COLUMBIA - Tuesday's renewal of a top state employee's contract sparked a testy political squabble between Republican Gov. Mark Sanford and two key lawmakers.

The dispute centered on whether to reappoint Frank Fusco as executive director of the State Budget and Control Board, the entity that manages the state's finances.

But it has broader implications about the relationship between the executive and legislative branches, and the ability of power-holding Republicans to accomplish their goals.

After a frustrating legislative session in which Sanford and GOP lawmakers quarreled often, both sides recently proclaimed they had worked out most their differences. But the argument suggests that relations between the two factions are still rocky.

"I think the direction that we've seen develop, the tone that we've seen develop over the last several months has been very positive for this state," Comptroller General Richard Eckstrom said about Sanford's relationship with lawmakers. "I think that this runs the risk of deliberately derailing it."

Sanford and Eckstrom were on the losing end of the battle Tuesday as Senate Finance Chairman Hugh Leatherman and House Ways and Means Chairman Dan Cooper voted with Treasurer Grady Patterson to reappoint Fusco indefinitely.

The governor and comptroller especially objected to how the issue of Fusco's employment arose.

It wasn't included on the established agenda; Leatherman added it at the last minute. The Florence Republican had talked with Cooper and Patterson about the matter before the meeting but didn't include Sanford or Eckstrom in the discussions.

Sanford and Eckstrom said they felt blind-sided by Leatherman and Cooper.

That is exactly what the lawmakers accused the governor of doing to them during the last legislative session.

"I don't understand why this position had to be sprung on this board this way," Eckstrom said. "You're acting like the governor's in the dunking booth at the state fair."

Leatherman said Fusco's tenure was set to end soon, and the board needed to act.

"I was not willing to simply sit back and let a very dedicated, very committed employee get away," Leatherman said after the meeting.

Fusco, a 32-year veteran of state government, retired four years ago but remained in his post under the Teacher and Employee Retirement Incentive program, which is used to retain the most experienced employees.

His five years in the program were scheduled to expire in December. At that point, he would have had to step down if not rehired.

The board's vote means he will stay on as director until the board decides to replace him. He'll earn $146,076 a year, about $7,000 less than his current salary, but also receive his pension.

Sanford said the double dipping into state coffers sent the wrong message. The governor also wanted to appoint a successor to Fusco, who is one of the only remaining holdovers from Democratic Gov. Jim Hodges' administration.

The issue was not Fusco's competence, Sanford said, but governors typically name their own director when they take office. Sanford bucked the trend when he became governor in 2002 by keeping Fusco on board.

The bipartisanship didn't help in the end, as two lawmakers from his own party took that power away, Sanford said.

"If you want to have a working relationship," Sanford said. "This is not conducive to that."

Contact John Frank at (803) 799-9051 or jbfrank@postandcourier.com.