The Wall Street Journal
Animal House: Can a Republican governor tame South Carolina?
BY CHARLES ROWE
Thursday, April 14, 2005 12:01 a.m.

CHARLESTON, S.C.--Last year, Republican Gov. Mark Sanford carried two squealing piglets into the Statehouse to make a point against pork. This year, he brought a horse and buggy to the Statehouse entrance to argue against South Carolina's outmoded system of governance. If his reform efforts falter for the third straight year, he should include an elephant in his next show-and-tell.

Since the former congressman took office in 2003, Republicans have controlled the state's executive and legislative branches for the first time since Reconstruction. Nevertheless, Mr. Sanford has had difficulty gaining clear-cut victories for his agenda.

The common themes in Mr. Sanford's broad reform agenda include market competition, fiscal conservatism and government accountability. His goals remain much the same as when he was elected in 1994 to Congress, where he supported Newt Gingrich's Contract with America, (and where he frugally lived in his congressional office). Mr. Sanford left Congress after six years, in accordance with his stance on term limits.

As governor, he has encountered strong opposition from legislative Democrats who continue to fight his efforts to create private school competition to public education and to sharply cut the rate of individual income taxes. Senate Democrats, in particular, remain a force.

But the governor has been unable to generate sufficient enthusiasm for his ideas among Republicans to overcome institutional opposition to reform. South Carolina has historically been legislator- dominated, and his proposals would generally strengthen the governor's office at the expense of the Legislature. Currently, the governor has authority over something less than 20% of government.

The GOP-dominated House, though testy, has been more receptive to his message. It endorsed his tax-cut proposal and a diminished plan to strengthen the cabinet. But his unremitting pressure for stronger reforms has caused friction. And the animal antics haven't amused House leaders, who view them as suggesting that state lawmakers aren't exactly a gathering of eagles.

Changes in parliamentary rules early this year were expected to improve the governor's chances in the Senate, where the GOP margin is slimmer. Most of his initiatives were simply stopped in their tracks in the Senate during the first two years of his term. Senate leader Glenn McConnell, one of Mr. Sanford's closest legislative allies, acknowledges continued resistance to the governor's proposals, though he cites the recent passage of tort reform as evidence of improved prospects for his larger program.

But the governor's proposal for tax credits to encourage school choice is expected to founder, and his plan to cut the personal income tax rate from 7% to 4.75% was sharply modified in the Senate to benefit only small businesses. Some lawmakers expressed incredulity that the governor would pitch a tax break based, in part, on its potential benefit to wealthy taxpayers from out of state. Mr. Sanford hoped to lure wealthy businessmen to South Carolina who would presumably relocate their companies as well. It also was designed to attract well-heeled retirees. He remains unmoved by critics who say there's no evidence that lower taxes would accomplish either goal.

Last year, the tax-cut plan died as a result of a Senate filibuster, when two Republican senators declined to support cloture. Democratic leaders contended that their GOP colleagues were privately relieved with the result, since the cuts would have cost $1 billion that the Legislature would prefer to spend. This year, prospects for a tax cut were eroded by warnings from two bond-rating agencies that it could threaten the state's AAA credit rating, because it offered no source of replacement revenue. The governor countered that repaying state trust funds raided during revenue shortfalls of previous budget years should sufficiently bolster the state's financial stability to make a major tax cut feasible.

Mr. Sanford ultimately accepted the pared-down income tax plan, which gave him only a fraction of the relief he sought. Typically, he announced his intention to pursue the larger proposal next year as he accepted the modified plan. "We're not going to stop here," he said Tuesday.

In delivering his horse-and-buggy object lesson earlier this year, the governor insisted that many of the structural problems of South Carolina's government are the result of being captive to the past. "We have a system of government stuck in 1895," he said. The state Constitution was last rewritten that year. In that context, his legislative detractors, many nominally conservative, seem merely hidebound.

Inside the Statehouse, legislative leaders grumble about their hard work on behalf of the governor's agenda and his reluctance to compromise, and deride him for parading barnyard animals at the seat of government to make a point. One legislative critic dubbed him "Governor Doolittle."

Elsewhere, the governor is being mentioned as a national political candidate because of his consistent conservatism, engaging "aw shucks" manner and winning campaign record. Recently, the Cato Institute rated him fifth on its Fiscal Policy Report Card on America's Governors. (The folks at Cato will be pleased to know that he has informally indicated his intention to run for a second term.)

Though idiosyncratic in his approach to the Legislature, Mr. Sanford enjoys a level of popularity that even his detractors acknowledge. Last year, a poll done on behalf of the governor's office showed popular support for his legislative agenda--and displeasure with legislators who oppose it. Legislators didn't contest the results, but complained that the survey's tone was unnecessarily confrontational. The governor replied that the offended legislators were "hypersensitive" and blandly asserted his intention "to work with the General Assembly."

As he advances into the third year of his first term, it has become evident that Mr. Sanford's easygoing manner doesn't preclude the relentless pursuit of ambitious legislative objectives. Dogged, you might say.

Mr. Rowe is assistant editor of Charleston's Post and Courier.

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