INFRASTRUCTURE FUNDING REALITIES The facts behind the headlines September 2016 THE TOTAL NEED The SC Department of Transportation (SCDOT) estimates that more than $42 billion is needed to repair and address South Carolina’s road and bridge infrastructure over the next 35 years. This is a $1.2 billion annual need over SCDOT’s current budget. In 2016, SCDOT rated 19 percent of the state’s primary roads as “good condition”. Of SC’s 8,426 bridges, 19 percent are either structurally deficient, load restricted or functionally obsolete.
FUNDING Revenue for the South Carolina Department of Transportation (SCDOT) in the current fiscal year beginning July 1, 2016 is $1.62 billion. View pie chart for funding sources. • SC’s 16.75 cent per gallon motor fuel user fee is third lowest in the country behind only Alaska and New Jersey. It hasn’t been increased since 1980. • SC’s motor fuel user fee makes up 28 percent of overall funding for roads. • Every penny increase in the motor fuel user fee generates $30 million. • 35 percent of SC’s motor fuel user fee comes from out of state drivers. • It costs $12 million to widen one mile of interstate from 2 to 4 lanes.
www.charlestonchamber.net
ACT 275
The South Carolina Legislature passed Act 275 this year, providing an estimated $4.2 billion in road funding. What does that really mean? • It addresses 10 percent of the of the total infrastructure needs throughout the state. • It provides: - $215 million annually to the state highway fund - $149 million is new funding - $65 million is redirected existing SCDOT funding. • Over the next 10 years, $4 billion will be generated from the legislation: - $2 billion for interstate widening - $950 million for structurally deficient bridges - $1.4 billion for resurfacing
What does Act 275 mean for the Charleston region? • $1.6 billion has been committed to our region. • One project in our region comes from Act 275, however, the legislation frees up funding that would otherwise be used for bridges or interstate improvements throughout the state providing funding for other projects in our region. • Projects include: - Widening I-526 from Paul Cantrell Boulevard to Rivers Avenue including a new interchange at 526 and 26 - $780 million - Widening of I-526 from Rivers Avenue to US 17 - $230 million - Widening of I-26 from the Port Access Road to I-526 - $370 million - Widening of I-26 from mile marker 197 to 187 - $250 million
SCDOT FUNDING South Carolina Ports Authority
7%
5%
3% 1%
Fines, Fees, Tolls, Permits & Participation Agreements State’s General Fund Non-federal Aid
28%
56%
Motor Fuel Fee Federal Reimbursements
WHAT’S NEXT
A long-term funding plan including multiple sources is needed (fee increases at the pump, vehicle sales, DMV, etc.). There is not enough surplus or general fund dollars available to meet the need unless other core functions of government are cut drastically. The Charleston Metro Chamber will continue to work with coalition partners across the state to pass a long-term funding solution in the next two-year legislative session.
Mary Graham at 843.805.3043 or mgraham@charlestonchamber.org