Here’s bad news for government employees in Lexington County.

A $177 million surplus isn’t expected to go to the state’s pension system.

State Treasurer Curtis Loftis said, “In theory, any extra money should be spent on the biggest debt, the pension system.

“In practice, it is a windfall for a handful of budget writers and will probably be spent on pet projects.”

Senate Minority Leader Nikki Setzler of West Columbia said one-time revenue will not solve the retirement fund problem.

It will take recurring revenue over many years.

“We have taken that step for the Retirement Systems with the passage of H3726 which was signed by the Governor in April of 2017.

“The General Assembly will determine the best use of surplus funds through the annual appropriations process which is an in-depth look into the state’s fiscal needs,” he said.

State Comptroller Richard Eckstrom reported that taxpayers contributed $177 million more last year than the legislature spent.

Revenues rose $542 million over the previous year, Eckstrom said.

This brought in $8.1 billion in fiscal year 2018 compared with $7.6 billion in F2017, a 7% growth rate.

Part of this $542 million was spent by lawmakers.

“Finishing the year with such a large surplus is obviously great news – a testament to the strength of our state’s economy.

“Nonetheless, some words of caution are in order.

“The state retirement system retirement plans are underfunded by $24 billion, while the retiree health plan is more than $10 billion underfunded on its benefit promises,” he said.

“These are without a doubt the most serious longterm threats facing our state, and there are no painless choices for making up the huge shortfalls.

“Paying now toward reducing these unfunded liabilities could lessen some of the future pain.”