Rep. Ernest Istook of Oklahoma (at lectern) talks about the Palmetto Parkway project. South Carolina U.S. representatives Jim DeMint (from left) and Gresham Barrett, Gov. Mark Sanford and North Augusta Mayor Lark Jones wait to speak. ANNETTE M. DROWLETTE/STAFF

Lack of funds could delay parkway plan

NORTH AUGUSTA - The second phase of the Interstate 520 extension into South Carolina could be delayed for up to eight years unless the project gets a $143 million infusion of federal money.

ADVERTISEMENT

Have a thought? Go to the Forums or Chat.

Subscribe  E-mail this story  Write a letter to the Editor  Printer-friendly version  Get news on your PDA  Get e-mail headlines

State officials said Monday that the main source of money for the Palmetto Parkway project, the South Carolina Transportation Infrastructure Bank, has no more cash for new highway construction unless the fund is replenished by state legislators in January.

But given the bruising budget battles in the legislative session that ended last week and the deep cuts in state money for public schools, Medicaid and other programs, an immediate refill is unlikely, two Aiken County lawmakers said.

"I don't see how we're not having a delay if the feds don't step up to the plate," said Sen. Tommy Moore, D-Clearwater. "If you're waiting on state agencies, based on where we are in terms of budget constraints, we're talking about a long delay."

Rep. Roland Smith, R-Langley, said, "If we do not get any federal money, there will definitely be a delay. Currently, the state doesn't have the money. We'd like to go on and complete the project, but the economy tells us the money isn't going to be there."

Local officials are particularly fretful.

If state legislators do not refill the infrastructure bank and federal money isn't earmarked for the project, the construction interruption could be as long as eight years, said Skip Grkovic, North Augusta's director of economic and community development.

That would leave a half-completed four-lane highway short of its target - a link with Interstate 20 in South Carolina - for nearly a decade, Mr. Grkovic said. That would leave unfulfilled the promise of the new highway - from creating the opportunity for real estate development south of Augusta and northeast of Aiken to making transportation easier for travelers driving to the Augusta Regional Airport or job centers such as Fort Gordon and the Savannah River Site.

The first phase of the project stretches 2 1/2 miles from the edge of the Savannah River to a new bridge that crosses U.S. Highway 1, and will cost about $40 million to complete by June 2004.

There is enough money left - about $25 million - to pay for engineering and environmental studies, acquisition of rights-of-way and about $8 million in construction on the second phase, said Sen. Greg Ryberg, the chairman of the South Carolina Senate transportation committee. But a large chunk of new money is crucial to maintaining construction momentum.

Mr. Ryberg is less pessimistic than his legislative colleagues.

"The glass is either half full or half empty," he said. "We've just got to work through some of the challenges to make sure it's a continuous operation in terms of construction. My hope is that with some federal money, we won't skip a beat."

In a morning tour of the project that included Gov. Mark Sanford and U.S. Rep. Ernest Istook, R-Oklahoma, the chairman of the House Transportation and Treasury Subcommittee, and an afternoon roundtable discussion, local leaders asked for federal money to fill the funding breach and argued that the project should be seen as an extension of the federal interstate system.

Mr. Istook, who noted a $400 billion backlog of projects nationwide, made no promises. But he sounded no alarms.

"I can't give a clear projection right now," he said. "There's no reason for people to be worried."

Mr. Ryberg said he hopes Mr. Sanford, a Republican in his first term, will look at freeing up money for the project by refinancing existing state bonds at more favorable interest rates.

But Mr. Sanford's spokesman, Will Folks, made no promises.

"Any time you've got billions of dollars in unmet infrastructure needs, any project is important," he said. "As to refinancing, we're open to that possibility as a way of generating more revenue."

Reach Jim Nesbitt or Sara Bancroft at (803) 648-1394.

--From the Tuesday, June 10, 2003 printed edition of the Augusta Chronicle