On March 5, Secretary of Transportation Justin Powell presented the 2025 State of SCDOT to the Senate Transportation Committee chaired by Senator Larry Grooms. Overall, Secretary Powell’s message was clear: in order to modernize the system, we must modernize our policies. The more tools in the toolbox, the better. Here’s a few highlights from the presentation.
Maintaining Momentum
Secretary Powell touted the work happening across the state and the ongoing support of the legislature to make infrastructure a priority. Act 40 (2017) was passed to address repairs to existing roads and bridges. The state is fulfilling its commitments by consistently meeting and surpassing targeted goals. However, South Carolina has changed significantly over the past eight years. In order to maintain momentum, many factors must be considered to accommodate the state’s growing population and economy.
Loss of Buying Power
South Carolina’s transportation revenues are not keeping pace with population growth or inflation. When you think about it, the state’s tools to address infrastructure needs are based on historical assumptions that the more you drive and the heavier the vehicle – the more you pay. This isn’t necessarily the case anymore.
Secretary Powell explained how the buying power of the state’s revenues (especially gas taxes, the state’s predominant funding source) continues to diminish thanks to inflationary factors, ongoing improvements in fuel economy, and a new generation of vehicles fueled by electricity.
Dollars are not going as far as they used to, and the proof is in the pavement program. Secretary Powell cited that in 2022, the state’s pavement program covered roughly 1,100 miles, whereas the same level of investment in 2024 covered only 727 miles. Learn more about how the state funds our transportation network.
Electrification of Transportation
Many states, including South Carolina, impose higher registration fees for EVs to offset the loss of fuel tax revenues. However, South Carolina’s $120 electric vehicle biennial registration fee ($60/year) is nowhere near what the average driver pays annually in gasoline taxes and remains lower than our sister states. In addition, growing number of states are implementing a kilowatt-hour (kWh) charge on public charging stations which allows out of state EV drivers to contribute to the system. Learn more about how other states handle electric vehicles.
Bridge Program
South Carolina is responsible for over 8,400 bridges and this network is aging – rapidly. Closed and load restricted bridges impact commutes, commerce, and emergency response times. Ongoing investments in the bridge program are critical to the state’s ability to address a growing number of bridges in need of repair or replacement.
The legislature provided a one-time $200 million allocation to bridges in the FY24-25 budget. These dollars continue to be allocated and will be fully committed in the coming months. SCDOT has renewed this request in the FY25-26 budget to continue investment in the bridge program.
Dealing with Growth
Based on input for the SCDOT’s Momentum 2050 plan, congestion and delays are the top concern for residents. SCDOT data shows that there are more drivers traveling more miles on the same number of lane miles. As the state continues to grow, capacity and the ability to move people and freight will continue to be an issue. Secretary Powell said that easing congestion isn’t just new alignments or widenings. It also includes retiming lights, improving intersections, and considering all modes of transportation.
Improve Transportation Planning
While SCDOT is responsible for maintaining and repairing our extensive state network, many entities have a role in ensuring that our state continues to move forward. Unlike economic development or workforce, there is no formal mechanism for agencies involved in transportation to come together and coordinate efforts. Therefore, improving collaboration and communication between agencies and entities would serve the state well.
SCFOR applauds Secretary Powell for laying out a vision for improving operations, planning, and the need to address revenue sources. South Carolina is one of the fastest-growing states in the nation, and as our economy and population continue to change, so do the impacts on our transportation network – literally and fiscally. We firmly believe that in order to maintain momentum toward improving conditions, mobility, and accessibility statewide, our transportation policies must remain reliable and relevant.
