Associated Press
COLUMBIA --- Gov. Mark Sanford agreed Wednesday to request a $146 million federal loan that will allow South Carolina residents to continue receiving unemployment checks through March.
Associated Press
Gov. Mark Sanford had refused to ask for the federal loan because of a dispute with the state's unemployment agency. His loan request is for $146 million.
Otherwise, the fund that makes weekly payments of $14 million to about 77,000 residents would have run dry by the end of the day.
"Everybody was real scared this morning," said Herbert Curtis, 51, who has collected unemployment since being laid off by a linen service a year ago. "My boat was sinking, and he threw me a life preserver. And he didn't only throw it to me, he threw it to a lot of people."
Mr. Sanford had refused to sign the loan request because of a long-running dispute with the state agency that handles unemployment.
Mr. Sanford said Wednesday he agreed to request the aid because he got his way when several lawmakers said they would ask for an audit of the Employment Security Commission. He also found a legal provision that he says allows him to force the commission to turn over more information about how it calculates unemployment rates.
"We will not punish the unemployed for this agency's incompetence," Mr. Sanford said during a news conference.
The governor routinely questions the accuracy of the agency's calculation of how many people in South Carolina are out of work. He has said he wants detailed reports on people filing claims and an explanation of how the unemployment rate is calculated.
Commission Executive Director Ted Halley said collecting additional data would require him to retool his system, something he does not have the resources to do.
Mr. Sanford also wanted an audit by a state watchdog agency, which Mr. Halley has said he does not have the authority to request or refuse. Only state lawmakers can ask for an in-depth agency review, as several did Wednesday.
The state's trust fund has been losing money for years as annual payments have exceeded the amount businesses pay in unemployment insurance taxes. Last month, South Carolina had the nation's third-worst unemployment rate, 8.4 percent.
South Carolina had already been loaned more than $13 million to meet its unemployment payment obligations, and Mr. Sanford's refusal to ask for more drew criticism.
But Sen. Greg Ryberg, R-Aiken,, applauded Mr. Sanford for "raising the issue of transparency in regards to the operations of the" commission.
