Sanford says sell state cars to raise $34 million

e-mail this story

Sanford said the state owns 15,052 vehicles — excluding school buses and higher education cars — far more vehicles than neighboring states with higher populations.

"There are too many cars in South Carolina compared to other states," he said. "This is not a cure-all to the budget but we think this is a point worth highlighting."

Sanford said the state is facing a "daunting" budget shortfall next year of between $350 million and $500 million.

The governor said the state could raise $33.7 million from selling the vehicles, plus an additional $8.5 million in annual savings. The figures are based on the sale of 6,155 vehicles, eliminating 15 state fleet management jobs, consolidating some facilities and using surplus cash allocated to the agency to buy cars.

If the plan is approved by lawmakers, Sanford said employees needing to travel by car could use short-term rentals, long-term leases or be reimbursed for mileage using their own cars.

The governor proposed using $25 million from the sale proceeds to help pay for the state's portion of workers' health insurance next year.

House Speaker David Wilkins, a Greenville Republican, said he liked Sanford's idea.

"I think it has a lot of merit," he said. "I certainly agree with the concept of turning a portion of that fleet into immediate revenue."

But Sen. Phil Leventis, a Sumter Democrat, criticized the proposal as a "quick fix."

"It's a scheme that doesn't make sense," he said. "It probably sounds good at a cocktail party. I can't see many Republicans latching onto this, much less Democrats."

Leventis said he is skeptical the state can save significant amounts by turning exclusively to private rental agencies.

Sen. Darrell Jackson, a Columbia Democrat, also criticized the plan, saying Sanford has been "boxed in" by refusing to consider tax increases except under certain conditions.

"We're not in a budget crisis because we have too many cars," he said. "We're in a budget crisis because we don't have enough leaders in state government."

Broadus Jamerson, executive director of the State Employees Association, said he welcomes any proposal to help workers with their health insurance.

"When it comes down to money needed for the health insurance program, we certainly welcomed those funds or any funds," he said. "State employees and retirees have suffered quite a bit in the last couple of years by absorbing the total cost of all the health insurance increases."

Sanford's proposal would exclude selling police or prison vehicles, or those belonging to the Department of Transportation or Department of Disabilities and Special Needs.

John Hutto, a spokesman for the Department of Mental Health, which operates almost 1,000 vehicles, said officials at the agency had not seen the plan.

"We're already looking for ways to operate our fleet more efficiently while minimizing the impact on services, especially in rural parts of the state," he said.

Virginia Williamson, general counsel for the state Department of Social Services, which operates 650 vehicles, many in its county offices, said the agency would cooperate with any plan that is ordered by lawmakers.

"We will need to see what that plan looks like," she said. "We'll be glad to take whatever steps are the most cost effective."

According to Sanford, South Carolina's 15,052 vehicles work out to 38 per 10,000 citizens, far more than the rates of 12 state vehicles per 10,000 for North Carolina, 13 per 10,000 for Alabama or 17 per 10,000 for Tennessee. He said Alabama had recently reduced its fleet by 9 percent to 5,713 vehicles.

Many agencies use a mixture of owned vehicles and vehicles leased from the state's motor pool. Ten agencies, according to the State Budget and Control Board, do not own or lease vehicles. Sanford said he hopes the proposal could result in consolidation of agencies' many vehicle maintenance shops.

The governor said his vehicle proposal was a "snapshot" of his coming budget recommendations to lawmakers, which he said he would release soon.

"We do too many things in this state, we duplicate effort and that as a whole makes for expensive government," he said. "What we're trying to do with the budget is say, 'Are there things that we don't have to do as a state? Are there things that could be handled by one agency instead of three?' Those are two big philosophical points."

State officials recently announced incentives to agencies to get them to keep older cars leased from the state motor pool, a move they projected could save the state $2.5 annually.