News and Press Releases for November 2007

BUDGET AND CONTROL BOARD APPROVES $117,000 IN SALARY INCREASES, DESPITE NO PERFORMANCE REVIEW, NO ONE ASKING FOR A RAISE, AND A PROJECTED $220 MILLION DEFICIT

November 6, 2007

Columbia, S.C. – Christmas came early for 10 agency heads today, as the Budget and Control Board approved a total of $117,000 in salary increases – a more than 20 percent increase for some – despite no performance review for the raises, despite some of those affected only being on the job for a few months, and despite no one asking for the raises.

“The Budget and Control Board is seemingly intent on making next year’s $220 million deficit still larger. Imagine this if you will: your boss walks in after you’ve been on the job for just a few months and says ‘I’m going to increase your salary by 20 percent.’ You’d be surprised, given there were no performance requirements, no time yet to have proven your work, and not even something that you’ve requested. Yet this is exactly what happened in today’s meeting, which is especially amazing considering the deficit we’re going to be walking into next year. If you happen to be one of the beneficiaries of this taxpayer largess, you’re thinking this is better than Christmas. If you’re like most working South Carolinians, you’re thinking ‘what in the world are these people doing with my money?’”

Only two hours before the meeting, the governor and other members of the board were given information on the proposed action, which increased salaries based on new recommended minimums from an outside consulting firm that has contracted with the state for its services for roughly 20 years without ever having the contract re-bid. In total, the $117,000 dollars in salary increases affected 10 agency heads – some of whom were Cabinet members, but none of whom had been given a performance review in the context of these adjustments or even asked for a salary increase.

The proposal passed on a 3-2 vote, with Governor Sanford and Comptroller General Richard Eckstrom voting against the raises. Treasurer Converse Chellis, Senator Hugh Leatherman, and Representative Dan Cooper voted in favor of the increases.

Economists are predicting that the state will have essentially flat revenue growth in the coming year. Meanwhile, the state will have to pay for $270 million in annualizations – ongoing expenses paid for with one-time money from this year’s budget – plus a minimum of $105 million more for education and $55 million more for Medicaid.