By Tim Smith CAPITAL BUREAU tcsmith@greenvillenews.com
COLUMBIA -- The state Department of Transportation, already
struggling with cash problems, faces a 22 percent drop in revenue
beginning next summer, a DOT official told highway commissioners
Thursday.
Commissioners said the agency needs more money that can only come
from the Legislature, but efforts to get that have failed.
"I think the mindset over there is, 'You're not going to get a
damn thing,'" said a frustrated Commissioner Bobby Jones, who said
he has repeatedly tried to persuade legislators of the need for more
money. "It's kind of doom and gloom."
Mo Denny, the agency's chief financial officer, told
commissioners the agency expects to get $1 billion at most during
the fiscal year that begins in July 2007, down from an expected
$1.286 billion for the fiscal year beginning this July.
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Commissioner Bob Harrell Sr., whose son is speaker of the House,
said the agency needs a plan to sell legislators next year.
Commissioners suggested getting a public relations firm to help.
"We need a vision," said Harrell, who chairs the board's finance
and administration committee. "We need a plan to get out of this
mess."
DOT Executive Director Betty Mabry said she intends to share her
vision for the agency at the commissioner's next meeting.
"I don't think we have a mess," she said. "We've done a
tremendous amount of work. We've hit hard times we've got to get
past."
Steve Benjamin, a board member of the South Carolina Chamber of
Commerce, said lawmakers should take action.
"I think we should do whatever it takes to be sure we have a
competitive business environment here, which means we've got to
support our transportation infrastructure," he said.
Flat fuel-tax revenues, lower-than-expected federal highway
funding and higher construction prices caused by the increase in
petroleum-based materials have contributed to the agency's money
woes, officials have said.
DOT Chairman Tee Hooper said last month he believes another
reason is that the agency overcommitted to road projects.
But some lawmakers and officials with the Governor's Office have
also been critical of DOT's spending, most recently a $23 million,
five-year consultant contract for management services.
They also have noted the past purchase of SUVs for top agency
officials and payment to Jones of $90,000 over several years to
write letters for Mabry, as examples of questionable spending.
"We don't think it makes sense to give more money to an agency
that is accountable to no one," said Joel Sawyer, a spokesman for
Gov. Mark Sanford, "when there are some very legitimate questions
about having squandered money in the past."
Sawyer said the fact that some commissioners want to hire a
public relations firm to persuade lawmakers to give them more money
is "one of the most unbelievable things I've ever heard."
Sen. Larry Martin, a Pickens Republican, said he has been urged
this week by constituents to spend some of this year's $1 billion
budget surplus on bridge and road repairs instead of suspending the
gas tax for three months, as passed by the House. He said it's going
to take pressure from constituents before lawmakers pay attention to
DOT's problems.
"We have just basically neglected a careful look at DOT's needs,"
he said. "It's basically been sitting over there running on
automatic pilot. And that cannot continue if we're going to move
this state forward in economic development."
Hooper said the agency needs to be able to answer the question,
"Why are you where you are" financially?
Mabry said the agency is hurting because it expected more in
federal and state revenues.
"We're in this position because we built a lot of projects," she
said. "And we expected $100 million more in federal money."
She said the agency also needs to educate the public and
lawmakers on its budget, only $412 million of which, she said, is
from state fuel taxes. About $700 million of the agency's budget
comes from federal funds.
"The more we spend, the more they think we have to spend," she
said. "It's not that situation."
Officials said road projects span years and paying for them is a
complicated process.
Denny said the agency is letting some contracts for roadwork, but
none that are major because of the cash crunch.
State Highway Engineer Tony Chapman said the only contracts let
in recent months have been some local road projects, maintenance
work and one bridge.
"We can't delay these projects forever," Denny said.
He said the upcoming budget does not include any contingency for
construction price increases or disasters because of the agency's
financial situation.
"We're lean and mean and getting leaner and meaner," Mabry said.
She said possible revenue options include increasing the state's
16-cent-per-gallon gas tax, which hasn't been raised since 1987,
creating a gas sales tax, placing tolls on highways or getting a
general fund appropriation for the agency.
The Greenville News reported last week the agency had asked
Washington for authority to set up tolls for Interstate 95.
Mabry said she wants guidance from the commissioners on revenue
sources.
"It seems like nothing is saleable at this moment," she said.
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