STATEHOUSE WATCH

Most of us know that our governor doesn’t control transportation, education, pensions or every regulatory agency.

An important financial document says otherwise and that is cause for concern.

The “Organizational Chart” in the Comprehensive Annual Financial Report depicting accountability in state government misrepresents who is really in control.

Taxpayers owe billions with interest, borrowed for projects that rarely benefit most citizens. Even worse than the cost of state debt is how it’s guaranteed – South Carolinians’ property is the ultimate collateral.

That’s why South Carolinians should care about a one-page chart in an accounting document whose primary audiences are credit raters and bondholders.

The annual report is produced by states to help lenders determine credit risk. That’s why the chart raises red flags. Its purpose is to inform lenders as to who has ultimate authority to manage state agencies.

The recent version doesn’t accurately reflect who runs state government.

A handful of legislators control most of the government, resulting in a flawed system largely unaccountable to the people.

While we are learning that our government is largely beyond our control, the rest of the country doesn’t know that – and they won’t learn the truth looking at the chart.

For example, the chart presents “Transportation” as an agency under the governor’s control. That is not true. The Department of Transportation is controlled by a commission appointed by lawmakers.

The State Transportation Infrastructure Bank is not on the chart despite having the 2nd-highest debt of any agency. The majority of the board is appointed by lawmakers.

According to the chart, the governor controls “educational agencies” and the pension system. In reality, they are controlled through legislative appointments.

What’s missing from the chart? The entire regulatory system over utilities, excluding state-owned Santee Cooper. Those entities are entirely controlled by lawmakers, some of whom sit on one of the boards.

With ratepayers on the hook for billions in nuclear fiasco debt, the regulated, government-dependent utility system should matter in the overall financial picture.

What of the state’s judicial system? With a few exceptions such as probate and municipal judges, legislators control appointments to the courts, including the Supreme Court, Court of Appeals and Circuit Courts.

Some officials would rather omit judicial accountability rather than admit the legislature controls judicial appointments.

Public trust has already been violated by legislators’ unconstitutional borrowing and the hidden threat of a new property tax.

That won’t change until powers are separated and citizens ultimately do control government. All of us should watch state borrowing practices and demand answers from those who call the shots.

Ashley Landess is president of the SC Policy Council.