Posted on Wed, Dec. 03, 2003


Sanford advocates leasing more vehicles
Governor says S.C. should sell about one-third of fleet

Staff Writer

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.





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