The Coronavirus Response & Relief Supplemental Appropriations Act of 2021 (CRRSAA) provided $9.8 billion to state DOTs to help alleviate the financial impacts of COVID-19 on their programs.

South Carolina received approximately $166 million of this CRRSAA funding, most of which can be used for statewide purposes, with a portion allocated to Transportation Management Areas (TMA).

The SCDOT Commission approved the use of $149.4 million to pay off debt, and SCDOT will encourage MPO/COGs to do the same with their allocations.

SCDOT Deputy Secretary of Finance & Administration, Justin Powell, said that using this one-time funding to pay off debts would best position the agency to achieve long-term goals. Specifically by maintaining a consistent letting and delivery schedule and addressing funding gaps in current plans.

Paying off agency debt would generate approximately $13 million/year that could be used to boost the MPO/COG program. Also, it puts the agency in a better position to deal with large projects on the horizon (i.e., I-526 widening).

“Instead of paying bankers, we can pay construction workers,” said Powell.

The Commission unanimously approved the plan, which directs SCDOT to work with the State Infrastructure Bank and others to pay off all agency debt.

Secretary of Transportation Christy Hall told Commissioners that this was a great strategy because it allowed SCDOT to leverage this “unanticipated one-time funding” into long-term gain.

The SCDOT Commission held their first meeting of the new year on January 21, and the key item on the agenda was the election of officers.

Commissioners elected Vice-Chairman Barnwell Fishburne (Dist. 6) to serve as Chairman, and Commissioner Gene Branham (Dist. 5) was elected to serve as Vice-Chairman. Both were elected by acclamation.

Prior to the close of the meeting, Chairman-elect Fishburne said that public trust is a Commission priority, and he looks forward to 2021 (and its challenges) and plans to give it his all as Chairman.

SCFOR congratulates Commissioners Fishburne and Branham and we look forward to working with them in their new leadership roles.

 

Tuesday’s election brought a few surprises, upsets, and many tight races (in areas that have traditionally never been tight.) While the election results yielded a lot of red across the board courtesy of straight tickets and record turnout, Republicans ultimately gained two seats in the SC House and three in the Senate. Three incumbent Senators in hotly contested races held on to their seats:

• Senate Transportation Committee Chairman, Senator Larry Grooms (R – Berkeley) handily defeated his two opponents with 58.6% of the vote.
• Chairman of the Fish, Game, & Forestry Committee, Senator Chip Campsen (R-Charleston), defeated his Democratic opponent with 57% of the vote.
• Senator Sandy Senn (R-Charleston) narrowly defeated her Democratic opponent, with 51% of the vote.

 

Several tenured Democratic Senators were defeated, including Senators Floyd Nicholson (D-Greenwood), Glenn Reese (D-Spartanburg), and Vincent Sheheen (D-Kershaw).  In the House, Representatives Mandy Powers-Norrell (D-Lancaster) and Laurie Funderburk (D-Kershaw) were defeated. We would be remiss not to acknowledge that these legislators have been allies and staunch proponents of infrastructure investment and improvements. SCFOR appreciates their leadership and efforts to make South Carolina a better state.

In total, SCFOR followed 59 races in the SC House and 31 in the SC Senate. Results of these races can be tracked here. A look at the new faces that will be joining the SC House and Senate is detailed below.

“21 in 2021” Meet the New Members of the SC Legislature

The SC Senate will welcome 6 new members in the 2021 legislative session.  

Billy Garrett (R) Dist. 10 – Greenwood

Republican candidate Billy Garrett has unseated Senator Floyd Nicholson (D). Garrett received 55.96% of the vote, flipping the seat Nicholson has held for 12 years.  

Garrett is an attorney and founder of the Greenwood Mediation Center.

Josh Kimbrell (R) Dist. 11 – Spartanburg

Republican candidate Josh Kimbrell unseated Democrat Senator Glenn Reese. Kimbrell received 55.35% of the vote, flipping the seat that Reese has held since 1991. 

Kimbrell is CEO at Exodus Aircraft and vice president/commercial loan officer at CresCom Bank. He has been a conservative radio talk show host for the last decade and is a political analyst on Fox News.

Michael Johnson (R) Dist. 16 – York

Johnson defeated Democrat opponent Ram Mammadov, receiving 63% of the vote. This seat was held by Senator Greg Gregory (R), who retired this year. 

Johnson is an attorney with Michael Johnson & Associates in Fort Mill, SC. He was elected to the York County Council in 2012 and currently serves as the Chair.

Penry Gustafson (R) Dist. 27 – Kershaw

Republican candidate Penry Gustafson defeated incumbent Senator Vincent Sheheen (D) with 51% of the vote. 

Gustafson is a community advocate and a former sales representative for a chemical company.

Vernon Stephens (D) Dist. 39 – Orangeburg

Stephens defeated Republican Tom Connor, with 56% of the vote. This seat was formerly held by Senator John Matthews (D), who retired this year. 

Stephens currently serves as Chairman of the Orangeburg 5 School Board and is retired from retired Federal Mogul Friction Products.

Brian Adams (R) Dist. 44 – Berkeley

Adams defeated Democrat Debbie Bryant, with 57% of the vote. This seat was formerly held by Senator Paul Campbell (R), who retired this year.  

 Adams is a retired North Charleston Police Officer. 

    The SC House of Representatives will welcome 15 new members in the 2021 legislative session.  

Jerry Carter (R) Dist. 3 – Pickens

Carter defeated his Democratic opponent, Eunice Lehmacher, with 65% of the vote. This seat was formerly held by Rep. Gary Clary (R), who retired this year.  

Carter is the retired Director of Corporate Affairs for the National Council of Examiners for Engineering and Surveying (NCEES). 

Travis Moore (R) Dist. 33 – Spartanburg

Moore faced Constitution candidate Thomas Riddle and won easily with 88% of the vote. This seat was formerly held by Rep. Eddie Tallon (R), who retired this year.  Moore is an attorney with Anderson Moore, LLC in Spartanburg, SC. 

Roger Nutt (R) Dist. 34 – Spartanburg

Nutt was the only person to file to fill the seat of Rep. Mike Forrester (R), who retired this year. Nutt did not face opposition on Tuesday. 

Nutt is a licensed Professional Engineer in the States of South Carolina and Georgia. He currently serves on several Boards and Committees, including SPATS and the Spartanburg CTC Advisory Committee. 

Sandy McGarry (R) Dist. 44 – Lancaster

Republican candidate Sandy McGarry defeated incumbent Rep. Mandy Powers-Norrell (D). McGarry received 55% of the vote, flipping the seat that has been held by Norrell since 2013.  

McGarry is the Chairwoman of the Lancaster County Republican Party. 

Vic Dabney (R) Dist. 52 – Kershaw

Republican candidate Vic Dabney defeated incumbent Rep. Laurie Funderburk (D). Dabney received 51% of the vote, flipping the seat Funderburk has held since 2004. 

Dabney is a career soldier, Apache attack helicopter pilot, and instructor.

Kim Johnson (D) Dist. 64 – Clarendon

Johnson defeated Republican candidate Cindy Risher, with 54% of the vote. This seat was formerly held by Rep. Robert Ridgeway (D), who retired this year. 

Johnson is Director of Community Engagement with HopeHealth in Manning, SC. 

Jermaine Johnson (D) Dist. 80 – Richland

Johnson defeated incumbent Rep. Jimmy Bales in the Democratic primary. He defeated Republican candidate Vincent Wilson on Tuesday with 60% of the vote. 

Johnson is the founder of Dream Team Consulting, an organizational development firm in Columbia, SC. 

RJ May (R) Dist. 88 – Lexington 

May won the Republican primary run-off in June to fill the seat vacated by Rep. Mac Toole (R). He did not face opposition on Tuesday. 

May is the founder of Ivory Tusk Consulting, a Lexington County-based agency that assists conservative candidates in becoming public servants.

Gil Gatch (R) Dist. 94 – Dorchester

Gatch defeated his Democratic opponent, Patricia Cannon, on Tuesday, with 63% of the vote. This seat was formerly held by Rep. Con Chellis (R). 

Gatch is an attorney with Gil Gatch Law, LLC, in Summerville, SC. 

Ryan McCabe (R) Dist. 96 – Lexington

McCabe defeated incumbent Rep. Kit Spires in the Republican primary. McCabe did not face opposition on Tuesday. 

McCabe is an attorney with McCabe, Trotter, & Beverly in Columbia, SC, which specializes in community association and construction law. 

Mark Smith (R) Dist. 99 – Charleston

Smith defeated Democrat Jen Gibson, with 64% of the vote. This seat was formerly held by Nancy Mace (R).  

Mark is the Owner and President of McAlister-Smith Funeral Homes, Avinger Funeral Home, and the Palmetto Cremation Society. 

Case Brittain (R) Dist. 107 – Horry

Brittain faced two opponents on Tuesday, Democrat Tony Cahill and Libertarian William Dettmering III. Brittain received 70% of the vote. This seat was formerly held by Rep. Alan Clemmons (R), who resigned from the House in August.

Brittain is an attorney with the Brittain law firm in Myrtle Beach, SC.  

Deon Tedder (D) Dist. 109 – Charleston

Tedder defeated Libertarian Rodney Travis in Tuesday’s election and easily won with 80% of the vote. This seat was formerly held by Rep. David Mack (D), who retired this year. 

Tedder is an attorney with the David Aylor Law Offices. His main area of practice is personal injury and criminal defense.  

Joe Bustos (R) Dist. 112 – Charleston

Bustos defeated Democrat Daniel Brownstein in Tuesday’s election, with 57% of the vote. This seat was formerly held by Rep. Mike Sottile (R), who retired this year. 

Bustos is a retired US Army officer, former police officer and town councilman for Mount Pleasant. 

Chardale Murray (D) Dist. 116 – Charleston

Murray defeated Republican Carroll O’Neal on Tuesday, with 50.7% of the vote. This seat was formerly held by Rep. Robert Brown (D), who retired this year. 

Murray is the Owner of Murray’s Mortuary in Hollywood, SC.

*Based on unofficial results from the SC Election Commission 11/4/2020. 

**Candidate photo sources are campaign websites/social media pages. 

The State Transportation Infrastructure Bank (STIB) Funding Policy Subcommittee of the Joint Bond Review Committee (JBRC) held two meetings during the month of October to discuss ways to make the STIB application process and awards more equitable for rural counties. 

The subcommittee was formed following the JBRC August meeting, where members expressed concerns with the ability of rural counties to compete for STIB funding. It is co-chaired by Senator Paul Campbell (R-Berkeley) and Gilda Cobb-Hunter (D-Orangeburg). It includes Senator Glenn Reese (D-Spartanburg) and Rep. Gary Simrill (R-York).

Specifically, the subcommittee was tasked with the following:

• Evaluate the STIB’s selection process to ensure equitable consideration and awards for rural versus metropolitan counties’ project proposals.
• Evaluate the STIB’s expectations for the financial capacity to support future projects.
• Propose legislation as appropriate and necessary to support any subcommittee recommendations.
• Provide periodic updates and a final report to the full JBRC committee.

The subcommittee heard testimony from the STIB, SCDOT, Municipal Association of SC, Association of Counties, and the SC Department of Commerce. An overview of the testimony is outlined below:

STIB

STIB Chairman John White provided the subcommittee with a thorough update on current processes and project evaluation criteria. He also touted the progress that has been made by the Bank to get back to business and maintaining an open-door policy.  

Chairman White outlined the recent changes made regarding scoring projects and weighting criteria to align with SCDOT priorities. He explained that the Bank was bound by statute when it came to awarding projects. Under current law, projects must total at least $25 million, and multiple projects cannot be combined on an application to meet this financial threshold. 

He also outlined some preliminary concepts that could potentially be used to assist counties.

SCDOT

Secretary of Transportation Christy Hall provided the subcommittee with an overview of lessons the SCDOT has learned and how they have worked to modify their approaches to ensure resources are allocated equitably. From SCDOT’s perspective, rural and urban areas can’t compete with one another. Hall went on to address some of the unintended consequences resulting from the application of certain policies/methodologies over the years and how the SCDOT made adjustments to address the inequities the one size fits all approaches were producing. 

For example, SCDOT quit ranking pavement projects on a statewide basis because some counties received zero dollars, and urban areas continued to have significant advantages. Today, paving dollars are allocated to counties, and ranked projects within the county compete for them.  Secretary Hall also noted similar issues with the interstate program because urban projects always rose to the top of the priority list. Because of this, SCDOT knew they had to designate funding to rural interstates. (Hence the creation of the rural freight interstate program.)

Dept. of Commerce 

DOC Deputy Secretary Jennifer Fletcher told the subcommittee that infrastructure is key to recruiting companies to South Carolina. Roads are becoming increasingly important because businesses want to move not only goods but also their workforce efficiently. 

Recent data indicates that highway accessibility is the #1 factor for companies when considering a location.  

DOC Director of Grants and Incentives, Daniel Young, said the agency recognizes that rural counties face challenges, and the agency’s tiering system has helped them balance these challenges. However, he acknowledged that it is difficult for rural counties to get companies’ attention because most are looking for interstate access or “four-lane roads.”

Fletcher also noted that the state needed to look beyond interstate capacity and ensure all roads are considered because the state continues to grow and more traffic continues to divert from crowded interstates to secondary roads. She noted that these traffic diversions impact safety and the quality of life for communities on these routes. 

Municipal Association of SC

MASC Director of Advocacy & Communications, Scott Slatton said that the MASC had surveyed its membership regarding STIB applications/awards. Based on the survey, MASC identified the following issues along with potential changes that could be made:

• $25 Million Threshold: Slatton noted that many rural cities have difficulty meeting this threshold; however, there wasn’t necessarily a magic dollar figure because that number will be different for everyone.
• Scoring for Match Requirements: Slatton suggested that the STIB could make scoring more proportional to allow areas to be competitive. Currently, STIB gives additional points based on match, which means some areas can’t compete. He noted an example of an application where the jurisdiction offered a 35% match, but their application lost out to a more affluent area that could provide a 65% match.
• Bundling of Projects: According to Slatton, allowing multiple projects in an application would greatly assist small/rural areas in meeting threshold requirements and would also help spread STIB funds across the state.
• Cleaving Funds: Slatton expressed support for a concept that has been previously discussed by the subcommittee. Acknowledging the term “set aside” has a negative connotation, he said if there were a way to “cleave” some STIB monies solely for rural areas, that would help guarantee these areas could access STIB funding.
• Funding Sources: MASC members also had concerns about the types of revenues used to leverage projects. Cities and towns cannot pledge funds due to statute (or lack thereof). Slatton suggested that when voters rejected a county penny referendum, cities should have the opportunity to attempt to pass their own. He also mentioned that statutory changes to allow the use of local accommodations taxes and hospitality taxes could be considered.

SC Association of Counties

SCAC’s Assistant Director of Government Affairs, Owen McBride, outlined several concepts the organization would be supportive of, including the bundling of projects and concerns with existing processes. 

McBride expressed concerns about how the STIB has been awarding grants to larger counties and loans to smaller/rural counties. He suggested prioritizing grants for rural areas and using loans for larger counties would benefit all parties. He also echoed the cities’ concerns regarding match requirements, citing that they tend to favor areas with more resources.  

Next Steps

Senator Campbell and Rep. Cobb-Hunter continued to express support for bundling projects and encouraged MASC and SCAC to work together to draft language on how bundling could work. Senator Campbell also acknowledged that local governments will need to continue to step up to fund infrastructure. 

A summary of the testimony will be provided to the full JBRC in December for review.  

Important Dates to Remember

All South Carolina voters are eligible to vote absentee in the November election due to COVID-19. In-person absentee voting is underway across the state and runs through November 2. If you would like to vote absentee by mail, you must request your ballot by October 24. Ballots can be returned in person or by mail, so plan accordingly as your ballot must be received by 7:00 pm on November 3.

Of course, you can always vote in person on election day – Tuesday, November 3.

Learn more about absentee voting here. 

Witness Signature Required for Absentee Ballots

The US Supreme Court stepped in and said South Carolina voters must have their absentee ballot signed by a witness for the November election. This ruling comes as lower courts have continued to go back and forth on the issue over the past few weeks. Because the ruling came amid absentee voting, the court order specifies that all ballots received through October 7 must be counted regardless of signature.

So who can be a witness? Anyone. A spouse, friend, neighbor, or child can witness and sign the voter mail-in envelope along with their address. No notary or any other type of authorization is required.

Please visit the SC Election Commission for more information and additional voter resources. 

 

The legislature has approved Governor McMaster’s two appointees to the SCDOT Commission.

Nancy Whitworth was confirmed by the House and the Senate to serve on the SCDOT Commission as an at-large Commissioner through February 2022. Whitworth was appointed to fill the remaining term of Kristen Blanchard, who resigned earlier this year to run for the SC Senate.

Whitworth worked for the City of Greenville for 40 years and recently retired as Interim City Manager. She currently serves as a consultant for One Spartanburg, Inc. (formerly the Spartanburg Area Chamber of Commerce).

Pamela Christopher was approved by the 3rd Congressional District delegation to serve as the 3rd district appointee to the Commission. Christopher was appointed to fill the seat of Ben Davis, who did not seek another term. Her term runs through February 2024.

Christopher is the President and CEO of the Anderson Area Chamber of Commerce.

SCFOR would like to congratulate Whitworth and Christopher on their appointments and appreciate their willingness to serve. They will undoubtedly bring a unique perspective to the Commission, and we look forward to working with them.

The SCDOT was among the state agencies who testified before the Senate Finance Committee as they began virtual budget deliberations this week. While SCDOT does not receive general fund revenues, because they depend on transactional fees and fuel taxes, they have not been immune to the pandemic’s impacts.

Secretary of Transportation Christy Hall provided an update to the committee on the SCDOT’s finances and actions to keep projects moving forward.

She noted that traffic volumes leveled off in June and remain within 5-15% of 2019 levels. Hall said that car sales were strong despite the reduction in fuel tax revenues, which helped alleviate adverse impacts on revenues for the agency.

Revenue impacts from traffic declines are not immediately felt by SCDOT. Timing plays a key role because of the way fuel tax revenues are collected and ultimately deposited into SCDOT’s account. In addition, tax filing extensions also amplified the importance of timing in regard to financial management. The following illustrates the actual gas tax deposits since March:

According to the data, motor fuel collections are down about $49 million, car sales were up $14.8 million, and DMV fines remain steady. This results in a net revenue loss of $34.2 million since April.

Moving forward, SCDOT is projecting a 6% decline in gas tax revenues and car sales tax revenues through 2022.

Secretary Hall said that the SCDOT continues to work to maintain core operations, keep road and bridge projects moving forward, and protect liquidity for a potential second wave of the virus or other shocks.

In response to the revenue interruptions, the agency implemented a hiring freeze and a 12% cut to the internal operating budget – which equates to roughly $34 million. Similar actions will continue through 2022, depending on revenues.

To date, South Carolina has not had any project delays or cancellations because of the pandemic. In fact, thanks to a collaborative effort between industry partners and SCDOT, a joint workforce safety plan was created in March to ensure that precautions were taken to keep crews safe and allow projects to continue to move forward, all at a time when many other sectors of the economy came to a halt.

Moving forward, SCDOT will continue to monitor revenues and align projects with revenue receipts.

View the full presentation here.