Stimulus? Not In South Carolina …
Remember earlier this year when we kept blasting the proposed trillion-dollar federal “stimulus” plan – calling it nothing but a “bureaucratic bailout” for state agencies that had (have) failed miserably to live within their means?
Yeah … “we told you so.”
According to statistics released Wednesday by S.C. Comptroller General Richard Eckstrom, the vast majority of so-called “stimulus” funds allocated to South Carolina have gone not toward creating jobs – but to preserving preexisting government programs at the same old, inefficient government bureaucracies.
How much cash are we talking about? As of this writing, a whopping $733.1 million – and as far as we can tell not a dime of it going to “stimulate” anything.
For example, 55.3% of federal “stimulus” funds ($405.2 million) sent to the Palmetto State thus far have been absorbed by Medicaid programs administered by the state Department of Health and Human Services (DHHS).
“This money is going to sustain preexisting government programs,” DHHS spokesman Jeff Stensland told FITS. “We haven’t created any new Medicaid services.”
Money for Medicaid “matching” funds flows from DHHS into a convoluted maze of different agencies that administer health care services in South Carolina, which (not surprisingly) has one of the most fragmented, inefficient delivery systems in the nation.
Anyway, here’s a breakdown of where the “stimulus” money has been allocated in South Carolina thusfar …
$405,251,137 – Dept. of Health and Human Services (55.3%)
$103,374,206 – Employment Security Commission (14.1%)
$79,590,311 – Dept. of Social Services (10.9%)
$63,919,072 – State Treasurer’s Office (8.7%)
$26,314,054 – Dept. of Education (3.6%)
$23,154,268 – Dept. of Public Safety (3.2%)
$13,883,499 – Governor’s Office (1.7%)
$7,282,228 – Dept. of Commerce (0.9%)
$5,908,000 – Dept. of Transportation (0.8%)
$3,263,438 – Dept. of Health and Environmental Control (0.4%)
$508,692 – Lt. Governor’s Office (.06%)
$400,677 – Budget and Control Board (.05%)
$294,000 – Vocational Rehabilitation (.04%)
Of course, in the middle of the winter of 2011, all that stimulus money goes away – which means that state leaders will be forced to either implement long-overdue budget cuts or raise taxes and fees on South Carolina taxpayers.
Also, it’s becoming clear that lawmakers at that point will have no choice but to either alter the automatic funding increases for public education (another labyrinth of inept inefficiency) – or raise taxes to cover the annual increases.
Equally alarming is South Carolina’s increasing reliance on federal handouts – and in some cases, loans – to pay its bills.
Federal funding in the past has comprised the smallest percentage of South Carolina’s budget, with general fund revenues and an unexplored labyrinth of state fees (known only as “other funds”) constituting the vast majority of state funding.
That’s changed in recent years. Over the last three budget cycles, Uncle Sam has become the state’s primary source of government funding.
In the current $20.7 billion budget, for example, $7.8 billion comes from the feds, compared to $5.7 billion in general funds and $7.2 billion in “other funds.”
Altogether, that’s the second largest state budget in history, people …
Comments
By really???? on October 14th, 2009 at 3:01 pm
Maybe we can apply for some of those 0% interest rate credit cards for 12 months, then just roll over to another one when the interest kicks in. That sounds like a great idea. then we never really have to pay it back.
By James the Foot Soldier on October 14th, 2009 at 3:39 pm
When are the next round of “mid-year” budget cuts going to arrive?
By PasserBy on October 14th, 2009 at 3:50 pm
“second largest state budget in history”: I’m guessing that’s only until next year’s budget: I can feel my pocket being picked already…
By Pat Hendrix on October 14th, 2009 at 4:33 pm
I noticed that Fits daily DOW report has ceased now that the market has turned around. Now above 10,000, it’s a non-story.
Go figure.
By fitsnews on October 14th, 2009 at 5:53 pm
Pat-
Glad the Hollywood libs and Wall Street cake boys got their mojo (a.k.a. our money) back … the rest of the country is still categorically fucked and Obama’s solution to that appears to be driving their energy and health care costs through the roof.
Your rants are invariably too inane and rehearsed to warrant a response, but what can we say, we’re feeling froggy today.
-FITS
By Eric on October 14th, 2009 at 6:00 pm
@Pat. The stock market for Zimbabwe looked good too!
By baker on October 14th, 2009 at 6:20 pm
I don’t think anyone in SC denied that the so-called stimulus money would, in many cases, replaced funds that were set to be cut. School officials, for example, were very upfront that they were going replenish their otherwise reduced budgets with the federal cash.
As for Medicaid, sure — you’re talking about money that isn’t bringing anything NEW to the table. But I suppose that poor families that are still able to get medical treatment due to the surge of federal money figure it’s a pretty big deal. Of course, Will tries to push the notion that the money was just going to incompetent, inefficient “bureaucrats.” Maybe some jobs of government employees were saved…..but to suggest that Medicaid dollars aren’t being spent to actually help needy families is, I would think, patently dishonest.
By Make it up as you go. on October 14th, 2009 at 6:45 pm
The stock market cycled several times during the Great Depression. Pointing at the DOW as an indicator of economic health only works out if you ignore history, as we are doing now in almost every aspect. It is the new American way!
By sezwho on October 14th, 2009 at 7:49 pm
The first stimulus graph on http://www.stimulus.gov.sc looked much different. Anyone got their own copy of that one?
By George Jefferson on October 14th, 2009 at 8:39 pm
Bring back video poker or you have two alternatives:
1. Layoff state employees
2. Raise taxes a hellof alot.
3. Recruit Buinesses\Industries and sign an agreement no taxes for 5 years and hope workers cover the tax burden.
3. Shutdown some state services and cut others even more than what they have been cut.
4. Start our own million dollar lottery draw and use the procedes to fund state government.
By Sherrie Hanks on October 14th, 2009 at 9:27 pm
And wasn’t our good Governor Sanford against it!!!
By PasserBy on October 14th, 2009 at 10:59 pm
To whomever said the DOW wasn’t reported, I saw it on the Daily posting for the FITS evening stories (DOW above 10,000, or somesuch), and I still get the stock market graphic in the sidebar….???
If I thought the DOW and unemployed were more closely tied together, I’d cheer at the Wall St. folks doing better. I don’t think those two go hand in glove as cleanly as they used to.
By Patriot on October 15th, 2009 at 12:38 am
All the states that take this stimulus money need to boot everyone in elected office out in 2010. Why are the states acting like children bowing down to the federalist Washington like it’s there Daddy. The States rule, not Washington, the states made the U.S., the U.S. did not make the states. We are not going to be able to save the U.S., lets focus on SC, and getting people in office who understands SC has more power than the federalist.
By Advocate on October 15th, 2009 at 2:32 am
Practically all of the Medicaid funds were actually paid into a reserve account, NOT spent maintaining services. DDSN has cut rates and services to families who desperately needed teh services to keep their loved ones at home. They have changed program to cut those services not provided by the local DSN Board, assuring the Boards’ monopoly. DDSN and HHS have actually increased by 70% the rate that will be paid for respite in institutions and cut out the option of providing respite in the home, which cost less than 1/3 of the institutional costs.
Many parents will lose their jobs come Jan. 1 when these cuts are put into effect – all the while the stimulus funds paid to DDSN are being returned to the Budget and Control Board in violation of the Clyburn Amendment.
By Advocate on October 15th, 2009 at 2:35 am
What is patently dishonest is that $31 million paid to SC to provide services to persons who have mental retardation and head and spinal cord injuries is being returned to the Budget and Control Board instead of being used to provide these services.
By John Steinberger on October 15th, 2009 at 3:52 am
If we are truly committed to stimulating the South Carolina economy and creating private sector jobs, we need to eliminate the 7% state income tax. Visit the SCFairTax booth at the Ruff Building at the State Fair and learn how you can promote the South Carolina FairTax Act, H.3992.
By JR on October 15th, 2009 at 7:50 am
Since when is this a story? It was stated in committee that it would happen, it was by definition a “stabilization.”
By Pat Hendrix on October 15th, 2009 at 9:45 am
Predictable and inane? Considering the boiler plated socialism/scandal du jour/titty talk nonsense on this site, I’ll mark this down as undistilled irony at its finest.
Well, couldn’t agree more that we all took it in the ass from Wall Street and Obama hasn’t deviated one inch from the previous administration on that matter, but that wasn’t the point. As the market slumped, you could predict with mathematical certainty a post about the loss of confidence in the market caused by the new administration. At that time, the market was the barometer for economic progress. Now not so much.
What changed?
By Enough on October 16th, 2009 at 8:12 am
Quit giving Sanford credit…. If SC didn’t get the $$ then another state would have and the people would still have to pay…..
When it comes to the Federal Gov we are all responsible…. So much for Obama and his job creation. When he was ellected he said he was going to create millions of jobs…. So far his policies have tanked….
Obama wants a weaker dollar…. Increase the deficit….
He really doesn’t care if he gets re-elected….. He just wants to make a name for himself….
Every “Czar” he has appointed has a corrupt history
2010 will tell another story
People have had enough
By Martha Washington on October 18th, 2009 at 11:45 pm
They said “55.3% of federal “stimulus” funds (405.2 mil) sent to the Palmetto State thus far have been absorbed by Medicaid programs administered by the state Department of Health and Human Services”.
In real words they mean TO SUSTAIN THE PROGRAMS THAT TAKE CARE OF THE ILLEGAL ALIENS EMERGENCY ROOM VISIT AND FOOD STAMPS.
SC Government is too big. Schools have too many administrators. Contracts given to questionable projects with predictable failure rates…all costly and wasteful.
People will hopefully get invovled in politics and run for the seats of these politicians who keep doing the same insane things. Vote out 75% of all incumbents. Clean house. Wipe the floor with the dirty bastards.