SwampFox

Is this what Governor Sanford means when he says SC shouldn't invest in higher education like NC?

South Carolina's long term under-investment in higher education costs over $11 billion annually in personal income relative to North Carolina. That deficit in compensation suffered by South Carolina citizens is 25 BMWs or 13 Boeings - after Boeing is fully mature.

An editorial written by Governor Mark Sanford in The State demonstrates an amazing lack of understanding of the cost of South Carolina's long term under-investment in higher education relative to North Carolina. In arguing that we invest too much in higher education in South Carolina, Governor Sanford said,

Misperceptions will need to be dealt with [like], “We need to spend as North Carolina does in higher education.”

If we try to match North Carolina, we need to recognize we’ll have to raise taxes. I think this would be a mistake, cost jobs and make higher ed that much more difficult to attain for many families.

Here is the true cost of a lack of education in metropolitan counties in South Carolina relative to Wake County, North Carolina (Raleigh).

County	BS degree	Per Capita Income	Gap	Population	Income Deficit
Wake County NC (Raleigh)	43.9%	$39,497	---	866,410	---
Charleston SC	30.7%	$36,326	$3,171	348,046	$1,103,653,866
Richland SC (Columbia)	32.5%	$33,157	$6,340	364,001	$2,307,766,340
Greenville SC	26.2%	$33,460	$6,037	438,119	$2,644,924,403

The lack of education cost Greenville $2.6 billion in personal income relative to Raleigh. $2.6 billion!!

It's is even more awesome to look at this from a state level.

State	BS degree	Per Capita Income	Gap	Population	Income Deficit
North Carolina	22.5%	$32,247	---	9,222,414	---
South Carolina	20.4%	$29,767	$3,171	4,479,800	$11,109,904,000

The lack of education cost South Carolina $11 billion in personal income annually relative to North Carolina. What would we do to attract a company to South Carolina that would generate $11 billion in annual economic impact?

Let's put this in perspective. Smiley and Associates says that Boeing, which Sanford claims is his biggest economic success, will pay $826 million in annual compensation - in 2027!. The deficit in personal income from South Carolina's lack of education relative to North Carolina is 13 Boeings - after it is fully mature!

BMW will pay $435 million in annual compensation. The deficit in personal income from South Carolina's lack of education relative to North Carolina is 25 BMWs.

Governor Sanford ends his argument against enhancing higher education in South Carolina by noting that "Interestingly, as N.C. taxes have continued to rise, our state has pulled in roughly 70 percent more in capital investment per capita than North Carolina." The State of South Carolina has invested in recruiting branch manufacturing. The State of North Carolina has invested in higher education. There is no question that the citizens of North Carolina get the better deal.