[{"_1":2,"_97":-5,"_98":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":44,"_46":47,"_48":49,"_50":51,"_52":53,"_54":55,"_56":57,"_58":59,"_60":61,"_62":63,"_64":65,"_66":67,"_68":69,"_70":71,"_72":73,"_74":73},"mediaId",6104206,"mediaKeyId","2791988-929288e3f46ff4edd28ff6ebbdf2f69e","parentId",2791988,"title","Committee advances creation of state auditor; adopts pregnancy‑care tax credit amendment and paid‑leave eligibility change","audioSeconds",0,"startMs",6137000,"endMs","viewUrl","/Search/View?dp=1&key=2791988-929288e3f46ff4edd28ff6ebbdf2f69e&start=6137&end=6137","thumbnailUrl","https://assets.pipeline.soar.com/2791988-929288e3f46ff4edd28ff6ebbdf2f69e/thumbnail_6137000.jpg","articleUrl","/articles/6104206/South-Carolina/Committee-advances-creation-of-state-auditor-adopts-pregnancycare-tax-credit-amendment-and-paidleave-eligibility-change","mediaUrl","https://secure.pipeline.soar.com/6104206-216bd37c1a7f09d933a06a5f1363309f/orig.mp4?Expires=1775405669&Signature=ISyvgHAbLNR26q6Vo85Pq5K5T5Zw0jkX3hkAH5-jJ7GuXoyhOAhSArTqyCE29340aT4E-qFNdpT6-AuAf4XjT11EqO7~-MqQXvOAhraKhoaSMZGI1EsHDvkqKXVrPATs-dDzC7Du2quFWDcNmIrjFx6IytQn0PmCrNCwBf-Crqa1Cdc~eH9St9FEyS4bT80iWTeXCeLM9a~bJTvvV-JXrnPXtdGN2n6HbgJAPk50gpwLEPlcnh7n0NVOg7DBq2zAdBKjOL-JsDUDtEFtLWydopnejY52aFqpXObGZ96KPdcsB0mH~~l3fcAkKTps0LJ5DR5BfrMOImroC6cRZz86BQ__&Key-Pair-Id=KUT5TJCACFTXG","author","South Carolina Legislature","date","2025-03-25T00:00:00Z","article","The South Carolina Senate Finance Committee took three committee actions late in its meeting: it advanced an amendment to create an independent Office of the State Auditor, and it reported favorably — as amended — on S.32 (a pregnancy care tax credit) and S.11 (changes to state employee paid parental leave eligibility).

Office of State Auditor: Committee members debated and adopted a comprehensive amendment to create a Department of Governmental Auditing and an independent state auditor appointed by the governor with Senate advice and consent. The amendment sets qualifications, a six‑year term, removal procedures, staffing provisions and requires the auditor to oversee the state’s ACFAR and to examine the state treasurer’s accounts as often as deemed appropriate. The amendment also clarifies the auditor’s authority to examine banks and financial institutions that have handled treasurer transactions and requires reporting of irregularities to the governor and attorney general. The committee adopted the amendment and gave the bill a favorable report as amended.

S.32 — Pregnancy care tax credit (as amended): The committee adopted a subcommittee amendment that changes and clarifies the tax credit before recommending it favorably. Key changes adopted by the committee include: limiting the aggregate annual credit in the initial phase to $3.5 million (the earlier draft had increased a later cap to $10 million); adding maternity homes and residential programs for human trafficking survivors to the definition of eligible organizations; requiring annual recertification and financial reporting to the Department of Revenue; setting a 2030 sunset for the credit; and making the credit nonrefundable with a five‑year carryforward. The committee’s action was a favorable report as amended.

S.11 — Paid family leave (as amended): The committee adopted an amendment narrowing the definition of an eligible state employee to those occupying positions eligible to earn annual leave (the amendment arose from concern that earlier language could expand eligibility unintentionally to short‑term or grant‑funded positions). The committee then reported the bill favorably as amended.

Votes and procedure: Committee action on the amendment creating the state auditor and the two bills were taken by voice vote; the transcript records “aye” responses and no recorded opposition in committee. Where roll‑call tallies were not recorded in the transcript, committee staff told members they would proceed according to chamber procedure; the committee advanced the measures for further consideration by the full Senate or relevant committees as applicable.

","mediaType","Video","parentTitle"," Senate Finance Committee -- Full Finance Committee Tuesday, March 25, 2025 2:00 ","oneSentenceSummary","The Senate Finance Committee advanced an amendment to create an independent Office of the State Auditor and voted favorable reports on S.32 (pregnancy care tax credit) and S.11 (paid family leave eligibility), each as amended; votes were taken by voice and without recorded roll call in committee.","taxTitle","Finance, Standing, Senate, Committees, Legislative, South Carolina","taxId",17657,"location","South Carolina","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_46":81,"_48":82,"_50":83,"_52":84,"_54":55,"_56":57,"_58":85,"_60":61,"_62":63,"_64":86,"_66":67,"_68":69,"_70":71,"_72":73,"_74":73},6104212,"Senate subcommittee says $1.8 billion unreconciled on treasury books, recommends removal of Treasurer Curtis Loftus",3111,1663600,4775205,"/Search/View?dp=1&key=2791988-929288e3f46ff4edd28ff6ebbdf2f69e&start=1663&end=4775","https://assets.pipeline.soar.com/2791988-929288e3f46ff4edd28ff6ebbdf2f69e/thumbnail_1663600.jpg","/articles/6104212/South-Carolina/Senate-subcommittee-says-18-billion-unreconciled-on-treasury-books-recommends-removal-of-Treasurer-Curtis-Loftus","https://secure.pipeline.soar.com/6104212-463640c58331c265450302c040eb8660/orig.mp4?Expires=1775405669&Signature=R7jIPPzwosBktersnqC9Wwb7hli0sz5MaDCn~fe1KxV6sSaGwZK5tyip0Skv2RVAMOyy4NcH64~rx8KXBFwvazCPPHKKxE92TGaVO3au5YyCegL8vgv728wOvzrXDSj~c5xDZw-dWiMZKeDWbezFwOWRzmkOeUk~NrP5SFjU4TiBa5Lq8R7RiEjDIX3YFT~4csKzN55QUXkFmc9H7li99--GL0PWXyWUm-c-Jt1lAVLc1o9Le7SwSbP46nOV5exCfS~iuQn632CUzF3XvLC6~sP2l2NJosAfRniLVxDpkW8ENMcroNHZeVHq3cElWB3gkHVDv5JaXlcWu87DqhbGZQ__&Key-Pair-Id=KUT5TJCACFTXG","The Senate constitutional subcommittee told the full Senate Finance Committee that its 13‑month investigation found conversion‑related accounting entries that net to $1.8 billion on the treasury books and recommended removal of State Treasurer Curtis Loftus for willful neglect of duty and other causes.

Senator Grimes, presenting the subcommittee’s final report, said the discrepancy first surfaced during preparation of the state’s annual comprehensive financial report and that Comptroller General Gaines had repeatedly sought satisfactory explanations from the treasurer’s office. The subcommittee contracted a forensic audit by Alex Partners and assembled roughly 640 exhibits documenting the findings.

“Today, right now, multi‑billion dollar errors continue to exist in the treasury books, making them inaccurate and incomplete,” Senator Grimes said. He reported that the forensic review traced the $1.8 billion net balance to entries that accumulated during a conversion from the legacy accounting system (Stars) to a newer system (Skis). The subcommittee said 23,342 entries were made into the disputed fund by treasury employees, more than 7,600 entries were made by contract employees assigned to the treasurer’s office, and two entries were made later by the comptroller’s office while attempting corrections.

The report recommended several actions: complete reconciliation of cash and investment balances by fund; statutory and structural reforms including creation of an independent Office of the State Auditor (a legislative amendment detailing that office was presented and advanced by the committee later in the hearing); independent oversight or a compliance officer to ensure implementation of audit recommendations; and referral of matters to other oversight bodies including the inspector general, the Legislative Audit Council and federal investigators.

The subcommittee described other findings and costs: Alex Partners’ forensic audit cost about $3 million, the committee reported legal fees of roughly $5 million to date and requested another $5 million in the state budget to cover additional legal work, and the state treasurer’s office currently custodies about $54 billion in state funds. The report says Alex Partners found that the $1.8 billion discrepancy arises from balances related to a set of bank accounts that, when combined with other misposted balances, produce the net difference; the subcommittee said Alex Partners confirmed that Skis cannot be reconciled to bank statements for the affected banks without including the unreconciled differences.

Treasurer Curtis Loftus provided a recorded statement the subcommittee played for the committee in which he said Alex Partners’ final report “confirms that there is no mystery bank account with $1,800,000,000 in it. There is no missing money and all cash and investments are accounted for.” The subcommittee’s presenters responded that, while cash may be present at a portfolio level, the books are not reconciled by agency and by fund and therefore do not meet statutory and accepted accounting standards.

Senators on the subcommittee recounted other concerns disclosed during the investigation: the treasurer’s office had at times declined to provide the detailed reconciliations the Comptroller General requested; there were episodes in which the treasurer suggested posting detailed account architecture online and then later said he would not; the subcommittee said staff purchased crisis‑communications services and that some testimony from treasurer’s staff was scripted.

The subcommittee explicitly recommended that the Senate and governor remove the state treasurer from office pursuant to Article IX, Section 3 of the South Carolina Constitution and pursue statutory and structural reforms, including making the state auditor an independent, governor‑appointed position subject to Senate confirmation, strengthening reconciliation requirements, and mandating periodic independent audits of the treasurer’s office. The committee received the report as information and the chairman said staff and counsel would consult on next steps.

","A constitutional subcommittee released a final report saying conversion‑related bookkeeping errors net to $1.8 billion on the treasury books, documented by Alex Partners; the subcommittee recommended removal of State Treasurer Curtis Loftus and proposed structural reforms including creation of a state auditor position.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":42,"_43":90,"_45":90,"_46":91,"_48":92,"_50":93,"_52":94,"_54":55,"_56":57,"_58":95,"_60":61,"_62":63,"_64":96,"_66":67,"_68":69,"_70":71,"_72":73,"_74":73},6104216,"Senate Finance hears revenue update: growth concentrated, corporate tax spike uncertain",16065,"/Search/View?dp=1&key=2791988-929288e3f46ff4edd28ff6ebbdf2f69e&start=16&end=16","https://assets.pipeline.soar.com/2791988-929288e3f46ff4edd28ff6ebbdf2f69e/thumbnail_16065.jpg","/articles/6104216/South-Carolina/Senate-Finance-hears-revenue-update-growth-concentrated-corporate-tax-spike-uncertain","https://secure.pipeline.soar.com/6104216-ea4fba7611fdb838814bfe2c5ed6bb4d/orig.mp4?Expires=1775405669&Signature=OcpE4GbKR8bSz56jeGlkKgU8t6Y2g9eTemAsvQZgAV2~G-3uKQlnluivzjOkIfxXYfCviFzLB78yFHkO4bUg--Ag0WWKBsd7vMYTT1VgQ1yrEwdAh91q0TikOY8OaZlELt~nEMqH55Tmo~uFRKX~Uc7zEoB8bzu6PsqFayeS2RL8ucJ3Z3PwtZxZ1IIx3ajmRd8o9O8odbrywnLEk6NHgQsZxeXttxUuqzPs9B3kcWJCexpLyHUGbcIf2giRaK0SiJQgKpMOH14smhgyGLqhQX6ZV5-RUJn~MnaR-Lnr4zwtYS9HGrINMxD-OnlBoZgK4VUNALKGda-nbDNpIhbdAw__&Key-Pair-Id=KUT5TJCACFTXG","Frank Rainwater delivered a revenue and economic update to the South Carolina Senate Finance Committee, telling members that the state continues to grow in population, employment and personal income but that benefits are unevenly distributed across counties.

Rainwater said South Carolina’s share of national population, employment and income has trended upward in recent years and that the state ranked among the top states in absolute population gains last year. “South Carolina is growing, but we’re uneven throughout the state,” Rainwater said, citing fast growth in counties such as Horry, Jasper, Lancaster and Berkeley and declines in counties including Bamberg, Hampton and Williamsburg.

The presentation underscored three features likely to matter for tax receipts: the geographic concentration of growth, a rising share of personal income that comes from transfer payments (for example retirement and Social Security), and volatile corporate income tax collections. Rainwater noted long-term wage and personal-income growth but said earnings now account for less of total personal income than in prior decades; transfer payments are a larger share of income, he said, “and a lot of that is tax exempt.”

On employment, Rainwater pointed to the fast recovery after the pandemic and to a tightening labor market: he said there are now fewer than one unemployed worker for each job opening in both South Carolina and nationally, a condition he said will make it harder for government and private employers to fill positions. “There’s gonna be a struggle ... it’s gonna be harder for government to compete with private industry,” he said.

Rainwater flagged corporate income tax as the most uncertain revenue category. He told the committee that corporate collections more than doubled during the pandemic years — rising from levels around the roughly half‑billion‑dollar range to over $1.2 billion — and that more recently collections have reached about $1.4 billion on a rolling fiscal‑year basis. “We’re nervous about banking on that in your estimate,” he said, adding that much of the final corporate tax tallies arrive late in the fiscal year when businesses file returns.

Committee members asked Rainwater whether the state has detailed data about the age and employment status of migrants; Rainwater said IRS migration data show North Carolina is the largest source of in‑migrants and that the staff can follow up with more information about ages and employment status.

Rainwater closed with a reminder about budget parameters: for the fiscal year under consideration he told members the committee had about $666 million in new recurring funds and roughly $1.25 billion in nonrecurring funds available to allocate, and he cautioned that recent post‑pandemic revenue boosts are likely to moderate.

The committee did not take action on policy during the presentation. Rainwater said staff would provide follow‑up material on migration, age cohorts and county‑level drivers of growth.

","Frank Rainwater told the Senate Finance Committee that South Carolina is growing in population, employment and income but unevenly across counties; he cautioned that recent corporate income tax gains may not be sustainable and flagged workforce shortages and a shifting tax base.","actionData","errors"]

Article not found

Committee advances creation of state auditor; adopts pregnancy‑care tax credit amendment and paid‑leave eligibility change

Senate subcommittee says $1.8 billion unreconciled on treasury books, recommends removal of Treasurer Curtis Loftus

Senate Finance hears revenue update: growth concentrated, corporate tax spike uncertain