The State’s tourism and retirement industries have also been rapidly growing economic sectors over the last two decades. Each year more retirees move here to take advantage of the area’s mild climate, lower cost of living and special tax breaks for people over age 65. The number of individuals receiving Social Security retirement pay has grown at a rapid average annual rate of 4.4% since 1970. The annual income from retirees now exceeds an estimated $4 billion.
The State’s coastal areas have emerged as one of the leading tourism centers on the east coast, providing even more stimulus to South Carolina’s growing economy. Personal income in Horry County, which includes the Myrtle Beach area, has grown at an extraordinary 10.6% per year over the last two decades and nearly exceeds $3 billion.
Since 1970, nearly 400,000 people have migrated to the State to take advantage of a growing economy and to retire here. Total personal income of South Carolina has grown over eight-fold, one-fifth faster than growth in personal income in the United States. During the high inflationary 1970’s personal income grew at an average annual compound rate of 11.8% compared to a much lower 10.6% nationwide. Even in the lower inflationary 1980’s personal income in South Carolina grew a healthy 8.4% per year, compared to a lesser 7.5% nationwide. Employment in South Carolina over the last two decades has grown one-third faster than in the United States as a whole.
Although South Carolina has been one of the poorer states in the nation since the War Between the States, the State is closing the gap in wealth between it and the rest of the country. In 1970, per capita income of South Carolina was only 74% of the national average, but has since increased to 82% of the national average.
The State’s economy has begun fiscal year 1996-97 on a positive footing. Funds are available to help prevent budgetary reductions in the event of an economic slowdown during the fiscal year. Employment in the State was up by nearly 150,000 in August 1996 versus its level during the recession of 1991. Although statistics for the fiscal year were not yet available from the Department of Commerce, the State’s Board of Economic Advisors estimated that personal income growth was in the healthy range of 5% to 6%.
Despite the Federal government closings of the Myrtle Beach Air Force Base and the Charleston Naval Base, and the downsizing of the Savannah River Site in Aiken, the outlook for the near term is for continued growth in the State’s total income in the 5% range or more. Last year the State passed the Enterprise Zone Act of 1995 providing significant tax incentives for new and expanded businesses. This year the State passed the Rural Development Act of 1996 to further enhance the attractiveness of businesses to locate in rural sections of the State. Numerous companies have already applied for these incentives, and there have been other announcements of new plants or additions to existing plants in the State which will contribute to the State’s continued growth.
The State’s Board of Economic Advisors estimated that the State’s Budgetary General Fund revenues for 1996-97 would be $258.8 million more than the actual budgetary-basis revenues for 1995-96. At the end of the first four months of 1996-97, Budgetary General Fund revenue collections were greater than anticipated. Accordingly, on November 8, 1996, the Board of Economic Advisors increased its estimate of 1996-97 Budgetary General Fund revenues by $50 million. The income tax and sales tax, the State’s two leading sources of revenues, were both healthy, indicating that the State’s economy was growing as expected.