By Eric K. Ward
Investigative Reporter
South Carolina taxpayers could be in store for a belated Christmas present – one that would radically overhaul the awarding of economic development incentives and subsidies by state government.
The gift, in transparent wrapping and emanating accountability, exists in the form of a bill prefiled for a new legislative session slated to begin Jan. 11.
The sponsor of the bill, Republican Sen. Tom Davis of Beaufort, says it is designed to make sure taxpayers get a good deal when the state doles out incentives and related financial breaks to business and industry.
“I would rather not play that game,” Davis says of such handouts.
But if the state is going to engage in what he describes as the government picking winners and losers, Davis says, “I think there ought to be some very clear accountability.”
As it stands, he says, “there’s really no formal due diligence” on the front end of incentives to objectively analyze their public costs and benefits. Nor is there any true holding of feet to the fire on the back end with respect to employment and capital investment pledges by companies that receive incentives, Davis says.
“All we do is mouth the words ‘it creates jobs’ and the analysis doesn’t really go beyond that,” he says.
All of that could change under the senator’s bill.
The legislation, S. 206, would totally restructure state incentives and subsidies. Instead of outright giveaways, the perks would be provided as forgivable loans with stringent criteria to receive and keep them.
