Tom Warne Report, 5 July 2013
COLUMBIA – Roads in South Carolina are about to get a big infusion of cash as the governor has signed a bill into law that will raise up to $1 billion for construction. Gov. Nikki Haley said the signing marks “a historic day in South Carolina.”
“We signed a $1 billion infrastructure bill into law, setting priorities and not increasing taxes,” Haley said.
The new law uses a combination of new revenue, borrowing and sales taxes to raise the new funding over the next ten years to improve transportation infrastructure throughout the state.
The State Transportation Infrastructure Bank will get $50 million to be used to borrow $500 million for major projects in the state. About $40 million each year will come from the state sales tax to pay for secondary roads, and another $50 million in one-time funding will go toward bridges.
The new funding is welcomed by the South Carolina Department of Transportation, although it does not meet the estimated $48.3 billion needed by the agency over 20 years to pay for needed road and bridge repairs. Fuel taxes will bring in $19 billion, but that covers less than half of the amount needed.
Gov. Haley was not in favor of raising the state’s 16-cent fuel tax rate to raise more transportation revenue, which has remained unchanged since 1987.