Whats wrong at the ESC?
According to a January 2010 report by the Legislative Audit Council, the ESC has mismanaged the state Unemployment Insurance Trust Fund, such that the fund currently has a $747 million liability, increasing by approximately $2 million a day. All told, bailing out the fund would cost taxpayers more than $2 billion. The Legislative Audit Council (LAC) found that in spite of knowledge since 2001 that the fund was headed toward insolvency, the ESC “did not aggressively pursue changes to benefits, or the tax structure.” Who is to blame for the UI fund shortfall? While many states are struggling to keep their UI funds solvent, several factors have exacerbated the shortfall in South Carolina: Lack of transparency and planning. The LAC found that the Employment Security Commission failed to notify the General Assembly of the declining trust fund balance and failed to adhere to federal guidelines regarding minimum reserves. “Under DOL guidelines, South Carolina would have needed a reserve of mo
