McMaster endorses moving SC comptroller to gov’s Cabinet after $3.5B error

South Carolina Gov. Henry McMaster on Tuesday backed legislation to move the comptroller under the governor’s Cabinet, rather than let voters decide every four years, saying that shift would bring more accountability to the job in light of the $3.5 billion mistake.

“People are looking for responsibility, and if it’s a Cabinet agency, then things go right,” McMaster told The State Media Co. “If things go wrong, the governor ... has the authority to make it right.”

Lawmakers in both the House and Senate have filed legislation to let the governor appoint a comptroller general, with Senate consent. That change would require a ballot referendum, and voters would have to approve a constitutional amendment. Lawmakers want the question in front of voters by the November 2024 election.

The $151,000-a-year job is currently up for grabs after outgoing Comptroller Richard Eckstrom disclosed to lawmakers that his office double counted money for colleges and universities for about 10 years, resulting in an inflation of cash balances by $3.5 billion. The mistake, which does not affect state cash balances or the budget, was discovered in September by accountant Catherine Kipp, who previously worked for the state treasurer but moved to the comptroller’s office.

Eckstrom, who was last reelected in 2022, plans to resign April 30, leaving the General Assembly to elect his successor.

McMaster, currently in his last four-year term, said he will campaign for a constitutional amendment to move the comptroller to the governor’s office.

Past ballot efforts to sway voters away from electing statewide officials has had mixed results.

Voters in 2018 rejected a ballot measure to make the superintendent of education an appointed position. But in 2014, voters approved a ballot question to let the governor nominate the adjutant general rather than elected.

“There always needs to be a reminder, a campaign and why we’re doing it and the reason that it would be done,” McMaster said. “The reason I’m in favor of it is because it promotes accountability, that is if you know exactly whom to hold responsible if things go wrong.”

With Eckstrom out April 30, the General Assembly will have to pick a replacement to run the comptroller’s 26-person office, charged with running the state’s payroll, being the top fiscal watchdog and compiling an annual comprehensive financial report.

Former state Rep. Kirkman Finlay, R-Richland, on Monday announced he wants to replace Eckstrom, a bid he appears to have enough support to win. Senators say they plan to push Mike Shealy for the role. Shealy was a longtime Senate budget director, who now works at the state Department of Administration as director of statewide leadership and special projects.

McMaster said Tuesday that if he were to appoint someone to the job, he would want a professional with experience in accounting or finance, not someone with political ties.

“I’d want ... someone who is not political, who comes with no obligations, no baggage, no favors to give to anyone, who is well known, and who is a career professional accountant or in finance,” McMaster told The State.

Eckstrom declined Tuesday to weigh in on who the next comptroller should be or even what qualifications the person should have to finish out the rest of his term, up in 2026. The only constitutional requirement to run for the four-year position is to be a registered South Carolina voter.

“I’m not going to get involved in their (lawmakers’) selection,” Eckstrom said.

Eckstrom told The State he is only thinking about his last month in office and is preparing for his replacement.

“I’m focusing on the task at hand, which is kind of wrapping up, preparing for whoever my successor is,” Eckstrom said. “I want it to be a very smooth transition.”

Eckstrom was first elected comptroller in 2002, and served as state treasurer from 1994 to 1998. However, his sixth and final term has been more than rocky as his office was under investigation by senators for the $3.5 billion error. Eckstrom said Tuesday he wouldn’t have done anything differently.

“I feel very fortunate for the opportunity to serve, including the last two months,” Eckstrom said. “I would have worked just the same.”