By Tim Smith CAPITAL BUREAU tcsmith@greenvillenews.com
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COLUMBIA -- Finding more money to repair and build South Carolina
roads is expected to be a major priority for lawmakers returning to
work next year.
But some want to see changes at the state Department of
Transportation before adding to the agency's $1 billion annual
budget.
DOT Chairman Tee Hooper and a spokesman for Gov. Mark Sanford
said they want to see reforms before DOT gets more money.
Sanford spokesman Joel Sawyer said any increase in DOT funding
needs to wait until a pending Legislative Audit Council report is
released and reviewed "so we can determine if the problems that have
been reported are just the tip of the iceberg."
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Hooper said DOT "definitely needs more money."
"But I don't think it's appropriate to ask until we can show that
we can appropriately manage funds that we already get," he said.
DOT Executive Director Elizabeth Mabry in June declared the giant
agency was in a "transportation funding crisis" and asked lawmakers
to increase the agency's annual funding by more than $1 billion over
the next decade.
Almost all of DOT's money comes from the federal government or
state gas taxes, which haven't been raised since 1987.
Hooper triggered lawmakers' call last year for an LAC audit,
alleging the agency was being mismanaged.
On Friday, House Speaker Bobby Harrell, whose father is a state
highway commissioner, proposed finding up to $200 million annually
for the state's beleaguered roadways.
It was the younger Harrell who proposed two years ago diverting
some motor vehicle fees to DOT that were going into the state's
general fund. The Legislature approved the idea, and the agency will
eventually receive $70 million annually in the redirected fees.
But DOT remains in financial trouble, its officials say, squeezed
by flat or sinking gas taxes, rising road construction costs and
debt payments from an accelerated building program.
Harrell said he will propose that the state's car tax revenue,
about $86 million annually, be transferred for use by DOT and the
State Infrastructure Bank. He said he is still examining other
revenue sources to transfer to the agency. All of the new money
would be phased in, he said, so as to lessen its impact on the
budget.
Bob Harrell Sr., who chairs the DOT board's committee on finance
and administration, said he welcomes the car tax idea but said the
agency needs far more. He said he supports an idea that would use
half of the state's budget surplus each year for roads.
His son said he would prefer a recurring source of revenue.
Both said they would prefer not to raise the state's gas tax. The
speaker said $200 million in added funding, when combined with the
$70 million in redirected fees, would equal an increase of 9 cents
in the state's gas tax.
The governor has said repeatedly that the agency should fall
under restructuring, to make it more accountable. Sanford said that
in 47 other states, the governor appoints either the transportation
agency's director or its board. In South Carolina, the governor
appoints the board chairman. The other six members are appointed by
the Legislature.
The speaker said while he agrees DOT should be more accountable,
he doesn't think lawmakers should wait another year before
addressing the state's roads needs.
"We need to do something about the state's roads maintenance as
quickly as we can," he said. "But I agree that the department ought
to be reformed before they get any more money."
Sen. Larry Martin, a Pickens Republican, said he supports the
concept of dedicating a revenue stream for roads. But he said he
would be cautious in diverting another source of general-fund money
while the state is trying to raise its credit rating.
"I don't want to see us get in more trouble undermining the
integrity of the general fund," he said. The chairman of the Senate
Finance Committee last week appointed a special committee to review
the LAC report, saying it probably would affect the budget next
year.
The DOT board has discussed a draft version of the LAC report
twice behind closed doors. Last week the LAC ordered staff to
rewrite the report, which remains secret until its public release.
Officials expected it to be published by the middle of November.
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