CHE faces scrutiny over $152 million in unspent funds

In a pivotal meeting of the House Legislative Oversight Committee on October 23, 2024, the focus turned to the Commission on Higher Education (CHE) as subcommittee chair Tim McGinnis presented a comprehensive study revealing systemic issues within the agency. The atmosphere was charged with urgency as McGinnis outlined the findings of an investigation that uncovered significant managerial and financial missteps, including a staggering $152 million in unspent education lottery funds that had accumulated over five years.

The CHE, established in 1968, has faced a revolving door of leadership, with an average tenure of just 1.5 years for its directors. This instability has hindered the agency's ability to forge effective relationships with stakeholders and implement long-term strategies. McGinnis emphasized the need for reform, noting that the agency's current structure and operations are inadequate to address the challenges facing higher education in South Carolina, including declining enrollment and rising tuition costs.

The subcommittee's report highlighted 24 findings, including the CHE's limited authority over the state's 33 public institutions and its inability to enforce a cohesive statewide higher education strategy. The report also pointed out that the CHE has not raised scholarship amounts for merit-based programs in over two decades, despite significant increases in tuition, which has eroded the value of these scholarships for students.

As the meeting progressed, McGinnis and other committee members discussed the necessity of modernizing the CHE's operations, including upgrading its outdated IT systems and improving internal processes to enhance efficiency and accountability. Recommendations from the subcommittee included forming a study committee to explore the potential replacement of the CHE with a board of regents and conducting a comprehensive evaluation of the state's higher education system.

The committee's findings underscore a critical moment for South Carolina's higher education landscape, as the CHE grapples with the need for reform amid a backdrop of financial mismanagement and leadership instability. The discussions at the meeting signal a call to action for lawmakers to address these pressing issues, ensuring that the state's higher education system can effectively serve its students and adapt to the evolving educational landscape.