- BIG STORY: Medicaid cuts could cause big S.C. budget problems, study says
- MORE NEWS: Loftis again hears calls to resign over big accounting scandals
- LOWCOUNTRY, Ariail: Whitewash
- BRACK: Country is in place it’s never been, Bernstein says
- MYSTERY PHOTO: Another bridge
- FEEDBACK: Frustrated, sad about unfolding devastation
Federal Medicaid could cause big S.C. budget problems, study says
By Jack O’Toole, Capitol bureau | The GOP federal budget blueprint that passed this week in the U.S. House of Representatives could blow about a billion-dollar-a-year hole in South Carolina’s state budget over the next decade, according to a new report from the Robert Wood Johnson Foundation.
The reason? Almost $1 trillion in cuts assigned to the House committee that oversees Medicaid—cuts that, if modeled after past GOP proposals, could force S.C. lawmakers to slash benefits or hike state health care spending by as much as 35%. Medicaid is the national health care program funded primarily by the federal government – but with some state matching dollars – that helps to cover medical costs for some people with limited incomes.
To arrive at the impact of possible Medicaid cuts, budget analysts studied two Medicaid reform plans Republicans have floated that would achieve savings of the magnitude called for in the resolution.
The first plan, similar to one introduced by former House Speaker Paul Ryan (R-WI) in 2016, would place a hard cap on traditional Medicaid expenditures per person, costing South Carolina about $8 billion from 2026-2035. Under the second plan, a broader cap that also targets new Medicaid spending under the Affordable Care Act, or Obamacare, would cost South Carolina $13 billion over the same period.
“The [Republican] talking points say this is all focused on waste, fraud and abuse,” said Katherine Hempstead, a health care policy analyst with the foundation. “But in reality, any kind of cut to Medicaid affects services for people who need them.”
All six of the state’s Republican House members voted yes on the spending resolution, which cut a total of $2 trillion in federal spending, while authorizing $4.5 trillion in income tax cuts. Democratic U.S. Rep. James Clyburn was the delegation’s only dissenter.
“President Trump’s mandate is clear: cut spending, slash taxes, and shred Washington’s waste,” 1st District U.S. Rep. Nancy Mace of Charleston said in a Feb. 25 release. “This resolution is a giant pair of scissors to the fiscal insanity driving our country into the ground. Delivering on Trump’s America-First agenda is the only way to stop DC from bankrupting our kids—and we’re getting to work.”
But closer to home, where the health care cost reductions would hit hardest, S.C. Senate Minority Leader Brad Hutto (D-Orangeburg) told Statehouse Report that the cuts could have “significant impacts” to the state budget.
“It’s particularly troubling for the hundreds of thousands of children who rely on this coverage,” he said.
S.C. Medicaid by the numbers
According to health-care policy organization KFF (formerly the Kaiser Family Foundation), South Carolina spent $9 billion on Medicaid services in 2022, with the federal government picking up 75% of the cost, including administrative overhead.
Currently, Medicaid is estimated to cover 60% of all births in the state, as well as 63% of all nursing home patients. It also provides health care coverage for half the children in the state.
And according to Columbia policy analyst John Ruoff,, major cuts to Medicaid would have impacts on all South Carolinians, including those with private insurance.
“These cuts would threaten providers across the state, for whom Medicaid dollars basically pay the rent,” Ruoff said. “And that would seriously raise costs for everyone else because those provider costs would have to be shifted onto the rest of us.”
Those provider problems, he noted, would be felt most acutely in the state’s small towns and rural areas, where Medicaid coverage rates run as high as 30%.
“The rural hospitals we have left are for the most part in the larger small towns,” he said. “And they would have major problems.”
Sue Berkowitz, who’s worked on health care issues with the S.C. Appleseed Legal Justice Center since the 1980s, was even more blunt about the effect on providers.
“The state is not going to be able to make up for what we don’t get from the federal government,” Berkowitz said. “Medicaid is the foundation of our state’s health care system, and we all know what happens when the foundation crumbles – the whole house goes down.”
But beyond the budgetary and financial problems, she argues, the human toll would be “devastating.” And with health care for children, seniors and the poor at stake, the fight for resources would play out on the Statehouse floor.
“My biggest fear, if services are cut, is that we’re going to see groups saying, ‘Who’s the more deserving?’” Berkowitz said. “But people who need health care are all deserving.”
Nevertheless, she notes that the U.S. House-passed budget resolution is still a long way from becoming law. Members would have to actually make the cuts called for in committee. And the U.S. Senate, which is currently working on a much narrower budget package without sizable Medicaid cuts, would have to concur.
“This is bleak, but it’s not over,” she said. “There’s a lot that folks can do. But it’s going to be up to the people of South Carolina to tell their congressional delegation ‘You need to listen – you represent us up there.’”
- Have a comment? Send to: feedback@statehousereport.com.
Loftis again hears calls to resign over big accounting scandals
By Jack O’Toole , Capitol bureau | Tempers flared Thursday in the normally staid S.C. Senate Finance Committee when state Treasurer Curtis Loftis testified for a second time about the twin accounting scandals that have put S.C. in the sights of federal fraud investigators.
Loftis’s testimony came just a day after his office released a 58-page report that placed blame for the scandals on the state’s auditor and comptroller general.
An independent forensic accounting report by the auditing firm AlixPartners found earlier this year that Loftis’s office also bore responsibility for the accounting errors, which totaled more than $3.5 billion in overstatements going back more than a decade. Former Comptroller General Richard Eckstrom resigned when the problems first surfaced in early 2023.
“I’m trying to be as honorable as I can, but you make it difficult,” Loftis told committee members in response to hostile questioning. “These are serious issues.”
“It shouldn’t be difficult to be honorable,” Berkeley County GOP Sen. Larry Grooms fired back, before once again calling on the treasurer to resign.
Later the same day, the S.C. Democratic Party (SCDP) reiterated that call in a press release announcing the debut of a new party sponsored website, FireCurtisLoftis.com.
“For too long, Curtis Loftis has put himself ahead of the people of South Carolina,” said SCDP Executive Director Jay Parmley. “From questionable financial decisions to blatant self-dealing, Loftis has proven that he cannot be trusted with the state’s money. This website lays out the facts and gives voters the information they need to demand better leadership.”
Next week in the Statehouse
The S.C. House and Senate are expected to reconvene at noon March 4. Committees are currently scheduled to meet March 4 to March6. Highlights include a Judiciary Constitutional Laws subcommittee hearing on a bill to prohibit virtually all abortions in the state of S.C., a House Education and Public Works committee meeting to discuss a bill banning diversity, equity and inclusion programs in state government, and a Senate Medical Affairs subcommittee hearing on legislation to prohibit vaccine mandates.
- A complete listing of streamable committee meetings is available on the Statehouse website at scstatehouse.gov/video/schedule.php.
In other recent news
S.C. House passes bill to revive K-12 vouchers, but bulk of funds will go unused. S.C. House Republicans on Wednesday easily passed their plan for reviving K-12 private tuition payments in South Carolina, as the floor debate provided new insight into how parents are using their taxpayer-funded scholarships.
S.C. eyes crypto legislation. S.C. Sen. Daniel Verdin, R-Laurens, is optimistic about his cryptocurrency bill that proposes the state begin accepting digital currencies and become a friendlier place for digital asset mining.
S.C. stands to lose up to $40M in federal road funding without new law. The state stands to lose $40 million to $80 million in annual federal highway funding. That threat could be what finally pushes a “hands-free” measure to passage.
Anyone who provides lethal dose of fentanyl labeled a killer, bill says. Under the proposal, anyone who provides the illegal drugs that cause a fatal overdose can be charged with homicide and sent to prison for up to 30 years.
Bennett tells GOP the state needs a ‘serious’ governor. Potential gubernatorial candidate and S.C. Sen. Sean Bennett, R-Summerville, painted a picture to GOP voters of a governor who takes a realistic and collaborative approach to governing. There are no official candidates in the 2026 gubernatorial race at this time.
Lawmakers eye changes after struggling S.C. charter transferred to a new authorizer. Under a provision added to the in-the-works state budget, which passed the House Ways and Means committee Feb. 19, the requirement for closure after a third straight year of low accountability rating would be paused for a year.
New S.C. House bill aims to prioritize infrastructure. The influx of people moving to S.C. has current residents worried about keeping up with its infrastructure. A new House bill aims to prioritize infrastructure over new development.
S.C. chief justice seeks money to fund family courts. South Carolina’s family courts are “in crisis,” according to Chief Justice John Kittredge, who is turning to lawmakers for help addressing it, and the solutions could come with a hefty price tag in taxpayer money.
Lawmakers try to dismiss gun charges that are now legal. Legislation in the Senate would require prosecutors to dismiss pending gun possession charges that otherwise would not be pursued in the now-legal status of constitutional carry.
S.C. GOP spending big on ads to push more lawsuit reform. They say they’re countering a shadowy public influence campaign.
Whitewash
Award-winning cartoonist Robert Ariail has a special knack for poking a little fun in just the right way. This week, he skewers state education officials for trying to “cover up” issues like slavery in educational materials.
- SPECIAL TREAT: The Charleston City Paper this week offered a retrospective of some great past cartoons by Ariail. Click here to check it out.
- Love this week’s cartoon or hate it? Did he go too far, or not far enough? Send your thoughts to feedback@statehousereport.com.
Country is in place it’s never been, Bernstein says
By Andy Brack | If you’re looking for a refresher about what reporting is supposed to be, you should watch the movie, All the President’s Men, which portrayed the Watergate scandal that brought down a president.
“It’s a primer on reporting,” legendary investigative reporter Carl Bernstein, portrayed by Dustin Hoffman in the movie, said during a Feb. 26 talk at the College of Charleston. It was kind of surprising advice because he recommended a movie as a teaching tool to remind Americans what the media does. But then again, movies are mass media tools that can make complex information more digestible, so maybe it wasn’t too surprising.
Bernstein reminded the audience of 500 about how good reporters strive to tell the “best obtainable version of the truth,” based on the information on hand at the time. As more information becomes available, the story may twist in a new direction or reveal new layers – kind of like peeling an onion to get to the middle.
What’s worrying these days, he said, is how the whole concept of truth on which American democracy is based is suffering, in part because of the perpetuation of the notion of “alternative facts” that conservatives launched. Another description of alternative facts” simply is, “lie,” not truth.
“Now, the whole idea of the best obtainable version of the truth is getting erased – by social media and by a president who has no interest in the truth,” Bernstein said.
Nevertheless, the pervasiveness of media outlets through traditional press and today’s quality online journalism led Bernstein to note, “The reporting on the Trump era has been great in many regards by many organizations.”
In other words, the information about what’s happening is out there, but it may be hard for many to find. And some just don’t want to believe it because they’re in their own polarized bubble.
These are the kind of things that journalism is struggling with. So what to do? Keep doing the kinds of things that work by asking questions, knocking on doors, tracking down leads and trying to find out what’s really going on. Relying on press releases and unchecked statements are not paths to truth.
“Our job is to make truth available and knock on those doors,” Bernstein said.
Part of what’s hindering the quest for and understanding of truth, in part, is that Americans tend to have a poor knowledge of government, how it works and history, particularly involving other countries.
“Our knowledge of what goes on in the world between people and nations is really parochial,” Bernstein said. “Not enough people in this country know history.”
[Side observation: Do you think you could answer six out of 10 civics questions on U.S. citizenship test required for immigrants who want to become naturalized citizens? You might be surprised that you may not be able to.]
More than 50 years ago when Bernstein and colleague Bob Woodward knocked on doors, relied on frightened anonymous sources and dug into records, people tended to trust government. Back then, the system worked.
“The press did its job. Investigators did their job. The second special counsel did his job. The Senate Watergate hearings were probably the greatest congressional investigation in history,” Bernstein said. Additionally, the Supreme Court did its job in a unanimous decision that said President Richard Nixon did not have an absolute privilege to withhold information, such as audiotapes about the scandal.
These days? The country’s foundational institutions – the press, the courts, Congress, the rule of law – are under attack by idealogues defending Trump and who are putting party over country and democratic ideals.
The assault on truth with the intentional spread of false information, the grandstanding, the bots that promote disinformation and leaders who flat-out lie without compunction is chilling. Good reporting seeks to cut through that.
“What is happening now has never happened in our history,” Bernstein said. “We’re somewhere we’ve never been.”
Andy Brack is editor and publisher of Statehouse Report and the Charleston City Paper. Have a comment? Send to feedback@statehousereport.com.
Another bridge
With more people correctly guessing last week’s photo than in a long while, we figured maybe you might recognize this bridge, too. Where is it? Send your name, hometown and guess to: feedback@statehousereport.com.
Our most recent mystery, “S.C. Bridge,” showed the old drawbridge over the Wappoo Cut between the Stono and Ashley rivers in Charleston.
Allan Peel of San Antonio, Texas, shared that the 1956-era bridge, formally named after the late U.S. Sen. Burnet R. Maybank, connects Charleston to James Island.
“It is a double-leaf bascule bridge with two movable spans that pivot upward from opposite sides, meeting in the middle. When closed, the center clearance is 33 feet above the creek. It opens to boat traffic every half-hour (on the half-hour) on weekdays from 9 a.m. until 4 p.m. and on weekends and holidays from 9 a.m. until 7 p.m.”
Others who correctly identified the photo were Frank Bouknight of Summerville; Curtis Joyner of Charleston; Wayne Beam of Clemson; Penny Forrester of Tallahassee, Fla.; Steve Willis of Lancaster; Jay Altman and Elizabeth Jones, both of Columbia; David Lupo of Mount Pleasant; Bill Segars, Don Clark and Michael Webb, all of Hartsville; Stephen Hairfield of Hanahan; Truett Jones of Summerton; George Graf of Palmyra, Va.; Katherine Beard of Camden; Mike Tucker of West Columbia; and Lester Dempsey.
- Send us a mystery picture. If you have a photo that you believe will stump readers, send it along (but make sure to tell us what it is because it may stump us too!) Send to: feedback@statehousereport.com and mark it as a photo submission. Thanks.
Frustrated, sad about unfolding devastation
To the editor
Thank you for “This is no way to run a country.” You expressed the frustration and sadness I feel as I sit and watch the long-term devastation unfold.
I’ve struggled with those who actually DID vote for the things stated, but may not have realized it. I cannot believe they didn’t hear or see the signs. The division grew between those who saw the overall plan, and those who only saw the buffed surface. Upon losing, I prayed I was wrong, or that it wouldn’t be as bad. However, it’s happening faster than I had thought.
It was helpful to read that those voters don’t lack morals, they just (Ignorantly, in my opinion) didn’t vote for those things. Your column offers a way to come together to combat what is happening, if action is taken quickly. I hope it can reach the people who can make a difference.
– Name withheld upon request, North Charleston, S.C.
How can they look at themselves in mirror?
To the editor:
Thank you for delineating so clearly what everyone needs to know about the coup that is going on in Trumpland, carried out by the most corrupt administration in my 86-year lifetime.
The president is a grifter and liar and he has created, with the support of MAGAticians, a cabinet comprised of incapable and deceitful scoundrels, named only because of their allegiance to King Trump.
Our two U. S. senators and Republican congress members have been remarkably silent. Expect no town halls from Lindsey [Graham], Tim [Scott] or feckless Joe [Wilson]. They’re fearful of offending the King or the MAGA base. They’ll do anything to get re-elected, even if it means destroying our democracy. I don’t know how any of them can look at themselves in the mirror.
— Gere B. Fulton, Columbia, S.C.
Best column yet
To the editor:
Thank you for your crucial message to us readers and everyone we pass it on to. My war cry is RESIST because we are descended from men who would not be ruled by a king! Our American freedoms are too precious to sit back and watch them be taken away.
– Elizabeth Sumner Jones, Columbia, S.C.
Send us your thoughts
We encourage you to send in your thoughts about policy and politics impacting South Carolina. We print non-defamatory comments, but unless you provide your contact information – name and hometown, plus a phone number used only by us for verification – we can’t publish your thoughts.
- Have a comment? Send your letters or comments to: feedback@statehousereport.com. Make sure to provide your contact details (name, hometown and phone number for verification. Letters are limited to 150 words.
Statehouse Report, founded in 2001 as a weekly legislative forecast that informs readers about what is going to happen in South Carolina politics and policy, is provided by email to you at no charge every Friday.
- Editor and publisher: Andy Brack, 843.670.3996
- Statehouse bureau chief: Jack O’Toole
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