South Carolina voters could be asked this year to do away with electing the state's chief financial accountant and, instead, give the governor appointment power over the office.
The S.C. Senate on Tuesday unanimously passed a resolution that would put a referendum, essentially placing the Comptroller General's Office under the governor, on the November ballot. Because the comptroller is currently a constitutional officer elected every four years, the change requires voters to act first.
The ask is connected to last year's disclosure that the state's books contained a $3.5 billion accounting error. In the months since the accounting error was disclosed, legislators have also learned of nearly $2 billion in state money sitting in a state account without clear understanding of who or what that money belongs to.
They've also questioned why they only found out about it last year.
A Senate panel was charged with investigating the $3.5 billion mistake, leading then-Comptroller Richard Eckstrom to resign.
In Eckstrom's place, Gov. Henry McMaster appointed highly-regarded state budget director Brian Gaines, who has said he supports making his current position appointed.
"A unanimous vote in the Senate was a pretty strong signal that the Senate, at least, wants this question before the voters in November," state Sen. Larry Grooms, R-Berkeley, told reporters Tuesday.
But senators, and even some House members intent on changing the comptroller general from elected to appointed, have expressed interest in at some point adding the treasurer to that list.
The Senate panel chaired by Grooms that investigated the $3.5 billion error is now investigating the roughly $1.8 billion in unaccounted cash.
Grooms said his subcommittee plans to hear from Gaines and Treasurer Curtis Loftis Tuesday morning, when they're expected to make their budget requests and walk senators through the accounting issues.
"Right now we have cash, but there seems to have been a loss of who the cash belongs to," Grooms said. "It's like going into your bank, and the bank president tells you, 'We got a lot of money in the vault, we just don't know what it belongs to.' That's not a good answer."
The Comptroller General's Office has said it met with the Treasurer's Office multiple times about the mysterious money since October 2022 through August 2023.
Grooms said he and other senators learned about the money last November from Gaines, not his predecessor.
Who was responsible for telling lawmakers about the money, reporters asked Grooms and state Sen. Chip Campsen, a Charleston Republican who sponsored the comptroller referendum, on Tuesday.
"The treasurer," Grooms said.
The cash sits in a bank account under the Treasurer's Office. However, Loftis — through an Upstate-based television station interview, letters and his social media account — has maintained the comptroller, not him, is responsible.
In a March 14 letter to Grooms, Loftis wrote that the comptroller is "attempting to shift responsibility" to his office. He said staff has spent thousands of hours researching the account, and said the comptroller's office has refused to meet or share information.
"I believe they will attempt to remove me from office soon, and then both the Comptroller's office and the Treasurer's office will be in their hands, not the people's elected officials," Loftis, a Republican, said in a response to a Facebook comment. "In effect, they can nullify an election in a period of hours."
Grooms said keeping the resolution solely focused on the comptroller ensured quick debate. And senators are looking for answers about the $1.8 billion before they make a judgement, he added.
The state Legislature has changed and sought to remove constitutional officers before.
In 2018, South Carolina voters overwhelmingly rejected a ballot question asking them to make the superintendent of education an appointed office, rather than popularly elected.
Campsen said Tuesday there are particular differences between a question about the superintendent and the comptroller general — a position many likely don't know exists or know what it does.
Unlike the superintendent, the comptroller is more accountant than policymaker, and they don't have a huge advocacy following, such as public educators, Campsen said.
Plus, there's the story about the $3.5 billion accounting error, he added.
That ought to be a motivating factor, Campsen said.
Should voters agree to make the comptroller a Cabinet office, Grooms said lawmakers would file supplemental legislation that, in part, would seek to bolster background qualifications.
Politics, Grooms said, shouldn't come into play.
"People prefer their accountants not to be crusaders. Crusaders are the ones that take up a charge, take up an issue, work it, get it passed. That should not be the role of a comptroller or the role of a treasurer," Grooms said. "They should be the ones that ensure the integrity of our state's books, that we know where our money is and that we can have confidence in the accounting reports. That's their job, not to be crusaders."
Battles between the comptroller general's office and treasurer's have existed for years.
So too have conflicts between senators and either office.
Should this have been dealt with years before, reporters asked Grooms and Campsen?
Yes, both said.
"We're both in total agreement over that," Grooms said.
In the meantime, the S.C. House is slated to pass a bill soon that would give the governor appointment power over the state auditor, similar to the inspector general.
Right now, the auditor is appointed by the governor, both budget chairs, the treasurer and the comptroller general — all members of the State Fiscal Accountability Authority.
Lawmakers say the auditor shouldn't be appointed by the very people — mainly the comptroller and the treasurer — that they're investigating.
