By Javar Juarez (CUBNSC) Columbia, S.C.- In a fiery and unapologetic response to Governor Henry McMaster’s State of the State address, Senator Margie Bright Matthews laid bare the financial mismanagement, misplaced priorities, and political cover-ups that threaten South Carolina’s economic future. The Democratic senator Representing Colleton, Beaufort, Hampton, Jasper, and Charleston counties refused to accept the governor’s rosy depiction of the state's fiscal health, instead exposing a damning $1.8 billion accounting scandal and the subsequent leadership failures that have rocked the state’s treasury.
"The truth is, our economy cannot be as robust as you’ve described, Governor," Matthews declared in her recorded rebuttal. “The Finance Committee recently uncovered a $1.8 billion discrepancy in our treasury—an error so massive it led to the resignations of both the
Comptroller General and the Auditor.”
That financial black hole, originally described by State Treasurer Curtis Loftis as an "investment" earning $250 million in interest, has now been revealed as non-existent. The revelation that the so-called funds were mere "imaginary money" has not only embarrassed state leadership but also put South Carolina in the crosshairs of a Securities and Exchange Commission (SEC) investigation—a scandal that could have severe tax and credit rating implications for the entire state.
A $1.8 Billion Mirage: Where’s the Money? Governor McMaster?
Matthews did not mince words when calling out Treasurer Loftis, who has stubbornly refused to resign despite multiple lawmakers urging him to step down.
“Where’s the money, Treasurer Loftis? And where’s the accountability?” she asked. “Governor McMaster, the buck stops with you.”
The cost of this fiscal blunder is already staggering. The state has spent nearly $3 million on out-of-state consultants to determine what happened to the missing funds. Another $5 million has been allocated for legal defenses, with an additional $4 million request pending—all taxpayer dollars going toward damage control instead of benefiting South Carolinians. In total, millions of dollars that could have funded education, infrastructure, and economic development have instead been squandered attempting to clean up the state’s largest financial error in years.
Education: An Ongoing Crisis Ignored
Beyond the treasury scandal, Senator Matthews blasted McMaster for South Carolina’s disastrous ranking in education—42nd in the nation. Instead of fully funding public education, McMaster and Republican legislators continue to push school voucher programs that divert taxpayer money away from public schools and into private institutions.
“Governor, the answer is not ‘choice,’” Matthews argued. “Instead of sending our tax dollars to private schools, we should first fully fund our public schools—something South Carolina has neglected to do for decades.”
South Carolina’s Education Lottery, which has enabled thousands of students to afford college, is also at risk. Lottery revenues are declining, and Matthews warned that if state leaders continue to “legislate based on the scorecards of bordering states” instead of investing in workforce readiness, broadband access, childcare, and infrastructure, South Carolina will fall further behind.
A Supermajority, A Super Failure
Matthews made it clear that the state's current challenges are the direct result of 20 years of Republican control—and now, with a supermajority in both the House and Senate, the GOP can no longer deflect blame.
“The people of South Carolina would be appalled to learn that this fiscal fiasco in the Treasurer’s office dates back to 2017,” she stated. “This is what one-party domination has gotten us: missing billions of tax dollars, underfunded schools, and crumbling infrastructure.”
Meanwhile, Governor McMaster boasted of a $1.8 billion budget surplus in his State of the State address—a figure that eerily mirrors the phantom funds missing from the treasury. His remarks, filled with praise for South Carolina’s record-breaking capital investment and job creation, ignored the reality that the state’s economic prosperity is being eroded by mismanagement and misplaced priorities.
Corporate Success, Public Struggle
Matthews acknowledged the state’s efforts in attracting major corporations like Google, Nestlé, and Scout Motors, but reminded South Carolinians that true economic success depends on ensuring workers and small businesses thrive as well.
“To prepare for these new jobs, we must invest in clean energy, broadband, workforce development, childcare, affordable housing, and high-speed transit,” she emphasized.
Rather than focusing on critical investments that benefit working families, Matthews criticized the legislature’s obsession with national conservative talking points, such as restricting access to justice in favor of big insurance companies—policies that have already devastated residents in states like North Carolina and Florida, where insurance providers are refusing to pay for legitimate disaster claims.
The Call for Real Leadership
Matthews concluded with a direct challenge to Governor McMaster and the Republican supermajority:
“A government that is by the people and for the people must be accountable to the people,” she asserted. “Instead of investing millions of dollars to continue the cover-up of this financial disaster, we should be providing real tax relief for working families, funding public education, and making South Carolina the best place to live and work—not just for corporations, but for every resident.”
With the 2026 gubernatorial race on the horizon, Senator Margie Bright Matthews’ powerful rebuttal sets the stage for a battle over accountability, transparency, and the future of South Carolina. As the SEC investigation continues, and as more details emerge about the state’s largest fiscal scandal in recent history, one question remains at the forefront:
Will South Carolina’s leadership take responsibility—or will taxpayers continue footing the bill for their failures?
#MargieBrightMatthews #Republicans #HenryMcMaster #Stateofthestate #SouthCarolina #Corruption #CurtisLoftis
Watch McMaster's full state of the state:
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