Bobby Harrell, Speaker of the House

January 3, 2005 – Representative Bobby Harrell opened the first meeting of the new year by telling Rotarians that the legislative priorities of 2006 would most likely be very similar to that of 2005-to continue the focus on economic development and job creation in South Carolina because success at both will be critical to the long term growth and continued health of our state. With that, Speaker Harrell gave us a look back at the year as well as a look forward.

In 2005, nine pieces of legislation were passed which affected the creation of jobs, established tort reform, and provided tax incentives to encourage business growth. The most recent efforts to encourage new job growth targeted small businesses, the largest representative group of potential employers in the state. Tax incentives devoted to encouraging business use of the Port, to promote the motion picture industry in South Carolina, and encourage potential partnerships between private business and university research were all areas of legislative success in 2005 .

While most Charlestonians might consider property tax reform the most critical issue on the slate for 2006, the overall emphasis will most likely remain on economic development. The Speaker talked about a three pronged approach for creating jobs and growing income within South Carolina. First, the focus of attention will be on finding ways to support and encourage small businesses in order to enhance this particular economic base. Whatever is good for small business owners will have a ripple effect across the state. The second approach is to support the Department of Commerce in their efforts to bring new industries and jobs to South Carolina. The DOC needed additional resources if they are to ratchet up their efforts to a significant degree. Finally, a concerted effort must be made to assess and determine what existing and established businesses here in South Carolina currently needs so we can provide them the resources and support they must have to grow and flourish.

Another critical issue facing the legislature in 2006 is the subject of workers compensation. Workers comp premiums have risen dramatically and are having significant impact on businesses in this state and will only worsen if not soon addressed.

Speaker Harrell concluded his most interesting and informative remarks by introducing a topic that he feels we should all be aware. Mr. Harrell calls this subject “a sleeper issue” and admitted he is doing all he can to bring this issue to the forefront of public attention because, in his opinion, this will be one of the most critical issues South Carolinians will face in the next few decades. The subject is Medicaid. Currently, 19% of the general fund budget goes to Medicaid. It is predicted that in 10 years that will rise to 30%. In 20 years, it could be as much as half of the budget. According to Bobby, discussion of potential ramifications of these burgeoning costs must begin now in order for this South Carolina to start planning and preparing to do what must be done to offset the fallout from these shifting costs.

Submitted by Helen R. Harloe, Keyway Committee