Happy Friday.
We've wrapped up Week 13 of the S.C. legislative session.
There are now 12 days left on lawmakers' official working calendar. Sine die hits at 5 p.m. on Thursday, May 8.
You're reading The State House Gavel, a daily reporter notebook by reporters Gavin Jackson, Russ McKinney and Maayan Schechter that previews and captures what goes on at the South Carolina Statehouse this year while lawmakers are in session.
And Friday we're celebrating our 50th posting, so thank you to all of our readers and listeners who have checked out the Gavel to keep up with all things South Carolina Statehouse.
One quick reminder: The House is on furlough next week, while the Senate is expected to be in town for two days before skipping Thursday and returning the following week for budget week on the floor.
Notebook highlights:
- South Carolina economists project strong revenue but warn of potential tariff impacts on state projections.
- More details on the Legislature's plan to delay income tax overhaul to next year amid an uncertain economy and what Democrats are saying about ending earmarks.
- Treasurer Curtis Loftis has asked the S.C. Supreme Court to intervene ahead of a Senate hearing to remove him from office.
SC economists warn of tariff impact
The latest report from the state’s Board of Economic Advisors shows South Carolina’s economy performed better than expected in the third quarter of the fiscal year.
But state economists are cautioning that pending trade tariffs are causing economic uncertainty.
Frank Rainwater, the director of the state Revenue and Fiscal Affair's Office, said on a call Thursday the economy is strong, and tax revenues through March are $511 million ahead of expectations.
However, he cautioned that South Carolina is more exposed than most states to the impacts of tariffs due to the state's strong international trade chops.
Tariffs, Rainwater said, equals uncertainty.
Canada, China, Germany and Mexico are South Carolina's top trade partners.
President Donald Trump has paused import taxes for 90 days, but did not stop the ongoing trade war with China.
Two months ago, the BEA advised the Legislature it could expect just under an additional $2 billion for next fiscal year's projected state budget.
That estimate remains unchanged.
In the background: Republican Statehouse leaders are closely watching potential impacts as budget writers try to draft a revised income tax plan and spend in some cases millions of dollars on state agencies that have already lost federal dollars due to cuts.
Taxes, earmarks and budget — oh my!
We reported Thursday about how the Republican-controlled budget committees in both chambers have opted to forgo earmarks (or "community investments" as they call them) this year.
Instead, both budget chairs — Senate Finance Chairman Harvey Peeler, R-Cherokee, and House Ways and Means Chairman Bruce Bannister, R-Greenville — said in a joint statement they'll focus their attention on "tax reform."
Maayan Schechter spoke to House GOP Leader Davey Hiott, R-Pickens, on Wednesday. Hiott said the move to nix earmarks this year "wasn't popular" among all in the House GOP Caucus.
Many local governments rely on earmarks every year.
Their requests to lawmakers, who then submit requests for the spending through the budget, often pay for infrastructure and road work improvements, law enforcement, recreation and other local projects in a lawmaker's respective district. Nonprofits have also been on the receiving end of earmarks, including the Special Olympics and crisis pregnancy centers.
Here's more from Hiott below:
Hiott said he didn't think the earmark ban would be permanent.
On the other side of the political aisle, it was clear Thursday to any observer that Democrats are not thrilled about the ban.
Here's Minority Leader Todd Rutherford, D-Richland:
To take earmarks away from local governments, this is "going to have a negative impact on the entire state," Rutherford added.
Loftis tries for Supreme Court help
Embattled Treasurer Curtis Loftis is asking the state Supreme Court to block a planned Senate hearing aimed at removing him from office.
The Senate has summoned Loftis to appear in the Senate chamber on Monday, April 21 to respond to a committee’s finding that he “willfully neglected his duties” over his handling of the $1.8 billion accounting error and should be removed.
Loftis’s attorneys are asking the Supreme Court to “enjoin” the planned hearing until it can hear arguments from them claiming that the Senate doesn’t have the constitutional authority to remove a statewide elected official from office.
Look ahead: Senators will argue they do have the clear authority per the S.C. Constitution to remove officers, like Loftis — an action that requires a two-thirds vote in both the House and Senate.
Clips from around the state
- Democratic Solicitor Pascoe to join GOP. Will he run for SC attorney general? (The State)
- South Carolina's neighbors are studying high-speed rail. We won't. (Post and Courier)
- Future in-state college students may get reprieve from tuition rate increases (The State)
- SC shrimpers supported Trump’s steep tariffs. Here’s what they think about 90-day pause (The Island Packet)
- Loftis files petition with SC Supreme Court in effort to stop removal hearing (WSPA)
- A near-death snake bite exposed lax SC animal laws. Wildlife experts say proposed ban won't cut it. (Post and Courier)
- Steve Bannon to headline Greenville GOP "America First" event (Spartanburg Herald-Journal)
- Trump administration fires scientist who helped victims of SC train wreck (The State)
- SC bill advances to allow prayer, religious expression at school events, aligning with U.S. Supreme Court ruling (WLTX)
- Dorchester County Councilman Jay Byars considers run for SC's 1st Congressional District (ABC News 4)
- ACLU seeks halt to SC law that keeps execution information secret (SC Daily Gazette)
- Previous execution reveals how South Carolina will put 2nd inmate to death by firing squad (AP)
- SC wildfires prompt bill increasing penalties on people who cause them (SC Daily Gazette)
