A road funding deal is complete in South Carolina, minus new taxes or fees to pay for the work.
Gov. Nikki Haley signed into law a bill that relies on borrowing $2.2 billion over the next 10 years to get road and bridge work done.
One project highlighted for completion is Malfunction Junction. The massive project is intended to alleviate congestion problems at the convergence of Interstate 20 and 26 in Columbia.
Attention will also be given to eliminating load-restricted bridges on state secondary roads.
Haley said in written remarks the funding components in the bill, S1258, shows that “the consistent and prioritized use of taxpayer dollars leads to significant investments in transportation.”
The new deal relies on $200 million annually from the state’s sales tax on vehicles, as well as other DMV fees, to bond about $2.2 billion through the Transportation Infrastructure Bank.
SCDOT Secretary Christy Hall said the bonding plan will free up additional revenue to get $4 billion worth of work done over the next decade. Specifically, $2 billion will be allotted for interstate expansions, another $1 billion will be used to repair 400 bridges and $1 billion will be applied for road resurfacing.
Critics said the deal does little to address the state’s long-term road needs. Instead, some lawmakers on both sides of the aisle said a fuel tax increase is necessary to meet the state’s long-term road funding needs.
South Carolina has not raised its 16-cent-per-gallon fuel tax in more than a quarter-century.
Haley acknowledged the funding deal is not a long-term solution, but she called it a step forward.
“We must find a permanent fix to funding our roads and bridges, the type of fix that does not exist in this legislation,” Haley stated.
Also included in the road deal is reform in state DOT governance. The governor is given appointment power for all eight members of the commission that oversees the agency.
Legislators will have to approve the commissioners.
Currently, seven commissioners are appointed by lawmakers with the eighth commissioner appointed at-large by the governor. The new law permits the governor to recommend the at-large commissioner.
Commissioners will appoint the secretary. The governor now makes the appointment.
Also, the secretary will report to the commission, which reports to the governor.
Despite giving the bill her signature, Haley said the restructuring at the DOT falls short.
“So let us all be honest about what we accomplished in this bill: incremental and incomplete reform or, put a different way, far less than the people of South Carolina both expect and deserve from us.”
Lawmakers said reform at the DOT was necessary before talks for any long-term funding plans can move forward. Negotiations on long-term funding plans are expected to begin during the 2017 regular session.
Hall said she looks forward to next year’s pursuit of sustainable sources of revenue and to address the “governance cloud that remains.”
To view other legislative activities of interest for South Carolina, click here.
By Keith Goble, Land Line state legislative editor
By Keith Goble, Land Line state legislative editor
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