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Page 66

South Carolina

David Beasley, Republican

Legislature: Divided

Took Office: 1/95

Grade: B

During David Beasley's first term in office, the South

Carolina economy has experienced a torrid rate of growth.

In four years South Carolina--one of the nation's most con-

servative states--has recruited more than $16 billion in new

investment, bringing more than 80,000 jobs to the state.

Today, South Carolina is a mecca of foreign-owned investment

with international giants like Honda operating new plants in

the state.  Unemployment is the lowest in 30 years, and in

the 1990s this traditionally poor state has enjoyed one of

the fastest rates of growth in personal income in the coun-

try.  Beasley's pro-business policies--including regulatory

relief, property tax cuts, welfare reform, and enterprise

zones for depressed areas--have clearly helped foster this

impressive prosperity and a record-low unemployment rate.

In his first four budgets Beasley has called for a combined

$1 billion in tax cuts, including small business tax credits

and most recently a phaseout of the car tax.  His welfare

changes, including strict work requirements and a two-year

time limit, must be working, given the nearly 50 percent re-

duction in state welfare rolls since 1992.  On the spending

side, the education budget has grown by more than 30 percent

in four years under Beasley to fund mostly unpromising, con-

ventional school reforms.  Worse, Beasley has sponsored the

state purchase of some 140,000 acres of land--by a state

that already owns hundreds of thousands of acres and should

be selling land, not buying it.  Despite these minor blem-

ishes, Beasley's record of fiscal restraint is impressive.

His economic and fiscal accomplishments have clearly made

South Carolina a richer state.

Score

Grade

Rank

Overall Fiscal Policy Score

61

B

6

Spending Score

65

B

10

Revenue and Tax Rate Score

59

B

7

Amount

-0.6%

Average Annual Change in Real Per Capita Direct General Spending through 1996

-2.9%

Average Annual Change in Direct General Spending Per $1,000 Personal Income through 1996

-3.4%

Average Annual Recommended Change in Real Per Capita General Fund Spending through 1999

2.0%

Average Annual Change in General Fund Spending Per $1,000 Personal Income 1996-98

0.6%

Average Annual Change in Real Per Capita Tax Revenue through 1997

-1.4%

Average Annual Change in Tax Revenue Per $1,000 Personal Income through 1997

-3.8%

Average Annual Recommended Change in General Fund Revenue Per $1,000 Personal Income through 1999

0.0%

Average Annual Change in Real Per Capita General Fund Revenue 1996-98

-1.0%

Average Annual Recommended Tax Changes as % of Prior Year's Spending through 1999

0.0

Change in Top Personal Income Tax Rate, proposed and/or enacted (% points)

0.0

Change in Top Corporate Income Tax Rate, proposed and/or enacted (% points)

12.0

1998 Combined Top Income Tax Rates (Personal plus Corporate) (*0.5)

0.0

Change in Sales Tax Rate, proposed and/or enacted (% points)

0.0

Change in Gas Tax Rate, proposed and/or enacted (cents per gallon) (*0.5)