Finally, ESC reform

South Carolina's jobless rate is at an historic high, and the state unemployment trust fund is several hundred million dollars in the hole. What better time for a reform of the state's inept Employment Security Commission?

Senate action on Thursday completed the plan to overhaul the ESC, including a timely departure for the three commissioners who oversaw the agency's decline. The ESC will become the Department of Workforce as part of the governor's Cabinet, and Gov. Mark Sanford will have the opportunity to bring order to its confused ranks.

The ESC is the latest troubled agency to be shifted to the Cabinet, following the Department of Transportation and the Department of Motor Vehicles. That's an indication that the Legislature really does know the best place for agency accountability and streamlining.

Nevertheless, lawmakers will keep their fingers in the pie by helping review candidates for the agency's executive director. Also, the Senate will confirm the governor's selection from among these candidates.

The existing commission will be disbanded, and the Legislature will select a board for the more limited role of hearing appeals on jobless benefits effective July.

Despite continued legislative meddling, there are major improvements in the reform bill, many of which were recommended in this year's comprehensive report by the Legislative Audit Council. For example, the ESC can no longer provide benefits to those fired for gross misconduct. And the agency will resume its investigations of fraud, which ceased in 2008. Those reforms will save taxpayers millions.

The agency also will refocus its attention on putting South Carolinians back to work. No longer will the ESC's primary goal be to write unemployment checks.

The reorganization requires annual reports to the Legislature regarding the state's unemployment trust fund, which became insolvent under ESC's current management. The Legislature approved a plan to restore the fund to fiscal health, while repaying the the $832 million that was borrowed from the feds to provide continuing support to the state's jobless.

The ESC debacle clearly revealed the systemic flaws inherent in South Carolina's legislatively dominated system of governance. And, as usual, it took a train wreck to get the Legislature's attention. ESC's example should encourage broader improvements, starting with Senate approval of a Department of Administration bill, already endorsed by the House.

Putting the ESC under the state's chief executive will provide greater accountability and oversight. Problems will be more easily seen and fixed. To his credit, Gov. Sanford made the case for an agency overhaul in late 2008. Unfortunately, the governor wasted his political energies last session attempting to deny federal stimulus money to the state, instead of pursuing a meaningful reform.

By Thursday's action, the Legislature has completed a major reform of an essential state agency. The result will be better service to jobless residents and better value to taxpayers.

As Gov. Sanford observed, "This wholesale change to the way our state job placement agencies do business will have real world consequences, including a better focus on connecting people looking for a job with open positions across South Carolina." There's no time like the present.