SC “Stimulus” Spending Approaches $1 Billion
While South Carolina’s unemployment rate stands at a record 12.3% (and climbing), federal funding that was supposed to be “stimulating” the state’s economy keeps pouring into the same old inefficient, ineffective government bureaucracies.
In fact, the Palmetto State is fast approaching the $1 billion mark in terms of “stimulus” money received by various state government agencies, according to new data released by the S.C. Comptroller General’s Office.
Sadly, all that money hasn’t done a lick of good.
And while the administration of president Barack Obama brags that 8,100 jobs have been “created or saved” in South Carolina as a result of the “stimulus,” the state’s actual employment numbers tell a completely different story.
Needless to say, this is why we have referred to the stimulus all along as nothing more than a “bureaucratic bailout.”
Of course it failed to stimulate jobs, investment or consumerism, people … because doing so was never (despite countless political promises to the contrary) its objective.
What was its objective? Easy … to ensure that the taxpayer-funded spigot stayed on, no matter what the cost, and no matter how deep the hole was dug for future generations.
And look, the spigot has most definitely “stayed on” (numbers courtesy of S.C. Comptroller General’s office) …
STIMULUS FUNDS BY STATE AGENCY (AS OF DECEMBER 10)
* Dept. of Health and Human Services (Medicaid), $432,623,841
* Employment Security Commission (unemployment benefits), $170,814,587
* Dept. of Social Services, $109,422,653
* Dept. of Transportation, $46,329,834
* Dept. of Public Safety, $38,154,268
* Dept. of Education, $32,002,947
* State Treasurer’s Office, $21,196,932
* Dept. of Commerce, $21,133,488
* Governor’s Office, $13,948,499
* Department of Corrections, $11,960,631
* Judicial Department, $4,000,000
* Dept. of Health and Environmental Control, $3,315,583
* Dept. of Probation, Pardon and Parole, $2,000,000
* Budget and Control Board, $1,775,155
* State Library, $1,685,045
* State Law Enforcement Division, $1,066,927
* Board for Technical & Comprehensive Education, $773,397
* Lt. Governor’s Office, $743,634
* Educational Television Commission, $540,000
* Dept. of Natural Resources, $500,000
* Wil Lou Gray Opportunity School, $500,000
* School for the Deaf and the Blind, $500,000
* Archives and History, $500,000
* Vocational Rehabilitation, $480,781
* Commission on Higher Education, $364,440
* Dept. of Agriculture, $250,000
* Arts Commission, $175,444
* Forestry Commission, $161,062
* Attorney General’s Office, $39,576
Total: $916,958,724.
Amazing … a billion dollars has been dumped into state government and South Carolina’s economy has only gotten worse as a result of it.
Sounds like the “way things have always been done” in this state.
In fact, South Carolina’s revenue situation has worsened considerably since the stimulus was passed, dropping by an estimated $400 million in general funds alone. Those declines prompted another round of state budget cuts last week.
S.C. Comptroller General Richard Eckstrom said that these results prove once again that government “can’t borrow and spend its way to prosperity by expanding government programs.”
“Ten months ago Washington embarked on a government spending spree that breaks all records, spending a trillion dollars we don’t have – and burying future generations under mountains of IOUs – (all) under the pretense of stimulating our economy and creating jobs,” Eckstrom told FITS. “Yet most of the spending is for programs that have nothing to do with stimulating the economy or creating jobs.”
Exactly.
“While we all hoped the stimulus would be successful, what’s clear is that Washington’s promises from last February are left unfulfilled,” Eckstrom continued. “Not only has the unemployment rate long surpassed the eight percent tripwire set by the White House for documenting that the stimulus would be working as intended, but the jobless rate has surged into double digits since the measure passed. Last Friday, Washington notified us that South Carolina’s unemployment rate now has reached an historic 12.3 percent in spite of spending almost a billion ’stimulus’ dollars in South Carolina for government initiatives it promised would lead to economic recovery and growth.”
Oh, and there’s even more bad news to come.
Stay tuned to FITS as we will have a special report tomorrow on yet another recession-related time bomb …
Comments
By Jimbo on December 21st, 2009 at 3:58 pm
I can get an economist to swear that the SC unemployment rate would be 25% if not for this hugely successful stimulus plan.
Everyone knows government can create jobs by simply printing paper money.
By John Steinberger on December 21st, 2009 at 4:15 pm
As SCFairTax.org has been saying for months, the only way to give businesses the incentive to hire and consumers the incentives to spend is to eliminate the state income tax. Look at it as a 7% pay raise for all of us! Support the State FairTax bill sponsored by Rep. Rex Rice and Rep. Joey Millwood (H.3992), Sen. Glenn McConnell (S-902) and Sen. Larry Grooms (S-942).
FairTax = Jobs!
By laney on December 21st, 2009 at 4:20 pm
Just think if every tax payer in South Carolina were given their “share” of the 1 billion dollars.
By southernmapart on December 21st, 2009 at 4:38 pm
Local governments are just as bad. No jurisdiction appears to be cutting back on costs, but instead, are ramping up spending programs in the name of “creating jobs.” I have not seen a single analysis showing the potential for permanent jobs creation with a wage sufficient to support a family and a resulting financial benefit.
We talk about this problem in the Upstate and don’t know how to fix it. We cannot get rid of the encamped, elected state delegation. We got rid of the criminal local elected officials, but the new ones don’t have a clue about what is going on for the general taxpaying public and those out of a job, many of whom are on the street.
By Billy Bob on December 22nd, 2009 at 12:10 pm
Yes, Imagine – - it would be about $203.50 each
By Billy Bob on December 22nd, 2009 at 12:12 pm
Above is not to in any way defend the stupid way the $$ was allocated. It is a grand mess.