The Board of Economic Advisors (BEA) met Monday (May 20) to receive an update on general fund revenues. This was a key meeting, given the revenue forecast has remained unchanged since November 2023.
Frank Rainwater, Executive Director of the SC Revenue and Fiscal Affairs Office, reported that revenues were $645 million ahead of the forecast and the anticipated slowdown has been less than expected. (You will recall that despite revenues exceeding estimates, economists have remained cautious and wanted tax filing season to pass before adjusting the forecast.)
The ongoing positive revenue trends prompted the BEA to increase the revenue estimates for FY24 and FY25. Specifically, these adjustments will provide legislators with an additional $143 million in recurring revenue and $467 million in non-recurring revenue to appropriate in the FY25 budget that resides in conference committee.
While most anticipated the increase in revenues, now that it is official, conferees have more to work with as they sort out differences between the House and Senate budget versions. Budget conferees plan to meet next week to begin their deliberations.
Allocations to the state bridge program, county transportation committees (CTCs), and rural road safety remain on the table.
Between the homestead exemption funds and this additional revenue, conferees will have more flexibility in their negotiations. Hopefully, some of this flexibility will benefit infrastructure investments, especially the bridge program.
An allocation of $200 million would provide an adequate investment, split evenly between primary and secondary networks.
Many bridges in the state’s extensive network are aging out of their intended lifespan. Over 2,400 bridges are over 60 years old. At the current rate of repair, the number of bridges in need of repair or replacement will reach 3,900 over the next decade.
Detours associated with closures and load restrictions impact commutes and impede commerce and emergency response times. This is a reality for many, given there are 675 load-restricted bridges, and 65 closed bridges statewide.
SCFOR applauds the legislature’s actions to date to make infrastructure investment a budget priority, and we hope that the announcement of additional revenues this week will help make these investments a reality.
FY24-25 Budget Conference Committee Members
Senators Harvey Peeler (R-Cherokee), Nikki Setzler (D-Lexington), and Sean Bennett (R-Dorchester)
Representatives Bruce Bannister (R-Greenville), Phil Lowe (R-Florence), and Leon Stavrinakis (D-Charleston)