South Carolina could save millions of dollars by selling a third
of its fleet — or 6,155 vehicles — and leasing or renting cars for
state employees, Gov. Mark Sanford said Tuesday.
Selling those vehicles and a surplus maintenance garage in the
Vista would net $33.7 million, he said. He would spend $25 million
of that to reduce health care costs for state employees next fiscal
year.
“Twenty-five million dollars will go a long way toward helping
fund a critical need,” he said. And by leasing or renting vehicles
rather than owning and maintaining them, the state would save $8.5
million annually in operating costs, he said.
Sanford’s announcement at the Springdale fleet management
facility was the first public glimpse of his state budget proposal.
He will release all of his spending plan by early next year.
Under his plan, the state would keep school buses, cars used by
colleges and universities and all Department of Transportation
vehicles. Also exempt would be specially outfitted vehicles used by
the departments of Corrections, Juvenile Justice, Disabilities and
Special Needs, and law enforcement agencies.
All other passenger cars, trucks and vans would be rented or
leased from private companies, such as GMAC.
About half of the 30 fleet workers would lose their jobs if his
proposal becomes reality, he said.
Saving money will be a prime issue as legislators start writing
the state budget in January. They will consider the governor’s
proposal as well as other ideas.
Lawmakers already are arguing over whether to raise taxes to plug
a multimillion-dollar shortfall. They need to come up with an
estimated $350 million or cut services next year.
House Speaker David Wilkins said he had read a news release about
the governor’s vehicle plan but had not talked with Sanford’s office
about the idea. Wilkins said he was very interested in Sanford’s
proposal.
“I think it has a lot of merit. I look forward to getting all the
details,” he said.
Sanford proposed the change even though his own government
efficiency commission gave South Carolina’s fleet maintenance
department high marks this year. The department was praised for
customer service and for low costs.
But Sanford said he thinks the state could still do better by
turning to the private sector.
Standing in a dusty parking lot surrounded by many of the cars he
wants to sell, Sanford pointed to bar charts comparing South
Carolina’s fleet with other states’. The line for South Carolina
towered over the others.
Excluding school buses and higher education vehicles, he said,
the state has 15,052 vehicles, while North Carolina and Tennessee
have fewer than 10,000, and Alabama has about 5,700.
N.C. officials later told The State that Sanford’s number did not
reflect their total fleet because it did not include 8,700
Department of Transportation vehicles. That brings North Carolina’s
total to more than 18,000 vehicles, excluding school buses and
higher education vehicles, they said.
Sanford’s office acknowledged that North Carolina’s figures are
correct. But because North Carolina’s population is nearly double
the Palmetto State’s, South Carolina state government still has
twice as many vehicles per capita as North Carolina, Sanford
said.
He believes renting or leasing vehicles can bring substantial
savings, in part because the state would no longer purchase
vehicles.
For example, it costs the state about 39 cents per mile to
maintain a sedan, but leasing or renting from a private company
would cost about 28 cents, according to the governor’s office.
Other states have considered selling their fleets and leasing
from companies. North Carolina’s legislature studied it in 2001 but
determined a state-run fleet was cheaper. North Carolina’s per-mile
cost for a midsized sedan is 23 cents, according to its fleet
management director.
Sanford said his proposal reflects what he will try to do with
the whole budget — hand some functions to the private sector and
allow the state to focus on things government can do well, such as
education.
“What we’re trying to do with our budget is simply to say ... are
there ways of freeing up assets from marginal activities to use in
another activity.”
Reach Talhelm at (803) 771-8339 or jtalhelm@thestate.com.