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SCDEW Facing Budget Deficit

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Despite three rounds of layoffs over the last six months, S.C. Gov. Nikki Haley’s Department of Employment and Workforce (SCDEW) is still hemorrhaging taxpayer cash. In fact sources at the agency tell FITS another round of staffing cuts is coming as the agency seeks to address a large budget deficit.

How large? Our sources say SCDEW is currently facing a shortfall of as much as $7 million for the current fiscal year – a figure that’s likely to get higher before the end of the fiscal year (three months from now).

So … will the agency cut its golf outings or beach retreats as a result of this news?

Perhaps. SCDEW’s embattled director Abraham Turner resigned his post at the agency earlier this year – and a search is currently underway to find his replacement.

Under Turner, SCDEW was an unmitigated disaster. Just last year, the agency doled out $54.5 million in “improper claims,” according to data from the U.S. Department of Labor (USDOL). In fact over the last three years the agency has an improper payment rate of 14.7 percent – one of the highest in the nation.

Who’s picking up the tab for this incompetence? South Carolina businesses and taxpayers.

As we’ve noted on previous occasions we have no problem with SCDEW cutting jobs. The more the merrier as far as we’re concerned. The real problem is the number of unemployed South Carolinians receiving jobless benefits – and the massive debt our state still owes the federal government for those benefits.

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