Myrtle Beach Area Officials Not Sweating Debt
Area governments will be inconvenienced, perhaps, and possibly frustrated if the federal debt level impasse isn't resolved before Tuesday, but should worse come to worse, Horry-Georgetown Technical College and Coastal Carolina University could find themselves swimming in a vat of pickle brine.
Federal funds, primarily grants and loans to pay students' tuition, make up nearly $26 million of HGTC's $34.5 million operating budget and, last fiscal year, was more than $66 million of CCU's overall $148 million budget, college officials said.
If the aid is cut off, said Harold Hawley, HGTC's vice president of business affairs, the college would cease to exist.
No one could be reached at CCU Friday afternoon for comment, but Hawley said that HGTC has about $5.5 million in a fund balance and a state-mandated reserve that would keep the college open for at least three months, if worse came to worse.
By that time, presumably, the federal problem would be resolved and the college would get its money back.
But he doesn't believe things would get even close to that, saying that the federal Department of Education likely would not be on the front end of things to be cut if no debt level deal is struck.
"They don't want to put lives on hold because of what's taking place in Washington," Hawley said.
Hawley said that, unlike some area governments that receive federal payments for a variety of things quarterly, the college gets its money monthly. Like those that get the quarterly payments, though, the college's funding is on a remittance basis. It initially pays bills, then submits receipts and gets the federal payback.
He said that, like area governments, there have been no formal "What if?" conversations at HGTC, a situation that likely reflects officials' belief that their money won't be threatened by whatever happens.
In the case of area governments, federal money isn't either a large enough or critical enough part of their budgets to cause much of a fuss.
"On an annual basis the [federal] grants represent about 3 percent of the city's annual budget," North Myrtle Beach spokesman Pat Dowling said in an email, "so the impact is negligible."
Horry County government gets the lion share of federal funds paid to area governments with a total of $9,661,609 in its fiscal 2011 budget, county spokeswoman Lisa Bourcier said.
But as part of an overall $276 million budget, the federal funds don't have a high profile.
About $5.7 million of the total is earmarked for the airport fund, but the loss of it wouldn't impact the facility's operation or the expansion that is underway.
Cities such as Georgetown, Conway and others could see what Georgetown City Administrator Chris Eldridge calls a trickle-down effect should the federal government delay mailing Social Security checks to pay other bills.
Late checks to seniors, he said, could mean late payments for utilities.
"You can tell when they get their Social Security checks," Eldridge said. "They're in here paying their utility bill."
Myrtle Beach budget director Michael Shelton said there are two schools of thought about short-term effects should the stalemate go unresolved.
One is that failure of the federal government to pay even some of its bills on time could drive a rise in interest rates to everyone and that could affect other government's financial decisions.
Governments such as Myrtle Beach might decide not to refinance debt it already has for better interest rates and to delay capital projects. The city of Georgetown, for instance, hurried to complete a refinance of some of its debt this week, just in case worries about interest rates prove valid.
But the second school of thought, Shelton said, could be a silver lining for state and local governments looking for money.
The last state default happened in 1933, he said, and very few municipalities have defaulted since. That could make municipal bonds attractive to investors seeking stability from the federal roller coaster. –Sun News
Area governments will be inconvenienced, perhaps, and possibly frustrated if the federal debt level impasse isn't resolved before Tuesday, but should worse come to worse, Horry-Georgetown Technical College and Coastal Carolina University could find themselves swimming in a vat of pickle brine.
Federal funds, primarily grants and loans to pay students' tuition, make up nearly $26 million of HGTC's $34.5 million operating budget and, last fiscal year, was more than $66 million of CCU's overall $148 million budget, college officials said.
If the aid is cut off, said Harold Hawley, HGTC's vice president of business affairs, the college would cease to exist.
No one could be reached at CCU Friday afternoon for comment, but Hawley said that HGTC has about $5.5 million in a fund balance and a state-mandated reserve that would keep the college open for at least three months, if worse came to worse.
By that time, presumably, the federal problem would be resolved and the college would get its money back.
But he doesn't believe things would get even close to that, saying that the federal Department of Education likely would not be on the front end of things to be cut if no debt level deal is struck.
"They don't want to put lives on hold because of what's taking place in Washington," Hawley said.
Hawley said that, unlike some area governments that receive federal payments for a variety of things quarterly, the college gets its money monthly. Like those that get the quarterly payments, though, the college's funding is on a remittance basis. It initially pays bills, then submits receipts and gets the federal payback.
He said that, like area governments, there have been no formal "What if?" conversations at HGTC, a situation that likely reflects officials' belief that their money won't be threatened by whatever happens.
In the case of area governments, federal money isn't either a large enough or critical enough part of their budgets to cause much of a fuss.
"On an annual basis the [federal] grants represent about 3 percent of the city's annual budget," North Myrtle Beach spokesman Pat Dowling said in an email, "so the impact is negligible."
Horry County government gets the lion share of federal funds paid to area governments with a total of $9,661,609 in its fiscal 2011 budget, county spokeswoman Lisa Bourcier said.
But as part of an overall $276 million budget, the federal funds don't have a high profile.
About $5.7 million of the total is earmarked for the airport fund, but the loss of it wouldn't impact the facility's operation or the expansion that is underway.
Cities such as Georgetown, Conway and others could see what Georgetown City Administrator Chris Eldridge calls a trickle-down effect should the federal government delay mailing Social Security checks to pay other bills.
Late checks to seniors, he said, could mean late payments for utilities.
"You can tell when they get their Social Security checks," Eldridge said. "They're in here paying their utility bill."
Myrtle Beach budget director Michael Shelton said there are two schools of thought about short-term effects should the stalemate go unresolved.
One is that failure of the federal government to pay even some of its bills on time could drive a rise in interest rates to everyone and that could affect other government's financial decisions.
Governments such as Myrtle Beach might decide not to refinance debt it already has for better interest rates and to delay capital projects. The city of Georgetown, for instance, hurried to complete a refinance of some of its debt this week, just in case worries about interest rates prove valid.
But the second school of thought, Shelton said, could be a silver lining for state and local governments looking for money.
The last state default happened in 1933, he said, and very few municipalities have defaulted since. That could make municipal bonds attractive to investors seeking stability from the federal roller coaster. –Sun News
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Myrtle Beach Mayor Rhodes Headed To China
Mayor to promote MB, business opportunities in September trip
Mayor John Rhodes is going to introduce China to Myrtle Beach.
He has been invited to attend several tourism and development conferences on his nine-day trip in September. Keller Williams Realty is paying the estimated $4,500 cost, including hotel, airfare, meals and ground transportation.
"I've been trying to arrange this for two years," said Jane Zheng, a real estate broker in Myrtle Beach. "I'm very excited."
Rhodes said he has never been to China, but is looking forward to communicating with potential visitors and investors.
Brad Lofton, president and CEO of Myrtle Beach Regional Economic Development Corporation, said he has spoken with Rhodes only briefly about the trip, but supports it.
"The mayor is an ambassador for the Grand Strand area with ample credibility to sell our community. He is a partner with the EDC, and any positive exposure he could provide for us in Asia or elsewhere is much appreciated," he said. "Our desire now is to literally let the world know that we are aggressively seeking companies to invest in Horry County and that we are open for business."
He said the economic development agency will follow up on any leads Rhodes solicits on his trip.
Zheng, who is originally from Shanghai, will accompany Rhodes to all meetings and social events, and will translate for him.
"I wanted to take the mayor and others - maybe even the governor - to show them how China has changed," she said. "They turned undeveloped areas into amazing things."
But the Chinese know nothing about Myrtle Beach, she said, so this will be an opportunity for Rhodes and others on the trip to introduce them to the area.
"They are starting projects here, but they go to big cities like New York," Zheng said.
Having Rhodes and the owners of Keller Williams along will help form bonds with Chinese counterparts, she said, which is a more efficient way to do business. She has been to several similar conferences and staffed real estate booths there, but it's too much work for one person, she said.
Lofton said the United States is becoming more attractive to international companies because of the dramatic decrease in the value of the U.S. dollar compared to foreign currencies, especially in Asia.
"The good news for the U.S. is that it makes us more attractive for large tranches of capital investment in manufacturing. We are seeing our own share of international prospects that are inquiring about our location," he said.
Rhodes and the others on the trip will fly from New York to Beijing and see the Great Wall and the royal palace on Sunday before a Monday meeting with Beijing municipal officers and visit the Zhonguancun National Innovation Demonstration Zone. They'll tour the Binhai New Area, one of the fastest growing and largest seaports in China. It's called an eco-city, and presents a model of green living and technology using solar, wind and geothermal energy.
Then they go to Xiamen for the International Fair for Investment and Trade 2011 conference, which Zheng said is the second-largest conference in China.
There are opportunities for "matchmaking," connecting business and tourism contacts with the Myrtle Beach group, and Rhodes will also be asked to make a 15-minute presentation on Myrtle Beach. One day of the conference is dedicated to investment in the United States.
Before returning to Myrtle Beach, Rhodes and the others will spend their final Sunday on an ancient-style bamboo rafting trip down the 18-kilometer Jiuqu Stream, and will visit Wuyi Mountain, both in one of China's five largest nature preserves.
Rhodes said he plans to take Myrtle Beach-related gifts for the people he meets. Zheng said she and the mayor will meet a few more times before they leave Sept. 2 so he can feel prepared. –Sun News
Mayor to promote MB, business opportunities in September trip
Mayor John Rhodes is going to introduce China to Myrtle Beach.
He has been invited to attend several tourism and development conferences on his nine-day trip in September. Keller Williams Realty is paying the estimated $4,500 cost, including hotel, airfare, meals and ground transportation.
"I've been trying to arrange this for two years," said Jane Zheng, a real estate broker in Myrtle Beach. "I'm very excited."
Rhodes said he has never been to China, but is looking forward to communicating with potential visitors and investors.
Brad Lofton, president and CEO of Myrtle Beach Regional Economic Development Corporation, said he has spoken with Rhodes only briefly about the trip, but supports it.
"The mayor is an ambassador for the Grand Strand area with ample credibility to sell our community. He is a partner with the EDC, and any positive exposure he could provide for us in Asia or elsewhere is much appreciated," he said. "Our desire now is to literally let the world know that we are aggressively seeking companies to invest in Horry County and that we are open for business."
He said the economic development agency will follow up on any leads Rhodes solicits on his trip.
Zheng, who is originally from Shanghai, will accompany Rhodes to all meetings and social events, and will translate for him.
"I wanted to take the mayor and others - maybe even the governor - to show them how China has changed," she said. "They turned undeveloped areas into amazing things."
But the Chinese know nothing about Myrtle Beach, she said, so this will be an opportunity for Rhodes and others on the trip to introduce them to the area.
"They are starting projects here, but they go to big cities like New York," Zheng said.
Having Rhodes and the owners of Keller Williams along will help form bonds with Chinese counterparts, she said, which is a more efficient way to do business. She has been to several similar conferences and staffed real estate booths there, but it's too much work for one person, she said.
Lofton said the United States is becoming more attractive to international companies because of the dramatic decrease in the value of the U.S. dollar compared to foreign currencies, especially in Asia.
"The good news for the U.S. is that it makes us more attractive for large tranches of capital investment in manufacturing. We are seeing our own share of international prospects that are inquiring about our location," he said.
Rhodes and the others on the trip will fly from New York to Beijing and see the Great Wall and the royal palace on Sunday before a Monday meeting with Beijing municipal officers and visit the Zhonguancun National Innovation Demonstration Zone. They'll tour the Binhai New Area, one of the fastest growing and largest seaports in China. It's called an eco-city, and presents a model of green living and technology using solar, wind and geothermal energy.
Then they go to Xiamen for the International Fair for Investment and Trade 2011 conference, which Zheng said is the second-largest conference in China.
There are opportunities for "matchmaking," connecting business and tourism contacts with the Myrtle Beach group, and Rhodes will also be asked to make a 15-minute presentation on Myrtle Beach. One day of the conference is dedicated to investment in the United States.
Before returning to Myrtle Beach, Rhodes and the others will spend their final Sunday on an ancient-style bamboo rafting trip down the 18-kilometer Jiuqu Stream, and will visit Wuyi Mountain, both in one of China's five largest nature preserves.
Rhodes said he plans to take Myrtle Beach-related gifts for the people he meets. Zheng said she and the mayor will meet a few more times before they leave Sept. 2 so he can feel prepared. –Sun News
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