Correcting management issues at the state Department of Transportation will require sweeping changes to the $1.3 billion agency when the Legislature convenes in January, Gov. Mark Sanford and lawmakers say.
However, their plans for the agency were unclear and it’s unlikely the General Assembly will grant Sanford’s wish to put DOT under his complete control.
A Legislative Audit Council report released Tuesday said DOT had squandered millions of dollars, was not properly documenting contract negotiations and had questionable relationships with contractors.
The audit, Sanford said Wednesday, strengthened the need for government restructuring. He said the agency should be part of his Cabinet, meaning he should appoint the director.
“You can’t have a separate island of government and have accountability in government.”
Sanford did not have a comprehensive plan to reform the agency, saying he would work with lawmakers who will begin studying the issue today. He did say the successful transfer of the Division of Motor Vehicles from the Department of Public Safety to his Cabinet in 2003 could be a model for changes at DOT.
Sen. Harvey Peeler, R-Cherokee, is heading one of two Senate subcommittees studying Transportation changes. Lawmakers, he said, are unsure the agency should be under the governor’s purview.
“That puts too much power in one man’s hands,” Peeler said. “I think the first step is addressing how our commissioners are appointed.”
The Senate might support allowing the governor to appoint commissioners with the Senate’s consent, Peeler said.
Under the current system, commissioners are chosen by lawmakers living within each of the state’s six congressional districts. The commission chairman is appointed by the governor and only votes in the event of a tie.
A House panel will study the report and recommend changes. House Speaker Bobby Harrell, R-Charleston, said he did not have specific changes in mind but said reform was likely.
“I support it being a Cabinet agency, but I don’t think the votes are there to do that,” Harrell said. “I think we need to go through the report and go where the committee leads.”
DOT commissioners have asked lawmakers for more funding, possibly by raising the state’s 16-cents-per-gallon gas tax. Sanford agreed the agency needs more money, but he and legislators were united in saying DOT should not receive any new revenue until changes are made.
Opinions were divided on the future of DOT executive director Elizabeth Mabry. Commission chairman Tee Hooper — a Sanford appointee — has asked Mabry to resign, but she has refused.
Peeler and other lawmakers said DOT problems go beyond Mabry and she should not be used as a scapegoat.
Mabry plans to address the audit at a special Senate hearing Friday. In a written response to the audit, her agency said auditors overstated conclusions, did not interview all employees and contractors involved and made errors in the report.
Hooper and commissioner John Hardee, who represents the 2nd Congressional District, said the commission should examine how it operates and oversees the agency. The Legislature, Hardee said, is taking the proper steps to address the report.
The commission will meet after Thanksgiving and should be ready to “take whatever action is necessary,” Hardee said.
Reach O’Connor at (803) 771-8358.
If You Go
Senate hearings on the South Carolina Department of Transportation audit are today and Friday.
Who: Senate Finance and Transportation subcommittees
What: Two hearings with the Legislative Audit Council and the Department of Transportation to discuss findings of the DOT audit
When: 2 p.m. today (with LAC officials) and 10 a.m. Friday (with DOT officials)
Where: Gressette Building, room 105, at the State House complex