During his annual State of the State address Wednesday night, Governor Mark Sanford admitted there are enormous challenges facing the state.
Sanford submitted his proposed budget plan to lawmakers last week. Wednesday night's speech was more about his vision of government in South Carolina.
The governor noted how the country was infused with the spirit of change in the November 2008 election cycle. He asked, "Can change begin now? It is my hope that these jolting economic times force us to move South Carolina state government in to the 21st century."
And in that, the Governor proposed to use these "jolting economic times" to change and better state government. But first, Sanford warned the road ahead will be long.
"I also believe that anyone who suggests that it won't get a whole lot worse before it gets better has missed how high the forest of debt and spending has indeed grown over these 20 years," said Sanford.
To try and navigate out of the forest of debt, the governor took aim at spending and taxes.
And, in what many view as positioning for a possible White House bid, Sanford staked out a popular position against government bailouts. He stressed that it's not bailouts that create jobs and economic growth, rather "a tax and regulatory structure that rewards hard work, savings and enterprise."
Lisa Turbeville of Carolina Forest agreed with the governor. "I'm going nuts with all these bailouts. They're making me very nervous and I'm totally against them," she said.
But, there are those who see the upside of federal assistance.
"We hope the governor will go after federal funds in the economic stimulus package that will provide highway funding and I-73 support. Jobs, tourism, education are the three top things of concern in this session," said Brad Dean, CEO of the Myrtle Beach Area Chamber of Commerce.
Many argue that federal funding could jump-start a weak state job market. Only Michigan and Rhode Island have higher unemployment rates than South Carolina, which stands at 8.4 percent.
"Governor Sanford cannot ignore the third largest unemployment rate in the country. He cannot ignore tourism. The governor needs to put his money where his mouth has been and accept federal grants for highway projects," said State Senator Luke Rankin, Republican, Myrtle Beach.
But Sanford insists that it's not government spending more money on bailing people out, but less government spending and lower taxes that stimulate the economy.
The governor proposed an optional flat income tax of 3.5 percent with no deductibles. Taxpayers can choose to pay the flat tax instead of the 7 percent income tax with deductibles.
Sanford balances the restructuring of income tax revenue by bumping cigarette taxes up from seven cents, the lowest in the country, to 37 cents per pack. Sanford also proposed to increase fees for out-of-state garbage dumpers.
He also pushed hard for the need to restructure government, hoping to cut out what he describes as unnecessary and redundant government. The governor proposed to mold much of the state's bureaucracy in to a cabinet-level agency - the Department of Administration - that, he says, will provide better support services to other state agencies.
"Anything the government does, I think the private sector can do it more efficient and with less waste and more cost efficiently," said Lisa Turbeville, of Carolina Forest.
Though, some fear that slashing state spending and reducing the size of government would reduce services.
"It would be good to streamline what he can, but when it comes to services, that's a big part of everybody's life and living," said John Merrill, also of Carolina Forest.
But Sanford urged that state spending has gotten out of control and that "government in the state costs 140 percent the national average."
The governor said the state tends to "overspend when times are good," and in turn, has to slash when times turn tough. He proposed implementing some sort of rainy-day fund to fall back on whenever times are tough.
Sanford also stressed more choice in education, continuing his battle with the public school system, which also received mixed reviews.
"In Carolina Forest, our schools are already overcrowded, and we can't keep pace with the growth in the area and the schools can't handle bringing in more kids in to our district," said Jim Gorcesky, who lives in Carolina Forest.
"We need school vouchers. We need home schools. We need more school alternatives to make us competitive with the world, not just to meet certain quotas and certain government standards," said Jimmy Barfield, of Myrtle Beach.
Finally, Sanford stressed the need for more government transparency, making more information accessible to South Carolinians.
But not all viewed Sanford's address through the scope of state government.
State Rep Tracy Edge, Republican, North Myrtle Beach, said, "This was a presidential address for Sanford as he eyes a White House bid in 2012. I've worked on state budgets for years, and never has Sanford or his top staff sat down with me on budget issues.
