Lawmakers call for audit of DOT

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The shortfalls could cause further cutbacks in roadwork or force agency commissioners to borrow more money. The agency hasn't paved the state's secondary roads, which make up the bulk of the state's 42,000 miles of roadways, in four years due to a lack of money, officials have said.

The lawmakers want the Legislative Audit Council to examine the Department of Transportation to see if taxpayers can save money at the giant agency, whether the agency is safeguarding its resources against waste and misuse, and to look into its assignment of vehicles and use of confidential tags, among other things.

The Greenville News reported last week that the Department of Transportation spent more than $113,000 last year to buy four of its top officials Chevrolet Tahoes and that agency officials in recent years have been approved to use confidential license plates that don't indicate they are driving state-owned vehicles.

Agency commissioners voted last month to seek an "independent evaluation" of the agency following questions by Department of Transportation Chairman Tee Hooper of Greenville about its management. However, the commissioners also voiced their support at the meeting for the agency's executive director, Elizabeth Mabry.

Commissioners said in recent weeks that they would support a Legislative Audit Council review of the agency.

Rep. Robert Harrell, chairman of the House Ways and Means Committee, requested the audit after his father, agency Commissioner Bob Harrell Sr., asked for it, the younger Harrell said.

"A lot of things are being said about the department, a lot of negative things," he said.

"I feel like they do a good job and I want an independent entity to come in a take a look at it and either confirm that for us or tell us there is a problem. I think what we're going to find when they come is they are doing a good job."

The letter requesting the audit, also signed by eight other lawmakers on Harrell's committee, seeks a detailed explanation of agency expenses for the past three fiscal years, the amounts spent on primary and secondary roads, a review of the agency's methods for measuring the results of its expenditures and "ensuring that valid and reliable data are obtained, maintained and disclosed accurately" in its annual accountability report and budget records.

"It is the intent of the undersigned to determine how the South Carolina Department of Transportation is managing their resources and measuring their results while complying with the state's laws and regulations," the lawmakers wrote.

Hooper, who has said he favored a review by the Legislative Audit Council, said taxpayers could benefit from the review.

"That's what this is all about," he said, "making sure the taxpayer is getting what they paid for."

The audit request came on the same day that Department of Transportation staffers told commissioners that some of the state's major transportation projects financed by the State Infrastructure Bank could run more than $96 million in the red. The Infrastructure Bank won't pay for any cost overruns, officials said.

Most of the estimated shortfall — $66 million — comes from Charleston's Cooper River Bridge project. While officials said the project is essentially on budget, funding by the state's Infrastructure Bank didn't include demolition of the two bridges that the new bridge will replace. Those costs total $66 million.

Other cost overruns stem from projects in Horry, Lexington and Beaufort counties and include condemnation challenges in court and contractor's claims, officials told the commissioners.

Mabry said the numbers aren't shocking when placed in context of the $3 billion of projects financed by the Infrastructure Bank.

Commissioners will be faced with a choice of either cutting expenses — maintenance or road projects — or raising new revenue to pay for the cost overruns, said Keith Bishop, deputy director for finance and operations.

He said the board could choose to borrow the money through bonds or attempt a more creative financing through the Infrastructure Bank.

Hooper asked agency staffers to prepare cost comparisons of the agency's options. He said he doesn't want to add to the agency's current debt, which officials on Wednesday estimated at between $600 million and $700 million.

"I think there's a lot more study needed before a decision is made," he said afterward.

Commissioner John Hardee said one option is off the table for him.

"I will not cut maintenance," he said. "There are a lot of roads out there that are deteriorating."