It's Friday and the second legislative week is done.
And if you thought Week 1 was a doozy, this week was too.
Before we get into all the hubbub from the Statehouse, we want to say thank you for reading The State House Gavel. Months ago, we decided it was beyond time for a reporter-style notebook from reporters who've covered the Statehouse for years to tell you what's going on when the state's most important policymakers are in Columbia.
It's run by Gavin Jackson, Russ McKinney and Maayan Schechter, previewing and capturing all things South Carolina Statehouse with our notes, things we see, photos/video and audio.
Notebook highlights:
- State Auditor George Kennedy resigns, the second major casualty over the multi-year and multibillion-dollar accounting error that led to the resignation of then-Comptroller General Richard Eckstrom. Now questions remain about Treasurer Curtis Loftis's future as he rejects calls to step down.
- Gov. Henry McMaster talks to SC reporters about VC Summer's future, energy needs, whether he will endorse in the 2026 GOP primary race for governor and what becoming the longest-serving governor in state history means.
- Biden-appointed U.S. Attorney for South Carolina Adair Boroughs takes the TWISC desk to talk to host Gavin Jackson and who will be the next top federal prosecutor?
- South Carolina Democrats host candidates for Democratic National Committee chair in Charleston to answer questions about how they'd change the role and whether South Carolina should keep its No. 1 spot on the nominating calendar. (Our very own Maayan Schechter is moderating.)

SC auditor resigns but $1.8B error mess will go on
If your idea of good drama is following a story about an accounting error and the continued fallout, consider yourself lucky — your show is getting renewed for another season or two.
We scooped Thursday that South Carolina's state Auditor George Kennedy resigned amid a federal U.S. Securities and Exchange Commission and numerous legislative hearings over a $1.8 billion accounting error. Kennedy, and the outside auditing firm his office hired, had signed off on annual state financial reports that misstated state cash balances and was aware of the fund containing the $1.8 billion.
Brief background: Two years ago, it was *publicly* disclosed that the state was dealing with an embarrassing $3.5 billion accounting error that transpired when the state was moving from one accounting system to another. It led to the rather swift resignation of then-Comptroller General Richard Eckstrom (the state's chief accountant) in March of last year. Months later, news breaks that there was a mysterious $1.8 billion fund that lawmakers aren't sure if that is actual cash (and therefore available to potentially spend) or not. The state spends $3 million to hire outside audit firm AlixPartners, which discovers $1.6 billion of that total is not real money and the remainder was already spent.
Speeding up to this week.
The Senate Finance Committee hears from AlixPartners, and it's safe to say most senators were not thrilled with the three offices with oversight responsibility of the fund: those of Comptroller, Treasurer and Auditor.
And with Eckstrom out (McMaster appointed now-Comptroller Brian Gaines to fill the role) that left two people under the heat lamp: Kennedy and Republican Treasurer Curtis Loftis.
Thursday morning, Kennedy offered his resignation to the State Fiscal Accountability Authority, or SFAA, and to the governor, who accepted it.
"It has been both an honor and a privilege to serve the State of South Carolina during the past nine years," Kennedy wrote in the letter obtained by SC Public Radio. "However, I believe that it is in the best interest of the Office of the State Auditor that I resign from my position as State Auditor effective today."
In closing, Kennedy wrote that he is willing to help with the transition and added, "I also welcome the opportunity to provide my thoughts on how the Office of the State Auditor can be strengthened for the future."
That now leaves an intense focus on Loftis, who has denied fault and dismissed requests to step down.
Hours after Kennedy resigned, the Post and Courier published an op-ed by Loftis, in which he called efforts to make his position appointed by the governor rather than elected by voters "misguided."
"A state treasurer appointed by the governor would answer to special interests, not directly to the people," Loftis wrote.
What's next: We've reported previously that Senate Finance wants to meet possibly Tuesday to continue hearings. We've also heard both the House Ways and Means Committee and Senate Finance intends to ask Loftis, Kennedy and Gaines to testify.

McMaster talks nuclear and gov's race
Gov. Henry McMaster made news Thursday, when he announced his appointment for the next director of the state's Probation, Parole and Pardon Services: Jake Gadsden, a North Charleston native who has spent a long career in corrections, most recently at the state's corrections department.
After, reporters took the opportunity to pepper the governor with a few questions off topic, ranging from V.C. Summer to the 2026 governor's race and how he feels about becoming the state's longest-serving governor in history (you read that right).
Here are some highlights, in part:
What does it feel like to you to as of next week be the longest-serving governor: "Well, all you have to do is just stay alive. This is a great office. I think a lot of times we don't realize how great this office in South Carolina is with our history. ... Our state is a unique place. And, again, people who have been to many other places tell us that. And sometimes we don't realize how fortunate we are to be here. That puts a real duty and opportunity on us to take advantage of all these advantages we have to make it a better place."
Santee Cooper put out a RFP asking someone to finish building the reactors at the V.C. Summer site. Do you support this move: "I do. I think we have to have ask much power as we can get."
Have you had conversations with companies or groups who might be interested in coming in and finishing the project: "Yes, lots of them over the last months." (McMaster would not disclose who.)
1st District Congressman Nancy Mace says she's considering a run for governor in 2026. What do you think about her candidacy and will you endorse in the GOP primary: I think we will have a good group running, and I'll be watching. Too early to say (on an endorsement)."

The Exit Interview: SC's US attorney Adair Ford Boroughs
Adair Ford Boroughs, former President Joe Biden’s pick for US Attorney for South Carolina, was installed back in July 2022.
And even with the change of administrations on Monday to Republican President Donald Trump, she’s still in the position — until told otherwise.
As U.S. attorney for the state, her office of 140 people oversees all prosecutions of federal crimes within South Carolina.
That has so far included securing five federal hate crime convictions, such as in the case of United States v. Daqua Ritter, the first federal trial in the nation under the Matthew Shepard and James Byrd R. Hate Crimes Prevention Act for a hate crime murder based on gender identity.
Host Gavin Jackson spoke with Boroughs on This Week in South Carolina. Here's a preview:
Tell us about the significance of prosecuting those hate crimes cases here where we are one of two states without a hate crimes law:
"I think it's more important in our district than maybe some other districts, because if we don't do it, no one will. And that was a really important thing for me when we were deciding how, what to prioritize and how to spend resources. If there's someone else that can and will do this work, that's one thing, but when we're the only ones able to do it, it means we're the only ones able to protect the public in those spaces."
What do you see as the biggest challenges for your, successor:
"Gun violence and and the ubiquity of guns is a real problem. When I came into this job, I spoke to sheriffs and to chiefs, to federal law enforcement officers, to the bench and community groups. And no matter who I talked to, guns was the problem. Firearms. And we are seeing now, machine conversion devices, little pieces of plastic that you can stick on a gun and turn them into automatic weapon that is frankly not controllable."
Catch the full interview at 7:30 p.m. Friday on SCETV or YouTube.
What’s next for Boroughs: The position of South Carolina's US attorney is a big jumping off point. But Boroughs, who in 2020 lost in a run to 2nd District Congressman Joe Wilson, didn’t say what her next move would be, but that she’s interested in staying in the public sphere. There are plenty of races, positions she may be eyeing, but Boroughs is well aware of the challenges of running statewide with a "D" behind her name.
Who will succeed her: Who is going to be Trump’s pick, or, more specifically, who is going to be Sens. Lindsey Graham and Tim Scott’s recommendation to the president? That is still TBD. One name we have heard floated from several politicos is Bryan Stirling, director of the state's Department of Corrections. Another name swirling in circles, Columbia attorney Deborah Barbier, who was on Trump’s second impeachment team and represented the late Richard Quinn. We've also heard that with a bustling law practice and several high-profile appeals with millions on the line — translation: she might want to stay put. There are several other names in the mix, so stay tuned.

DNC chair hopefuls square off in CHS
South Carolina Democrats on Friday night will host a forum for six candidates vying to succeed South Carolina's own Jaime Harrison to be the next chair of the Democratic National Committee.
The list is: former Arkansas congressional candidate Quintessa Hathaway; former Gov. Martin O’Malley; Minnesota Democratic Farmer-Labor Party State Chair Ken Martin; political strategist Jason Paul; Homeland Security professional Nate Snyder; and Wisconsin Democratic Party State Chair Ben Wikler.
The candidates will face off at 6 p.m. in Charleston.
Maayan Schechter will play moderator.
And the entire forum can be watched live on the state party's YouTube page.

Statehouse clips from around the state
- Bill requiring lab-grown food to be clearly labeled advances in SC (SC Daily Gazette)
- Will Nancy Mace run for South Carolina governor? More signs point to yes. (Post and Courier)
- SC governor taps deputy corrections director to oversee probation and parole agency (SC Daily Gazette)
- Women Made Electoral Gains in Statehouses Across the Country in 2024. The Southeast Is a Different Story. (ProPublica)