Infrastructure

Objective

To revitalize efforts to maintain, repair and expand South Carolina’s roads and bridges to improve safety and achieve prosperity through expanded economic development.

Businesses located or considering locating in South Carolina are reliant on a safe and dependable transportation system to move materials, goods and people efficiently. An efficient transportation system not only benefits existing businesses, but also is a vital ingredient to South Carolina’s economic future. As competition between states in attracting new and expanding businesses continues to grow, it is vital for states to identify areas in which they have a competitive advantage. An improved transportation system can provide that much-needed edge.

Background

The South Carolina Department of Transportation (SCDOT) is responsible for maintaining over 41,000 miles of roads and bridges, the fourth largest state maintained system in the nation and 62 percent of South Carolina’s total road network. Nationally, only 19 percent of highways are under state ownership.

In 1987, South Carolina increased its motor fuel user fee from 13 cents per gallon to a meager 16 cents per gallon and relies almost solely on the motor fuel fee to fund roads. The motor fuel user fee is still one of the lowest in the nation.

In 1970, state-source highway funding represented 17 percent of the state budget. Today, it represents less than 7 percent.

The South Carolina General Assembly had $1.7 billion in new dollars available for the 2007-08 year, but failed to allocate dollars from the General Fund to the state’s deteriorating and dangerous road infrastructure.

Situation

CNBC’s America’s Top States for Businesses 2011 ranked South Carolina 19th in infrastructure and transportation. Georgia and North Carolina were ranked 2nd and 3rd, respectively.

South Carolina currently has the sixth highest highway fatality rate in the nation. Each day three people lose their lives in automobile accidents. Eighty-five percent of crashes occur on primary and secondary roadways, which are the most traveled roadways in the state. Additionally, nearly one-third of South Carolina's primary and interstate highways are now in poor or mediocre condition.

According to the SCDOT, a recent report concluded that each South Carolina motorist spends an average of $265 annually – $791 million statewide – in vehicle repairs as the result of poor road conditions.

While South Carolina relies almost solely on one of the lowest motor fuel user fees in the nation to fund roads, other states have diversified their road funding. Numerous proposals have been discussed for new, dedicated and recurring revenue sources to provide additional funding for road maintenance and road construction. Many, including the South Carolina Chamber of Commerce, have first called for the General Assembly to redirect all related highway monies back to road construction and maintenance.

At the same time, federal funds are limited in how they can be used. They cannot be used for routine maintenance and must be used on roads that contribute significantly toward interstate commerce.

S.C. Chamber Position The South Carolina Department of Transportation (SCDOT) has not seen an increase in dedicated funding for maintenance or expansion of roads and bridges since 1987. While South Carolina’s population has increased dramatically and the state’s economy has grown and diversified, infrastructure priorities continue to lag behind neighboring states – states South Carolina competes with for jobs. While South Carolina spends an average of $15,000 per mile to maintain roads, Georgia spends more than $35,000 per mile and North Carolina spends more than $150,000 per mile. Support an infrastructure plan that allocates General Fund revenues and surpluses to be dedicated to the Highway Fund, and examine other revenue sources for maintaining existing infrastructure. Work with the state congressional delegation to improve South Carolina’s donor state status, so South Carolina receives more of its fair share of motor fuel tax revenues back from the federal government.

S.C. Chamber Position

The South Carolina Department of Transportation (SCDOT) has not seen an increase in dedicated funding for maintenance or expansion of roads and bridges since 1987. While South Carolina’s population has increased dramatically and the state’s economy has grown and diversified, infrastructure priorities continue to lag behind neighboring states – states South Carolina competes with for jobs. While South Carolina spends an average of $15,000 per mile to maintain roads, Georgia spends more than $35,000 per mile and North Carolina spends more than $150,000 per mile.

Support an infrastructure plan that allocates General Fund revenues and surpluses to be dedicated to the Highway Fund, and examine other revenue sources for maintaining existing infrastructure.
Work with the state congressional delegation to improve South Carolina’s donor state status, so South Carolina receives more of its fair share of motor fuel tax revenues back from the federal government.

South Carolina Chamber of Commerce