Saturday, December 12, 2009

Accurate count of stimulus jobs a goal we should all share

By Richard Eckstrom
S.C. Comptroller

While we all want the stimulus to be successful in reducing the jobless rate, it’s a sad fact that millions of jobs have been lost since the $787 billion stimulus passed in February. Both our state and national unemployment rates have skyrocketed.
I have been open about my opposition to the stimulus: We’re spending money we don’t have, and we’re burdening future generations with mountains of debt, all under the pretense of economic recovery. Washington used the economic crisis as an excuse to permanently shift resources from the private sector to the public sector, dramatically increasing the size and scope of government at a time we should have been scaling back the cost of government.
Furthermore, I’ve been concerned that the stimulus would do little to create private sector jobs, because so much of the spending is on things that have little to do with stimulating the economy.
In October, the White House released its first report on stimulus jobs. According to the report, the stimulus “saved or created” more than 640,000 jobs nationwide, with more than 8,100 of those in South Carolina. There are many reasons to be skeptical of those numbers, however. They hardly square with the fact that the jobless rate has risen significantly since the stimulus spending began.
On Nov. 10, I was in Washington along with every other state’s stimulus oversight coordinator to meet with federal officials in a meeting arranged by the National Governor’s Association. As we discussed whether the stimulus had achieved its goal of creating new jobs, I used the occasion to voice my concerns about the way the White House is counting stimulus jobs, and to propose changes.
Either unwittingly or by design, the process being used to count jobs has resulted in artificially high jobs numbers. For one thing, rather than simply count the number of jobs created, the White House has coined the phrase “jobs saved or created,” which has resulted in an inflated job count. Recipients of stimulus funds have had to guess how many jobs have been saved, since no one knows for sure whether or how many jobs they might have shed had the stimulus not passed. Upon examination, many of those guesses have been grossly exaggerated.
There also have been media reports from across the country of stimulus funds being used to give employees raises and those raises being counted as “jobs saved.”At the conclusion of our meeting, the Governor’s Association convened an emergency task force to study the way jobs are counted, and I was appointed to serve on it. We’ve since met several times by conference call, and I’ve submitted a formal proposal to apply some common sense to the job count.
Among my reform proposals are:


  1. Simply count new jobs created rather than the nebulous “jobs saved or created,” since estimating “jobs saved” requires guesswork.
  2. Count “jobs created” using actual hours worked, which could be verified using auditable payroll records, rather than using complicated estimation formulas provided by Washington.

  3. Count of jobs that are known to be temporary, part-time jobs separately. Of the jobs the White House reported for South Carolina, more than 2,600 were in part-time, summer youth programs that ended with summer — certainly not the kind of jobs necessary to support families and sustain an economy. To count those jobs as if they were full-time, well-paying jobs distorts the numbers.
Regardless of one’s opinion on the stimulus, we should all be able to agree that Americans deserve an honest assessment of the stimulus’ impact. Besides, we won’t be the ones repaying this debt — that will fall to our children and grandchildren. We’re “eating their seed corn,” to borrow an old country phrase. It means we’re consuming resources today at the expense of tomorrow. More than anything, we owe it to those future generations to measure, as accurately as possible, the effectiveness of this stimulus spending for which they’ll be paying for decades.

Sunday, December 6, 2009

A truly worthy cause: Charity makes repairs to homes of elderly and disadvantaged

By Richard Eckstrom
S.C. Comptroller

Even in the best of times, it’s important to remember those less fortunate. Helping others is our highest calling in life.

I don’t have to tell you that these are not the best of times. We’re facing the greatest recession of a generation, and our state and national unemployment rates continue to climb.

During tough times, those of us who have enough to meet our own needs must dig a little deeper to help those who do not. There are numerous ways we can all do our part, including contributing to organizations that feed hungry people, offer comfort to the sick or homebound, or provide shelter or warmth for those who lack proper housing.

One of my favorite charities is HomeWorks of America, a South Carolina-based non-profit organization which makes repairs to the homes of elderly and financially disadvantaged people. I am honored to have the opportunity to serve this worthwhile cause as a member of the group’s board of directors.

HomeWorks was founded in the 1990s by Hank Chardos, who now serves as the group’s executive director. His daughter had participated in a mission trip to repair to homes of less fortunate families, and was moved by the experience.

In 1996, HomeWorks held its first home-repair session. The organization enlists the help of teen volunteers, who work with adult “mentors” to ensure that the work is done properly. They fix roofs, repair floors, install wheelchair ramps and smoke detectors, and do plumbing and yard work. Local businesses donate much of the supplies. The teens pay a small fee to volunteer -- but the rewards well worth the cost and effort.

The volunteers say a prayer before each work session. Importantly, they also get to know the homeowner they are helping -- a meaningful experience for both the homeowner and the volunteers.

Some of the projects are one-day “blitzes.” During the summer, there are work sessions that last several days. In January, the group will do “Winter Blitzes” in Myrtle Beach, Columbia and the universities of Georgia and Clemson. In April, they’ll repair homes in Greenville, Spartanburg, Kershaw, York, Charleston, Aiken and Horry and Richland counties.

They also make annual mission trips to the impoverished city of Zorritos, Peru, to help feed people there and make repairs to homes.To find out more about HomeWorks, visit www.homeworksofamerica.org, email H.Chardos@homeworksusa.net, or call (803) 781-4536.

This holiday season, the concept of helping those less fortunate takes on an added significance. Those of us with the resources to meet our own needs would do well to take stock of our blessings, and consider sharing those blessings with those who need it most.

Monday, October 19, 2009

More Online Sunshine


(Myrtle Beach Sun News editorial, Oct. 18)

Local advocates of open government got a double helping of good news in recent weeks. First, state Comptroller Richard Eckstrom stopped in Myrtle Beach to congratulate that city and Surfside Beach for being among the first local governments in the state to begin regularly posting a record of all their spending online. Almost immediately afterward, the city of Georgetown announced that it, too, would join the growing statewide push for a very simple form of transparency.

As the trailblazers, Myrtle Beach and Surfside Beach probably share some of the credit for Georgetown's decision. Inside Georgetown, city manager Chris Eldridge credits Councilman Paige Sawyer with stirring up momentum for the idea. Georgetown's checks have not yet begun appearing online, but Eldridge says city officials are merely ironing out some final kinks in the reporting software and that the first checks should go online soon.

Transparency should be a fundamental goal of any governing body, and putting these check registers online should be a simple way of demonstrating a dedication to it. Myrtle Beach spokesman Mark Kruea has repeatedly said that the process involved almost no manpower - the spending reports were being generated anyway, so it was just a process of tweaking the finance software to create a version for the Web.

For little pain, there are several important gains. Most citizens may never look at the reports, but they surely have increased confidence in city leaders willing to bare their books so openly. Some city officials fear either a deluge of questions about minute items or the misuse of the data out of context to conjure misleading allegations of wrongdoing, but so far, even in a tough election season, neither problem has materialized.

Three local governments in a row (more than a dozen now statewide) begins to look like a trend, and another may soon follow. North Myrtle Beach officials are now in the process of putting their own checks online, said city spokeswoman Nicole Aiello, and a formal announcement of the plan is likely to come soon. When carried to fruition, this will be welcome news from North Myrtle Beach, where both we and the nonpartisan S.C. Policy Council have recently complained about other new policies restricting public access to records.

Further, Horry County is now taking initial steps, as county officials said this week that the technology staff is exploring what it would take to put the county's checks online. Council Chairwoman Liz Gilland, who previously was cool to the idea, said this week she will ask for a report on the effort at the county's November administration committee meeting.

Gilland remains skeptical, voicing concerns about labor required to set it up and saying that she plans to check first with Charleston County and see if citizens are using the service there. "If there's very little interest, then I'm not interested," Gilland said.

We would maintain, however, that the cost-effectiveness of the effort will be undervalued by a clicks-per-man-hour comparison. All the money is the public's, and publicizing its use online is simply the right thing for government officials to do, no matter how many people look at it any given week.

Sunday, October 4, 2009

Surfside, Myrtle Beach get kudos for transparency

(From WPDE News, Florence-Myrtle Beach)


South Carolina Comptroller General Richard Eckstrom stopped in Myrtle Beach Thursday, to compliment the mayors of Myrtle Beach and Surfside Beach on their efforts in governmental transparency.

Both Myrtle Beach and Surfside Beach post their weekly check registers on their respective Web sites for taxpayers to see.

Myrtle Beach made the move in July of this year. Surfside Beach began doing it last month.

According to the Office of the Comptroller General, there are now 12 local governments in the state posting check registers on the internet.

Friday, September 25, 2009

Some stimulus projects defy common sense

By Richard Eckstrom
State Comptroller


I recently read an Associated Press report about a sleepy border checkpoint between Montana and Canada which will receive $15 million in “stimulus” funds. The checkpoint will receive the money despite the fact that only about three travelers a day cross the border there.

The project actually ranks low on a priority list compiled by the Office of Homeland Security, but two powerful Democratic senators pushed the project to the top of the list. According to the story, the project involves building a checkpoint station “the size and cost of a Hollywood mansion.”

Similarly, a North Dakota checkpoint which serves an average of 73 travelers a day will also receive $15 million in stimulus funds.

What’s most noteworthy is that other projects rated much higher on the Office of Homeland Security’s priority list -- including a Texas checkpoint that serves 55,000 travelers a day -- were bypassed for stimulus funds.

So what was the basis for selecting the Montana checkpoint -- which, again, sees almost no traffic -- over more pressing needs? No one is quite sure, other than the fact that two senators asked the director of Homeland Security to bump the project up ahead of others. Federal officials charged with overseeing border projects won’t make public their selection criteria.

According to the report, federal officials “said they wouldn't release the master list (of proposed projects) because it was just a starting point and subject to misunderstanding.” It’s an excuse I have heard before. As I travel the state to encourage local governments to post details of their spending on the Internet, it’s not uncommon for a mayor or a county councilman’s first response to be that ordinary citizens won’t understand the information. (To me, that shows a lack of faith in the public, and certainly shouldn’t be used as an excuse not to conduct public business as openly as possible.)

It may be the case that most people think spending millions on border checkpoints which see very few travelers is a wise investment. Others might argue it’s a waste of money.

But what’s clear to me is that those projects should have been decided on their own merits, rather than under the pretense of “economic recovery.” They look more like “pork” -- that time-honored tradition of politicians showering benefits on favored constituencies -- than they resemble sound policy to create jobs and end the recession.

Thursday, September 17, 2009

State stimulus spending now online

(From the Myrtle Beach Sun News, Sept. 17)


State Comptroller Richard Eckstrom announced today that all expenditures of stimulus funds by state agencies are available at http://www.cg.sc.gov/.

More than a half-billion stimulus dollars of an estimated $3 billion have come through state government so far.

“The debt from this spending extends far into the future of our children and grandchildren, so we owe it to those future generations to ensure the funds are spent without impropriety and with accountability and transparency,” Eckstrom said.

Visitors to the site can click on the “Stimulus Spending Transparency” button on the left side of the home page. The site will be updated monthly.

The stimulus transparency page has three files -- one sorted by the state agencies spending the funds, another sorted by the purpose of the expenditure and another sorted by vendor or recipient.

The information regarding stimulus spending will also soon be posted on the state’s official stimulus Web site, http://www.stimulus.sc.gov/.

“People deserve easy access to how this money is spent. Not only that, but when spending is done in the open, public officials are usually more accountable. They know their spending decisions will be examined by the public,” he said. “If transparency is important under ordinary circumstances, it’s even more critical with massive infusions of cash like this, which can invite opportunities for waste, mismanagement and even fraud.”

Wednesday, September 9, 2009

Some local governments reveal checkbooks online

(Hilton Head Island Packet, Monday, Sept. 7)


By MARTI COVINGTON mcovington@beaufortgazette.com

The city of Beaufort already has made records of its financial transactions available online, and Beaufort County says it will follow suit.

Officials with other local municipalities, however, don't have firm plans to get their own records up on the Web.

S.C. Comptroller General Richard Eckstrom encouraged the state's local governments to post their checkbooks online shortly after the state's spending-transparency Web site launched in March 2008.

Since then, 12 governments have put their monthly spending and revenue records on the Internet, according to the comptroller's office. They include the city of Charleston and Dorchester County.

Hilton Head Island town manager Steve Riley said he is aware of the steps other governments are taking to put the financial information online but has not yet talked with his staff and council members about posting town records. The idea might surface in time, he said.

"We've got some other things we're trying to put out and balance at the moment, and that's not at the top of my priority list right now," Riley said.

Port Royal town manager Van Willis said the town is updating its Web site and hopes to have monthly financial records posted as a new feature. But no timeline has been set for when that will happen.

"We have financials that we do every month that anyone can take a look at," Willis said. "That's available at no charge, and that's something we'll probably post. We're kind of in flux, so there a number of things we're looking to add."

The city of Beaufort recently launched an online financial "dashboard," a one-page document that provides year-to-date reports on the city's revenues, expenses and fund balance.

Beaufort County deputy administrator Bryan Hill said last month the county's line-item budget would soon be up on the Web, with plans to include more financial data over time.

Officials with the town of Bluffton were unavailable for comment Friday.

Sunday, September 6, 2009

Surfside Beach finances accessible online

(Myrtle Beach Sun News, Sept. 2)

By Aliana Ramos - aramos@thesunnews.com


Between Aug. 11 and Aug. 31, the town of Surfside Beach wrote 159 checks and spent $597,225.16.

If you're curious about what the town spent the money on, you can now examine its check register online. The register will be updated monthly, said Kim Hursey, the town's treasurer.

Surfside Beach is the 12th municipality in the state to post its financial information online, according to a statement released Tuesday by the S.C. Comptroller General's Office.

"Any time elected officials make the commitment to show people how public money is being spent, everyone wins," said Comptroller General Richard Eckstrom. "By voluntarily putting this spending information within convenient public reach, Surfside Beach leaders are sending the message that they understand it's not their money they're spending, it's the people's money, and people deserve easy access to that information."

The Town Council voted on Aug. 11 to approve posting the register online to provide transparency and allow taxpayers to see how their money is being spent. The program is modeled after the city of Myrtle Beach.

Myrtle Beach began putting its check register online July 2 and updates it at least once a week, according to the city's Web site. The S.C. comptroller general's office has posted spending for every state agency on its Web site since March 2008.

Eckstrom started encouraging area municipalities to put their check registers on the Web earlier this year.

Saturday, August 15, 2009

City will consider posting expenses on the Internet

(From the Georgetown Times, Aug. 13)


By Scott Harper
sharper@gtowntimes.com


How much did the City of Georgetown spend at Wal Mart last month?

How about at Food Lion or on postage stamps?

Those are questions anyone with access to a computer will be able to find out if City Councilman Paige Sawyer has his way.

Sawyer is asking the city to consider a program already in place in Charleston and soon to be up and running in Surfside Beach.

The idea is to place a register of every check written by the city online so they can be reviewed by the public.

So far, Charleston is the largest city in the state to place its checkbook register online.
Locally, Sawyer has asked the matter to be placed on the City Council agenda for Thursday's meeting. It will be discussed then.

State Comptroller Richard Eckstrom has been urging local governments to post such information online, to increase government transparency.

"By voluntarily posting their individual expenditures on their Web site for all to see, they are sending the message that people deserve easy, no-cost access to how their tax dollars are spent," Eckstrom said.

Sawyer said the city placing the information online would be the appropriate thing to do.
"The citizens ought to be able to see where the money is spent," he said.

City Administrator Chris Eldridge said the endeavor could lead to confusion and misinformation since receipts will not be included in the information posted.
All people will see, he said, is the amount spent. They will not see an item-by-item listing of what was bought with the money.

"I really don't know how much it will tell the public," he said.

Sawyer said the remedy to that is if anyone sees a check and they would like more information about the purchase, they can issue a Freedom of Information request for the receipts.

Eldridge also said the city writes up to 200 checks each week.

An employee would have to spend valuable time scanning each one of the registers into the computer so it can be posted.

Sawyer said that may be a problem at first but "once it's up and running it should get easier."
To see how the program works, visit the Comptroller's Website -- www.cg.sc.gov -- and click on Local Government Spending Transparency.

That will take you to the Web sites of the places already placing the information online.

$480 million in 'stimulus' so far

By Richard Eckstrom
Comptroller General

At the recent meeting of the S.C. Stimulus Oversight Task Force, I was pleased to introduce state Treasurer Converse Chellis as a co-chairman. Treasurer Chellis was chosen by the state legislature this summer to join me in heading up the task force, which is charged with accounting for federal “stimulus” dollars to ensure they are not misused.

I had previously asked state Superintendent of Education Jim Rex and state Medicaid director Emma Forkner to help co-chair the committee, and I am grateful for their efforts.
To date, South Carolina programs and agencies have received slightly more than $480 million in stimulus money. Agencies that have received the money are:

-- Department of Health and Human Services, $312 million
-- Employment Security Commission, $68 million
-- Department of Social Services, $42 million
-- Department of Public Safety, $23 million
-- Department of Education, $17 million
-- Governor’s Office, $12 million
-- Department of Commerce, $3 million
-- Department of Health and Environmental Control, $2 million
-- Lt. Governor’s Office on Aging, $222 thousand
-- Department of Transportation, $24 thousand

The Stimulus Oversight Task Force consists of more than 40 volunteers, mainly from state agencies which will receive the funds.

You’re probably aware that there is a wide range of views on the stimulus package. The White House argued that the stimulus was needed to quickly create jobs, and that the economy would immediately begin improving if Congress passed it. None of that has happened. Frankly, I believe there’s far too much wasteful spending in the stimulus package -- things that have nothing to do with improving the economy, like $50 million to endow the arts and $16 million to preserve the habitat of a kind of mouse in San Francisco.

But whether or not you like the stimulus, one thing is clear: There’s absolutely no money for any of this. We’re spending borrowed money, and we’re saddling future generations -- our children and grandchildren -- with unparalleled debt.

It’s because future generations will be repaying this debt that we have an obligation to closely follow the stimulus money to see that it’s spent as intended and to reduce the risk of fraud or waste.

Regardless of one’s personal opinion on the stimulus, South Carolinians can be sure accountability measures are in place, and that the Stimulus Oversight Task Force will provide much needed scrutiny as billions of dollars flow into South Carolina. I will continue to issue regular reports, such as this one, to keep citizens as informed as possible.

Monday, July 20, 2009

Please, not another 'stimulus'

By Richard Eckstrom
Comptroller General


I was among those who felt strongly that President Obama’s “stimulus” bill wasn’t the way to get our economy back on track. Hundreds of billions of dollars of new spending on government programs seems to be stimulating government growth, but much of it has nothing to do with stimulating the economy.

Let’s not forget, there is no money for any of this. This “stimulus” package is being financed with funds that have been borrowed from foreign countries, and the resulting debt is falling on our children and grandchildren to repay.

The President promised the stimulus would “save or create” 3.5 million jobs -- a promise rightly questioned by economists who suggested the impact was being over-hyped in order to sell his idea to the American public. The President also called on Congress to approve it immediately, shutting down Congressional debate, a move he insisted was urgently needed to keep the unemployment rate below eight percent.

Yet since that time our national unemployment rate has ballooned from 7.9 percent to 9.5 percent -- a 26-year high -- and we recently learned that 467,000 more U.S. jobs were lost during June. There’s simply no reliable evidence that the stimulus has “saved or created” jobs.

On Sunday, July 5th, White House officials conceded they had “misread” how bad the economy was. Left unspoken was whether they had also “misread” the impact of the stimulus.

Now some Washington officials are talking of yet another stimulus package
As the state’s “stimulus watchdog,” I’ve devoted my efforts in recent months to tracking the federal stimulus dollars that come into South Carolina, to reduce opportunities for waste and mismanagement and to ensure the money is used as intended. It’s a job I try to carry out regardless of my personal feelings on the stimulus. But as a CPA and one of the state’s top financial officers, I’m convinced that the policy of continuing to spend money we don’t have -- and saddling future generations with tremendous debt -- is making things worse.

The White House promised that the economy would begin improving within weeks of the stimulus bill being passed last winter. Instead, it has committed billions for government programs, while the economy is no better off for it. If the White House and Congress seek to increase spending in the face of record deficits and continue to grow government, they should admit it. They should not try to justify their runaway spending under the pretense of economic recovery.

Thursday, July 9, 2009

New momentum for local government transparency

By Richard Eckstrom
Comptroller General

Across the state, there’s a growing movement that will result in greater government efficiency and accountability.

Several local governments have begun putting their monthly check registers on the Internet. By doing so, they are empowering taxpayers with click-of-a-mouse access to details about how their hard-earned tax dollars are spent… and helping create a new era of transparency in South Carolina.

I’ve long believed transparency improves the quality of government. When public spending is done in the open, public officials are usually more accountable. They tend to make better decisions, knowing those decisions will face public scrutiny.

That’s why, several months ago, my office began a campaign to encourage local governments to voluntarily post their spending details on the Internet. We had recently unveiled a spending transparency Web site for state agencies, and local government spending transparency seemed like a logical next step. To make it as easy and inexpensive as possible, my office has offered to host the information on our own Web site if necessary.

Two-thousand-nine will go down as a watershed year for transparency in South Carolina. The towns of Irmo and Turbeville, the cities of Aiken and Cayce, and Charleston, Dorchester and Anderson counties have begun posting their monthly check registers online. The city of Columbia and the town of South Congaree have recently announced their intentions to do so. I also recently heard that Myrtle Beach was considering it, and a York County Council member told me he is exploring the idea.

And while my office’s efforts have focused on encouraging local units of government to voluntarily put their spending on the Internet, there has also been legislative debate over whether to compel them to do so. School districts soon will begin putting their spending details online, and a measure under consideration would require colleges and universities to do so. Thanks to the hard work of the S.C. Policy Council, Sen. Mike Rose and others, government at all levels is becoming much more transparent in South Carolina.

In putting such information at people’s fingertips, these local officials are sending an important message: It’s not their money they’re spending. It’s the people’s money, and people deserve easy access to how it’s spent. These local officials are also helping to gain the confidence of those they serve, which is important at a time when too many people distrust government or hold it in low esteem.

In meeting with local governments from across the state, I’ve been encouraged by the responses I’ve received. Many understand it’s their responsibility to provide such information, and to make it as easy as possible to access. Still, it’s clear to me that many local governments simply will not voluntarily do so, at least not without pressure from their citizens.

That’s why it’s important that citizens make their voices heard. Contact your local elected officials. Let them know you believe transparency is the best policy. Good government is made even better when it’s conducted in full view of the public.

Thursday, July 2, 2009

Eckstrom urges more openness on spending

(From Greenville News. Photo: Ron Dekett)


Greenville city and county so far have not heeded state Comptroller General Richard Eckstrom's call for local governments to post their spending details online.

Mayor Knox White said the city of Greenville isn't sure if its computer system can put check registers online, as Eckstrom advocates, in addition to annual budgets and financial audits.

County Council Chairman Butch Kirven questioned whether posting check registers would boost efficiency or responsiveness.

“What they're talking about is anybody sitting in the comfort of their home at 10 o'clock at night cruising through the county's check register,” Kirven said. “Is that the way you run a business? Is that level of detail going to make us more efficient and responsive to people?”

Eckstrom, however, says putting spending details online is easy and inexpensive and that his office stands ready to help local governments with the task. He's conducting a statewide campaign for increased government transparency and brought it to Greenville this week during a news conference at County Square.

Joining him were state Reps. Garry Smith and Billy Wylie of Simpsonville and Dan Hamilton of Taylors and members of Greenville County Council and Simpsonville City Council.

Eckstrom said he lived in Greenville for years and would like to see “my own community become a leader in this and not have to be dragged kicking and screaming into this.”

Eckstrom, the state's paymaster, last year used the state computer system to put state agencies' spending details online, backed by an executive order from Gov. Mark Sanford. Eckstrom said he also included spending by the House and Senate in a move that drew objections from legislative staff members.

Spending details from every school district in South Carolina should be online in a few months, he said.

While Eckstrom is encouraging local governments to put spending details online, Smith and other lawmakers have introduced legislation to require it. The bill has not gotten out of committee for the past two years, however.

So far, Columbia, Aiken and Irmo and Charleston and Anderson counties have put their check registers online, Smith said. In Greenville County, he said Mauldin has put some spending details online.

Also appearing with Eckstrom was Ashley Landess of the South Carolina Policy Council, a conservative think tank in Columbia. Asked if the Policy Council puts its spending details online, Landess said her organization is private.

“We don't get any public money, and our supporters have a right to get their identity protected,” she said.

Spending records in paper form are already available to the public through the Freedom of Information Act, though getting them is more time-consuming and cumbersome than it would be if they were online.

Friday, June 26, 2009

Show me the (stimulus) money

By Richard Eckstrom
Comptroller General

Since being appointed as the state’s “stimulus watchdog” earlier this year, I’ve often been asked how much of the federal stimulus money we’ve received so far. I thought I’d take this opportunity to answer that question and to explain how it’s being used.

At the time of this writing, the State of South Carolina has received just over $332 million in federal stimulus money. Seven state agencies have received these funds:

-- Department of Health and Human Services, $263,947,399 for Medicaid services
-- Employment Security Commission, $48,395,901 for unemployment benefits
-- Department of Education, $17,178,039 for services for at-risk students
-- Department of Health and Environmental Control, $1,767,928 for maternal and child health services-- Department of Commerce, $832,429 for workforce development grants-- Office on Aging, $90,646 for meals for senior citizens
-- Governor’s Office, $40,545 for youth services

State agencies and programs are expected eventually to receive about $2.8 billion from the stimulus package (all paid for by increasing federal debt and printing new currency.)

Unfortunately, in their rush to pass this massive “stimulus” package, the White House and Congress seemed to devote inadequate thought to oversight. There has been much talk about transparency -- but despite the fact that stimulus spending is already happening, the federal government has yet to offer clear guidelines on how the funds are to be tracked to ensure they are used as intended. States aren’t even required to submit their first spending reports to the federal government until this fall. And the federal stimulus Web site, Recovery.gov, merely offers general information and press releases about various projects.

Still, the people of South Carolina can be confident that there will be oversight of stimulus spending in our state. The S.C. Stimulus Oversight Task Force created by Gov. Sanford is committed to making sure the funds are spent with transparency and accountability. And my office is enhancing the state’s stimulus transparency Web site, so that anyone with Internet access can view detailed stimulus spending with a few clicks of a mouse. We’re shining a bright light on that spending. Burglars usually avoid brightly lit houses.

The stimulus plan represents record-shattering growth in government, it‘s laden with spending that has nothing to do with growing our economy or creating jobs, and it saddles future generations with enormous debt. But because it’s now the law, our focus has turned to ensuring these funds are spent without waste and misuse, and that people have easy access to the details. Citizens deserve to conveniently see how these funds are being used in South Carolina.

Thursday, June 18, 2009

Honor the Flag

By Richard Eckstrom
Comptroller General

Sunday, June 14 was one of our nation’s often overlooked holidays.

For many, it passed quietly. There were very few ceremonies, and lots of people didn’t even know it was a holiday.

But to the patriotic among us, it was Flag Day, a day set aside to commemorate the adoption of the flag of the United States.

For more than 200 years, the flag has been a stirring symbol of strength, hope and freedom – freedom we enjoy due to the sacrifices of those who have served to defend their country. The first U.S. flag had 13 stars and 13 stripes symbolizing the American colonies. It was declared the official flag of the new nation by an Act of the Continental Congress in 1777. The flag’s design changed several times between 1776 and 1960 -- the year the 50th star representing the state of Hawaii was added.

In 1916, President Woodrow Wilson, who as a boy lived in Columbia, issued a proclamation declaring June 14 National Flag Day. In 1966, the holiday was formally established by an Act of Congress.


Today, Flag Day has taken on added meaning, particularly among the younger generation, as the events of 9-11 and the wars in Iraq and Afghanistan have rekindled our sense of national pride. And as the national economic crisis creates anxiety over our national future and our daily lives, there’s a rediscovery of the spirit of “pulling together” – of helping each other during tough times. Indeed, despite the many divisions that exist, the flag reminds us we’re “indivisible.”


On Sunday, June 14, many thankful Americans took time to celebrate more than just a piece of cloth, and to think what it is that makes that particular cloth so special. But it need not take a holiday for us to honor the flag and what it stands for, and to recommit to do our part to keep our country a special place for future generations.


As our leaders grapple with some of the greatest challenges in generations, perhaps that colorful cloth rectangle is more meaningful than ever. Think about what it symbolizes – Unity. Our differences pale in comparison to the common bond we share as Americans. The flag isn’t a province of the political “left” or “right.” It’s not the Republican flag or the Democratic flag, but the flag of the United States and a constant reminder of our common values as Americans.


In the best of times and in the worst of times, every American should honor that flag and thrill to see Old Glory paint the breeze.

Thursday, June 11, 2009

Tracking the 'stimulus'

By Richard Eckstrom
Comptroller General

A couple weeks ago I accepted an invitation to appear on the cable news channel C-SPAN, which was doing a special feature on the federal “stimulus” package approved by Congress. Our state has established itself as a national leader on spending transparency, the producers told me, and they felt viewers would be interested in what we are doing to track federal stimulus dollars to ensure they are not misspent.


Before I go any further, I want to note that I strongly opposed the stimulus package, which was loaded with wasteful spending on items that have very little to do with creating jobs and growing the economy. It doesn’t grow the economy… it grows government! And let’s not forget who will be repaying this trillion dollar debt we’re borrowing to grow government; it won’t be us.

Repayment of this wasteful debt extends far into future generations… our children and grandchildren.

But regardless of one’s personal opinion of the stimulus package, what’s clear is that we owe it to those future generations to make sure the funds are spent legally, and to reduce chances for mismanagement and waste.

After Congress passed the Stimulus Act, Governor Sanford issued an Executive Order creating the Stimulus Oversight Task Force. My office was already working on several spending transparency programs, and so the governor tapped me to chair the Task Force.

At our initial Task Force meeting, we made the decision to form four “working groups” to handle various oversight duties. I also invited state Education Superintendent Jim Rex and state Medicaid director Emma Forkner to join me as Task Force co-chairs, an offer I am grateful they accepted. Both of their agencies are receiving hundreds of millions of these funds.

The Legislature has also gotten involved. In addition to the existing Task Force, the legislature recently established its own committee to oversee our stimulus funds and it appointed me and the State Treasurer as co-chairs. We’re now in the process of combining these two groups because they have overlapping functions.

The Task Force meets regularly. Our meetings are open to the public. We will be holding our next meeting on Thursday, June 25 at 10 am.

During my appearance on C-SPAN, the moderator asked me how much money had been provided in the stimulus package for states to track and oversee the funds. My answer was simple: None! In their haste to approve this trillion dollar spending plan, the President and Congress failed to include a single dollar for tracking and oversight to ensure all this money is properly accounted for and not wasted.

Whether or not funding was provided, the Comptroller General’s Office and the Task Force will continue to do this “on the cheap” -- using existing staff and resources to handle the additional tracking and reporting responsibilities required by this spending. Ostensibly, the purpose of the ill-conceived “stimulus” package is to grow the economy by creating jobs. And every dollar we would spend on oversight, administration, or more bureaucracy would be a dollar that wouldn’t be available for that purpose.

South Carolina veterans take special flight

By Richard Eckstrom
Comptroller General

Returning to the Columbia Metropolitan Airport from Washington D.C., the terminal was packed with adoring greeters -- some active military, many veterans. There were lots of families, at least one of which with four generations on hand. There were law enforcement personnel and troops of Boy Scouts. There were balloons, signs, banners, flags, and salutes. Some wept. An Army band played patriotic music.

It was a fitting end to a daylong trip all of us will remember for a lifetime.

I had just had the honor of travelling with 90 World War II veterans to the World War II Memorial at the nation’s capitol. The trip was sponsored by Honor Flight SC, a program that flies veterans, all expenses paid, to see “their monument.” I had travelled as a “guardian,” a volunteer who contributes time and his or her own expenses to ensure the veterans enjoy a comfortable and meaningful experience.

Upon approaching the terminal at Reagan National Airport, our plane passed under an arching water salute from local firefighters. Workers on the tarmac guided our pilots with American flags. Entering the terminal, the veterans were greeted by decorations, flags, and well-wishers and were provided a patriotic tribute by the National Symphony Orchestra. Other travelers stopped to see what the fuss was all about. Faces illuminated with smiles, eyes filled with tears, and hands clapped with pride as these aging veterans deplaned, some walking, some leaning on walkers or canes, and many in wheel chairs.

Aside from the World War II Memorial, the veterans visited the Korean, Viet Nam, and Iwo Jima memorials. They toured Arlington National Cemetery, and witnessed the Changing of the Guard at the Tomb of the Unknowns.

They were showered with affection and appreciation, often encountering groups of students or tourists who took the opportunity to thank them for their service. Students posed for pictures with them as if they were rock stars, and many of these young kids hugged their necks and kissed their cheeks as if they were their grandparents. There were so many emotional occasions.

This was an overwhelming show of gratitude to the men and women who valiantly served our nation so that we all may enjoy the freedoms and quality of life we too often take for granted. It was also a special chance for veterans to reflect, share private stories, and enjoy the comradeship of others who like them had endured the miseries and dangers of combat.

It was a moving experience for the veterans, but not just for the veterans. It was also emotional for the volunteers (which included local television personality Joe Pinner, radio personalities Charlie Benton and Keven Cohen and Honor Flight’s South Carolina organizer, Bill Dukes). It certainly was not lost on us that we were traveling to a sacred place with extremely special men and women whose ranks are declining by an estimated 1,000 per day – true American heroes to whom our nation is indebted. To watch them relive war-time memories alongside fellow veterans and reflect back on those with whom they served, was a solemn reminder of how the United States, and indeed the world, would be far different if not for their sacrifices.

Honor Flight is a national program established to fulfill the dreams of aging veterans who might otherwise lack the ability to travel to the nation’s Capitol. It is financed by private donations and fundraisers. For more information on Honor Flight, or to learn ways you can support this noble cause, visit http://www.honorflightsc.com/ or call (803) 582-8826.

Friday, May 29, 2009

Every day a good opportunity to say 'thanks'

By Richard Eckstrom
Comptroller General


Two important holidays recently passed. One probably passed relatively quietly, while the other was marked by barbecues, parades, speeches, flag-waving and remembrance.

May 16 was the 60th celebration of Armed Forces Day. The holiday was created in 1959 as a salute to the men and women who serve in the Army, Marines, Navy, Air Force and Coast Guard. (Each branch had previously held separate celebrations, and Armed Forces Day consolidated those observances.)

And, of course, Monday, May 25 was Memorial Day – a day of tribute to those who have gone to eternal rest in defense of their nation.

For many, Memorial Day is a solemn occasion, a time for prayer, for tears, for showing gratitude to those who served. It is a time to reflect on who we are as a nation and how we got here.

For others, Memorial Day is a more festive occasion, a time for cookouts, family gatherings or just an extra day of rest – a reminder of the many freedoms we enjoy and of the fact that we owe those freedoms to the brave men and women who have defended us.

For my part, I was fortunate to be able to pay tribute in a unique way: I was invited to travel with World War II veterans to the World War II Memorial in Washington D.C. (The Honor Flight program, for which I volunteer, flies veterans free of charge to our Nation’s Capitol as a way of saying “thank you” for their service.)

Memorial Day was originally “Decoration Day.” The holiday was held May 30 each year to honor the Civil War dead. After World War I, it was expanded as a tribute to all veterans who no longer walk among us. The name was officially changed to Memorial Day in 1967, and in 1968 Congress moved the observance to the third Monday in May.

Since the events of 9-11 and the wars in Iraq and Afghanistan, Memorial Day has taken on added meaning, particularly among the younger generation. Indeed, there’s a new generation of veterans who have served with the fallen, a new generation of families left behind.

On Memorial Day, a grateful nation said “thank you” to those who sacrificed their lives. But it need not be a holiday for us to recognize the price of the freedom we enjoy and honor those who paid the ultimate price to provide us that freedom.

We’d do well to honor the true meaning of Memorial Day all year round. And If you know a veteran or an active member of the Armed Forces – as I’m certain you must – reach out to let them know you appreciate their service.

Thursday, May 21, 2009

Graduation: A special time

It seems you can’t open a newspaper or turn on the television these days without being bombarded with “bad news” -- news of skyrocketing unemployment, a deep recession, political strife, and partisan posturing and finger-pointing in Washington. It’s an unfortunate fact that positive developments are too often overlooked.

Yet there is plenty of “good news” happening all around you: Churches are holding fundraisers to benefit those who need assistance, civic clubs are working to improve your local quality of life, and Scouts are learning the keys to success in life. Parents, grandparents and businesspeople are volunteering in local schools. Students are celebrating achievements, and families are celebrating reunions.

I bring this up now because this is a special time for your community, your state and, indeed, the entire nation. It’s a time of “good news”… a time of optimism, of young people celebrating accomplishments, and of a new generation preparing to meet life’s challenges.
It’s graduation time.

Across the country, new high school and college grads are embarking on life’s next chapter. It’s a time for new beginnings, fresh starts, and soaring expectations.

Sure, times might be tough, and this year’s college graduates face the frightening reality of an economic downturn and tight job market. But this crop of graduates could certainly help pull America up from this economic decline. The new generation entering the workforce could well be the one that charts a new course, the one that leads us in a new direction of prosperity and a brighter future for generations yet to come.

I’m also optimistic about the next generation of public servants – the young men and women who will soon be making decisions that impact our daily lives.

Of course, as an elected official I’ve been fortunate to have the opportunity to meet with many new graduates. They often ask me for advice – although they are more likely to ask for advice related to my experience as a CPA rather than as an elected official.

In meeting with these young people (and some older graduates as well), I never cease to be impressed. Today’s job-seeking graduates need courage, patience and resourcefulness – but from my experience, they’re more than up to the challenge.

Thursday, May 14, 2009

Honor Flight a fitting tribute to those who served

Those who served our country during World War II and other wars deserve our profound appreciation. It is because of our war veterans that we remain strong as a nation, and we enjoy many of the freedoms we all-too-often take for granted,

The World War II Memorial in Washington, DC is a sacred place of remembrance, solace and reflection for those who served in uniform during this war. While no memorial can ever adequately say “thanks” to those who fought -- and many who paid the ultimate price -- for our freedom, a group of volunteers several years ago came up with a novel way to honor World War II veterans.

The Honor Flight program was born in 2004 when a retired Air Force Captain sought a way to express his gratitude for the service of World War II veterans. As a pilot, he offered to fly veterans one at a time to “their memorial,” so that those without the means to travel could experience the tribute. He was overwhelmed by their response. Many were emotional.

Soon after, the retired Captain reached out to other pilots to volunteer for an inaugural “Honor Flight.” Eleven volunteered, and in May 2005 six planes carrying 12 World War II veterans flew out of Springfield, Ohio to Washington, DC.

Since that time, the program has expanded across the country. The program has 71 “hubs” in 30 states, including South Carolina. Civic clubs and scout troops hold fundraisers to finance the flights.

The Honor Flights aren’t just limited to veterans of World War II, either. Those who served in the Vietnam and Korean Wars are now included. By the end of this year, nearly 50,000 veterans will have been flown to their memorial free of charge under the program.

The flights are day trips. The veterans are accompanied by “guardians” who assist in flight preparation and help ensure that each veteran has a safe, meaningful experience. The guardians are volunteers and pay their own way.

On May 27, I’ll be honored to serve as a guardian on an Honor Flight leaving Columbia early that morning. And while the trip to the memorial is sure to be an emotional one for those who fought, I certainly can imagine it will be a moving experience for me as well to travel with true American heroes to visit the memorial erected in their honor. More than that, I’ll be thinking of my father, a hero in my eyes who fought in deadly naval battles during “the war” in both the Atlantic and Pacific Oceans. I wish he were alive today to make this trip.

While the Honor Flight program is a fitting tribute to those who served, it certainly pales in comparison to the tremendous sacrifices our veterans have made for us. God has blessed America by their service.

Thursday, May 7, 2009

Overseeing 'stimulus' spending in South Carolina

I traveled to Washington D.C. last week to discuss South Carolina’s vigorous efforts to track the federal “stimulus” funds coming into our state and to ensure those funds are used wisely.

In March, Governor Sanford asked me to lead the South Carolina Stimulus Oversight Task Force. Although I’m a hard-liner like he is when it comes to government spending, I felt it might be good to also include other viewpoints in the leadership of our Task Force. So with his agreement I asked state Superintendent of Education Jim Rex and state Department of Health and Human Services director Emma Forkner to join me as co-chairs, and I’m grateful they both said yes.

Our task force was created by Executive Order from the Governor, and our purpose is to eliminate the many opportunities for waste, mismanagement and even fraud that can present themselves with such massive infusions of stimulus cash. My office had already been working to promote greater spending transparency in South Carolina -- including creating a spending-transparency Web site for state and local governments to post their spending details on the Internet -- so heading up the Stimulus Oversight Task Force seemed like a logical expansion of those efforts.

As chairman of the Task Force, I was asked to represent SC at an April 29 meeting of the National Governor’s Association in Washington. States shared methods they’re using to keep up with stimulus funds they’re spending. I discussed the importance of full transparency -- showing taxpayers exactly where their tax dollars are going -- as well as our efforts in SC to create strong controls to make sure stimulus funds are properly managed and spent.

We should all realize that our generation won’t be the generation repaying this trillion-dollar stimulus debt; future generations will. So we have an obligation to those future generations -- our kids and our grandkids -- to make sure these funds aren’t mismanaged or misspent.

Our task force consists of the heads of state agencies set to receive stimulus funds. We’ve split the task force into five separate working groups with each one working on separate assignments. We’ve also established a Web site to give citizens click-of-a-mouse access to important information about the stimulus funds and how this money will impact South Carolinians. I hope that the more eyes we have watching and asking questions about how the money is being spent, the more careful it will be spent.

The Stimulus Act will produce record-shattering growth in government, and it‘s laden with “pork” projects that have nothing to do with growing our economy. But regardless of one’s personal opinion of the Stimulus Act, it’s now the law. Our focus must now turn to ensuring these funds are carefully spent with complete accountability and transparency.

Saturday, May 2, 2009

S.C. Financial Report Recognized for Excellence


My office learned last week that the state of South Carolina has again been recognized for outstanding reporting of its finances.

Each year, my office puts together the state’s Comprehensive Annual Financial Report, or CAFR. It’s a detailed presentation of the state’s financial condition and economic outlook which is used by legislators, state agencies, bond rating services and taxpayers.

(Because the financial report is long – the most recent one is more than 250 pages – and can be very technical, our office also produces a separate 16-page report called our Popular Report, and another four-page report called our Citizens Report. The purpose is to make the state’s financial information as easy to read and understand as possible for the citizens.)

In keeping with our commitment to greater government transparency, we’ve posted these reports on my office’s Web site, and we’ve worked to steadily improve the time it takes to publish them. The 2008 CAFR, our most detailed report, was prepared and published in 135 days, compared to 241 days six years earlier. The National Association of State Comptrollers says South Carolina now ranks third best among all states in the timely release of its Comprehensive Annual Financial Report. South Carolina is the only state in the nation to have improved the time to assemble and issue the report every year since 2002.

(I’ve long believed that making financial information easily accessible to people, and doing so in a timely manner, empowers taxpayers. Ultimately, an informed citizenry is the best watchdog to ensure good government.)

On April 20, I was pleased to receive a letter from the Government Finance Officers Association. The letter notified me that the financial report my office had compiled for the fiscal year ending June 30, 2008 had received the Certificate of Achievement for Excellence in Financial Reporting.

The Certificate of Achievement is the highest honor bestowed for governmental accounting and financial reporting. It signifies that we have gone beyond the minimum requirements and prepared a financial report that embraces the spirit of transparency and complete disclosure.

As a CPA, I understand the value of providing thorough, accurate financial data. As someone who believes in good government, making that information as readily available as possible is important to me.

As a proud South Carolinian, I am pleased that our state is a national leader in the quality and promptness of the reporting of our financial information.

To view the 2008 Comprehensive Annual Financial Report for the state of South Carolina, visit http://www.cg.sc.gov/. Go to the bottom left corner, and click on the picture of the report’s cover (featuring a palmetto tree).

Thursday, April 23, 2009

Cherish those who speak out

By Richard Eckstrom
Comptroller General


Something special happened on Wednesday, April 15: Tens of thousands of South Carolinians from all walks of life assembled for “tea parties” at dozens of locations across the state. Their rallies, of course, came on a day many people have come to dread -- Tax Day.

From the Lowcountry to the Upstate, ordinary citizens gathered at modern versions of the Boston Tea Party. They met not only to voice disapproval of the gigantic “stimulus” bill hurriedly passed by Congress, but also to appeal for a new direction for America -- in particular, to change our leaders’ indifference to how they spend our hard-earned tax dollars.

I was particularly struck not by the size of the crowds at these rallies, but by the diversity. Those attending the rally on the steps of the State Capitol appeared to represent a cross-section of our state -- young and old, blue-collar and white-collar, folks of all races and backgrounds.

As I surveyed the crowd, I thought about how fortunate we are to live in a land where such a gathering is possible, and how we owe deep gratitude to those who fought for the freedom to assemble that we often take for granted. Many who attended had served in the military to guarantee this freedom. Yet others could not attend -- because they had paid the ultimate price for this freedom we enjoy as Americans.

Of course, not everyone shares my positive view of these rallies. Many in the media have cynically dismissed them as “tax protests,” and members of one major political party have stooped to ridiculing and belittling those who attended. The president himself told a newspaper reporter that taxes were being “used as a wedge” to scare people.

With all due respect, Mr. President, taxes are not a “wedge” being used to scare people. It is heavy taxes that scare people, and it’s a disservice to everyone to try to marginalize people simply for expressing their growing concerns over their heavy tax burden. For many Americans, taxes have become too high and too burdensome. And let’s not fail to mention that tax revenues are increasingly being used for things of little worth to most taxpayers.

I’d argue that citizens who take the time to gather and deliberate on the future of their state, their nation or their local community should not only be respected, they should be cherished -- whether at a tea party to express frustration with the rapid growth of government, or to speak out about local zoning matter in any community in our state.

Their views should be valued -- even when we disagree with them. Unhindered public expression is an American ideal. Those in positions of public trust -- from our U.S. Congressman down to our local council representative -- have a particular obligation to make sure citizens feel they can safely speak their minds, and that their voices will be heard.

Friday, April 17, 2009

In tough times, remember those less fortunate

By Richard Eckstrom

Even in the best of times, it’s important for those who have enough to meet our own needs to share our blessings with those who do not. Helping others is our highest calling in life.

I don’t have to tell you that these are not the best of times. We’re facing the greatest recession of a generation, and more and more South Carolinians are losing their jobs every week. We recently learned that our state’s unemployment rate has reached a staggering 11 percent.

Nearly everyone is touched in some way by the economic downturn. On top of it all, we recently indebted future generations -- our children and grandchildren -- to pay for a “stimulus” bill which no one is sure will succeed in getting our economy back on track.

Indeed, it’s a period of uncertainty and, for many, pain.

As people tighten their purse strings, charities that help those less fortunate are feeling the pinch. At the same time, many of these charities are seeing an increase in requests for assistance from those seeking food, housing and help paying bills. But even as we’re pilloried daily with grim economic news, we’d do well not to lose sight of the plight of those who were already struggling to meet their basic needs.

In tough times, we must dig deeper. Here are four ways every South Carolinian can help:

-- Perhaps most importantly, we can donate money to a worthwhile charity that serves the poor, such as Harvest Hope Food Bank, Oliver Gospel Mission or the Salvation Army.

-- If you can’t contribute financially, lend a hand. Volunteering your time and effort frees up money so that charities can direct resources where they are needed most.

-- Search your home for surplus items to donate such as clothing, school supplies and non-perishable food items. There’s also a need for diapers and personal hygiene items such as soap and toothpaste.

-- Hold a canned food drive at your office, church, school or recreation center. Challenge other groups to do the same, and compete to see who can collect the most. My office is currently planning one such food drive. This can be a fun, productive way to help those in need.

Yes, times seem tough all around. But while you may be feeling pinched right now, remember that there are many people in far worse circumstances.

Besides, our quality of life is indelibly linked to those around us. When you help your neighbors, you help yourself and your entire community. So it can be reckoned that by sharing material resources with those who need more just to get by, we can all do our small part to help right this ship.

Saturday, April 11, 2009

A good time to commit to civil, issue-oriented discourse

By Richard Eckstrom


I probably don’t have to tell you that South Carolina faces huge challenges -- chief among them the economic recession, rising unemployment and deep government budget cuts brought about by reduced revenue collections.

It’s been noted many times that if there’s a silver lining to this crisis, perhaps it’s in rediscovering the common-sense notion of living within our means…the idea of setting priorities, holding some functions of government higher than others, and eliminating spending that’s not essential to improving the lives of South Carolinians.

But I’d like to make the point that there’s another silver lining -- a unique opportunity to rethink the unfortunate way we’ve come to debate important issues. It’s truly a shame that what should be reasoned discussion on political issues has too often been replaced by insulting “attack politics.”
Sadly, some people will seek any tool to advance a political cause -- even if it means crawling into the gutter to do so. That practice takes a heavy toll on society.


As state and national leaders grapple with the greatest economic crisis in a generation, we’d do well to lay aside the “villains-versus-heroes” mentality, the attitude that it’s OK to launch a personal attack on a fellow human being simply for holding different public policy or political views. Our state and national leaders would serve us best by laying down their arms and being more civil toward one another while debating issues.

Of course, they should stand on principle. They should fight for their beliefs. But they should also take the time to listen to and respect those with views different from their own. Our differences of opinion certainly pale in comparison to the common bond we share in our desire to move our state and nation forward.

Even in normal times our state faces more than its share of hurdles. We must find ways to improve education, improve public safety and reduce our tax burden. And now we’ve got the added challenge of improving the health of our economy and getting South Carolinians working again. A good first step toward meeting these challenges would be to have an honest, civil conversation about where we’re headed and where we want to head as a state and a nation -- minus the political attacks that detract us from our most noble goal of improving the quality of life for ourselves and for future generations.

Monday, April 6, 2009

S.C. town, county setting example others should follow

By Richard Eckstrom
S.C. Comptroller General


What do the town of Irmo and the county of Anderson have in common?

Both want taxpayers to see how their hard-earned dollars are being spent.


Anderson County and Irmo have recently begun posting their spending details on the Internet, empowering their constituents with click-of-a-mouse access to information about how public money is being used. In doing so, these two governments are demonstrating that they understand it’s not government’s money they’re spending -- it’s the citizens’ money. And those citizens deserve nothing less than full spending transparency.


Anderson County and Irmo are also sending an important message: Putting spending details on the Internet each month is neither difficult nor expensive. And the benefits of full transparency are certainly worth the minimal effort involved.


My staff and I have been working to persuade local governments to post their checkbook registers on the Web each month. We’ve been getting in to work a little earlier in the mornings and working a little later in the evenings so that, a couple of times a week, we can travel to meet with local governments across the state. We’ve met with towns, counties and school systems from the Upstate to the coast -- in Horry, Greenville, Spartanburg, Lexington, Richland, Charleston, Berkeley and York counties. And we’ve been encouraged by responses we’re receiving. Several have signaled to me they intend to consider putting their checkbook registers online soon.


In my meetings with local governments, the first argument I inevitably hear is that anyone already has access to spending detail because they can request and obtain it under the state’s Freedom of Information Act. Maybe so, but I would argue that citizens shouldn’t have to make slow and cumbersome Freedom of Information Act requests -- not in the convenient Internet age in which we live.


To make complete spending transparency as simple as possible, my office is offering to host the information on our own Web servers. Local governments can now simply email us a computer file containing their data, and we’ll do the rest.


The town of Irmo readily took us up on the offer. Its spending details are available on my office’s Web site, http://www.cg.sc.gov/ (follow link on left side of screen). Anderson County, on the other hand, has chosen to put its spending information on its own site, http://www.andersoncountysc.org/.

Anderson County and Irmo leaders are to be commended. By voluntarily putting their spending details online, they’re helping usher in a new era of transparency in South Carolina. Other local governments should follow their example. And citizens elsewhere should contact their own local elected officials and urge them to put their checkbook registers on the Internet.


Spending transparency isn’t a Republican or Democratic issue. It’s not a conservative or liberal issue. It’s simply good government. It’s about empowering taxpayers with information about how their money is spent. That’s a goal everyone should embrace.

Wednesday, March 25, 2009

Scrutiny for the 'stimulus'

You could be forgiven for being uneasy about the “stimulus” bill approved by Congress last month. It’s heavy on new spending, and it’s light on tax cuts that have been proven to stimulate the economy. It’s laden with “pork” projects that have nothing to do with economic activity, and it represents an unprecedented, massive shift of resources from the private sector to the government sector.
And let’s not forget who will be picking up our tab. The repayment of our trillions of dollars in national debt now extends far into the futures of our children and grandchildren.
Governor Sanford last week announced he won’t request about $700 million of the $2.8 billion which had been headed to South Carolina, saying it would put our state deeper in debt. However, some state lawmakers have announced they’ll request the federal funds in place of the governor.
Regardless of one’s personal opinion on the “stimulus” package, one thing is clear: If this bill is to have a chance at getting our economy back on track, we must see to it that the money is managed properly. Without adequate oversight, such a swift and massive infusion of cash invites too many opportunities for waste, mismanagement, even corruption.
Despite his opposition to the stimulus package, the governor has assembled an oversight task force to see that our state spends this money in a careful and completely accountable way. His stimulus oversight task force, established by an Executive Order, is comprised of directors of state agencies that would receive the funds, including the Superintendent of Education and Secretary of the Department of Transportation.
I’ve been asked by the governor to lead the task force, and I agreed to take on the task. On March 12, I travelled to the White House to be briefed by the president, vice president and other top administration officials.
The health of our economy is tied, to a large extent, to public confidence in government. Pessimism flourishes with repeated news accounts of wasteful spending, excessive bonuses and behind-the-scenes deal-making such as we’ve witnessed with recent federal bailouts. We must do better this time.
I’d like to take this opportunity to raise another important issue about the stimulus debate. As I sit here writing this community newspaper column, an “attack ad” -- aimed at our governor because on his views that we should not increase deficit spending and saddle future generations with enormous debt -- plays on a television nearby.
These extraordinary times call for an honest, civil conversation about our future as a nation and a society. Now is the time to lay down our swords and lay aside the “villains-versus-heroes” mentality, the attitude that it’s OK to tear someone down simply because of an opposing viewpoint.
As national and state leaders grapple with our greatest economic challenge in generations, some serious soul-searching is in order. Maybe those of us in positions of leadership -- including both political parties -- would do well to adopt a civil, issue-oriented discourse, one truly focused on improving the lives of people and one befitting the communities we serve.

Thursday, March 19, 2009

Sunshine Week: An opportunity to advance the cause of open government

The Governor works for you. So does your local county administrator, your mayor, your legislator and the superintendent of your school district.

This means you have a right to know how each of them spend your tax dollars and how they arrive at decisions that affect you.

This week, March 15-21, is National Sunshine Week. Its purpose is to celebrate -- and raise awareness of -- laws that grant citizens access to public records.

Sunshine Week started in 2003. A group of newspaper editors sought a way to educate the public on Freedom of Information (FOI) laws, the advantages of open government and the dangers of government secrecy. It’s observed primarily by the media, which use state and federal FOI laws to gain access to public records.

Enacted in 1976, South Carolina’s Freedom of Information Act requires meetings of public bodies (from school boards to the legislature) to be open to the public. The Act also requires for the agendas of planned meetings be to publicly posted at least 24 hours in advance. Most importantly, the Act guarantees citizens the right to inspect and copy government documents if they wish.

I’ve long believed that transparency is the backbone of good government. When government officials are required to operate in full view of the citizenry, they are usually more accountable. They tend to make decisions that are in the best interest of the people they represent.

Unfortunately, however, many of those important decisions are often made behind closed doors. Some men and women in positions of public trust act as if the “people’s business” is nobody’s business. I probably don’t have to tell you what it means when government feels free to make decisions in private, knowing what they discuss may never face the test of public scrutiny.

It was a year ago this week that my office unveiled South Carolina’s first spending transparency Web site for state government. Visitors to the site can view specific spending details for more than 80 state agencies. And in recent months my staff and I have devoted our efforts to persuading local governments also to begin posting their spending details on the Internet, so that taxpayers can see where their hard-earned tax dollars are going at the local as well as state level. This spending transparency initiative is among several key reforms underway that aim to shine a light on the inner workings of government.

Empowering citizens with access to details about how government operates won’t fix all our problems overnight, but it will go a long way toward improving the quality of governance and moving our state forward.

Even in the best of times, transparency is vital to good government. Given today’s economic crisis, with tax dollars scarce and the demands on them increased, full transparency is more important than ever.

Friday, March 13, 2009

What the media won't say about the stock market losses

Just days before the new president took office, the Dow Jones Industrial Average was above the 9,000 point mark.

As I sit here on a Saturday night penning this community newspaper column, I realize that during the last two months the Dow has dropped steadily to about 6,600 -- its lowest level in more than a decade. Nervous experts and investors are now questioning when the decline will hit bottom.

Yet for all the media coverage of the Dow’s dropping like a rock, scant attention has been paid to the most probable reason for the market’s perilous decline -- a lack of faith in the new president’s economic policies. This president holds a much different view of private property and personal wealth than other presidents throughout our history. To him, government should take private property and personal wealth through a more aggressive tax system in order to distribute private property wherever government wants it handed-out.

I probably don’t have to tell you that, to a large extent, the state of the market reflects the public’s confidence in government and in government’s stabs at managing economic growth. Investors -- the people who produce prosperity and create jobs -- must have faith in government’s involvement. If they don’t, if they begin to believe that government is consuming our nation’s prosperity rather than promoting it, they bail out of the investment markets faster than the government bailing out delinquent mortgages.

Investors and the American consumer are wary of the massive shift of resources from the private sector to the government sector. An economic agenda that taxes and punishes businesses and an economic “stimulus” package that’s heavy on government spending and light on tax cuts to stimulate our economy have served to seriously undermine the investment markets by creating major uncertainty and pessimism.

The seemingly bottomless bailouts, the trillion-dollar “stimulus” spending bill and the new president‘s multi-trillion dollar budget plans are hindering, not helping, our economy’s revival.

We are a resilient country and our spirit is strong. We will rebound as we always have. But I worry that this president’s policies -- rightly viewed as hostile to the capital markets -- threaten what would otherwise be a normal cycle of economic recovery. I hope I am proven wrong.

Perhaps the president’s reaction to the market’s depressing descent is instructive. In the wake of the Dow’s steady nosedive, the new president sought to downplay its importance. But that ignores an important reality: For our economy to truly rebuild itself, people must have confidence. And part of what this country needs is a healthy Dow Jones Industrial Average, always considered a crucial economic barometer.

The last president to truly pull America up from a steady decline, Ronald Reagan, knew he must inspire our confidence that better days lie ahead. But Reagan’s policies also honored the ideals of our Founding Fathers, who believed that a government that’s limited best enables its citizens to succeed.

From the earliest days of our nation’s experiment in self-rule, the Founding Fathers envisioned a government that performed only those functions that individuals couldn’t -- and then got out of the way to allow the most industrious, ingenious and enterprising people in the world to build an ever-improving nation rich in freedom, opportunity and success.

What we’re seeing in Washington today strays far from our founders’ brilliant and spectacular vision.