Gov. Haley Delivers State Of The State Address

Updated: January 18, 2012 at 11:40 p.m.

"I say to you tonight that the state of our state is surging." That's how Gov. Nikki Haley summed up the current situation in South Carolina as she gave her second State of the State address.

She started by continuing the tradition of remembering all of the men and women who serve our country in uniform, specifically calling out the names of 13 South Carolinians who died in the past year while doing so.

Then she turned to the issue she has been most focused on since taking office: jobs.

"The good news is we've made great progress this past year. The bad news is we still have a ways to go," she told a joint assembly of the state House, Senate, judges and constitutional officers.

"But my pledge to each of you sitting before me tonight, and more importantly to the 4.6 million South Carolinians outside of these walls, is that I will not rest until we've created a climate in which every citizen of this state who wants a job has a job," she said.

She talked about the nearly 20,000 new jobs she's announced since taking office and recognized representatives, who were sitting in the balcony, from many of the companies that have expanded or moved here, like BMW in Greer, Continental Tire in Sumter, Bridgestone Tire in Graniteville and Otis Elevator in Florence.

"We all must agree that she's the greatest salesman for the state of South Carolina since Carroll Campbell," Sen. Harvey Peeler, R-Gaffney, said after the speech. "The proof's in the pudding. She announced new company after new company after new company."

She also announced that she'll give details later this month of a restructuring of the state's workforce training program.

She called on state lawmakers to pass a spending cap, restore funding to the State Law Enforcement Division, bolster mental health and spend more on charter schools.

She also talked about turning the state school bus system over to the local districts and called for a new way to fund state colleges and universities, tying their funding to performance measures like graduation rates.

But that was her only mention of education, which bothered some lawmakers.

"The most notable absence from her speech tonight is not one singular mention about K-through-12 education in this state, where we consistently rank near the bottom. And I thought that was a travesty," said Rep. Bakari Sellers, D-Denmark, who gave the Democratic response.

She continued to call for government restructuring, specifically asking lawmakers to create a new Department of Administration and eliminate the current state Budget and Control Board. She also asked them to dissolve the Transportation Commission, saying it gives the DOT two bosses: a secretary, appointed by the governor, who runs day-to-day operations; and a commission that sets policy and approves projects.

"Everybody agrees that we've got tremendous road and bridge needs," says Sen. Brad Hutto, D-Orangeburg. "The governor, you would think, would come up with some plan other than just abolishing a board. That's not going to accomplish anything. It's not going to pave a single road by having or not having the board."

She also asked lawmakers to go along with tax cuts that she proposed in her executive budget, including phasing out the corporate income tax over four years and reducing state income tax rates, which would save most people about $84 a year.

Sen. Larry Martin, R-Pickens, says the governor set a great tone overall in her speech, but he's not sure if big tax cuts are a good idea right now. "We're coming out of the recession. You've got to be careful. If you cut your revenue stream too quickly, you can wind up in a real budget crunch," he says.

Gov. Haley ended her speech by summing up her first year, saying, "In 2011, we started with a deficit and ended with a surplus. We announced almost 20,000 jobs and $5 billion in new investments."

She then rattled off bills that passed like tort reform, and unemployment and Medicaid reforms, a voter ID bill and an illegal immigration bill.

"That, to me, is more than enough reason to say, 'It is a great day in South Carolina,' she said, after defending the phone greeting she instituted for cabinet agencies. "And we've only just begun."

Updated: January 18, 2012 at 7:56 p.m.

Read the full transcript from Gov. Nikki Haley's address here.

Read the full transcript from Rep. Bakari Sellers' response here.

Updated: January 18, 2012 at 6:41 p.m.

Watch South Carolina Governor Nikki Haley's second State of the State Address Wednesday starting at 7 p.m. followed by the Democratic response. 

Watch the address on WSPA-TV, and online by clicking here.

Posted: January 18, 2012 at 11:15 a.m.

Gov. Nikki Haley will give her second "State of the State" address Wednesday night at the Statehouse, with South Carolina in a much different financial situation this time.

When she gave her first speech just days after taking the oath of office last January, the state was facing a budget deficit of more than $800 million.

"I believe that in order for the public to trust us, as we make decisions that may be seen by some as unfair or even callous, we must be honest with them: this budget year is going to hurt," she said in her first "State of the State".

But this year, the state has a budget surplus of more than $900 million, thanks to state tax collections being higher than expected. State budget officials say about half of that surplus is one-time money and much of the rest is already spent on required items, but it certainly gives the governor breathing room in this year's speech.

She told reporters Wednesday morning that the main topic of her speech should be no surprise.

"The majority of this is going to be talking about jobs. It's going to be talking about training. It's going to be talking about creating a pro-business environment so that I can continue to bring these great companies in and then also to make sure that we're taking care of the businesses that we already have," she said.

 But how successful was she at accomplishing the things she called for in her speech last year?

She has announced more than 19,000 new jobs coming to the state. She promised to hold town hall meetings across the state and to give state lawmakers report cards, both of which she did.

She asked lawmakers to give the director of the state Department of Health and Human Services the flexibility to set rates to Medicaid providers. They did, he cut those rates and that helped make up for part of the budget deficit last year.

But she was not able to accomplish many of her other goals. She said in tight budget times, the state couldn't afford to spend millions on the Arts Commission and ETV. She vetoed funding for both, but the House overrode those vetoes.

She called for privatizing the state school bus fleet and vetoed funding for new buses. The House also overrode that veto.

She called on lawmakers to restructure state government, creating a new Department of Administration within the governor's cabinet and eliminating the state Budget and Control Board. Lawmakers did not pass that, but it is pending on the Senate calendar.

She also called for a state spending cap, which is also something legislative leaders say they'll debate this year.

7 On Your Side will carry her "State of the State" address live over the air and online. Her speech begins at 7 p.m.