Rule change could make secret budget spending in SC lawmakers’ districts transparent
A now-secretive state budget process that allows lawmakers to earmark S.C. taxpayer dollars for projects in their districts could soon be brought into the light.
A South Carolina Senate panel agreed Wednesday to send to the Senate floor for a vote a resolution to require public disclosure of senators’ requests to send state money to nonprofits, local governments and other entities back home, without any votes or public debate, and often without any transparency on how the money will be spent.
The moves comes after The State exclusively reported last year that lawmakers directed at least $20 million in spending through vague budget earmarks, attaching the secret money to state agency budgets without public knowledge. That hidden spending figure included $2 million for tennis courts in Sumter, $500,000 for a Lancaster County nature trail project run by a veteran senator’s wife and $300,000 for a public golf and swim club in Barnwell County.
The Senate Rules Committee approved the resolution — S. 890 — unanimously, sending it to the full 46-member Senate, where its future remains in question. The change would require only one reading but would need a two-thirds vote to be adopted.
And at least one senator has indicated the bill could stall in the Senate, where a single lawmaker has the power to block legislation.
State Sen. Gerald Malloy, D-Darlington, said on the Senate floor Wednesday he anticipates “someone” will object to the resolution, essentially delaying its passage, and argued against changing rules during session.
“I don’t want the word to go out that the Senate is trying to keep something from the public as it relates to requests that are made to go back into certain districts,” Malloy said.
The secretive process of earmarking state tax dollars for beneficiaries in lawmakers’ districts has been ongoing for years at the State House. Lawmakers who defend the practice see it as a way to help local governments and other vital projects back home — especially in low income counties that might not be able to get help otherwise.
Critics of the practice say the process could be abused, noting the money is spent without any accountability and often without clarity in the budget for how the money will be spent.
Last month, Senate Majority Leader Shane Massey, R-Edgefield, who chairs the rules committee, proposed the rule change as The State newspaper was investigating millions of dollars in secretive spending in lawmakers’ districts on, for example, nonprofits, tennis courts and museums. The newspaper published its findings in late December. The State’s analysis was based on records provided by freshman Sen. Dick Harpootlian, D-Richland, who had learned about the secret spending and served public records requests on various state agencies.
Massey’s resolution, which currently has eight sponsors and bipartisan support, would not necessarily stop state dollars from going toward these projects. However, it would ensure that details about the projects would be spelled out, including how much the projects are expected to cost and who requests them.
“It just means that everybody knows who is asking for it, how much it is and where it is going,” he said. “All I’m asking is that we know what we are voting on.”
During the one-hour meeting, some senators raised concerns that the Senate rule would only apply to the Senate and not the 124-member House, where numerous representatives — working through the House’s state budget committee — also are able to hide millions of dollars in secret local projects in various state agencies’ individual budgets.
“It’s only fair that we should know what House member had the money put in there,” said Sen. Ronnie Cromer, R-Newberry.
Massey replied, ”What I would hope is if the Senate acts on this, there is pressure on the House to act as well.”
Massey also said Gov. Henry McMaster, a Richland Republican, can play a key role if he actively supports more transparency in the state budget process. In his annual State of the State address, McMaster said he wants them to make the hidden earmarks public.
“This is where the governor has to get involved, especially with the cabinet agencies,” Massey said.
If adopted, the resolution would ultimately apply to how the Senate Finance Committee divvies out tax dollars in the state. The committee is chaired by state Sen. Hugh Leatherman, R-Florence, who gets final say on the chamber’s budget process.
Leatherman told The State Wednesday he still needs to look over the details in the proposal.
But, he said, should the Senate adopt the rule change, the Senate Finance Committee will fully comply with the new rule.
Leatherman got a vote of confidence earlier Wednesday at Massey’s hearing, when Cromer said Leatherman will do the right thing.
“The senator from Florence does a good job of trying to be as fair as he can be.”
Some defend earmarks
Even with bipartisan support, however, not every senator endorsed the idea fully.
State Sen. John Scott, D-Richland, told Massey the earmark process is more open than Massey knows.
“It may be secret to you, but it’s not secret to me,” Scott said.
And Sen. Marlon Kimpson, D-Charleston, stressed that the smaller counties need lawmakers’ help to secure funds for needed programs. “The projects I fight for are not necessarily (from) politically powerful groups.”
Those debates about spending in lawmakers’ districts could spell trouble for projects, Kimpson added.
“And I may get tied up in a political debate that quite frankly may not be necessary and beneficial to my district.”
After the hearing, Harpootlian and Malloy engaged in an informal, cordial debate as reporters looked on.
Malloy told Harpootlian that there’s not enough time for senators to scrutinize the numerous earmarks, saying that the Senate has several hundred bills to take up and senators need to “trust” each other when it comes to their colleagues’ earmarks.
“Trust, but verify,” Harpootlian said. “If there is a line item (in the budget). I can see it. If it’s rolled up (with other expenses), I can’t.”
This story was originally published January 29, 2020 at 2:41 PM.
