February 10, 2012

Wilson: PAYGO is a NO-NO

Democratic members of congress and President Obama plan to re-institute statutory pay-as-you-go(or PAYGO) legislation, which they say would restore fiscal responsibility to government. PAYGO uses new spending or tax changes in order not to not ad to the federal deficit. New proposals must either be budget neutral or must be offset with savings derived from existing funds. It strives to require those writing the budget to use fiscal restraint and prioritize expenses.Second District Congressman Joe Wilson, a Republican, says the issue has developed into a shell game.  “People announce that you’re going to have to pay for a program, but it gets so confused, and the ultimate affect, as we’ve seen with the Democrats in control of congress.  They took congress in 2007, with a PAYGO rule at the time.  We had a deficit of 160 billion dollars.  Now we have a deficit of $1.8 trillion.” 

But Congressman John Spratt, Chairman of the House Budget Committee and a Democrat, points out that Republicans were in the majority in 2002 when the Budget Enforcement Act expired. He says they chose not to reinstate PAYGO, knowing that it would impede passage of their agenda. He says if they had, the budget would not have plunged from a surplus of $236 billion in 2000 to a deficit of $413 billion in 2004. Spratt says PAYGO restrains entitlement spending and new tax cuts, which both tend to be permanent, easy to pass and hard to repeal.

House Majority Whip Jim Clyburn, a democrat, says the pay-as-you-go discipline has been a key principle of Democratic policy since the early 1980′s. He says President Clinton’s Budget Enforcement Act passed in the early 1990′s yielded successive surpluses for the first time in 30 years.

Wilson says he fears that PAYGO would cause an automatice tax increase.   “The tax increase will be on small businesses, the people in South Carolina who create jobs.  I’m concerned that we’ll have an increase in unemployment.  We should be working to reduce taxes on small businesses.” 

Wilson says PAYGO should not be a partisan issue.  “When we had a downturn in 1960, President John F. Kennedy reduced taxes and the economy grew.  Twenty years after that, President Ronald Reagan reduced tax rates and jobs were created.”

Rex: US math/science inniative will make a difference

State Superintendent of Education Jim Rex has just returned from meeting with US Secretary of Education Arne Duncan and other officials concerning a new national initiative designed to push math and science education to a higher level. A new report issued by the Carnegie Corporation’s Institute for Advanced Study Commission on Mathematics and Science Education contains recommendations for organizations ranging from labor and business to federal and state government, as well as public schools, colleges and universities.

Rex says it’s increasingly true that the US must better educate its citizens if it wants to be one of the economic juggernauts of the 21st century.   “And while we have issues in the country and in this state dealing with equity, the core of reform needs to focus in on math and science.  That’s what will drive the discoveries that will make economies viable and nations competitive.” 

Key recommendations from the Carnegie Report include establishing common standards in math and science that are fewer and higher; improving teaching and school management; and redesigning schools and school systems to deliver equitable learning more effectively. It also launches a national campaign to increase public awareness about the links between effective math and science learning and the job market, which will focus on improving outcomes from historically under performing groups.

Rex says the US has been slipping behind.   “And one time the US led the nations of the world.  Now we’re somewhere in the middle of the pack.  We really plateaued out.  What’s causing that are a lot of factors.  One of them is that for decades, we couldn’t attract enough students into the math and science teaching  profession.” 

Rex says the US has previously accepted as fact that certain racial, economic and gender groups would not do as well in math and science. The report notes that all students, no matter where they live or what educational path or career they pursue, should have science, technology, engineering and math knowledge upon high school graduation.
Rex says the change will require a lot of innovative ideas.  “For example, how are we going to attract the quanity and quality of teachers we need to raise incentives, and mid-career routes, that people in math and science can use to get into the classroom more easily.  A lot of things at the same time.”   

Rex, a democrat, says US Secretary of education Duncan pointed out that the Obama Administration has been focused on education like a laser, on a daily basis, even in the middle of a severe recession and two wars. Rex says he(Rex) has been in education for a long time and he knows this is a unique opportunity to make a difference. A nationwide poll from the Commission on Mathematics and Science Education shows that both students and parents place a higher priority on math and science than all subjects except English. But the survey also showed that students and parents don’t think math or science grades count as much unless the student intends to pursue a career in directly-related fields.

BEA cuts revenue amid “grim” numbers

John Rainey and Don SchunkThe South Carolina Board of Economic Advisors cut its revenue projections for what remains of this fiscal year’s state budget by $92 million. BEA Chairman John Rainey says the numbers are grim, but it’s time now to “play the hand that’s dealt us.”

“These are the numbers that are dealt us and even with those adjustments, that we’ve been given that we have not seen on a piece of paper yet, the late deposits, the items that did not make it on Friday because Sunday was the 31st, we’re still short $92 million.”

Rainey says he does not know how the Budget and Control Board or legislature will handle that on such short notice. [Read more...]

USC goes with modest tuition hike

The University of South Carolina Board of Trustees Executive Committee gave preliminary approval Thursday to a 2009-2010 operating budget that includes a 3.6 percent tuition increase for in-state students, which amounts to a $159 increase per semester. The tuition hike is the lowest at USC in eight years. USC President Dr. Harris Pastides says the timing was right to go with a low range hike in tuition.”We waited to see if we would have the stimulus funding and as a result of that we were able to go with the moderate increase. In fact it would have taken an over 16 percent tuition increase to make up for the shortfall or reduction in state appropriations and that was just not tenable and not something I would ever recommend.”

The $1.08 billion eight-campus budget will take effect July 1.

Pastides says the University Board and the entire University community understands that people are facing tough economic times at the moment. “We understand that this is a bad time to go to our students, many of whom try to get part time jobs but cannot. Some of whom have families or parents who are unemployed right now and we thought no matter how badly we needed the money it was not possible to go back to our own students and their families and try to make up for the deficit that way.”

The new operating budget does not restore the $55.4 million in state appropriation cuts since last June and does not include the stimulus funds. Pastides says the goals in putting the present budget together were to preserve the quality of a USC education, protect the health and safety of students, faculty and staff, and preserve the environment for faculty scholarship and research and creative performance. Pastides says he is confident that the new budget meets those goals. Pastides says the stimulus funds are intended for non-recurring expenditures.

“Now what there isn’t enough money for and what the stimulus money will be used for are the ambitious interest of our students and our faculty to continue to build impactful programs that will benefit South Carolina, but also increase the reach of the University nationally and globally.”

Pastides says as the debate over the stimulus dollars raged in the state, there were some worries concerning some possible key faculty defections to other institutions. “When it became apparent that universities in North Carolina, Florida, and Georgia would get the stimulus funding, I think it made a lot of our top faculty anxious in knowing that there might be more funds to invest in quality and excellence in other parts of the country. I think the stimulus funds came at the appropriate time to able to say, we’re still in a boat that all other public universities are in.”

No room for illegal immigrants

There are between 12 and 20 million illegal immigrants living in the United States at any given time and crime is rising in that population. Currently, local law enforcement officers cannot arrest illegal residents just for being illegal. It’s under federal law, not state. However, North Charleston Police Chief Jon Zumalt says even if they did have the power to do so, chances are, they wouldn’t be able to arrest them anyway.

Chief Jon Zumalt

“We don’t have the manpower or the capacity to do it is the first layer. The second layer is where would they be held until immigration could be processed and start working through it. The third and the most important thing for us, if the word gets out in the Hispanic community that we’re picking up illegals then they’re gonna hide from us. What’s happened over time is illegal immigrants have been robbed out on the streets and they’re cashing them things and then that’s going to continue,” says Zumalt.

North Charleston has a diverse population, with over 4% of its population Hispanic. Zumalt says he is noticing a trend:

“Well the trend I am seeing is they’ve gone from victims to perpetrators and that’s a trend that’s escalating,” says Zumalt.

And as the trend, and crime, seems to escalate, Zumalt waits for what’s next.

“I don’t know exactly where it’s going. I’m very interested in seeing this national debate continue and that we actually start taking some action to contain our borders is the first step, and then we start problem solving the situation that we are in. Those are the two steps, so I’m anxious to see if anything starts moving,” says Zumalt.

Right now, as the crime rate soars in the illegal immigration population, the U.S. Immigration and Customs Enforcement, or ICE, is the only agency that can arrest an illegal immigrant- unless that person commits another illegal crime.

Photo from City of North Charleston