State Handbook of Economic, Demographic, and Fiscal Indicators 2003 South Carolina by David Baer PUBLIC POLICY INSTITUTE AARP
Introduction The State Handbook of Economic, Demographic, and Fiscal Indicators 2003 is an easyto-use reference book for anyone in search of up-to-date information about state economic, demographic, and fiscal conditions. Policymakers, public officials, and policy analysts will find useful data on such topics as population, poverty rates, per capita state personal income, state and local revenues, expenditures, tax rates, and property tax relief programs. Gender and age comparisons are provided for some of the data. Throughout the book we used the most current data available. State and national comparisons distinguish this handbook from other reference books - as do the 10-year comparisons and average annual growth rates for a number of important indicators. This handbook facilitates state-by-state and state-national comparisons, which can serve a variety of purposes. For example, a state's tax burden can be compared with the national average or with that of other states in the region. Per capita state personal income, unemployment, and median household income can be used to assess how residents in one state fare vis-à-vis those in another. The book is divided into three sections. The first, a state summary section, features a summary description of each state, the District of Columbia, and the entire United States. In addition, summaries of economic, demographic, and fiscal information for the Virgin Islands and Puerto Rico are shown. Users interested in a particular state can go directly to this section and find information that otherwise would have to be assembled from a variety of sources and reference tables. Users will find statistics on several major economic indicators, such as state personal income, median household income, and employment, as well as on population and poverty, distribution of household income, revenues, expenditures, tax rates, and debt ratio measures. We have moved the miscellaneous tax rates information from the section on state and local general revenues to the tax section. This allows all tax rate information to appear in the same location for each of the state summaries. Moreover, we decided to remove effective real property tax rates (reported by the D.C. Government) because those rates could not be verified. We also added personal income, general sales, and miscellaneous tax information for Puerto Rico and the Virgin Islands. Furthermore, this book will now be available at http://research.aarp.org/econ/index.html for easy retrieval. 1
The property tax relief portion summarizes homestead exemptions and credits, circuit breakers, and tax deferral programs, all of which are defined in the source notes and explanations section at the end of the book. We did not include all of the state property tax rates, because they can vary within states, and because data on the varying rates are not easily available. Data on state and local general revenues and state and local general expenditures feature per capita and percentage of personal income figures, as well as average annual changes from 1990 to 2000. Comparisons can be made between each state and the national average of the amounts spent on expenditure programs. State and local debt information is provided on a per capita basis and per $1,000 of personal income. The composition of short-term and long-term debt is also presented. The second section of the handbook provides selected state economic, demographic, and fiscal data in separate tables and maps. This presentation of the data makes it easy to compare any or all states and the District of Columbia on such economic indicators as per capita income or gross state product. The tables provide state rankings for easy comparisons. Source notes and explanations can be found in the third section of the handbook, which describes data sources and defines appropriate concepts or terms. Most of the information in the handbook comes from the U.S. Bureau of the Census and from a telephone survey of state and local government offices, such as state legislative offices and state and local assessors offices. Additional sources include the U.S. Bureau of Economic Analysis, the U.S. Bureau of Labor Statistics, and the District of Columbia Government. As state and local economic conditions and demographic patterns change, policymakers may have to adjust their policies on taxes and spending programs. These adjustments become more difficult when economic and demographic changes depart from historical trends. It is our belief that this publication will contribute to more informed public policy decisions by identifying significant economic, demographic, and fiscal changes. 2
Economic Indicators 1991 2001 Average Annual Change 1991-2001 SC US SC US SC US Per Capita Income... $16,358 $20,023 $24,886 $30,472 4.3% 4.3% Median Household Income... $27,463 $30,126 $37,736 $42,228 3.2% 3.4% Gross State Product (in millions)... $68,776 $5,895,430 $115,204 $10,137,190 5.3% 5.6% Poverty Rate... 16.4% 14.2% 15.1% 11.7% n/a n/a Full and Part-Time Positions (in thousands) 1,899 138,664 2,271 167,558 1.8% 1.9% Employed Persons (in thousands)*.. 1,683 118,492 1,851 136,485 1.0% 1.4% Unemployment Rate*... 6.3% 7.5% 6.0% 5.8% n/a n/a *Employed persons and the unemployment rate data apply to 1992 and 2002. Sources: U.S. Bureau of the Census, U.S. Bureau of Economic Analysis, and the U.S. Bureau of Labor Statistics 2000 Population Under Age 18 6% 4% Males 27% 7% 7% Females 24% Ages 18 to 64 Ages 65 to 74 Ages 75 and Over 63% 62% Population Poverty Rate Population and Poverty Percentage Change 1990-1990 2000 2000 1999 SC SC SC US SC US Total Population...3,486,703 4,012,012 15.1% 13.2% 14.1% 12.4% Males...1,688,510 1,948,929 15.4% 13.9% 12.3% 11.2% Under Age 18... 469,016 516,516 10.1% 13.7% 18.6% 16.4% Ages 18 to 64...1,063,677 1,235,679 16.2% 13.8% 10.1% 9.6% Ages 65 to 74... 105,832 120,813 14.2% 4.6% 8.7% 6.6% Ages 75 and Over... 49,985 75,921 51.9% 32.1% 10.6% 7.5% Females...1,798,193 2,063,083 14.7% 12.5% 15.8% 13.5% Under Age 18... 451,191 493,125 9.3% 13.6% 19.1% 16.7% Ages 18 to 64...1,105,884 1,281,359 15.9% 12.6% 14.2% 12.6% Ages 65 to 74... 140,473 149,235 6.2% -0.8% 14.1% 10.1% Ages 75 and Over... 100,645 139,364 38.5% 23.3% 20.6% 13.9% Source: U.S. Bureau of the Census 3
Percent Distribution of Households by Age of Householder and Income, 1999 $10,000 $15,000 $25,000 $35,000 $50,000 $75,000 $100,000 All Less than to to to to to to or Households Age of Householder $10,000 $14,999 $24,999 $34,999 $49,999 $74,999 $99,999 more Under 25 years... 22.2% 10.7% 23.1% 17.4% 15.8% 8.3% 1.7% 0.8% 100% 25 to 34 years... 8.2% 5.3% 15.4% 17.1% 21.8% 21.6% 6.4% 4.1% 100% 35 to 44 years... 7.6% 4.8% 12.1% 13.8% 19.2% 23.6% 10.4% 8.6% 100% 45 to 54 years... 8.6% 4.4% 10.5% 11.4% 17.0% 21.9% 12.9% 13.4% 100% 55 to 64 years... 11.8% 6.3% 12.9% 12.7% 16.5% 18.7% 9.9% 11.4% 100% 65 to 74 years... 16.4% 10.7% 17.6% 14.8% 16.1% 13.0% 5.3% 6.1% 100% 75 years and over... 24.6% 15.2% 19.5% 12.9% 11.5% 8.8% 3.3% 4.3% 100% South Carolina (all ages). 11.8% 7.0% 14.3% 13.9% 17.6% 18.8% 8.4% 8.1% 100% United States (all ages)... 9.5% 6.3% 12.8% 12.8% 16.5% 19.5% 10.2% 12.3% 100% Source: U.S. Bureau of the Census Percent of Households by Household Income Bracket, 1999 Percent of Households 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Less than $10,000 $10,000 to $14,999 $15,000 to $24,999 $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 or more South Carolina United States 4
State and Local General Revenues, FY 2000 South Carolina Average Annual Revenue Change 1990-2000 General Revenues Per Capita Percent of Personal Income (millions) SC US SC US SC US Total General Revenues... $19,727 $4,917 $5,477 21.7% 19.8% 7.0% 6.1% Own Sources... $15,351 $3,826 $4,440 16.9% 16.1% 6.6% 5.8% Taxes... $9,543 $2,379 $3,100 10.5% 11.2% 5.8% 5.7% Property Taxes... $2,680 $668 $885 2.9% 3.2% 6.7% 4.8% General Sales Taxes... $2,558 $638 $764 2.8% 2.8% 5.9% 5.9% Personal Income Taxes. $2,446 $610 $752 2.7% 2.7% 5.9% 7.2% Other Taxes... $1,859 $463 $698 2.0% 2.5% 4.3% 5.1% Charges/Miscellaneous... $5,808 $1,448 $1,340 6.4% 4.8% 8.2% 6.0% Federal Aid... $4,377 $1,091 $1,037 4.8% 3.8% 8.8% 7.9% Source: U.S. Bureau of the Census. 1990 General Revenue 2000 General Revenue Property Taxes General Sales Taxes Personal Income Taxes Other Taxes 19% 14% 15% 22% 14% 13% Charges/Misc Federal Aid 26% 14% 30% 12% 12% 9% 5
I. Personal Income Tax Rate Structure All Taxpayers Taxable Income Rate First $2,440 2.5% $2,440 - $4,880 3.0% $4,880 - $7,320 4.0% $7,320 - $9,760 5.0% $9,760 - $12,200 6.0% Over $12,200 7.0% Retirement Deduction $3,000 deduction for persons claiming the deduction under age 65; $10,000 deduction for persons claiming the deduction at age 65 or older. Social Security Benefits... Full exemption Senior Citizen Deduction Taxpayers age 65 or older may receive a deduction of $15,000 (single) or $15,000 per spouse (married, filing jointly). However, the deductions are reduced by any retirement deduction taken. Standard Deductions and Personal Exemptions Combined* Under age 65*... $7,700 (single); $13,850 (married, filing jointly) Age 65 or older*... $8,850 (single); $15,650 (married, filing jointly, where both spouses are age 65 or older) *Personal exemptions equal $3,000 per exemption (single have one exemption and married couples have two). Taxpayers with federal adjusted gross income greater than $137,300 (single) or $206,000 (married, filing jointly) receive lower personal exemption amounts. Local Income Taxes... None II. General Sales Tax Rates State... 5.0% Combined state/local tax rates... 5.0% to 7.0% Sources: AARP 2002 telephone survey of state legislative staff, state departments of revenue, state controllers offices, state assessors offices, and state treasury offices. 6
III. Miscellaneous Tax Rates Corporate income (highest marginal rate)... 5.0% All taxable income Gasoline (per gallon)... $0.16 Cigarette (per pack of 20)... $0.07 Beer (per gallon)... $0.768 IV. Real Property Tax Relief Programs Homestead Exemption or Credit Requirements Benefits All homeowners... $100,000 fair market value (school operating taxes only) Age 65 or older, blind, or permanently disabled... $50,000 fair market value Paraplegics and disabled veterans... Full exemption for the homestead and the value of the land up to one acre. Circuit Breaker... None Deferral Program... None V. Real Property Tax Limits, Caps, or Freezes With voter approval, counties can prevent fair appraised real property values from increasing by more than 15 percent between assessments. Local taxing districts cannot increase their property tax rates by more than the inflation rate (CPI rate) from the previous year. This limitation does not apply to bonded indebtedness or to new construction/property or additions. This limit can be overridden for various reasons or circumstances, including the following: (1) a decision by a majority vote of the local governing body that has provided public notice, (2) in cases of emergencies declared by the governor, and (3) in order to raise revenues to comply with judicial mandates. Sources: AARP 2002 telephone survey of state legislative staff, state departments of revenue, state controllers offices, state assessors offices, and state treasury offices. 7
State and Local General Expenditures, FY 2000 General Expenditures Average Annual Expenditure Change 1990-2000 Percent of Personal Per Capita Income (millions) SC US SC US SC US State/Local Direct General Expends... $20,260 $5,050 $5,354 22.2% 19.4% 7.3% 6.1% To State/Local Government... $20,260 $5,050 $5,340 22.2% 19.3% 7.3% 6.1% Education*... $7,126 $1,776 $1,853 7.8% 6.7% 6.1% 6.1% Public Welfare... $3,458 $862 $829 3.8% 3.0% 12.3% 8.1% Health and Hospitals... $3,016 $752 $452 3.3% 1.6% 7.3% 5.5% Highways... $1,328 $331 $360 1.5% 1.3% 8.7% 5.2% Public Safety*... $1,468 $366 $490 1.6% 1.8% 7.1% 6.4% Environment... $1,014 $253 $322 1.1% 1.2% 6.7% 5.1% Interest on General Debt... $734 $183 $248 0.8% 0.9% 6.1% 3.4% Other... $2,117 $528 $785 2.3% 2.8% 5.9% 6.2% To Federal Government... $0 $0 $14 0.0% 0.1% 0.0% 2.2% *Education includes higher and lower education; public safety includes police, fire, corrections, and protection and inspection. Source: U.S. Bureau of the Census State and Local General Expenditures, FY 2000 (excluding payments to federal government) 10% Education 4% 5% 7% 7% 35% Public Welfare Health and Hospitals Highways Public Safety Environment Interest on General Debt 15% Other 17% Total Debt Outstanding Long-term Debt Short-term Debt 2000 Debt Ratio Measures Per $1,000 Debt (billions) Per Capita of Personal Income Debt (billions) Percent of Total Debt (billions) Percent of Total South Carolina (State and Local)... $18.7 $4,654 $205 $18.3 97.9% $0.40 2.1% United States... $1,451.8 $5,159 $187 $1,427.5 98.3% $24.29 1.7% Source: U.S. Bureau of the Census 8