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Commerce outlines multiple budget requests including site readiness and rural development
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Summary
Department of Commerce asked the committee for a mix of recurring and nonrecurring funds — $25M for rural development, $25M nonrecurring and $3.5M recurring for LocateSC, $20M to repay an intra‑agency loan (unless a proviso is adopted), recurring support for small business programs and expanded closing fund capacity.
Secretary Harry Leitzy presented the Department of Commerce’s budget priorities to the committee and described a set of recurring and one‑time requests aimed at sustaining recruitment, site readiness and rural development.
Leitzy said the department seeks $25,000,000 nonrecurring for rural development to expand grant awards in Tier 3 and Tier 4 counties, and noted prior FY19–20 appropriations have been committed and will be expended in FY26. He also requested $25,000,000 nonrecurring and $3,500,000 recurring for LocateSC to replenish industrial property inventories used to recruit employers.
Leitzy asked for $20,000,000 nonrecurring to repay an intra‑agency loan used for engineering and permitting on the NBIF site, but added the department has proposed a proviso (already approved in the Senate last session) that would use excess debt service funding to cover part of that loan and could remove the need for the $20 million appropriation.
Other items included recurring support for small business trade programs (SCOPE and Stimulate SC), $2,000,000 nonrecurring for marketing, $159,445 and 1 FTE to make the Project Management Office permanent, and $3,700,000 recurring to bolster the Closing Fund to meet rising project costs.
Patrick Jarvis, Commerce’s CFO, walked the committee through proviso language that would allow a portion of excess debt service funds to be transferred to Commerce to pay down the Palmetto Railways loan related to the Navy Base Intermodal Facility. He also described proposed language to move an existing proviso for the governor’s nuclear advisory council to Commerce and spending guidelines for the proposed rural development grants.
Committee members asked how much of the carryforward is committed; Jarvis said Commerce carried forward over $800,000,000 last year but that more than 99% of that carryforward is already allocated to projects and is waiting for invoices to be submitted for reimbursement. Lawmakers pressed on the difference between Commerce’s closing fund and the JBRC closing fund and the department explained the JBRC fund requires a different approval process.
