Staff Report
Published Jan. 2, 2009

House Speaker Bobby Harrell wants a legislative audit of the state’s Employment Security Commission.

As unemployment rises and the state is unable to pay benefits without borrowing from the federal government, an audit of the commission could help the state identify ways to cut costs.

Gov. Mark Sanford tried to force the issue last week by initially refusing to sign off on a $146 million federal loan to allow the commission to continue mailing benefit checks. He suggested that some unemployed residents are taking advantage of the system without actively seeking work.

If an audit finds that to be the case, the money the state could save by having to make fewer benefit payments could help avert any increase in the business tax that funds unemployment benefits.

Sanford did sign for the loan at the eleventh hour, but the money will only get the state through March.

Commission executive director Ted Halley said his agency couldn’t request an audit by the Legislative Audit Council but said he would comply if lawmakers did. He also said, however, that an audit by the U.S. Department of Labor would be more appropriate and noted that the commission is already audited by an independent firm.

Sanford and Harrell also want the commission to share more information with the state Department of Commerce regarding unemployed residents.

Harrell said the House will take legislative steps to ensure that happens.

“The Employment Security Commission should agree to the LAC audit and should be able to set a date to comply with the request to share vital employment information, if they are not able to share it immediately,” Harrell said. “The General Assembly will help the ESC with whatever legislation they need to help them to comply with the request to share information with the Department of Commerce.

“While the need for a LAC audit is crucial to ensure this agency is functioning properly, it is inconceivable to think that the sharing of vital employment data is a problem,” he added. “The Department of Commerce only wants the additional employment information so it can better help our unemployed citizens find work. And with the third-worst unemployment rate in the nation, our state should be doing everything possible to help our unemployed find available jobs in the market.”