The SC House and Senate have approved the conference committee report on the FY23-24 budget (H.4300). The spending plan passed both chambers on June 14 and was sent to the Governor for approval.

A few key highlights from the FY23-24 budget include income tax cuts, increases in reserves, raises for state employees and teachers, investments in economic development, workforce, and resiliency efforts.

When it comes to roads and bridges, the spending plan includes new allocations to address litter and a boost for county road programs.

SCDOT will receive an $8 million allocation for litter pickup. 

County road programs will also benefit, with a $20 million allocation to boost County Transportation Committees (CTCs).

In addition, one-time funding has been provided for various local projects listed below:

• Chester County – Lighting Safety Upgrades: $450,000
• City of Columbia – Assembly St. Railroad Grade Separation Project: $10 Million
• City of Columbia – Beltline Blvd Redevelopment Projects: $2 Million
• City of Columbia – Williams Street Gateway: $7 Million
• City of Conway – Carolina Bay Construction: $677,000
• City of Easley Traffic Congestion Mitigation: $2 Million
• City of Sumter North Mainstreet Corridor Improvements: $1 Million
• Devine Street Corridor and Accessibility: $1.5 Million
• Dorchester County – Pedestrian Crossing for Bacons Bridge Road: $2.2 Million
• Elevate SC-22 Over Waccamaw River: $30 Million
• Highway 90 Improvements and Expansion: $5 Million
• Lexington County – Local Stormwater Management: $200,000
• Pickens County – Highway 183: $10 Million
• Southern Evacuation Lifeline Permitting and Engineering: $5 Million     
• Town of Hilton Head Island Independent Bridge Replacement Study: $300,000
• Town of Summerville – Central Ave. Pedestrian Safety Sidewalk: $400,000

The FY23-24 budget maintains the recurring $120 million allocation to SCDOT (established in 2022) to match new federal dollars coming to the state through the Infrastructure Investment & Jobs Act (IIJA).

Governor McMaster issued 11 vetoes on June 20, none of which impacted these allocations to roads.

The FY23-24 budget goes into effect on July 1, 2023. It is important to remember that general funds (state budget dollars) are not the primary revenue source for transportation infrastructure in South Carolina. Instead, revenues from driver and vehicle-related fees are dedicated to roads and bridges. 

The state’s predominant funding source is the 28.75 cents per gallon motor fuel user fee applied to all gasoline and diesel purchases made in South Carolina.

Other revenue streams include the former vehicle “sales tax” of 5% of the purchase price (capped at $500) of a new vehicle, biennial vehicle registration fees, various driver’s license fees/penalties, out-of-state vehicle transfer fees (new residents transferring their vehicle registration from another state pay a one-time $250 fee), and road use fees on commercial vehicles. 

Infrastructure investments remain a priority among legislators, and we applaud the SC House for allocating budget dollars to address our bridge network and boosting funds for county road programs.

We encourage the Senate to support these allocations as budget negotiations move forward.

The FY23-24 budget still has a long way to go before it is finalized, and we appreciate the legislature’s ongoing commitment to improving the state’s extensive road and bridge network. 

Thanks to the legislature’s investments in 2022, the state has been able to move projects in the pipeline forward (sooner than they would have otherwise) and is better positioned to take advantage of federal dollars. 

This year, legislators can maintain momentum by investing in local programs and, most importantly, aiding in tackling repairs and replacements to our aging bridge infrastructure.

The Budget Process & Overview to Date

The House passed its version of the budget back in March. They allocated non-recurring dollars for bridges ($200 million) and a combination of recurring and non-recurring funds for litter ($8 million). The House budget also includes a non-recurring allocation ($250 million) to boost County Transportation Committee (CTC) programs.

The Senate is debating the budget the week of April 18, and their version leaves room for negotiation on the bridge program and CTCs. They also funded a few individual projects. 

Once the Senate passes their version of the budget, it returns to the House, where they will have an opportunity to amend the budget further. Changes adopted by the House will be returned to the Senate where they can either agree with the changes or insist on negotiating the budget further. The budget would then go to a Conference Committee where members of the House and Senate will work to reach a compromise on the state’s FY23-24 spending plan. 

  Ongoing investments in infrastructure will keep South Carolina’s people and economy moving forward. 

The Senate Finance Committee completed its budget deliberations last week and have crafted a budget that will be up for debate on the floor next week.

Finance Committee Chairman, Senator Harvey Peeler (R-Cherokee), said during his opening remarks to the committee that he once heard, “If you want to know what’s important to someone, look at their checkbook.” He went on to tout the importance of the state budget Senators are beginning to take up.

When it comes to roads and bridges, there was very little the Finance Committee agreed with when it came to allocations included in the House-passed version of the budget.

The committee maintained the $8 million ($6 non-recurring/$2 million recurring) allocation to SCDOT for non-interstate litter pickup efforts, but that’s all. Senators allocated $1 to the SCDOT for the bridge program, $1 to the County Transportation Committees (CTCs), and earmarked approximately $43 million for individual projects.

While these $1 allocations signal Senators are not on board with funding statewide bridge repairs or county programs at the moment, the good news is that these items are not entirely off the table for consideration. One dollar keeps these programs as line items for ongoing budget negotiations – whether on the Senate floor or in a conference committee with House members at a later date.

We wholeheartedly agree with Chairman Peeler’s statement that what you spend money on shows what is important. Because of this, we encourage Senators to support investments to help tackle aging bridges and boost funds for local projects in all 46 counties through CTC programs.

Thanks to the legislature’s investments in 2022, the state has been able to move projects in the pipeline forward (sooner than they would have otherwise) and is well-positioned to take advantage of federal dollars. This year, legislators can maintain momentum by investing in local programs and, most importantly, aiding in tackling repairs and replacements to our aging bridge infrastructure.

The Senate will begin budget deliberations on the floor next week. SCFOR will continue to track, so stay tuned!

The FY23-24 budget, as passed by the SC House, includes one-time and recurring allocations to bolster road and bridge improvements.

Infrastructure investments remain a priority among legislators. The SCDOT has been allocated non-recurring dollars for bridges ($200 million) and a combination of recurring and non-recurring funds for litter ($8 million). The budget also includes a non-recurring allocation ($250 million) to accelerate County Transportation Committee (CTC) projects.

SCFOR applauds the House for allocating dollars to address our bridge network and boosting funds for county road programs. As Senators begin their work on the FY23-24 budget, we encourage them to support these allocations.

Bridges are key connectors for communities and commerce. The $200 million allocation for bridges will help address repairs and replacements of aging structures across the state.

Secretary of Transportation Christy Hall presented the 2023 State of SCDOT to the Senate Transportation Committee this week. She emphasized the state’s continued growth, infrastructure investments to date, and the need to continue working to close remaining program gaps.

Secretary Hall touted the ongoing progress from the state’s infrastructure investment in 2017 and more recent investments at the federal and state levels.

When it comes to economic and inflationary impacts on projects, she noted the powdered cement shortage and supply issues with specialty items (i.e., guardrails, specialty steel) are impacting projects the most. However, they have made adjustments on specialty items to keep projects moving forward and continue to monitor the cost of paving projects.

The state continues an aggressive interstate program, and Hall noted that 46 miles had been completed, 50 miles are under construction, and over 250 miles are currently in planning and design.

Secretary Hall emphasized the importance of starting early with the planning process because waiting until money becomes available to begin a project is usually too late. SCDOT continues to work to get projects teed up (across all programs) so they are ready to advance when dollars become available.

Senator Chip Campsen (R-Charleston) inquired about the status of I-95 and asserted that portions of I-95 had to be “the worst roadbed in the entire state.” He added that I-95 was not the best welcome mat for drivers entering South Carolina from Georgia.

Secretary Hall did not disagree. She noted that portions of I-95 had significant issues, especially with shoulder deterioration. She added that the interstate program is being implemented based on resources and reminded the committee that Georgia had twice the budget and half the responsibility.

As we have previously reported, a key request of SCDOT for the FY23-24 budget is for bridges. Secretary Hall discussed the need for a $1 billion investment over five years for the state’s bridge program. She suggested that these funds be phased in ($200 million/year) to allow the agency and industry to plan and deliver properly.

Because many of the state’s bridges that carry the majority of traffic are aging and reaching time for repair or replacement, Hall said this investment would allow the state to “get ahead of a major problem.”

Senate Transportation Committee Chairman Larry Grooms (R-Berkeley) said that the state had come a long way in recent years regarding improvements, praising the work of SCDOT and industry to advance projects and plans. However, he said there is still much work to be done to get the transportation network where it needs to be.

Chairman Grooms touted the state’s investments in infrastructure and said, based on the progress to date, the same rule still applies today, “you get more with more.”

We couldn’t agree more with Chairman Grooms because transportation infrastructure plays a critical role in serving the people and businesses who already call South Carolina home, as well as those we seek to attract in the future.

If we learned anything from 2017, it’s that we can’t afford to wait. South Carolina is doing a great job of putting dollars to work. Still, we must continue to assess the buying power of dedicated funding mechanisms and allocate general fund dollars when available. The legislature has done a tremendous job of making infrastructure investments an ongoing priority. Our mission is to ensure they remain proactive about addressing infrastructure needs to keep South Carolina moving forward.

Commissioner Gene Branham (Dist. 5) passed the Chairman’s gavel to Commissioner Tony Cox (Dist. 7) at the conclusion of the January meeting.

“I’m honored to serve again as the Chairman of the Commission,” said Cox in a press release. “We’re making tremendous progress on our Strategic 10-Year Plan, and we will continue working hard on behalf of the people of South Carolina.”

Commissioner Cox joined the Commission in 2017. He has previously served as Chairman and Vice Chairman. He is a real estate professional with 40 years of experience. He recently retired as the executive vice president at Burroughs and Chapin Co., Inc. in Myrtle Beach.

Commissioner Pam Christopher (Dist. 3) was elected to serve as Vice-Chairman. Commissioner Christopher joined the SCDOT Commission in 2020. She is the President and CEO of the Anderson Area Chamber of Commerce.

SCFOR thanks Commissioner Branham for his leadership as Chairman over the past year, and we look forward to continuing to work with him.  Congratulations to Chairman Cox and Vice-Chairman Christopher! We look forward to working with them in their new roles. 

Governor Henry McMaster was sworn into his second full term on Wednesday morning during a ceremony at the Statehouse. At the end of this term, McMaster will be the longest-serving governor in the state’s history.

Governor McMaster released his Executive Budget last Friday afternoon, which calls for more infrastructure investments in FY23-24. Specifically, Governor McMaster has requested that the legislature allocate additional funds to SCDOT to address bridge projects, I-73, and litter.

• Bridges: The Governor recommends $550 million to bolster investment in bridges ($500 million in non-recurring funds and $50 million in recurring funds). These dollars will be focused on accelerating the repair and replacement of existing bridges on interstates and primary highways.
• I-73: The Governor again recommends a $300 million (non-recurring) allocation to begin construction on I-73. This investment would start work on phase 1 and is aimed at serving as a catalyst for local and federal government partners to finalize their own investment plans to complete the project.
• Litter: The Governor recommends $2 million (non-recurring) to fund SCDOT’s litter control efforts.

In addition to transportation infrastructure, the Executive Budget also recommends investments in economic development, water, and workforce.

• Economic Development: $500 million (non-recurring) to help the Department of Commerce to meet its obligations to previously committed economic development projects. These funds would support infrastructure needs, such as site preparation, roads, bridges, rail, water and sewer, and workforce training requirements for these large-scale developments. In addition, the budget also recommends $200 million (non-recurring) to acquire and develop land to be certified as mega sites to attract new businesses.
• Water: $380 million (non-recurring) to revitalize South Carolina’s water, wastewater, and stormwater infrastructure. Last year, the Rural Infrastructure Authority (RIA) received $800 million in ARPA funds for this purpose and received nearly $2 billion in requests.
• Workforce: $500,000 (recurring) allocation for the Be Pro Be Proud program. The budget also includes other lottery fund allocations to the technical college system to support scholarships and the purchase of high-demand job skill training equipment.

For a copy of the Governor’s executive budget, click here.

It is important to remember that the Executive Budget is a recommendation to the General Assembly. The House and Senate will ultimately determine how FY23-24 dollars will be allocated over the next few months as budget deliberations ramp up.

The budget is initiated in the House, and work is already underway. Ways & Means subcommittees will continue to hear budget requests from respective agencies and entities over the next few weeks before taking their recommendations to the full Ways & Means Committee to craft a budget. The House is expected to take up the budget on the floor the week of March 13.

We applaud Governor McMaster’s continued support of infrastructure and setting the stage for additional investments to improve roads and bridges. We look forward to working with the House and Senate to support infrastructure investments during this year’s budget process.