Staff Report
Published Oct. 2, 2009

Embattled Gov. Mark Sanford will host a summit to discuss the mounting bill the state owes the federal government for unemployment benefits.

The summit will be Oct. 19 in Columbia and will be co-hosted by the S.C. Commerce Department.

The state is piling up a debt that could reach $2 billion because the Employment Security Commission is paying out more money in unemployment compensation than is coming in. Possible solutions have included an increase in the tax assessed on businesses. That would include increasing the ceiling on wages that are taxed for unemployment benefits to the first $14,000 of income.

Sanford also renewed his feud with the employment commission in his statement.

“I’d say that simply raising unemployment insurance taxes is the decidedly wrong answer in this situation,” Sanford said. “This billion-dollar debt crisis is exactly what we warned of nearly a year ago when advocating for reform at the ESC, and with these consequences now coming to bear, it’s more vital than ever that we partner with legislative leaders and stakeholders from the business community to take a substantive step forward this coming session.

“Reform — coupled with enhanced work force development and better soft skills training — is vital not only for the business community to survive and indeed thrive, but also vital to this larger notion of fairness and minimizing the tax burden on the job-creating businesses and hard-working people across this state,” he said.

Sanford’s statement included an invitation for leaders in the General Assembly, business and state government to attend, even as his impeachment continues to be debated. Numerous state leaders, including Lt. Gov. Andre Bauer and House Speaker Bobby Harrell, have called on the governor to resign, and lawmakers have threatened to open impeachment proceedings against him over his alleged misuse of travel dollars and covert trip to see his Argentine mistress.