SC lawmakers vote to continue allowing ‘hidden’ earmarks to fund their pet projects
S.C. lawmakers shot down an effort Tuesday to stop tens of millions of dollars from flowing to hidden pet projects buried inside the state budget.
The change would have also immediately prevented the remaining millions in pending payments from going to projects passed last year through the legislature’s hidden earmark process.
Citing a Monday article in The State newspaper that detailed nearly $44 million in approved hidden earmarked projects last year, Sen. Dick Harpootlian, D-Richland, criticized the General Assembly’s process before pleading his case from the Senate floor to no avail.
His budget amendment, co-sponsored by Sen. Wes Climer, R-York, would have reverted an unknown amount of earmarked money currently being held by state agencies back to the state’s general fund at a time that South Carolina grapples with the coronavirus pandemic.
“There’s no transparency,” said Harpootlian. “We don’t know what projects are out there. So let’s stop it.”
During the 2019-20 fiscal year, the General Assembly directed $43.8 million through hidden earmarks — funds for specific projects or initiatives requested by lawmakers that are nearly impossible to identify within the budget. Unknown to taxpayers and a majority of state legislators, nearly a quarter of that went to powerful lawmakers’ districts who have a large say in crafting the state’s budget, the newspaper’s investigation found.
“This is one area where I believe that if they haven’t spent it by now, they probably shouldn’t spend it,” said Harpootlian from the Senate floor.
Though it’s unclear exactly how much is still being held by state department’s for last year’s projects, Haprootlian’s effort would have been one of the first significant steps in ending a flawed earmark system that is cloaked in secrecy, lacking in accountability and based on political influence. At least $3.7 million for projects funded through the state’s Department of Parks, Recreation and Tourism have yet to be paid, according to documents obtained by the newspaper.
Those who spoke in opposition said the change could stop some organizations — that have received partial funding — from receiving the rest of the needed money for their projects.
Sen. Shane Martin, R-Spartanburg, who sponsored at least six hidden earmarks last year, said he supports the move but would rather wait until next year to avoid any unintentional consequences groups may face. He also suggested that organizations apply for grants through departments before receiving the earmarked funds. However, the newspaper found in most cases departments don’t ask for applications or request documentation until they’re told who will be receiving money.
“It was a facade,” Harpootlian said of the submitted forms, adding that he’d be willing to allow more time for groups to be paid.
Sen. John Matthews, D-Orangeburg, who requested $500,000 for a school renovation in St. George last year, said some earmark recipients may have contractors who have already performed work and need to be paid.
“I think to cut it off like this would be atrocious,” he said. “You might want to consider it next year and give it time to work out for those existing relationships that have already been established.”
Even if lawmakers wait, they could find themselves in a similar predicament, as a number of projects in last year’s budget are scheduled to receive additional funding the following year.
One of those projects was the state’s single largest hidden earmark: $3 million for a substance abuse clinic in Sumter, an item sponsored by House Ways and Means Chairman Rep. Merrill Smith, R-Sumter.
This story was originally published September 15, 2020 at 4:25 PM.