Employment agency seeks $1.9M for pay and retention; CCWD proposes $10.3M portal to link education and jobs

Director Floyd, executive director of the Department of Employment and Workforce and chair of the Coordinating Council for Workforce Development, told the Senate Finance Transportation and Regulatory Subcommittee that DEW is requesting roughly $1.9 million in recurring state funds to cover prior statewide pay raises and to create a retention program for high‑performing staff, and that the CCWD seeks a centralized education and workforce portal to improve pathways from school to jobs.

Floyd said the $1.9 million recurring request breaks into about $1.1 million to cover the FY25 2.25 percent general salary increase and the remaining portion of earlier raises (the General Assembly previously covered about 56 percent of a prior 5 percent increase) and roughly $770,000 to fund pay supplements for top performers to reduce turnover.

“We have high performers,” Floyd said, describing retention as a key workforce challenge within the agency. He explained most of DEW’s operating funds come from federal grants, and that covering state pay increases out of federal grants is not sustainable.

On the CCWD proposal, Floyd said the council recommends building a single, state‑level portal to integrate education and workforce information for students, educators, employers and job seekers. He said the council retained Gartner Consulting; Carlton McArthur of Gartner summarized the feasibility study and procurement approach.

McArthur said the study found the portal is feasible, identifying strong stakeholder demand, available market technology and a transformational opportunity for the state. “It is feasible for the state to move forward with developing an integrated education and workforce portal,” he said. Gartner recommended a phased approach across fiscal years 2026–28, beginning with procurement and an initial release focused on jobs, careers and training, then moving to education integration.

McArthur said Gartner’s five‑year total cost of ownership estimate is $22 million to $31 million and recommended an initial nonrecurring appropriation of $10.3 million for design and procurement, plus about $2.8 million recurring to support ongoing portal operations. The consultant said the study included more than 400 survey respondents and interviews with 10 stakeholder groups and a market scan of comparable state efforts.

Senators questioned how the proposed portal would differ from SC.gov. McArthur and Floyd said SC.gov is a valuable state portal but not a comprehensive, integrated education‑and‑workforce front door that aggregates private‑sector job listings, training pathways, education programs and personalized career tools; the CCWD portal is intended to integrate those elements and to serve students, parents and employers statewide.

Floyd also noted three provisos in DEW’s materials: a date update (redact proviso), a request for greater ability to manage a small amount of state CARES‑type funding, and a request to exempt DEW state‑funded programs from mandated across‑the‑board reductions. A senator confirmed the House had funded the portal request.

McArthur emphasized a phased rollout to reduce implementation risk, deliver early functionality, and spread personnel demands across fiscal years. The presentation closed with senators requesting a succinct explanation of how the portal would complement SC.gov for distribution to committee members.

No formal votes were recorded on DEW or CCWD requests during the hearing; all funding and proviso requests require subsequent legislative action.