Budget director reappointed against Sanford’s wishes

Gov. Mark Sanford’s efforts to repair his relationship with the General Assembly took two steps backward Tuesday when two top lawmakers voted to re-appoint the state’s Budget and Control Board director over Sanford’s objections.

Three of the board’s five members — state Rep. Dan Cooper, R-Anderson, state Sen. Hugh Leatherman, R-Florence, and state Treasurer Grady Patterson — surprised Sanford by pushing to reappoint the board’s executive director, Frank Fusco.

Fusco is a 29-year state employee enrolled in the deferred state retirement program known as TERI. Fusco’s enrollment in that program runs out next month, and Sanford had planned to choose a successor, possibly as soon as next month.

Instead, the budget board voted 3-2 to bring back Fusco, even though he will be retired officially. While legal, Sanford said the decision sends a bad message to state employees who retire but aren’t asked to continue working.

“One of the things that has voters cynical about South Carolina government is it seems to protect people in power,” Sanford said.

The vote, which took place at the urging of Leatherman, the chairman of the Senate Finance Committee, took away one of the governor’s traditional powers. Historically, governors have the final word on who is director of the Budget and Control Board, a powerful and massive agency.

The budget board is the administrative arm of state government, handling procurement and human resources, among other functions. It employs more than 1,100 and has an annual budget of $21.8 million.

The decision to reappoint Fusco over Sanford’s objections could stretch the already fragile relationship among budget board members to the breaking point.

Comptroller General Richard Eckstrom, the sole budget board member who voted with Sanford, publicly lashed the other three for “kicking sand” in the governor’s face.

“It’s awful, it’s disgusting, it’s detestable,” he said. “You’re acting like the governor’s in a dunking booth at the state fair.”

Sanford has spent months talking up his intentions to work more closely this year with the General Assembly. He also has met with lawmakers to discuss legislative priorities.

“I’ve been trying in a very deliberative way to work with the Legislature. When you surprise me like this ... it’s not conducive to that,” he told Cooper and Leatherman on Tuesday.

But Cooper, who chairs the House Ways and Means committee, is skeptical he ever will work well with Sanford.

“I never felt like we were going to get along anyway,” Cooper said. “I’ll certainly try, but I don’t see a lot of bridge building on the their part.”

Cooper said he decided to vote to reappoint Fusco because he thought he was right for the job, not to slight Sanford.

“It’s a much more efficient and accountable operation than it was in the past,” Cooper said of the budget board.

Fusco’s annual salary was cut from $153,000 to $147,000 as a condition of his continued employment. Democrat Jim Hodges was governor when Fusco was named director of the budget board in 2001.

Sanford said Tuesday that Fusco has been a good administrator. However, Sanford has been critical of Fusco for not advocating Sanford’s ideas on restructuring state government.

Fusco said those decisions are between Sanford and the General Assembly.

Asked if he could serve effectively when two of the five budget board members want him to leave, Fusco said he could.

“I’ll give this job and the five board members 100 percent every day.”

Reach Stensland at (803) 771-8358 or jstensland@thestate.com.