DatelineCarolinaGov. Haley vies for towns, cities at annual municipal meeting

By: Derek Legette
Edited by: Sara Leary

Gov. Nikki Haley told municipal officials Wednesday that she wants to drop corporate tax rates, boost economic development and transfer state road ownership to cities and towns.

She received general praise from mayors and city council members, though some were cautious about her plan to get local governments to take over maintenance of part of the state highway system – one of the largest in the country.

Gaffney City Council member S. Bernard Smith said Haley's idea to encourage more locally owned streets could cause cities to take on a larger maintenance problem.

Haley said she wants people to love where they live, whether it's a small town or a big city. But first the economy has to improve, she told the S.C Municipal Association at its annual meeting to address legislative issues.

"You're going to see us push tax reform this year," she said. "We're going to phase out the corporate income tax. We do have one of the lower income taxes, but if we phase it out over the next four years we will have companies swimming to be here."

Haley also said that she wants the Legislature to reduce manufacturers' property taxes by lowering the assessment rate from 10.5 percent to 6 percent.

Haley also said she wanted to bring companies, such as the Bridgestone tire plant that recently announced its expansion in Aiken County, to small counties such as Jasper and Clarendon.

"That's what I'm focusing on: How do we get those companies here to make those things," Haley said.

She also urged officials to support her efforts to get towns and counties the option to own state roads.

"A lot of you have driveways, small dirt roads and areas that the state's maintaining," Haley said.

South Carolina has the fourth largest state highway system in the nation at 41,500 miles, according to the Federal Highway Administration.

About 65 percent of South Carolina's public roads are maintained by the state, compared with the national average of 21 percent.

"The state owns more roads in our state than most states in the country," Haley said. "What we want to do is give that control back to you."

But many municipal officials remain cautious about Haley's proposal.

"Roads with no money would put us in a quandary we can't handle," Santee Mayor Donnie Hiliard said. "That's just like having a divorce with no alimony. The state completely divorces themselves of the roads, but then again they don't pass any money for us to sustain ourselves."

Gaffney City Council member S. Bernard Smith said he would have to think about cities and towns being able to own state roads because of the added responsibility.

"You'd be really asking to take on a maintenance problem that the state currently takes on," he said.

Many of those interviewed said they approved of Haley's message and appreciated her focusing on towns and counties.

"I like the idea of cities helping cities," Simpsonville City Council member Sylvia Lockaby said. "It kind of gives the hometown feel of the South."

Travelers Rest Mayor Wayne McCall said he liked "the fact that she's giving cities and town more opportunities to control their own destinies."