SCDEW Error Costs Businesses Additional $9 Million

MORE INCOMPETENCE FROM NIKKI HALEY’S “JOBS” AGENCY S.C. Gov. Nikki Haley may “know the value of a dollar” (23.3 billion of them, actually) … but one of her cabinet agencies is having trouble keeping a calendar. In fact the inability of bureaucrats at the S.C. Department of Employment and Workforce(SCDEW)…


S.C. Gov. Nikki Haley may “know the value of a dollar” (23.3 billion of them, actually) … but one of her cabinet agencies is having trouble keeping a calendar.

In fact the inability of bureaucrats at the S.C. Department of Employment and Workforce(SCDEW) to correctly calculate their own accounting periods will wind up costing Palmetto State businesses an extra $9 million in taxes in 2013.  And guess what … that’s over and above existing unemployment insurance costs that were supposed to be provided to businesses months ago.

The error “happened (in) quarters that ended on a Saturday or Sunday,” a source familiar with the gaffe tells FITS.

South Carolina businesses are required to file quarterly contribution and wage reports with SCDEW – which the agency then uses in assessing its unemployment insurance tax.  This levy has been skyrocketing in recent years due to the exorbitant, incompetent and corrupt provision of long-term unemployment benefits.

SCDEW claims that its “calendar problem” dates back to 2008, but a State Senator who has been investigating the agency says that the “earliest affected quarter” occurred in 2011 – right after Haley took office.

“This has gone from bad to worse to worser,” said S.C. Sen. Kevin Bryant, a fiscal conservative whose committee has been investigating SCDEW. “I understand ‘worser’ is not a real word, but real words can’t describe a level of incompetence that can’t read a calendar.”

Bryant is currently involved in a dispute with SCDEW over the impact of the coming year’s unemployment tax bill.  A report from his Senate committee says that “rates for all employers in 2013 may rise (by) as much as 12 percent or more,” however Haley’s administration claims that the tax burden for businesses will decline by $150 million next year.

South Carolina’s unemployment insurance fund once had a balance of $800 million.  After being exhausted in December 2008, however, it proceeded to accumulate a $933 million debt.  Most of this debt is being repaid in the form of tax hikes on businesses, although Haley and the “Republican-controlled” S.C. General Assembly decided last year to shift $146 million of this burden directly onto the backs of individual taxpayers.

Nice, huh?

Haley’s administration was supposed to release 2013 payment rates in mid-November, but earlier this month that deadline was pushed back to mid-December.  SCDEW – one of the most poorly managed agencies in state government – offered no apology or explanation for this delay.

Chronic mismanagement at SCDEW has been exposed this year via a state auditfederal warning and a legislative study.  Among the most damning statistics?   One out of every five dollars in unemployment benefits doled out in South Carolina is awarded erroneously – the eighth-highest percentage in the nation.  Not only that, South Carolinians who use the agency’s reemployment services take an average of 26.5 weeks to get off of the public dole.  Those who do not use SCDEW took only 22.3 weeks to find gainful employment.

How have the agency’s leaders gone about “addressing” these issues?  By enjoying taxpayer-funded golf … and sunshine.  Hell … they took another glorified vacation just last week.

Of course SCDEW has found plenty of time to try and silence its critics …

SCDEW – which replaced the legislatively controlled Employment Security Commission in 2010 – was supposed to be a shining example of government restructuring.  By placing this troubled agency in the governor’s cabinet, taxpayers were supposed to benefit from expanded “efficiency and accountability.”

Unfortunately, since coming under Nikki Haley’s control this agency has regressed … badly.


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Todd November 23, 2012 at 11:26 am

What Queen Haley’s Department of Commerce giveth the SCDEW taketh away. Why would any business want to come to this f_d up place. Haley’s problems, aside from her personal incompetence and stubbornness, stem from not having competent business people advising her or running her departments. Why do Haley and that poster child of personal incompetence Joe Wilson think they know what is right for businesses but never ask them land when have the chance screw them over?

Carrefour November 25, 2012 at 10:18 pm

Haley sucks. If she looks around there are very competent business people who could help out a lot as well as enhance her image. It’s a lesson she hasn’t learned from her buddy Mitt. Dump the Generals and bring in some astute business people. duh!

L I'll Be November 23, 2012 at 1:06 pm

Recently attended a Grant writing workshop….new to this type thing, I was quite confused to learn that of the 25 attendees, at least 6 were from SC DEW.

Someone smarter than me, please explain why government agencies have to hire grant writers, spend govt money to train them, and write their own grants in the 1st place? They have a budget, why are there grants available/needed by govt agencies as well?


jimlewis,owb November 23, 2012 at 1:14 pm

Six reasons why DEW sent 6 staff to grant writing school

1) one to write golf trips grants
2) one to write weekends in Charleston grants
3) one to write weekends in Golf Resorts grants
4) one to write free BBQ luncheons for everyone grants
5) one to write grants for doors to nowhere grants
6) one to write grants for anything to do but work grants

L I'll Be November 23, 2012 at 1:32 pm

I knew the reasons DEW gave were bogus……..

sam November 23, 2012 at 2:14 pm

Where are the adults?

Haley shows up long enough fro Cabinet meetings, press appearances, a change in clothes then heads off to campaign for God knows what, raise money and make money.

We, the people of SC, are a simple after thought.

Ralph Hightower November 23, 2012 at 2:59 pm

Unbelievable! Mainframers! DEW must be using the same 1970’s equipment as DOR!

Thebeachisback November 23, 2012 at 6:17 pm

Who the heck voted for this women???????? I wouldn’t admit it either! We are the laughing stock of the US! Thank you tea baggers
—look that definition up!

shifty henry November 24, 2012 at 8:26 am

What, exactly, is the calendar problem? The article doesn’t explain it……give us the details and how it happened.

Recovering Lobbyist November 24, 2012 at 11:31 am

My question as well. This article is cut-and-paste journalism. Tell us about the problem, not about your hard on for the governor. We have heard that ad naseum.

Darlington Dave November 25, 2012 at 10:38 pm

I agree with earlier posts. I don’t have an issue with the Governor, and believe she truly thinks she is doing a good job and wants to serve. However, her appointments and those surrounding her are less than competent, mental midgets, and seem to be appointed based on criteria other than competence. Loyalty is fine but she doesn’t need ex military to find it. If Haley looks across the state, indeed even in Lexington and Columbia, there are some outstanding large business men and women who could take her administration to the next level and be so competent and loyal to her she could pursue her national ambitions. Find the large successful businesses, see who is driving their success, and make a call. It’s what businesses themselves do. Haley can’t be expected to do everyone’s job or have her hand in every issue, but for goodness sakes she must recruit the best and brightest to join her team. She hasn’t come close except perhaps with Hitt but even he has his frustrations with her and seems to have already flamed out. Rather than report cards for legislators, look at the cabinet secretaries and agency heads. Generally i don’t see any of them earning higher than a C. Hitt gets a B plus. That’s sad, Governor.

hum_dinger November 26, 2012 at 10:51 am

SCDHEC, SCDOR, SCDNR, SCDEW …. name SC 1 agency not embroiled in some kind of major fukup.

Its beyond startling – its very sad.

THIS is our best and brightest?


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