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State Legislative Update

January 9, 2018

THIS WEEK IN SOUTH CAROLINA

The second session of the 121st General Assembly will convene in Columbia tomorrow, January 9.

This is the second year of a two-year session which means those bills introduced in 2017 retain their places on the calendar and in committee and are carried over to this year.  Each legislative session is held from the second Tuesday in January until the second Thursday in May.

2018 is an election year for South Carolina House of Representatives and the state’s constitutional officers.

The House pre-filed legislation on November 9 and December 13, 2017.
The Senate pre-filed legislation on December 6, 2017.

You will recall that at the close of the 2017 session, proviso 11.23 was included in the Conference Committee’s version of the state budget. The proviso removes the South Carolina Commission on Higher Education (CHE) from the approval of certain capital projects that are classified as auxiliaries (athletics and housing) which by state law MUST be self-supporting and ARE NOT funded by tuition or state appropriations.

The proviso also removes CHE from the approval of projects classified as maintenance and renovation which will allow universities to move more quickly to address the important maintenance and renovations of our existing buildings on our campus.

Governor McMaster vetoed the proviso. We anticipate that the House and Senate will take up gubernatorial vetoes soon after their return to Columbia. Please keep an eye out for important calls to action on this veto.

BUDGET
2017-18 State Budget
Below is a summary of 2017-18 budget items for Clemson University and Clemson PSA:

Clemson E&G –
–      Increase of $1.75 million in Clemson’s current base funding.

Clemson PSA
–      $1.1 million in recurring funding for Agriculture and Natural Resources Programming
–      $1.2 million in recurring funding for Statewide Extension Programming

The 2017-18 budget includes an increase in the cost of health insurance and an increase in retirement contributions for state employees and employers.  The employee portion of both the health insurance and retirement contribution increases will be paid by the state. $145 million from the state’s general fund is also included to cover state agencies’ higher costs for the state pension retirement system.

Governor McMaster Releases FY 2018-19 Executive Budget Proposal
Earlier today, Governor Henry McMaster released his Executive Budget proposal for 2018-19.  Included in the Governor’s budget proposal is $500,000 for Clemson’s Call Me MISTER program. The proposal also includes $32.4M to cover a 1% increase in employer contribution rates for the state’s pension plan.

The 2018-19 State Budget Process
The House Ways and Means Committee (where the appropriations bill originates) will begin agency budget subcommittee hearings this week and will continue this process through January.

President Jim Clements, along with Brett Dalton (Executive Vice President for Finance and Operations) will deliver Clemson’s Education and General (E&G) budget presentation to the Ways and Means Higher Education Subcommittee on Tuesday, January 16.

Clemson PSA’s budget hearing is scheduled for Tuesday, January 16 before the Economic Development and Natural Resources Subcommittee.  President Clements, along with Dr. George Askew (Vice President for PSA) will be presenting before the Subcommittee.

House Ways and Means Subcommittees that will hear Clemson’s budget requests

Higher Education Subcommittee:
Chairman Derham Cole (R-Spartanburg)
Representative Gilda Cobb-Hunter (D-Orangeburg)
Representative Mike Sottile (R-Charleston)
Representative Kirkman Finlay (R-Richland)
Staff:  A.J. Newton

Economic Development and Natural Resources Subcommittee:
Representative Gary Simrill, Chairman (R-York)
Representative Chip Huggins (R-Lexington
Representative Leon Stavrinakis (D-Charleston)
Staff: Alyssa Weeks

From a state budgeting standpoint, Clemson is considered two separate state agencies: a research university that receives an educational and general (E&G) state appropriation for teaching and student support, and a land-grant Public Service and Agriculture (PSA) division that receives a state appropriation to support agriculture, forestry and natural resource Extension, research and regulatory programs.

The university also has auxiliary operations, such as athletics, student housing and dining services, which receive no state funding and must generate all of their own revenue.

Detailed information on Clemson’s 2018 state legislative and budget priorities for FY 2018-19 may be found at these links:

Clemson Education and General (E&G) Priorities
Clemson Public Service and Agriculture (PSA) Priorities

BILLS OF INTEREST
The Clemson University Governmental Affairs office is monitoring several bills that have potential impact on Clemson.  A complete listing of these bills may be found here.  Click on the bill number for a description of the legislation, along with the bill’s current status.

FYI
Please follow CU at the Capitol on Twitter.



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