What do SC business leaders want in 2023? It’s not just more workers
Most South Carolina business leaders now support legalizing medical marijuana, according to a statewide survey the S.C. Chamber of Commerce is leaning on to help drive priorities in the State House this year. As lawmakers in the self-proclaimed business-friendly state get to work on new laws in 2023, the Chamber looks to press its goals into action.
The S.C. Chamber of Commerce recently outlined its competitiveness agenda, which includes business-friendly objectives the Chamber will push to become state law during this year’s legislative session. The agenda is based on a survey of nearly 1,000 business leaders throughout the state who are asked about their challenges and legislative priorities.
Participants were asked a variety of questions, including whether they support medical marijuana. More than two-thirds of business leaders say they do.
This comes on the heels of a Senate-approved medical marijuana bill that House lawmakers killed last year just days before the end of session.
Still, it’s unknown whether backing from the business community would help secure a medical marijuana bill this legislative session.
Regarding clear legislative priorities, however, the Chamber says workforce development is the item of the day.
“There are 100,000 jobs that are unfilled, which leads directly to the number one challenge facing businesses in South Carolina … workforce, workforce, workforce,” said Bob Morgan, president and CEO of the S.C. Chamber of Commerce.
This year’s agenda includes five objectives:
Workforce development
Tax reform
Economic competitiveness
Civil lawsuit reform
Pro-business environmental and regulatory climate
Morgan said his organization has considered what it believes is possible to accomplish in the State House this year given the current makeup of the General Assembly and economic conditions.
“The most common themes we heard when talking to our members was workforce, taxes, infrastructure, inflation and supply chain challenges,” said Will Frierson, vice president of government affairs at the Chamber.
Morgan said he believes lawmakers will prioritize workforce issues as they return to work this session.
Currently, South Carolina has the fourth-lowest workforce participation in the nation at around 56%, which the Chamber says is negatively impacting the state’s economy.
Increasing workforce participation by just 1% would add $1.2 billion dollars in economic growth, according to the Chamber’s agenda.
Acknowledging South Carolina’s low labor participation rate, House Speaker Murrell Smith announced earlier this month the Statewide Education and Workforce Development Act, which consolidates and streamlines all workforce development efforts in the state through a new agency, the Office of Statewide Workforce Development.
“We think that’s a good piece of legislation and a great start for the House Ad Hoc Economic Development committee as they roll out workforce related bills,” Frierson said.
Tax reforms
As a carryover from last year’s agenda, Chamber officials are continuing to urge tax reform, hoping to lessen property tax burdens on local businesses.
“We continue to support comprehensive tax reform and (are) very pleased that South Carolina saw the largest tax cut in the state’s history with reductions in the personal income tax rate as well as the industrial and commercial property tax rates,” Morgan said.
Still, more than 90% of business leaders throughout the state say high tax rates and property tax burdens hurt South Carolina’s overall competitiveness, according to data collected by the Chamber.
In addition, the Chamber is asking lawmakers to address the disparity in property tax rates between primary residences and rental properties, where the property tax rate for apartments is three times that of primary residences.
Legal reforms and economic competitiveness
Regarding civil lawsuits, business leaders are targeting South Carolina’s law that allows a person to sue one defendant even if other parties are equally or more at fault. Specifically, Chamber officials are advocating for fair share liability, where plaintiffs are discouraged from targeting the “deepest pocket.”
“Lawsuit reform is a priority of ours and has been for some time,” Morgan said.
The Chamber also wants to improve the state’s economic competitiveness by seeking to attract knowledge-based employers while backing policies that improve energy availability and affordability for businesses.
“Other states are doing more than we are in some areas to prepare for being competitive over the next decade, and so we’re focused on economic development, making sure we have the infrastructure across the state to be competitive over the long run,” Morgan said.
