conclusion is reached by the courts. That’s what we would ask for. They may say for a limited period of time. I hope it doesn’t come to that. I hope we don’t have to ask for that extension.”

Rex says South Carolina taxpayers are going to have to pay back the $350 million in stimulus money, so the funds should be spent in South Carolina.
Rex says the state public school system benefits from several federal grants not tied to the stimulus funds, however the amount of funds allotted to South Carolina from those grants are tied to performance. Rex says public school students have made significant strides in test score improvement over the past few years and continued improvement would be jeopardized if the stimulus funds are not allotted to the state. Rex says there is time, but he says the time for discussing a compromise with the U.S. Department of Education in tying grant awards to performance may soon be warranted.

“it’s okay to have high expectations for school districts, teachers, and students. But you also have to have a set of expectations from the legislature and the other elected leaders of this state to provide the necessary resources for school districts to have a reasonable opportunity to meet those expectations. We’re not there yet, but if we see the resource base continue to dwindle it’s likely we would have to make some adjustments either in terms of timelines or in terms of expectations for improvement.”

If the stimulus funds do not come to the state, Rex says the continued progress in the area of manageable student-teacher ratios in the classroom would cease as more teachers lose their jobs. ” We’d lose about 2600 jobs in our school system and about 1500 of those would be classroom teachers. The difference appears to be between having the stimulus dollars included or not having them which would mean a swing of about 700 jobs about 500 of those would be classroom teachers. The impact of that would be significant.

Port restructuring bill in governor’s hands

As the legislative session came to a close last Thursday, state lawmakers slipped in a port restructuring bill and sent it to Governor Mark Sanford’s desk. Berkeley Senator Larry Grooms says the main objective of the bill-

“Stabilization is one of the first things it does. Clearly defines the duties of the executive director and the board. It also adds, as non-voting members to the board, the Secretary of Commerce and the Secretary of Transportation. All that was done as a way of forcing communication that has not existed in prior years,” says Grooms.

Grooms says the international community is becoming doubtful about their future business at the Port of Charleston, when they consider future growth. He says the State Ports Authority has failed to expand the port and also failed in its communication with other state agencies, customers, and shippers in how the port should expand. For example, the port’s largest customer, Maersk, is still moving its business in 2010.

Grooms says the port restructuring bill will not only help keep the port on track with future business, but also help keep the flow of job creation.

“Our State Ports Authority has helped create 1 in 10 jobs in our state. 260,000 South Carolinians have a job because of our port activities. Our port creates more jobs than any other entity that we have. So, we have to nurture it, we have to play to our strengths, and our Port Authority is one of our greatest strengths, but we cannot help it fall in decline, we have to help build on that strength,” says Grooms.

Grooms says the port will fall if the it remains unstable. He says with the port restructuring bill, there is stability; however, he says he expects the governor to veto the measure.

“He has indicated that he has problems with the bill, he says it takes authority away from the governor’s office and places it in the General Assembly, and that’s simply not the case, it does not add anything to the General Assembly. What it does do is say that a 6-year term for a board member is a 6-year term, and every time we have an election cycle, that doesn’t give the next governor the ability to start over again,” says Grooms.

If the governor vetoes the measure, the General Assembly will consider the bill on June 16.