Gov. Mark Sanford wants to strip roughly $61
million in federal job-training funds from the state Employment Security
Commission and shift it to the Cabinet-level Commerce Department, a move
that he said would increase accountability and bolster
economic-development efforts.
Also, Commerce would receive an extra $3 million for programs aimed at
luring more private investment and jobs to rural areas, under Sanford's
2005-06 executive budget unveiled Wednesday.
"The broad theme we're pursuing is competitiveness," said state
Commerce Secretary Bob Faith.
While the general-fund portion of Commerce's budget would rise about 3
percent to slightly less than $10 million, the total pot of money the
agency would oversee in the next fiscal year would nearly double to $139
million.
The bulk of the increase is the result of $61 million that Sanford
wants to transfer from the non-Cabinet-level employment commission to
Commerce, which reports directly to him.
The federal money pays for job-training programs authorized under the
Workforce Investment Act of 1998, such as the 54 One-Stop Career Centers
around South Carolina.In his budget proposal, Sanford called the funding
"one of the most important tools we have" to retrain displaced workers and
provide adults with basic job skills and other employment services.
Yet he said the money needs to be spent in ways that are more "tightly
coordinated" with Commerce's efforts to bring better-paying jobs to South
Carolina.
Noting that the employment commission is not directly accountable to
him, Sanford wants to shift oversight of that money to Commerce because
Faith's department "cannot fully utilize" it "while the day-to-day
administration rests in an agency that is outside the governor's cabinet."
Sanford indicated that the money still would be used for job training.
About 30 state employees administer Workforce Investment Act programs
at the employment commission's offices in Columbia. The $61 million in
question represents 44 percent of the agency's current $139 million
budget.
Ted Halley, the commission's executive director, declined to comment
Wednesday about the governor's proposal, said spokesman Clark Newsom.
Other substantial changes to the Commerce Department budget include
$4.5 million to be earmarked for grants and incentives for rural areas, a
more than threefold increase from this fiscal year. Among other uses, that
money can help pay for road improvements, water lines, sewer systems and
downtown revitalization projects.
Faith said improving the economies and increasing job opportunities in
high-unemployment rural areas is a key piece of Sanford's plan to boost
the average income level in South Carolina.
"That needs focus and attention," Faith said.
Also, Commerce could see an additional $3 million flow its way from
state-owned utility Santee Cooper as seed money for the Capital Access
Program. The state first proposed the initiative last year to encourage
banks and other lenders to make unconventional, smaller and riskier
business loans. The legislation passed the state House but stalled in the
Senate.