The FY22-23 budget benefitted from the state’s unprecedented revenue growth that continues to defy expectations. Legislators had a record amount of revenue to allocate, and they chose to invest in tax reductions, reserves – and roads.

Specifically, the budget includes one-time and recurring allocations to accelerate projects and match federal funds.

Thanks to these investments to match federal dollars, South Carolina is poised to take advantage of every opportunity available through the federal Infrastructure Investment & Jobs Act (IIJA). These funds also ensure that South Carolina does not leave any federal dollars on the table.

These new federal funds (along with state match) will bolster the state’s 10-year plan by filling gaps in critical areas, including programs to address non-interstate congestion, closed and load-restricted bridges, traffic safety, and more. 

The budget also provides funding for rural interstates to help accelerate projects in the pipeline aimed at moving people and freight safely and efficiently.  In addition, the allocations to the County Transportation Committees (CTCs) will boost funding for every county to help tackle repair work.

In all, transportation infrastructure received approximately $1 billion this year through American Rescue Plan (ARPA)* and budget allocations.

*The ARPA allocation will be used to accelerate the widening of I-26 between Columbia and Charleston. This dangerous and notoriously unreliable section of interstate is among the top priorities of the state’s rural interstate freight program, and this investment will accelerate this project by six years. Learn more here. 

Talks of suspending the gas tax have circulated at the federal and state levels among candidates and incumbents up for reelection. Meanwhile, leaders on both sides of the aisle have called out the idea of a suspension for what it is – a gimmick.

We’ve said it before, and we will say it again, suspending the state’s core revenue source used to repair, maintain, and improve our state’s roads and bridges is not the way to provide relief from record inflation and increasing fuel prices.

Proposals to suspend fees garner applause, likes, and shares, but ARTBA research has shown that any relief from gas tax suspensions is minor – with no guarantee that drivers will pay less to fill up. 

Every year since the passage of Act 40 (2017), SCFOR has followed the retail price of gas at the pump on July 1. The price at the pump was consecutively lower than the previous year for five years. It wasn’t until 2021, as the nation was beginning to emerge from the pandemic that the retail price of gas was higher than the previous year.

Sure, it’s only two cents, but it is funny how even after a statutorily required increase occurs, the price at the pump didn’t budge two cents from the day or week before.

With that said, if South Carolina were to suspend the state’s total gas tax, there may be a tinge of relief, but is that relief noticeable – especially as prices continue to fluctuate on a daily/weekly basis? More importantly, is it worth setting the state back?

South Carolina waited 30 years to invest in our transportation infrastructure, and we have made great strides in tackling repairs since the passage of the road funding bill in 2017.

Everyone was thrown a curveball in 2020. South Carolina was fortunate that COVID didn’t set the state back, and the SCDOT was able to keep projects moving forward despite a decline in motor fuel revenue.

Canceling or suspending the state’s core funding mechanism for roads and bridges at such a critical time runs the risk of negating all of the progress to date – and it will bring the plans we’ve heard about for months to accelerate projects and expand upon the state’s 10-year plan to a halt.

Some politicians will use this as an opportunity to garner attention in an election year, while others sincerely want to alleviate the pain at the pump any way they can. The truth is, people still want their roads fixed, bridges repaired, and they are tired of sitting in traffic. ANY loss of revenue would have an adverse impact on the state’s ability to address these issues.

The pain at the pump is real. No one knows just how high prices will climb or how long this will last, which is why we cannot hold infrastructure hostage to factors beyond our control. 

The best way to provide relief to South Carolinians is through sound public policies in the form of tax reductions and rebates that provide direct relief and benefit citizens long-term.

At the May meeting, the SCDOT Commission approved investment levels and ranked lists of projects for inclusion in the FY22-23 and FY23-24 pavement programs.

Approved Investment Levels

Thanks to the ongoing phase-in of state revenues from Act 40 (2017) and the recent passage of the federal Infrastructure Investment & Jobs Act (IIJA), peak investments are slated for FY22-23 and FY23-24.

A total of $769 million will be invested in the upcoming fiscal year (FY22-23)

• Interstates: $209 million
• Primary Roads: $325 million
• Farm-to-Market Secondaries: $148 million
• Neighborhood Streets: $87 million

A total of $775 million will be invested in FY23-24

• Interstates: $213 million
• Primary Roads: $327 million
• Farm-to-Market Secondaries: $148 million
• Neighborhood Streets: $87 million

Funding for primary roads, farm-to-market secondaries, and neighborhood streets is allocated at the county level. These allocations are based on the county’s relative share of lane miles in each system.

Approval of Ranked Projects

The Commission approved 1,133 miles of rehab/reconstruction projects for inclusion in the 2022-2023 paving program. Click here to view the complete list of the projects by county. The SCDOT also has an interactive map that shows the projects. Click here to view the map.

Commissioners also approved the 2023-2024 Primary/Major Roads (510 miles) ranked project lists for rehabilitation and reconstruction. Click here to view the FY23-24 Primary projects by county.

SCDOT is beginning to rank the Primary/Major Road projects on a two-year basis to provide visibility for contractors and local governments, so they know what is in the pipeline for planning purposes. The Farm to Market Secondaries and Neighborhood Streets will remain an annual listing, and SCDOT will present those projects to the Commission in May 2023.

2021 Pavement Data

Progress continues on pavements statewide. Performance targets/goals for percentage good are higher on the roads that carry the most traffic.

Remember, South Carolina is tasked with maintaining an extensive state-owned system – the 4th largest in the nation.

Interstates and Primary routes carry 78% of traffic, yet they only make up 25% of the state system. Neighborhood streets make up approximately 50% of the state system, but they only carry 6% of traffic.

South Carolina is putting your money to work!

These pavement projects will be added to over 5,800 miles of pavement improvements that have been initiated since 2017. None of which would be possible without the revenues generated by Act 40 (2017).*

*The final two-cent increase established by Act 40 goes into effect July 1, which will bring South Carolina’s motor fuel user fee to 28.75 cents per gallon. (The national average is 38.69 cents per gallon.)