SCHOOL OFFICIALS LIED TO STATE LEADERS ABOUT CASH SHORTAGE
South Carolina State University will exhaust nearly every penny of its recent $6 million bailout making payroll expenses – flatly contradicting what school officials told members of the S.C. Budget and Control Board (SCBCB) last month.
Last week, the Associated Press reported that the government-funded, historically black school had requested $1.2 million of the loan to make payroll -despite its leaders’ previous assurances to the SCBCB that proceeds of the loan would go toward addressing the school’s $14 million deficit.
Turns out the school’s actual biweekly payroll tab is $1.8 million – and S.C. State has two more pay periods to go before reaching the end of state government’s fiscal year.
“That’s what the $6 million was for,” a source at the school familiar with its gross financial mismanagement told FITS. “It wasn’t for outstanding bills, it was for people’s paychecks.”
Not only that, state auditors are reportedly discovering even more unpaid bills as they do their due diligence related to the $6 million loan – debts deliberately hidden from the SCBCB.
“The whole system is deteriorating,” our source said.
Last week multiple sources close to the fiduciary review told us university officials – led by president Thomas J. Elzey – were aggressively stonewalling efforts by state leaders hoping to get an accurate accounting of the school’s finances.
“There is not the high-level participation from S.C. State needed to turn things around,” one of the sources told us.
Another one of our fiduciary sources was more blunt.
“They are lying – about everything,” the source said.
S.C. State has had financial problems for years, yet state lawmakers continue to bail it out using taxpayer funds (while subsidizing its boondoggles … and funding its questionable bureaucratic hires).
When will it stop?
This website has consistently argued that South Carolina’s entire system of higher education should be totally privatized (same thing goes for higher ed across the country).
“It’s time for S.C. State University – and the other thirty-two government-run institutions of ‘higher learning’ in the Palmetto State – to sink or swim based on their ability to prepare students for life in the 21st century,” we wrote last month.
The sooner that happens, the sooner tax dollars stop disappearing into this black hole …