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.

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.

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.