~S.C. News~
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WHY DID NO ONE ADDRESS ESC PROBLEMS?
John Rainey
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The story of the decade-long dysfunction and final implosion of the South Carolina Employment Security Commission (ESC) also reflects some dysfunction within the General Assembly. That story remains mostly untold.
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The January 2010 Legislative Audit Council report on the ESC, while citing some deficiencies in the reporting of the ESC, notes that, “Management has provided annual assessment reports concerning the Unemployment Insurance (UI) Trust fund since 1999, as required by law,” to the House Ways and Means Committee and the Senate Finance Committee.
The second paragraph of the Executive Summary (page one) of each report from 2001 through 2008 details the demise of the UI Trust Fund.
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The 2001 report says that there was an actual decline in the UI Trust fund of $41.5 million from 2000 to 2001.
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A similar sentence appeared on page one each year thereafter, albeit with a different number. The annual decline reached a high of $148 million from 2002 to 2003. The reports apparently never reached the right person. Finally, the second paragraph in the Executive Summary of the 2009 report declared that the trust fund became insolvent in December 2008.
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Yet a final chance had occurred for the General Assembly to avert disaster. The three commissioners, seeking re-election, appeared in April 2008 before a screening committee charged with evaluating their performance.
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The committee consisted of four senators: William O'Dell, Thomas Alexander, Chip Campsen and Vincent Sheheen, and four House members: Michael Thompson, Adam Taylor, John Scott (now a senator) and Nelson Hardwick.
J. William McLeod, the longest-serving commissioner, told them the problem precisely.
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McLeod said that, "Our trust fund's down to $114 million. It was $800 million back in 2000. We got a trust fund that’s probably being close to bankrupt within 14 to 16 months if the trend continues."
One might suppose that eight long-tenured lawmakers would have engaged Mr. McLeod in a serious discussion of the ramifications of insolvency. They did not.
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McLeod noted in later testimony: “We will have to borrow money from the federal government… and they will charge us interest, and if you don’t pay it back within two years, the employers of this state are going to lose the write-off that they get from the federal government. ...”
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As far as can be determined, none of the eight legislators publicly told his colleagues what he had heard. Not one alerted the media nor, as far as I can tell, anyone else. The written report issued by the committee unanimously declared all three sitting commissioners qualified for re-election but made no mention of any of the testimony or even the fact that these three commissioners had presided over the demise of the fund. Each legislator clearly failed to discharge his obligation as a member of the screening committee.
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Read more at :: Why did no one address ESC problems? » Anderson Independent Mail
Address:http://m.independentmail.com/news/2010/mar/21/guest-column-why-did-no-one-address-esc-problems/
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