Otis B. Rawl Jr. , president and CEO of the S.C. Chamber of Commerce, addresses the Columbia Rotary Club. On Oct. 1, 2008, Otis B. Rawl Jr. became president and CEO of the S.C. Chamber of Commerce. The Columbia Rotary Club's membership of 320 had Rawl for lunch this past Monday, Nov. 24. Rawl was introduced by his friend, Columbia attorney Steve Benjamin.

Rawl began his talk on a negative note, the same note spoken across S.C. The state is several hundred million dollars short of its budgeted obligations for the current fiscal year, and the state must trim its obligations. The state must balance its budget. Everybody gets hurt.

Five areas of interest gave Rawl five topic headings for his speech: Energy, Tax Reform, Health Care, Work Force Development, and Employee Free Choice.

- Energy -

By 2020, S.C. should have another 1,000,000 people, all who will demand roughly the same energy per capita as today among the state's current 4.5 million, which S.C. barely serves sometime. In the summer of 2006, S.C. had 14 days of 100+ degrees, and the state came within an hour of a blackout. The Federal Energy Regulatory Commission (FERC) calls for energy reserves somewhere between 15% and 18%, and S.C. today has only 5% in energy reserves. The state needs an additional 5,000 mw of electric power, which could be delivered by four new nuclear plants plus the coal-burning facility proposed for the south of Florence County.

- Tax Reform-

With state budget cuts approaching $1 billion, S.C. is losing its stability once afforded by a three- legged stool of tax collections: (1) income, (2) consumption, and (3) wealth. With the 1- cent sales tax put into place in 2006, replacing some property taxes, S.C.'s consumptive base is down, and lower sales tax collections show it. Too little is collected from personal wealth, property. By partially relieving the homeowners of their property taxes, the burden shifts to businesses, which hinders enterprise. As the state moves further away from its manufacturing economy and more into a service economy, business property taxes are expected to rise by about 20% in the coming year.

- Health Care-

S.C. has seen double- digit increases in health care costs every year for the past five. About 700,000 people are without health insurance. The best bet to cover the cost of wider coverage is to tax every pack of cigarettes sold in the state 50 cents.

- Work Force Development-

S.C.'s school dropout rate, about the country's highest, must be targeted at both ends, when the child first goes to kindergarten and when the child drops out. The kindergarten input, even pre- kindergarten, has a chance in steering the child early in the right direction. Failing that, and following the path of the dropout, statewide intervention in the lives of young adults can come in the form of work apprenticeships and GED classes. Enrollments in the state's tech system can follow. The state's people need to "retool S.C., re- educate S.C., repair S.C.," as Rawl put it more than a few times to conclude, "Compete, S.C."

Among the recent school dropouts, 84% had passing grades. Part of that can be attributed to unexpected pregnancies, but a lot can be blamed on boredom. Meanwhile, the baby boomers will be retiring soon, tightening the work force, about the same time S.C. goes through a nuclear renaissance with its demands to hire 3,000 stainless steel welders in the next five years. The work force is not ready.

- Employee Free Choice-

S.C. and N.C. have the two lowest union activation rates in the country, partly due to the secret ballot when workers are invited to vote on forming a union. But the unions are pushing hard for "employee free choice," which is double- speak for eradicating the secret ballot in union activation.

Rawl urged the audience to express concern to their legislators over the potential loss of the secret ballot at the workplace.