by Bill Hixon

Dear Friends,

The second and final year of the 119th legislative session came to a close on June 7th. However, we have been in a special session trying to pass the budget and a few other items left over. Both the House and the Senate have passed their versions of the budget, the budget is now in a Joint House/Senate Conference Committee.  
 
The biggest roadblock has been over tax cuts to businesses. The House has been insisting on a $60 million immediate break and the Senate wants a $15 million one-time cut. The House offered to phase in the $60 million over three years. 
 
The House Republican Caucus set out this session to help our state's recovering economy grow with a plan to pass job-creating tax relief.  Our plan will slash small business taxes by 40% – cutting their income tax rate from 5% to 3%.  This $60 million tax cut would come out of the $1.3 billion in new revenue our state's economy generated this year.  But the Senate Budget Conferees are opposed to small businesses keeping more of the money they've earned and are insisting that the Senate should be able to spend every penny it can. 

Even though I will not have any opposition in November, I still need your financial support. To have a strong voice in Columbia, I have to communicate with my constituents. And that is you! My website, newsletters, mailers and Facebook are the communication tools that I use. It takes extra time and campaign funds to maintain them.

If you would like to contribute, please mail a check to Hixon For House, P.O. 7927, North Augusta, SC 29861 or contribute online by going HERE.

I hope that you find this update helpful and informative:

Latest Budget Update: The Joint House/Senate Budget Conference Committee signed off on the budget agreement that they reached late Tuesday night. Both the House and the Senate have passed a Continuing Budget Resolution that will allow the Government to keep operating until the Governor can review the Budget. Governor Haley is given the state-mandated five days to review the budget for vetoes. We expect to see the Budget back no later than Friday of next week.

Agreement Reached:

Late Tuesday night(June 26), the Joint House/Senate Budget Conference Committee came to an agreement on a finalized budget that includes the House's plan to cut small business taxes 40% by reducing their income tax rate from 5% to 3%.  Both Legislative Chambers were scheduled to meet in session Wednesday to formally adopt this budget plan into law.  However, after the conferees reached their agreement and left for the night, the Senate announced that it was canceling Wednesday's session.

Avoiding July 1st Government Shutdown:

Governor Haley is given the state-mandated five days to review the budget for vetoes after it lands on her desk. As of now that would be this Friday the 29th at the earliest. With the new fiscal year beginning July 1st, a Continuing Resolution would allow government to continue operating at the previous year's funding level.  But even if the budget were to be passed today, a Continuing Resolution is still necessary to prevent a government shutdown.  A Continuing Resolution passed the House last week, but is still in the Senate.

43,800 State Workers Checks Could Be Delayed:

The state cannot release $42.4 million in weekly payroll unless the Governor can sign at least a budget resolution. The S.C. Treasurer's office said it needs authority by 4 p.m. Thursday to pay state workers on time by Monday. The Senate plans to take up a continuing budget resolution first when its session starts at 9 a.m. Thursday. The House has passed a continuing resolution. The Senate has yet to take a vote.

Update On Sunday Alcohol Sales:

The bill(H-5098) has passed both the house and Senate and has been signed by the Governor. This legislation will allow a City, like North Augusta, to put a alcohol referendum on any general election. As the law stood before, a municipal(City) could only add referendums to municipal(City) general elections. It is my intention, as well as the North Augusta City officials, to allow a referendum to be on at least a State wide or National election. Since there is always a larger voter turnout in Statewide and National elections than just City elections. This bill will allow more residents of North Augusta to have a say in this important decision. It will be up to the North Augusta City Council to decide what the referendum will be. Sunday alcohol sales in restaurants and/or Sunday alcohol sales in grocery stores and convenience stores too. I also want to thank Sen. Massey and Sen Ryberg for leading the charge on this bill in the Senate.

Edgefield County Water and Sewer Authority:

This legislation (H-4665) amends the Edgefield County Water and Sewer Authority boundaries where members can be appointed from. The Authority's services cross over into Aiken County, and this law has now been amended to ensure Aiken County residents will be represented by up to 2 members and those members have to reside in the Aiken County service area. Prior to this change becoming law, all authority members resided in Edgefield County. I worked closely with Sen. Massey and Representative Clyburn to get this legislation passed. I wanted all citizens to have representation on this authority.

Pension Reform:

After a decade of seeing the pension financial mess grow, the General Assembly passed a bill to put the state's various pension plans on sound financial footing. It now goes to Gov. Nikki Haley, to sign into law.   Like most states, SC has an unfunded liability in its major pension plans for a number of reasons including the negative impact on investments from the 'Great Recession' and decades of sweetening the benefits to where they are unsustainable. Without correction, it's estimated the major pension programs would run out of money sometime over the next 30 years, falling about $15 billion short.

Here is a quick overview on the retirement changes: 

  • A cost of living adjustment of 1% up to $500 will be guaranteed each year for retirees.
  • Individuals hired in the PORS system after June 30, 2012 will have to complete 27 years of service before being eligible to retire with full benefits. The Average Final Compensation (AFC) for new hires will be based on the individual's highest 5 years of salary instead of the highest 3 years. Furthermore, new hires will not be able to include annual leave or sick leave in their AFC calculation.
  • PORS members hired before July 1, 2012 will continue to be able to retire after 25 years of service, with a 3 year AFC, and including any unused annual leave and sick leave in their AFC.
  • Effective January 2, 2013, PORS members who wish to retire and return to work will have to wait 30 days (instead of 15) before returning to work. They will also be subject to a $10,000 salary cap unless the PORS member works straight through to age 57, is appointed to his/her position by the Senate, is elected to his position, or retired before January 2, 2013.
  • The cost to purchase service time will become actuarially neutral starting January 2, 2013.
  • The controversial TERI program will be phased out by 2018. TERI allowed teachers and state workers to retire and return to work for up to five years, earning a salary and a retirement check at the same time.
  • It eliminates the special pension plan for those newly elected to the General Assembly. 
Budget and Control Board Reform:

The House and Senate conferees reached a compromise to work out differences in (H-3066) legislation eliminating the South Carolina Budget and Control Board and transferring many of the responsibilities to the newly created Department of Administration. The House passed the compromise bill sending it to the Senate.  However, the Senate never voted on the bill and it died until next year.

You can view Live Broadcasts of the South Carolina House of Representatives daily legislative sessions by clicking Here. 

Go to the new House Roll Call Votes Page to see how all the representatives have voted on all the important bills.

 

Thank you for the privilege of serving you in Columbia.  If I can ever be of assistance to you, or if you have ideas on issues you want me to share with the rest of the General Assembly, please don't hesitate to contact me at Home – 803-278-0892 or at work 803-279-8855.

 

Sincerely,

Bill Hixon