The SCDOT held their September meeting on Thursday, September 15. Among the items on the agenda were consideration of proposed updates to the state’s 10-year plan as well as the FY23-24 budget. 

Revisions to 10-Year Plan

SCDOT Commissioners approved updates to the state’s 10-Year Plan to fine-tune investments across programs to accommodate the new federal and state dollars.

Specifically, the revisions include boosts to the following programs:

• Interstate Capacity Program: Includes ARPA allocation ($453 million) and one-time FY22-23 state budget allocation for rural interstates ($133.6 million).
• Regional Mobility Program (MPO/COGs): Increase existing program funding ($138 million) by $100 million, phasing in the increase at $25 million per year.
• Transportation Alternative Program (TAP): The program grew from $11 million to $33 million annually with IIJA. (This includes state matching funds.)
• Guardrail Program: The program increased by $5 million to accommodate market conditions, bringing the total investment to $15.75 million.
• Bridge Program: The IIJA included specific money for bridges through a one-time allocation. SCDOT staff assumes a continuation of funding through FY27 for a total of $228 million annually.

FY23-24 Budget

Commissioners approved the SCDOT’s proposed FY23-24 budget, which will be submitted to the Executive Budget Office for consideration and ultimately serve as the basis for SCDOT funding/budget requests during the budget process in the 2023 legislative session.

The FY23-24 budget totals $2.685 billion, and the majority of revenues come from state sources. Approximately 89% of the funding that goes into SCDOT goes back into the system for improvements.

Regarding general fund appropriations in 2023, SCDOT will seek a continuation of the $120 million recurring allocation and an $8 million recurring allocation to address litter pickup.

Since implementation of the 10-Year Plan in 2017, there has been significant progress to address repairs and improvements across the state.

 

*10-year plan revision chart and budget pie charts included in the above article are sourced from the SCDOT Commission Notebook 09/15/2022.

To maintain and improve our roads and bridges, South Carolina depends on federal funding and revenues from the state’s motor fuel user fee and other driver/vehicle-related fees. The SCDOT Commission workshop held on August 18 provided a thorough overview of how these dollars are put to work by SCDOT.

State funding makes up nearly 60% of SCDOT’s funding sources. This includes the 28.75 cent per gallon motor fuel user fee, which is the state’s predominant source of revenue. Learn more about how the motor fuel user fee is allocated here.

Over the years, legislative actions have diversified funding to provide for additional driver and vehicle-related fees to be allocated to roads and bridges. A history of these legislative actions regarding state funding is illustrated below:

State dollars play a critical role in matching federal dollars. They are also the predominant source of funding for the pavement program.

SCDOT receives approximately $1 billion in federal funds. These funds come with specific requirements and restrictions. Because of this, they tend to be allocated to complex projects and used to fund various programs, including interstates, bridges, MPO/COGs, and safety. 

Four Primary Accounts Fund SCDOT Operations

These federal and state funds are allocated across various accounts used to fund SCDOT, with the two predominant accounts being the Highway Fund and the Infrastructure Maintenance Trust Fund (IMTF).

1. Highway Fund
2. IMTF
3. General Fund Revenues (From State Budget)
4. Act 176 Fund

The Highway fund is funded by 16 cents of the motor fuel user fee, federal funds, Act 275 DMV fees, and other fines, fees, and interest. The Highway Fund supports all SCDOT operations, including maintenance, debt service, and matching federal dollars. 

The IMTF is funded by new motor fuel user fees and other vehicle-related fees established in Act 40. The IMTF must be used to repair and improve existing roads and bridges. Details on this fund can be found here. 

The general fund revenues ($120 million) are a new allocation from the legislature in 2022. This money will be used exclusively to match federal dollars associated with the Infrastructure Investment & Jobs Act (IIJA). 

Approximately 89% of the funding that goes into SCDOT goes back into the system for improvements.