Horry County asking S.C. attorney general to review bonus program

The state Attorney General’s Office will decide whether Horry County leaders can award bonuses to employees for rooting out inefficiencies in government.

A proposed employee incentive program hit a roadblock this week when county attorney Arrigo Carotti told council members they should ask the AG’s office for a formal opinion on the matter. Carotti said his research uncovered some constitutional questions that need to be answered before the program is approved. Specifically, he said, it appears state law forbids governments from awarding bonuses to select workers.

The program is the brainchild of councilman Tyler Servant, who argues that the private sector often rewards employees for eliminating waste and government should do the same.

“This is all about being innovative,” he said. “I guess it’s so innovative that the attorney general has to give an opinion on it because it’s never been done before.”

Under Servant’s plan, employees would submit budget savings ideas to their supervisors. A five-member committee appointed by County Council would then review the submissions and make recommendations to the council’s Administration Committee, which would have the option of forwarding the plans to the full council.

Once a quantifiable savings is achieved, the employee would be rewarded with a one-time bonus of 25 percent of the annual savings up to $50,000. Servant amended the plan this week to state that elected officials, appointed agency leaders and department heads would not be eligible for bonuses.

Several council members offered support for the plan.

“This is a step outside the box,” councilman Bill Howard said. “It’s necessary. It needs to be done somehow, some way. … This is what we’re trying to encourage.”

Councilman Johnny Vaught concurred.

“This is nothing that would cost this county a dime,” Vaught said. “Because if they don’t save money, they don’t get anything. This is something that can only be a positive impact on our budget.”

Despite that backing, some leaders remain unconvinced. Councilman Harold Worley pointed out that employees will be eligible for raises of 1 percent to 5 percent under the worker performance plan that’s expected to be included in the upcoming county budget.

“You have a good employee, they get more money,” he said. “I just can’t quite get my arms around this. It just seems like we’re doubling up. You need one or the other. You don’t need both.”

Servant maintained the program would spur creativity and make county government leaner.

“What this does is create a vehicle for our employees to be innovative,” Servant said. “That’s exactly what we want them to do. … Are we going to be 100 percent efficient? No. But I think it’s a step forward.”

The council ultimately agreed to request an opinion from the attorney general. While the constitutional questions remain, Council Chairman Mark Lazarus said the intentions behind the program are noble.

“We may have to scrub it a little bit here,” he said. “But I think Tyler’s on the right path.”

This story was originally published March 10, 2016 at 6:19 PM with the headline "Horry County asking S.C. attorney general to review bonus program."