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by WILL FOLKS
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In one of the greatest (and most expensive) attempted taxpayer hoodwinks in South Carolina history, budget writers in the Palmetto State’s House of Representatives – working with the administration of governor Henry McMaster and lieutenant governor Pamela Evette – are trying to sneak a nine-figure bailout for crony capitalist Scout Motors into the state’s $42.6 billion proposed budget.
The bailout – which could total between $117.1 million and $153.9 million – was snuck into the budgets of the S.C. Department of Natural Resources (SCDNR), the S.C. Department of Transportation (SCDOT) and the S.C. Department of Commerce (SCDOC) via multiple budget provisos.
For those of you unfamiliar how the budget process works in South Carolina, provisos are specific mandates included in a standalone section of the state’s annual spending plan. Using these mandates, lawmakers instruct executive and judicial branch agencies on how they can (and cannot) spend taxpayer money.
Like pork barrel earmarks, provisos are a hugely controversial method of appropriating tax dollars.
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Scout – a subsidiary of über-woke Volkswagen – has been seeking additional money from taxpayers to address “cost overruns” at its massive facility located just north of the state capital in Columbia, S.C. This facility – which resembles an industrial desert – has faced numerous production delays as the market for electric vehicles (EVs) in the United States has continued to crater.
The original tab for these “overruns” totaled $220 million, of which SCDOC spent $70 million from its budget to cover. Now House leaders – and the McMaster-Evette administration – are seeking to cover the rest of the red ink by slipping these secretive provisos into the budget.
Bear in mind, Scout already received a staggering $1.3 billion in taxpayer-funded incentives just three years ago – a hastily reached, ill-conceived corporate welfare handout championed by McMaster and applauded by Evette.
Literally…
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In addition to all of these corporate welfare subsidies, the McMaster-Evette administration is also seeking another $100 million in recurring annual funding for EV industry scholarships from the S.C. Education Lottery – taxpayer money which would essentially subsidize workforce training for Scout.
“Republican” budget writers – irritated that Scout snubbed the Palmetto State for its corporate headquarters last fall – refused to give Commerce secretary Harry Lightsey the money for the cost overruns earlier this year. The latest version of the budget contains the money, though, routing it through three different agencies via secretive means.
One proviso, 47.22, would authorize SCDNR to spend any “available excess debt service funds” on so-called “economic development purposes” tied to Act 3 of 2023 – the original Scout Motors’ boondoggle. A second proviso, 84.20, would authorize SCDOT to take its “available excess debt service funds” and use them for so-called “economic development purposes” tied to the Scout deal. Finally, a third proviso – 112.1 – would make “any excess debt service funds approved in previous fiscal years and currently available for use by the Department of Commerce” available for “economic development purposes” tied to the Scout deal.
Debt service refers to money set aside each year to pay back borrowed funds. Excess debt service is money available after these payments have been made – money lawmakers are now apparently treating as another crony capitalist piggy bank.
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In the budget that cleared the S.C. House earlier this year, a whopping $153.9 million was placed into this piggy bank – but senators slashed the total to $36.8 million. House members reinserted the $117.1 million cut by the Senate, however, forcing a budgetary stalemate.
This stalemate has caused the cancellation of negotiations between House and Senate budget writers, who were originally scheduled to return to Columbia, S.C. next week to try and hammer out their differences but have since called off those meetings.
The Scout overruns have previously been slammed by S.C. attorney general Alan Wilson, who is running against Evette for the Republican gubernatorial nomination. Earlier this spring, Wilson called the funding requests “crony capitalism and bad business.”
Asked about the latest budget machinations, Wilson pointed the finger squarely at the McMaster-Evette administration.
“Why does South Carolina continue to fund corporate boondoggles under a McMaster-Evette administration?” Wilson asked. “South Carolina taxpayers should not be on the hook for their failures.”
Fiscal conservative congressman Ralph Norman, who is also running for governor, echoed Wilson’s criticism.
“Bunch of crooks!” Norman told FITSNews.
Keep it tuned to our media outlet to see how this secret, crony capitalist budget push plays out at the S.C. State House – and on the campaign trail.
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ABOUT THE AUTHOR…
Will Folks is the founding editor of the news outlet you are currently reading. Prior to founding FITSNews, he served as press secretary to the governor of South Carolina. He lives in the Midlands region of the state with his wife and eight children.
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1 comment
Maybe I should Sue the Governor and His Cronies For My share of Tax Dollars for My Business Ventures! The Legislatures that Approve of this Scout Motors Money are ALL CROOKS!! Support the Small Business Owners NOT the RICH Corporations!!