The state of South Carolina is swimming in millions of dollars in debt.

A recent report on the state’s finances paints a misleading picture of government authority over state agencies’ spending.

The report by the state’s chief accountant, Comptroller Richard Eckstrom, is considered by credit rating agencies in evaluating state debt.

One of the nation’s main credit-rating agencies, Moody’s Investors Service, weighs “governance” as 20% of a state’s overall credit rating.

Who controls state agencies matters to credit raters. They consider it in rating a state’s credit worthiness. Investors use it in deciding to buy bonds and set interest rates.

That can affect state taxpayers who will have to pay for it.

The most recent Moody’s rating is “Aaa,” the agency’s top rating.

State taxpayers owe at least $415 million with interest through 2029 on state bonds, according to the fiscal 2018 state debt report issued by SC Treasurer Curtis Loftis.

Public colleges and universities collectively have more than $735 million in state institution bond debt through 2037. Taxpayers are responsible for them.

Despite the huge taxpayer-backed IOUs, Loftis in his report said, “Not since 1879 has there been any default, actual or technical, on any bonded debt of the State.”

But if any debt can’t be paid, the SC Constitution authorizes the state to collect a statewide property tax.

Eddie Gunn, Eckstrom’s chief of staff, waffled when asked several times why the government organization chart in Eckstrom’s report didn’t reflect the legislative control of state agencies.

“I think a lot of that stuff is a matter of interpretation as to who is looking at it and why they are looking at it,” he said. “I can’t really tell just from looking at a chart as to who is wielding the power.”

We asked to speak directly with Eckstrom, a certified public accountant, but Gunn said he was not available.

Brundrett is the news editor of The Nerve. Contact him at 803-254-4411 or rick@thenerve.org .