“FISCAL FOLLY” AVERTED?
|| By FITSNEWS || As we reported last week, S.C. governor Nikki Haley’s mouth wrote a check her administration couldn’t cash … at least not without opening her administration up to allegations of hypocrisy.
We’re referring to the $123 million in up-front taxpayer money promised to carmaker Volvo – part of a massive government-funded “economic development” deal with the company (owned by Chinese billionaire Li Shufu).
Haley previously stated she didn’t need lawmakers to lure Volvo to Berkeley County, S.C. – a statement which is true only under the most fiscally reckless scenarios. Given the extent to which the state’s “economic development” borrowing capacity is tapped out, Haley’s plan would subject taxpayers to a whopping $86 million in borrowing costs (along with the $123 million in principal).
In fact taxpayers would shell out $30.6 million in borrowing costs before paying a dime of principal under Haley’s plan. And another $12 million in interest-only payments would be made in years eight and ten of the seventeen-year obligation.
Also, the payments on the principal balloon at the end of the deal …
Don’t believe us? Take a look at this spreadsheet obtained from the state’s joint bond review committee …
(Click to enlarge)
(Pic: Provided)
Wow …
And that’s from a politician who blasted her “Republican” allies for excessive borrowing earlier this year!
According to Haley, though, it’s not her fault. Volvo made her do it.
“The governor actually said that Volvo requested that we borrow money,” one legislative leader told FITS. “I can’t imagine Volvo asking the state of South Carolina to borrow money for a bridge and road. All they want is the infrastructure.”
In a letter to S.C. Commerce Secretary Bobby Hitt sent last week, powerful S.C. Senate president (and finance chairman) Hugh Leatherman made plain his objections to such a risky deal.
“I cannot support a financial plan that includes interest only payments in 7 of 17 years of the duration of the bonds as well as balloon payments at the end of the term,” Leatherman wrote.
Yeah … that’s the most liberal politician in state government telling Haley her borrowing plan is too risky.
As noted in this story, House leaders have proposed appropriating a big chunk of the state’s $400 million surplus to fund Volvo’s interchange with up-front cash. And it appears as though Leatherman is willing to go along with such a plan.
Now the only question is whether Haley will support the direct appropriation – or insist on pursuing a risky borrowing scheme.
As we’ve stated repeatedly, we oppose such handouts on principle (and because they haven’t worked).
Whether using borrowed millions or millions of dollars in cash on hand, it is simply wrong for state leaders to take money out of taxpayers’ pockets to subsidize a billionaire’s investment. Especially when they are perpetually whining and complaining about not having enough money to fund the state’s network of roads and bridges.
38 comments
Earth to FITS – earth to FITS – most municipal and government debt bonds are structured that way. It ain’t a FNMA 30 YR Fixed. The issue is, should we incur the debt for the deal – particularly when there’s other ways to pay cash – like say – expand Medicaid?
LMAO!!! Expand Medicaid.That is what is taking Obamacare down (besides SCOTUS)and will end up bankrupting states.No doctors are accepting these people and they are having to see a nurse at Food Lion or CVS for medical services or in hopes of getting medicine.
I am on Obamacare and it is 10 times better than the crap I had with BC/BS. There is also the added bonus in that when I have a problem, the customer service personnel are so much nicer.
Don’t confuse pogo/fc/sandi morals with facts. Those tend to get in the way of mindless diatribes of Fox News points.
Facts? Facts? Oh geeze I’m breaking out in hives just reading them! I need to clog my ears with bullshit before I get a headache! LMAO!!! LMAO!!
awwwwww …. Obamacare …. awwwwwwwww. You are so full of it. Old? Dementia?
When she smiles that way, she reminds me of a Sikh little girl.
You are the fucking devil.
Praise my liberal goddess Haley for putting us in the hole! May she raise our taxes a thousand fold! Haley hu akbar! Haley hu akbar!
Angels and ministers of grace defend us!
Be thou a spirit of health or goblin damn’d,
Bring with thee airs from heaven or blasts from hell,
Be thine intents wicked or charitable,
Thou comest in such a questionable shape
That I will speak to thee.
The fire in thine eyes bespeak
whose master thy heart doth serve!
There, within, assumes some horrible hate,
Which deprives your soul of reason,
And draws you down into madness
The spirit that you have seen
May be the devil:
And the devil hath power
To assume a most pleasing shape;
Even as if he were I!
Out of your weakness and melancholy,
As he is very potent with such weak spirits,
Mayhaps he uses my comeliness to trick thee,
and by opening the door to hell to bid me enter,
has lured you into your own destruction.
I think she looks charming in that photo.
You have not been laid in a good long while have you?
No.
That’s what they *want* you to think!
Wonder why Georgia wanted this plant so bad? Oh, I get it-it is a job creator and financial boon for ANY state.
Anybody could create as many jobs as Nikki Haley if they has as much money and tax breaks in their back pocket. I could create all those jobs with as much cash and tax breaks as Haley as spent.
Ignore the jobless pogo, he clearly does not remember that Walmart didn’t generate the jobs promised by Nookie.
hahaha … Pay the companies for the jobs? hahahaahaha. Asinine.
Give the politicians an interest in the company if they deliver the goods.
The below is quoted from Nikki Haley’s facebook page dated May 21, 2015.Seems as if Haley has forgotten SHE was the first one to propose the gas tax increase AND Haley borrowed money long time before any lawmakers.
South Carolina has $600 million in new revenues this year with more
expected to come in. We will CONTINUE to say that this is an opportunity
to either reduce taxes, pay down debt, or pay for infrastructure. ?#?NoMoreDebt? ?#?NoNewTaxes? ?#?TaxpayerMoney?
Dig a little deeper and find out who is making bank on the bond deal. That is the real story here. Maybe I need to reallocate my IRA?
kudos! this is exactly the information that needs to be put in front of a public seeking to make informed decisions. next we need more expert analysis per Rocky’s point – is it worth investing this much money to build this plant. i’m doubtful but open to hearing some argument – 4000 jobs 15 years from now isn’t enough.
If she isn’t taxing the hell out of us then she is borrowing us into a hole. What a shock. Can’t wait for that liberal pogo to tell us how borrowing money and taxing people are conservative and good.
Taxes good! Saving bad!
You dirty perverted liberal!
LMAO!!!!
Economics 101 for Socialists:
A.Eliminate state income tax
B.User fees for EVERYBODY.Gas,food,clothes,booze,cigs,lottery tickets
Obama Says “Everyone Must Pay Their Fair Share”!!!!Including you Democrats occupying the perpetual welfare train!!!!
Laughable hypocrite. This is what happens when you elect people who have no basic principles.
No lie there!
God Damn!!! Volvo asked her to borrow the money??? WOW!!! With all the BILLIONS that Volvo has, that is a major INSULT!!! FUCK VOLVO …. Cut them loose NOW!!! Haley does not know what in the hell she is doing. She is surrounding by a bunch of idiots with degrees who have NO fucking common sense to them. Sad .. very sad … Haley is a sweet woman, but as dumb as dumb can be!
How can a company coming into a state – a Chinese company at that – dictate to Nikki Haley how the money is obtained – why would they care??? Sounds like Nikki Haley is just trying to excuse away the fact that she is borrowing money for Volvo.
but…why would she do *that*?
Well, she IS Asian, as is the owner of Volvo. Guess those types stick together.
Cluck you woundeye! Cluuuuuuck you!
I will cluck you up with my tiger style bitch and then do my yellow river move on your corpse, American Marine style!
GOP = CHINESE
So, Bush goes to Iraq for oil. By then we got natural gas up to our frackin eyeballs so the Chinese get it. Keystone pipeline will feed the international market (The Chinese). Tricki Nikki gives the people’s cash to Volvo (Chinese.) TeaStupids!!
Me Chinese, me play joke, me put pee pee in Haley’s….Coke?!? Is that what you wound eyes call female pwivates?
Just fyi as a comedy critic, “wound eyes” reads as though you are talking about wounded eyes. “Wownd eyes” would read the racist way you intend it to read, pogo flipper.
Tank you for di good advice wownd eye!
If Volvo (a Chinese owned business with more money than SC has) is asking Haley to borrow money so Volvo can build its plant, what does that tell us? Obviously Volvo is dead set on building in SC, but why should SC citizens fork over a 1/4 of a Billion Dollars (which is chunk change to Volvo)? ………………….. SC doesn’t need Volvo. Volvo needs SC more. If Volvo expects SC citizens to pay up, let Volvo go to Georgia or wherever. We don’t need Haley or the Legislatures dictating this for us. We Are The People. We are the Owners. We have the say. And these ass wipes are not speaking for us nor representing our wishes and demands.
Gas will be back up to $3.00 a gallon (minus the intended increase SC gas tax) by late summer (if not sooner).