Ep 253: State Government 101: Business Growth, Budgeting & Real Issues in your state.

I hope it's pretty evident that we've been working really hard to bring some heavy hitters as guests on the weekly wealth podcast as we start 2026.

And this week we have a first, we have a state senator.

We're talking state government, we're talking policies, and hopefully just giving you an insight to how South Carolina works, which is my state, but it probably applies to most other states.

So I really hope that you enjoy this episode.

Welcome to the weekly wealth podcast.

I am certified financial planner David Chudick.

I spend most of my days talking with business owners, the mass affluent and the high net worth about their money.

We talk about their financial dreams, we talk about their financial worries and we talk about the decisions that they know they need to make.

That is what this show is about.

We have a first today.

We have a state senator on today's podcast and we're going to talk about a little bit of the role of state governments, particularly South Carolina, but I think it might just generally apply to most states.

Talk about some things that our state is doing to encourage business growth and maybe even some things that our state is doing to help the poverty situation.

So we have Thomas Alexander with us today, State senator of South Carolina.

Hey Thomas, how are you?

Doing great.

Hope you're doing good today.

So tell me a little bit about.

I always wonder, are people that get into public servanthood, are they crazy or what got you into being a representative in our state government in South Carolina?

Sometimes you question yourself about it, but I tell you I've enjoyed the Lord's blessed me.

The people have been good to me.

Public service was demonstrated to me by my parents early on in my life and it's opportunity to serve the community and to serve the people, people and make a difference in people's lives.

I started on city council in Wahala, South Carolina, then was elected to the state House of Representatives and then have spent time, the last 30 years, starting 31 years actually in the state senate here in South Carolina.

We have 46 state senators in South Carolina.

A district is about 115,000 citizens.

We continue to experience good growth here in South Carolina.

The population's growing, but at the same time we don't want to lose that culture.

We want to the things that make South Carolina a special place.

From the mountains to the midlands to the coast.

We want to do our best to ensure those continue to make South Carolina a special place to live, to work and to raise a family.

It is now the state senate in South Carolina.

How is it divided Republican versus Democrat.

There are 34 Republicans and 12 Democrats.

So there's a total of 46 state senators in South Carolina.

We have a four year term that we all in a cycle that's a presidential cycle.

So that would be Next up in 2028.

From that standpoint, we have rural and urban.

And I think that's the thing about some issues that you find yourself being at odds from a position standpoint with some of your colleagues on one issue, but you find yourself working with them on another issue.

And a lot of times those or sometimes they're political party issues, but a lot of times it's really rural versus urban and those demographics and dynamics that play into what is before us from that standpoint.

So I have the privilege have been elected by my colleagues and to be the president of the Senate.

I'm only the second president of the South Carolina State Senate, and so I preside over the Senate as well as being one of the 46.

We are very ceremonial, very traditional, but we certainly also make sure that we have the proper decorum that we expect everybody to abide by and be courteous and do things in a proper format that serves the people of South Carolina extremely well.

So on the state side, we all know that federal government, there's a lot of politics and really party line division.

Do you think on the state side the party lines are blurred a little bit more and maybe you get along a little bit better and work together.

Well, we certainly work better together and we get along better.

I think that's because we still interact with one another.

And really you think about South Carolina and the size of South Carolina, we kind of still know each other or we know somebody that's in another community or there's some kind of a relationship there.

And so many times we may have differences of opinion, but we do it in a very respectful manner.

And again, we may be working with somebody on the next issue with them rather than being on the other side.

So there's just a lot of mutual respect from that standpoint.

But I do think that the body, the institution of this Senate is greater than any one of us as state senators.

And we have a duty and responsibility to the citizens of this state to, to do the work.

We focus on public safety, we focus on education, whether It's K through 12 higher education, including the technical college systems.

We have a world renowned, if you would, technical college system here in South Carolina.

And then our tax policy of making sure that we have competition, competition and that we're competitive not only with neighboring states, but around the country from that standpoint of providing a business climate that is conducive for companies to be successful here in South Carolina.

Because my philosophy is if the companies are successful, then our citizens are successful and our state are successful.

It's not one or the other, it's us working together from that standpoint.

And we enjoy that success together.

We have BMW, we have Boeing, we have lots of international industries, we have I car, we have all of those things.

In what way?

Just generally speaking, I don't know that we need specifics about any of them or maybe it'd be interesting.

But what role did state government play in getting some of those major industries to move to South Carolina?

Because they could be anywhere, right?

That's correct.

And we find ourselves in a very competitive environment from that standpoint of attracting businesses and industry to South Carolina.

But obviously we have some incentives.

We don't just pay people though, to come here.

That those are incentives that they were investing in buildings or infrastructure that would serve long beyond any specific company.

If things happen to change from that.

Standpoint, that basically equate to tax cuts, they pay less property taxes or things like that.

That's up to the local governments has the flexibility to get into a fee agreement with with them.

From that standpoint, the state does not do that.

So really to your point though, that's a good point.

That it's normally a partnership with the state and the Department of Commerce and our governor and the General assembly providing funds to help with the bigger infrastructure aspect.

And then it's up to those local communities at the end of the day, if they can come up with an agreement that is successful to bring in that company to the area.

And you pointed out we have a lot of great companies, manufacturers here in South Carolina.

And it's not just those manufacturers, it's the suppliers to those manufacturers.

So it's a very far reaching indirect benefit.

And in our communities there in Oconee county, we have a great diversity.

You've got Duke Energy, that has three nuclear reactors, but we have basf, we have Snyder Electric, we have Itronic and many other companies that call Oconee county home.

And that gets to the point that one of the things that gives me the greatest pride is that when we have an existing company decide to expand their operation and our community, because that tells me that one, yes, the business environment is good and they can be successful.

But really it speaks to me is about the people in our community and the work ethic and the quality of the products that they're Putting out.

Because most of the time these expansions of these companies are competing from different locations within their own corporate setting.

So to me, that demonstrates that our people have the right training, we have the workforce that is there for them for the companies to be successful and to want to be even a greater part of our community.

So whether that's in Oconee county or whether it's down on the coast or anywhere in between, those to me are the points that really demonstrate that we are having an impact and providing for our people to have jobs right here at home.

They're not having to look to go elsewhere to find a job and find an employment.

Yeah, good paying jobs benefit everybody for sure.

There's no question about that.

Now what about the Main street businesses, the mom and pop restaurant with five employees or anything like that?

What are some things that, that South Carolina legislature is doing to help those?

Because obviously my office, I'm not Boeing, I'm not BMW.

But what are some of the things that, that you're doing to help us to be successful?

Well, we certainly have a division for small business at the department, Department of Commerce and then we work with the local governments from that standpoint.

Having been in small business myself, I was in small business for 40 years.

I know firsthand, I think a lot of it too, what we're dealing with right now is with regulatory reform that we hear consistently about how government can be a burden and the time consumption for getting permits and things of that nature.

So while there's not a direct financial benefit, there is an opportunity as we work to expedite those processes.

It gets people in business quicker, gives them the opportunity to be successful quicker from that standpoint.

And we do have, we've reduced the business personal tax on businesses.

We've given some other flexibility.

We, we've.

And then certainly with taxes in general, we've reduced, reduced the personal income tax from 7% to 6% over the last three years.

That's really put a billion dollars back into the pockets of the individuals rather than into the coffers of the state for spending from that standpoint.

So there's just.

And we continue to look at ways that we can support those small businesses.

But I think one of the ways too though is, is again with those manufacturing companies and their suppliers coming also provides that avenue for those small businesses to have them as businesses.

And I think we've put a greater emphasis on companies that come here to use local suppliers and local companies in doing the work for them, whether it's construction or whether it's anything across the spectrum from that standpoint is to support that local community.

And when people have good jobs they can afford to go out to eat, they can afford all of the things.

And I think it trickles down and, and it helps everybody.

Now what I like to refer to as a good quality of life that we're absolutely improving the quality of life of all of our citizens as we, we help some, it helps everyone.

Now one thing that I think helps quality of life for a lot of young people and even some older people is the tech school system.

There's a lot of talk about the student loan crisis and quite frankly I don't know that everybody needs a four year degree.

So what is your role?

What is the state legislature's role?

With you mentioned we have a world class technical college system.

Let's talk a little bit about that and how students can take advantage and some of those origins.

And again I think that's one of those areas that really unites us.

And you talk about things that are bipartisan things and that nature.

I think the support for our technical college system is something that's embraced across party lines in the aisle because we understand the value to our citizens whether it's someone just getting out of high school there in Oconee county there's a partnership between Tri County Tech and the Hamilton Career center so that you could.

And those campuses are next door.

Actually it's a model, it's a beautiful facility.

It is and it's been replicated around.

It's one of the first in the country that had those facilities co located and stuff.

So we're seeing other places duplicate what's being done there.

We've expanded the apprenticeship program which is done in conjunction with the Department of Commerce, with the technical colleges and with our local industry so that individuals can be getting the training at the technical college and then also being working and getting paid for that training from that standpoint.

And then we also have other programs that really we've identified and it's always changing of where the need is for employees.

And we from an industry standpoint we customize.

We or the technical colleges customize a program of training so that it will be specific to the needs of that company or that business.

And that could be any type of small business talking about what we do across the board from small businesses to large businesses.

But we can customize the technical colleges customize that training and if they're going to have a job in that field then there's no cost to that student.

Wow.

And we have other programs where there's no cost to the student to go to the technical colleges.

And so it's really a win win.

And it's making education beyond high school affordable and without.

To your point, you mentioned earlier about student loans, it's making it weird they don't have the student loans.

They're getting into the workforce source quicker becoming taxpayers.

Absolutely.

And I've, I've known some people that have had large thousand fifteen hundred dollars per month student loan payments.

And that's just, that's stifling and that's.

Hard to deal with and it really is.

And then so many times that's more.

It's been a private sector company that actually has loaned them that money and sometimes it's been to institutions that unfortunately didn't.

Did not fulfill their obligation from that standpoint.

So that has been an issue.

Now we have had some programs here in South Carolina that helped specific vocations that need assistance.

I'm thinking there's been some teacher programs.

There's been programs obviously for doctors and things of that nature that can be some loan forgiveness programs that if they stay in a rural area for a certain period of time, then there's some contributions that are made to paying down their student debt.

Is a way to have partnership with the citizens and making sure that some of these professionals are getting into the communities, especially with our educators, that you have certain areas of the state where they really have a need for additional teachers and it's an incentive for them to go into those areas or into those disciplines, whether it's math or English, to get them to have the experience that they're needed to go get into the classroom.

So we, and we change that based on what those needs are from maybe not year to year, but certainly over a several year period of time.

Let's move directions a little bit.

Poverty is something that, that nobody likes, nobody wants.

It'll probably always to some extent be part of just society.

Let's talk a little bit about state legislators, state government's role in reducing and eliminating poverty.

This is something I drive past a homeless shelter most days and it's sad.

And so what are some initiatives and what are some ways that the state is looking to make that a little less burdensome on society?

Well, we've, we certainly have partnered with some of the nonprofits.

I think that it's important to your point that as we try to support individuals in poverty is that it really starts in those local communities.

It's hard for us to do something from Columbia.

It really has to be a partnership with that local community that sees the needs of their local community.

I think of some of the faith based organizations that we have in our community as well as other nonprofits that are meeting some of those needs.

You mentioned the homeless shelter, the food, our daily bread that provides meals, the food bank.

But then there are those support networks that we have within that are supported by the state, like the Department of Mental Health that has a office right there in our community and has offices in all the different, virtually all the different counties across the state.

That it's a partnership with that local community that we provide the employees and the support services staff, whereas that local community provides the building.

From that standpoint, we have the support for our disabilities and special needs that has a local component but is funded extensively at the state level.

And then there's the alcohol and other drug abuse center that is working on the ground level there in the communities and across the communities of South Carolina to help people get back on track.

Then of course there's the VOC rehabilitation system that's a federal, state and local initiative that's helping people get the training to have them get out of where they've had some unfortunate situations, whether it's been addiction or work related to get them back on the track to employment from that standpoint.

So there are a lot of resources and there's a lot of different organizations that are continuing to fine tune as things have changed from that standpoint too.

And we continue to dedicate funding.

We also have the local department of Social Services that helps with the foster care and supports programs for the children from that standpoint.

And foster parents that are again to me just angels on earth that take children into their home and to help and that they get the support through the Department of Social Services.

We provide funding to those families to help with the additional costs that they have to deal with someone else in the home from that standpoint.

But even with all of those resources, there's more that needs to be done.

And to your point, we continue to see folks that live in poverty, we see folks that are homeless and we work with local law enforcement as well too, from that standpoint and trying to provide initiatives that will address specifically those needs that they see on the front line.

And one thing I feel wholeheartedly is government can provide some direction, some resources.

But I don't think government will ever be the answer to anything, but especially poverty.

If there's something in your heart personally that you feel a burden, go help and me too, and give generously help we can't solve all problems.

But there's probably one person in my community I can help.

And if we all did that, I think that makes a big dent in poverty.

No, no question about it.

And we do have the generosity of the people.

And I think, like to your point, there's great programs that are going on and people wanting to help people get out of their situation from that standpoint.

And in the faith based community, our churches are another tremendous resource that are there that see those needs and are helping those citizens.

And a lot of times it's helping them transition from a very unfortunate situation.

I hear on occasion how people for some reason or another have had a tragedy in their life that they never were expecting, that turned their life upside down and they just need that support and that help can happen for a limited time.

That's right.

By the grace of God, there goes us from that standpoint.

And so there's always something to your point that if you've got a heart for service, there is a place for you to serve and to make a difference and in not only one person's life, but many lives.

All right, so you mentioned that the state income tax rate had gone from seven to six and I think that's awesome.

Like you, I probably also hate paying taxes, but I know they're necessary, they need to happen.

But how can I trust you and your colleagues that my state income tax is being accounted for properly and excessive waste is not happening?

And let's just talk a little bit about the budgeting process in general.

On is that the Senate that, that oversees that?

It's actually the House and the Senate and we come together and we have to coordinate and work with the governor and there's always room for improvement.

And we actually have an oversight committee in the Senate and there's an oversight committee.

And the House of Representatives is always looking at agencies and how we can improve their core functions of what they are about out from that standpoint and through the budgetary process.

The budget on a yearly basis goes through subcommittee, it goes through full committee, goes through debate on the floor, and then it makes it to the governor's desk where he has the ability.

South Carolina is one of the states where the governor has a line item veto in the budget.

And I think that's good prudent fiscal responsibility from that standpoint.

Another thing that we have here in South Carolina is a requirement through the Constitution that we have a balanced budget.

How novel is that?

You actually have to balance your budget and live within your means.

We continue to Give.

Geez, who figured that out?

Yeah, exactly.

And it has served us extremely well.

And we are better off as a result of that.

And we are putting money back to the taxpayers, not only through the income tax reductions, but there are several other things that we've done that some problems.

Property tax relief for owner occupied.

We provide for citizens that are 65 and older.

There's the homestead exemption and there's several other things from that standpoint that we do.

But at the same time, we are doing more set aside of funds for a rainy day.

We have a minimum of 10% of our revenue is set aside because over the years, it's not a question of if, but when you're going to have an economic downturn.

And so after 2008, we even increased those reserves more stringent so that we could make sure that we are doing our best to the ability that we have to fund rainy days.

That equates to us having a very strong credit rating.

We are one of the highest rated states in the country and we, we'll continue to make sure we have sound principles and policies in place to do that.

And at the same time, we're continuing to put additional funding into our transportation system.

There is a tremendous need.

South Carolina has one of the largest per capita highway systems in the country with over 40,000 miles in South Carolina of state highways.

And we are, while we have a dedicated source of funding, we've been putting additional funding to help with the safety of our bridges and to help expedite some other projects because the conditions of our road have been neglected for a long period of time because of the amount of resources that are not being dedicated to those.

And so there's a lot of catch up that we have to do there.

And we're putting, and the governor's put forth another plan to even put additional funds.

And that's another thing in our area that we don't necessarily think about being in the foothills of the mountains.

We have a lot of creeks, we have a lot of streams that roads, regardless of the size of those sizes of those roads and the traffic on those roads have to go over bridges of some sort.

And so we've had, we have a disproportionate share of those that need to be addressed.

And so by expediting some of those funds, we'll be able to do that as well.

Okay, so what are some of the topics that maybe your constituents and citizens of the state might need to or want to contact you or your staff or their representative about?

You hear all the time I'm going to write my Congress, I'm going to write what are some things that you or your team might be able to help with some somebody with individuality, and that's it.

And one of the greatest things that I enjoy is opportunity for constituent service and trying to help people.

It's one thing to be about making policy, but.

But a lot of times people just don't know where to turn in government and they just.

And so try to be a resource.

So whether it's something that's in our domain or maybe it's at the.

The local level, we try to give guidance and direction to citizens to assist.

We have some initiatives now going on.

Our legislative session starts the second Tuesday in January and goes to the second Thursday in May.

So for the next four to five months, three days a week, we'll be in session.

We've got initiatives.

One of the initiatives that we're dealing with to strengthen our DUI laws, driving under the influence laws in South Carolina with the intent is to lower the number of, of traffic fatalities on our roads that are being impacted because of a drunk driver on the road.

So we're making strides to improve those and working with law enforcement to address those.

Again mentioned regulatory reform earlier, we're doing additional work in that arena as well to try to streamline and reduce the number of regulations.

So many times a regulation was put into place, let's say 20 years ago now.

You know how much things have changed in your business, right, in 20 years?

Absolutely.

Changed in government as well.

And so a lot of times it's going back and doing that reset and making sure that they, those regulations comply with where we are in society of today.

We're looking at additional tax policy across the board.

We mentioned the income tax, there's business, property taxes that we're looking at, at maybe trying to streamline from that standpoint.

And really just our overall tax policy is an area that we're working on.

Another area that two areas that we are addressing is dealing with vaping.

That's a relatively new product that's been out there.

It's unregulated.

We are hearing from the schools and from parents, the number of students that are vaping in schools and the number of those devices that are being confiscated.

So you have that on the one side, and then on the other side, you have these THC drinks that sprung up over the last few years that are completely unregulated as to the size of the drink, to the content of the drink, the quality of the product in the drink to the age of, of someone that can have access to those.

And so those transpired because that there was nothing that envisioned those products being on the market.

And so we find ourselves now having to go back and try to say what is the right policy on those and trying to protect our young people from the abuses that they're seeing in that regard.

Yeah, it must be hard balancing freedom with protection.

And nothing is.

There's always a gray area and some, maybe nothing's always, always black and white.

So I definitely do not envy your position and having to make some of those decisions, but I know that they need to be made.

Now, for those watching on, on, on YouTube, where are you physically right now?

That is one of the cooler backgrounds that I've seen from a podcast guest.

Yeah, so I mentioned as a state senator, I'm one of 46 state senators.

Senate district number one is all of Oconee and the greater Clemson area of Pickens County.

So I'm actually sitting on the Senate floor.

We're not in session today.

And so I'm sitting at my desk that right here, which got special permission to be able to have this recorded from my desk here and to have the opportunity to be a part of this program sitting here.

It's a very historic chamber.

We did renovations to the whole state Capitol some 30 years ago.

And it's really.

I would encourage people to come and visit their state house and whether they're here in South Carolina or go to their state capitol, wherever it is where government is being conducted from that standpoint.

And now here we are to that point of 2026, the 250th anniversary of the founding of our country.

And it really takes on significant roles here in South Carolina as we are one of the 13 original colonies.

And we have a great tradition.

We have a 250th anniversary commission that's been in place here at the state level.

And most counties have their own 250th anniversary commission.

I've heard it said.

I don't know who to attribute this to that the revolution May was started in Massachusetts, it may have ended in Virginia, but truly was won in South Carolina because of the number of skirmishes and the battles that were conducted right here on the soil in South Carolina.

So we have that rich and proud history of heritage here in South Carolina.

We hold it very near and dear to our hearts.

Who knew?

Who knew South Carolina was that that important in the revolution?

Well, Senator Thomas Alexander, I'm honored to have you on the show.

This has been fascinating.

It's really just an interesting conversation and I want to close with the same question I ask all guests.

We're the weekly wealth podcast and I'm a financial advisor.

And our show, we talk about the mindsets, the tactics and the strategies that can help you to build and maintain wealth.

So Thomas Alexander, what does wealth mean to you?

What does it mean to you, your family and the people in your life that you love?

I think wealth to me is just beyond the wealth of friends, is the wealth of financial security, of trying to be responsible and trying to live within or not trying, but living within your means and preparing for the future, making sure that you're meeting those expected and unexpected demands that will come from the future and then just investing wisely.

I appreciate the fact that you put this program together and for your the work and the clients that you have that depend on you and the opportunities that we all have.

And I think that's it, that, that that is a government.

We want the wealth of our people to be a opportunity for them to succeed in whatever it is that they want to succeed so that they can have a better quality of life that we mentioned to it, that they can take care of their family, the responsibilities and have a great opportunity to live and to work and enjoy life the way that they want it to be.

But it takes resources and resources mean wealth.

And we just need to make sure that we do it wisely and depend on good folks that can give us good.

That's the thing about it.

I have to depend on staff and others that give good advice.

I think it's important for us all to look to folks to give us good advice to help us in any of the decisions that we're making in life's journeys.

Yep.

On our own we tend not to make the greatest decisions, but with wise counsel we definitely tend to make make better decisions.

So really appreciate this.

If any of your constituents needed to contact you, how would they do that?

Or honestly, how would they find out who their senator or representative is?

Yeah, we have a great website here in South Carolina for the overall General assembly.

But for me, the easiest way two ways to contact me.

Thomas alexandercsenate.gov It's a very simple direct email address.

Thomas alexandercsenATE.gov and I like the old fashioned way too.

By telephone I got connected to my office here is 8032-1262-2080-3212-6220.

Those are the most direct ways to be able to contact me personally.

Perfect we will put that in the show notes.

All right, everybody.

I hope this was an interesting look into South Carolina state government and probably gives you a little bit of an idea of what's happened in your own state at the state level.

If you're not in South Carolina, I encourage you to be involved.

I encourage you to be informed.

And yeah, until next episode, I wish, wish everybody a blessed week.

Thank you, Senator Alexander.

Thank you.

It's a pleasure to be with you.

And here is this week's bonus content for this episode.

We talked today with Senator Thomas Alexander.

And if you watch the news at all, especially at the national level, I think politics is very polarizing lately.

So here's what I would ask you.

Make sure you're forming your own opinions.

Make sure, I don't know, maybe we don't have to vote across party lines every time.

Sometimes it might actually be okay to agree with one or two of the policies of the other party.

And remember, if you're a believer like me, love thy neighbor even means somebody who votes differently.

Okay, just my two cents.

Have a great day.

Thank you.

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