S.C. State seeks halt to 'funneling'Lawmakers have used school to direct funds to favorite charities By Diane Knich (Contact)
The Post and Courier
Thursday, June 5, 2008
The Post and Courier Sen. John Matthews 
Rep. David Mack, D-North Charleston Previous storyRead Sundays story "Schools act as money funnels". South Carolina State University's Board of Trustees wants state lawmakers to stop using the school to channel tax dollars to their favorite charities. Board Chairman Maurice Washington said at a board retreat in Charleston Wednesday that the board will ask its lawyer whether it can legally adopt a policy prohibiting the practice. The group was responding to a Post and Courier investigation that ran in the newspaper on Sunday. The analysis revealed that South Carolina legislators used the state's public universities to quietly channel nearly $2 million in tax dollars to their favorite charities during the past three years. Some legislators sent the money to nonprofit groups with which they have direct ties. That includes Rep. David Mack, D-North Charleston, who sent $700,000 through S.C. State to a nonprofit where he works and receives money. It also includes Sen. John Matthews, D-Bowman, who sent $350,000 to a charity where he is a nonvoting member of the group's board of directors and his wife is the board's vice chairwoman. Matthews also sent another $150,000 through S.C. State for a "historical analysis study on African American wealth creation," although much of that money has not yet been spent. The lawmakers' decisions to place money in S.C. State's budget for other groups "weren't done in consultation with university officials," Washington said in an interview Tuesday. When the board first learned during a budget presentation at its retreat in June 2007 that money was being passed through the university, "We thought it was a little weird," Washington said. "It didn't seem like an appropriate thing for us to be involved with." Board members asked former President Andrew Hugine and John Smalls, the university's senior vice president for finance, "to end the practice," Washington said. Smalls said Tuesday that he doesn't have any choice but to pass on money that legislators place in the university's budget for other organizations. "These are legislators. This was passed by the General Assembly," Smalls said. The newspaper's analysis looked at seven of the state's largest institutions of higher learning and found that lawmakers funneled money through five of them: Clemson University, Francis Marion University, South Carolina State University, the University of South Carolina and Winthrop University. Here's how it works: State legislators take money from the state budget and tuck it into universities' state appropriations, sometimes without the schools' knowledge. The universities then hand over that money to the charities. Among the universities surveyed, the largest amount of money, $1.2 million, was passed through the budget at S.C. State. Smalls said the funds show up as specific items in the university's budget. "We didn't request them," Smalls said. "They kind of appeared." Smalls said when such items appear in the university's budget, he does nothing until "the appropriate legislator calls." Then he asks the legislator to send a letter that includes the name and address of the receiving agency, a tax identification number and a budget. After he receives the information, he said, he sends the money. "If money is put in your budget for a purpose," Smalls said, "I don't know what to do about it. The ideal is not to put it in there." When lawmakers funnel money, he said, they "put the agency in a very precarious position. These tend to be legislators who are very supportive to the institution." Roger Leaks, an alumnus and member of the university's Board of Visitors, which is different from the Board of Trustees, said some alumni he's talked to in the past few days have said they wish the university could stop the practice and use the money on campus. The university has many needs, he said, especially to improve the poor condition of many older buildings on which maintenance has been delayed. "The way I see it," Leaks said, "if the money comes into the university, it should be used by the university, not diverted somewhere else." Reach Diane Knich at 937-5491 or dknich@postandcourier.com. |
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Comments
This article has 18 comment(s)
Posted by Thomas1776 on June 5, 2008 at 1:34 a.m. (Suggest removal)
Some folks better be indicted over this racket of an operation. No sweeping this one under the rug this time. People are sick of the lying and corruption in our government and want justice. Any prosecutor refusing to present this matter to the State grand jury would have to be in someones pocket.
The Feds should be involved in this!
Posted by BillytheKid on June 5, 2008 at 2:17 a.m. (Suggest removal)
I so wish we could re-call, elected officals, in this state.
Posted by ForPnC on June 5, 2008 at 3:34 a.m. (Suggest removal)
Folks - Voting day is almost here. My list gets longer and longer of who I'm not voting for.
Charges need to be brought against these lowlife scum.
Posted by Tammie on June 5, 2008 at 7:39 a.m. (Suggest removal)
Posted by ForPnC
"Folks - Voting day is almost here. My list gets longer and longer of who I'm not voting for."
My sentiments exactly.
Posted by wpc3iop on June 5, 2008 at 7:43 a.m. (Suggest removal)
Vote them ALL out!!!!
Posted by theronce on June 5, 2008 at 8:07 a.m. (Suggest removal)
Does anyone need any more evidence of the corruption in the legislature. Smoke and mirrors.
Posted by ColdBeer on June 5, 2008 at 8:08 a.m. (Suggest removal)
These actions have to be criminal in some way. This is just flat out amazing.
Posted by zoomru on June 5, 2008 at 8:18 a.m. (Suggest removal)
GRRRRRRRRRRRRR !!!!!!
Get some morality.....just a little? We know no one is perfect!
Posted by Early on June 5, 2008 at 8:20 a.m. (Suggest removal)
Matthews also sent another $150,000 through S.C. State for a "historical analysis study on African American wealth creation," although much of that money has not yet been spent
That's not my idea of a charity but a special project which would make it even more illegal to funnel the money. Hang these guys high, we have to stop this special interest BS locally, state and federal.
Posted by carolinadude on June 5, 2008 at 9:12 a.m. (Suggest removal)
Thomas:
You're all correct that corruption is rampant in SC from the city halls to the courthouses and to the statehouse. You're also correct that the feds need to be involved as most of us know that government will not reform itself. We can begin Tuesday June 10th by voting against all incumbents. Certainly we have some good guys in governent at all levels, but if they're spineless to stand up to the corruption around them, then WE SHOULD VOTE ALL THE RASCALS OUT ON JUNE 10TH. NEXT TUESDAY IS OUR OPPORTUNITY TO REALLY SPEAK.
Posted by Larz13 on June 5, 2008 at 9:47 a.m. (Suggest removal)
The the wealth creation it should have been "Personal wealth creation."
I am sure CoC has some of this too. Gov. Sanford always vetoes this BS appropriation for the tourism industry for CoC and it gets overriden each year.
Crooks! Thieves!
Posted by bigwhip on June 5, 2008 at 10:41 a.m. (Suggest removal)
This is a sad state of affairs. We all know that not even a slap on the wrist will come of this. McConnell's e-mail address is- SJU@scsenate.org - and Harrell's is -HSP@schouse.org - These home grown scalawags need to be voted out of office.
Posted by Charles_Town on June 5, 2008 at 11:53 a.m. (Suggest removal)
This is sad here we see every year colleges and universities needing more funding for tuition assistance programs or funding for legitimate needs and/or research projects, and then money is put into there coffers strictly to hold until the person who arranged for it wants it back (or sent to their charity). If I was the college I would be so tempted to allocate that amount out of my budget toward a specific project and then dare the legislator to go public with what he was doing. What crooks!
Posted by KidYendor on June 5, 2008 at 1:15 p.m. (Suggest removal)
My representative David Mack should resign his office immediately. This is serious stuff. He should be indicted and sent to keep Tommy Ravenel company and have the room to himself when Tommy gets out.
Posted by Thomas1776 on June 5, 2008 at 5:42 p.m. (Suggest removal)
McConnell has pulled stunts like this before. The Statehouse hates the internet because it is a useful tool to expose them and to share information.
The only way you are going to stop this kind of stuff is to punish them with prison time. Until then, nothing will change at all.
Posted by Keschi on June 5, 2008 at 9:01 p.m. (Suggest removal)
Shocked! Shocked and appalled that this type of activity is occurring with our tax dollars! I can just imagine most of our state "representatives" walking through the august halls of our state house shaking their heads in disbelief over this latest unveiling of tax dollar abuse. Although most are relieved that their names did not appear in the paper, since it is common knowledge, at least to the members of the statehouse, that this type of misapplied funding is a "tradition" and has always been done like that. Add this to the incredulous fact that the offending state congressmen have personal ties to the non-profits my money is being funneled to, and I can't believe that no one is calling for Rep. Mack's and Sen. Matthews immediate tar and feathering. Business as usual. Shocked! Shocked and appalled.
Posted by Pluffmuddy on June 5, 2008 at 9:56 p.m. (Suggest removal)
Please note that this article mentions DEMOCRATS as the sleazes who are sneaking through the system...surprise, surprise!
Posted by ASHLEY_COOPER on June 5, 2008 at 11:09 p.m. (Suggest removal)
We can only hope the SC Ethics Commission is looking into this. But no matter how hard Herb Hayden's troops try, he simply does not have enough people to deal with all the chicanery, and breach of public trust going on here. My understanding is that he only has one part time investigator for the entire state.
It would be nice to have someone rate states according to the amount of corruption within their borders. Areas to be considered might be Bribery, Graft, Extortion, Robbery, patronage, Nepotism and cronyism, Embezzlement, Kickbacks, Involvement in organized crime, involvement in disorganized crime, election fraud, abuse of public trust, and malfeasence under the cover of official right.
Maybe South Carolina would finally find something we can be first in. But alas, I fear I can think of a few states that would even beat us at that.
But such a state corruption index would be interesting if someone can come up with it and dares to publish it.
I just know we could be in the top ten.