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DOA Flaws in Senate’s Big 10 Agency Plan
April 17, 2012


For More Information
Jason Zacher
(864) 787-6608

DOA Flaws in Senate’s Big 10 Agency Plan
Keeps old B&CB, creates new B&CB & threatens S.C.'s AAA rating

****Note: See the Senate’s 10 government agency chart in link here****

Columbia, SC -- After a year of debate, the S.C. Senate adopted its version of the House's Department of Administration (DOA) Reform bill (H. 3066) – the third such government restructuring reform measure to pass the House but first time ever taken up by the Senate. In the Senate's 100-page strike-and-insert amendment they:

  • Created 10 government agencies
  • Created a new Budget & Control Board
  • Kept the existing Budget & Control Board intact  

“As Governor Haley pointed out to House Members in a meeting last month, the Senate’s 10 government agency version of DOA reform has some major flaws and gaps,” House Speaker Bobby Harrell said.  “Not only did the Senate leave unassigned authority decisions up to the old Budget & Control Board, they made a brand new Budget & Control Board in one of the 10 agencies they created.  We believe that the House can truly eliminate the Budget & Control Board, and do so in a way that provides real accountability and doesn’t create 10 government agencies.”

Recently, national credit rating agencies – which oversee ratings for South Carolina and the other 14 states with AAA credit ratings – expressed concerns about the Senate’s plan to create 10 government agencies.

House Majority Leader Kenny Bingham said: “The Senate’s recent attempt to attack the House in defending their plan to create 10 government agencies is misguided.  It wasn’t the House, but national credit rating agencies, that raised a red flag because of concerns with the Senate’s loose handling of fiscal issues that could threaten South Carolina’s AAA credit rating.”

In addition to the fiscal integrity issues that have been raised, the Senate’s 10 agency plan contains other accountability oversights and gaps.  For example, the Senate created one agency – the Procurement Oversight Board – assigned it board members and departments to oversee but failed to give the agency any authority to run itself or execute actions.  This failure, and others like it, leaves decision making authority back with the old Budget & Control Board.

Speaker Harrell added, “We appreciate the support the Governor’s Office expressed last week by stating that Governor Haley ‘would never allow anything to move forward that would endanger our credit rating.’  So for the DOA bill to move forward, it is clear that these issues must be fixed.  We look forward to working with the Governor, State Treasurer and others as the House continues its pursuit of conservative reforms and addresses the concerns raised by the Senate’s plan to create 10 government agencies.”

****Note: See the Senate’s 10 government agency chart in link here****

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