Senators completed their debate on the FY24-25 budget shortly before 11:00 p.m. on Wednesday, April 24.  Significant investments were made in transportation infrastructure, with approximately $435 million in one-time funds allocated to bridges, CTCs, rural road safety, and local/earmarked projects. The majority of these funds, $417.4 million, come from the Homestead Exemption (HEX) Fund.

Since January and throughout budget deliberations, we have heard a lot about the Homestead Exemption (HEX) Fund, which was established in 2006 when the state sales tax increased from 5% to 6% and property taxes on owner-occupied homes were cut in half.

Since the pandemic, the fund has grown to $600 million and essentially has built up what is considered a “surplus,” making it a major topic of discussion for the FY24-25 budget. You will recall:

• The Governor called on the legislature to allocate $500 million in HEX funds to the state’s bridge program in his Executive Budget.
• The House opted to utilize $500 million of the HEX funds for a one-time property tax reduction for homeowners under the interpretation that dollars must be used for property tax relief.

Senators took a page from the Governor’s playbook regarding the use of the funds and didn’t limit them to property tax relief. Instead, they opted to allocate the, including accelerating income tax reductions and transportation infrastructure.

The use of HEX funds will be a key area of focus as the budget moves forward, given that these funds are the primary revenue source for the infrastructure funding included in the Senate budget.

SCFOR applauds the Senate for prioritizing infrastructure investments and raising the bar on how much money could be invested in infrastructure this year. We will continue to press for $200 million for bridges and support additional investments to boost safety and county road programs.

The budget will now return to the House, and they will have a chance to amend it. (This version of the House budget is commonly called “H2” because it gives the House a second opportunity to address the budget and changes from the first version that passed can occur.)

Should the Board of Economic Advisors (BEA) increase revenue estimates in May and give legislators more money to work with, this would undoubtedly impact budget negotiations between the House and Senate.

The emphasis on infrastructure is clear and will ultimately depend on how use of the HEX funds (accelerated income tax reduction vs. property tax relief) and revenue estimates shake out in the coming weeks.

 

 

The Senate Finance Committee chaired by Senator Harvey Peeler (R-Cherokee) completed their work on the FY24-25 budget this week, drafting the Senate version of the spending plan that will be debated on the floor beginning April 23.

Senators made significant investments in roads and bridges, allocating roughly $435 million in one-time dollars to bridges, CTCs, rural road safety, and local/earmarked projects. Of those allocations, $417.4 million comes from the Homestead Exemption (HEX) Fund.

Senator Darrell Jackson (D-Richland), Chairman of the Transportation & Regulatory Subcommittee, applauded the subcommittee’s work and noted that they recognized the need to invest in roads and bridges.

Since January and throughout budget deliberations, we have heard a lot about the Homestead Exemption (HEX) Fund, which was established in 2006 when the state sales tax increased from 5% to 6% and property taxes on owner-occupied homes were cut in half.

Since the pandemic, the fund has grown to $600 million and essentially has built up what is considered a “surplus,” making it a major topic of discussion for the FY24-25 budget. You will recall:

• The Governor called on the legislature to allocate $500 million in HEX funds to the state’s bridge program in his Executive Budget.
• The House opted to utilize $500 million of the HEX funds for a one-time property tax reduction for homeowners under the interpretation that dollars must be used for property tax relief.

Senators took a page from the Governor’s playbook regarding the use of the funds and didn’t limit them to property tax relief. Instead, they opted to allocate the $600 million across various areas, including accelerating income tax reductions and transportation infrastructure.

The use of HEX funds will be a key area of focus as the budget moves forward, given that these funds are the primary revenue source for the infrastructure funding included in the Finance Committee’s budget.

SCFOR applauds the Finance Committee for prioritizing infrastructure investments and raising the bar on how much money could be invested in infrastructure this year.

We will continue to press for $200 million for bridges (as we have since January) and support additional investments to boost safety and county road programs.

There is also a chance that legislators may have additional revenue to work with as budget deliberations progress. Should the Board of Economic Advisors (BEA) announce additional revenues available for allocation in May, this would certainly impact budget negotiations between the House and Senate.

Senators will debate the budget on the floor the week of April 23. Once the budget passes the Senate, it will return to the House, and they will have the opportunity to amend it and return it to the Senate. (As with every budget, we expect a conference committee will be appointed to sort out differences in May/June.)

The budget process is just getting started. The good news is, the emphasis on infrastructure is clear, and it will ultimately come down to how revenue estimates and tax cut provisions shake out in the coming weeks.

Bridges are key connectors for communities and commerce.

Many bridges across the state are aging out of their intended lifespan. Currently, there are over 2,500 bridges that are 60 years old or older, and that number is expected to grow to 3,900 over the next decade.

Thanks to the legislature’s investments in 2022, South Carolina has been able to move projects in the pipeline forward (sooner than they would have otherwise) and is better positioned to take advantage of federal dollars from the Infrastructure Investment & Jobs Act (IIJA).

South Carolina is putting dollars to work. Progress toward tackling improvements to our extensive transportation network continues; however, there is much work to be done to meet the needs of our growing state.

An allocation of at least $200 million in the FY24-25 budget would help address repairs and replacements to a growing number of aging bridges – sooner rather than later.

We encourage legislators to help SC maintain momentum by investing in our bridges this year. This investment will enable the state’s transportation infrastructure to deliver more for the economy as well as the residents, businesses, and tourists that rely upon it. Learn more about the latest developments in the FY24-25 budget process here. 

#roads #bridges #safety #KeepSCMovingForward

The Senate unanimously confirmed Justin Powell as the Secretary of Transportation on April 2, 20224. Secretary Powell was joined by his wife Ashley, their two children, and his parents for the occasion.

SCFOR congratulates Powell on his confirmation. We know his experience and expertise will serve the state well, and we look forward to continuing to work with him in his new role as he leads the SCDOT.

Powell most recently served as Chief Operating Officer, managing the day-to-day operations of SCDOT. He joined SCDOT in 2019 as Deputy Secretary for Finance and Administration, responsible for SCDOT’s budget, and oversaw the growth of the construction program from $3 billion to $5 billion. In 2022, he was promoted to Chief of Staff, serving as the senior advisor to Secretary Hall, and led numerous strategic initiatives on the Secretary’s behalf.

Powell has extensive experience in local government. Before his career with SCDOT, he served as the Assistant County Administrator in Horry County, where he provided financial leadership to the County’s $500 million roads sales tax program, managed a project to restore freight rail service to a three-county region, and supported the County’s response to numerous disasters and subsequent resiliency efforts. In addition, Powell has worked at other local government agencies, including Dorchester County, the City of Greenville, and Fairfax County, VA.

View the SCDOT’s official press release on Powell’s confirmation here. 

House & Senate Races

Every member of the House and Senate is up for election this year. We have compiled an interactive tracking list that we will update through the 2024 election season. We encourage you to follow the races with us!

Learn more about filings for all state/local races by visiting the SC Election Commission website here. 

Local Transportation Funding Referendums

SCFOR tracked nine counties with local option sales tax referendums on the November 5 ballot. Please note that the counties we tracked had transportation taxes or capital project sales taxes solely dedicated to transportation improvements on the ballot. Click here to learn more. 

https://scfor.org/2024/04/04/2024-election-tracking/

Members of the House and Senate honored Secretary of Transportation Christy Hall on the floor this week for her service, leadership, and dedication to the state of South Carolina during her extensive career with the SCDOT.

The House recognized Secretary Hall on Wednesday morning with a resolution honoring her exemplary service to the state. Speaker Murrell Smith (R-Sumter) took to the House floor to address the chamber, noting Hall’s work in moving the state’s 10-year plan forward with the passage of Act 40. “Even those who were opposed to the plan also take a lot of credit for the plan’s implementation these days. So that’s great work, Secretary Hall, when your opponents become your advocates,” he jested.

Education & Public Works Committee Chairwoman Shannon Erickson (R-Beaufort) joined Secretary Hall in the balcony to present her with a copy of the resolution.

Later in the day, Senators honored her on the floor with a resolution and personal remarks.

Senator Larry Grooms (R-Berkeley) began the introduction with a funny story about his wife being a wrestling coach. He said, “Back home, when someone says, ‘You’re alright,’ that means something. It means something to me, and it should mean something to everybody in here. We have Secretary Christy Hall with us, and she’s alright.” 

Members of the Senate stood alongside Senator Grooms, and several made remarks, thanking Hall for her dedication, responsiveness, and ability to transform the agency. Here’s what a few Senators had to say:

Senator Grooms closed the presentation by thanking Secretary Hall for her leadership, and wishing her well in her retirement. “Humble, servant, leadership. Our state has been blessed to have your humble, servant leadership. And strong leadership…We wish you well and all the happiness in the world on your retirement. You’re alright,” he said.

 

The House completed their work on the FY24-25 appropriations bill, which includes a one-time allocation of $200 million to SCDOT to aid repair and replacements to the state’s aging bridge network.

This allocation of additional dollars to the state’s bridge program is timely, given the fact that many bridges across the state are aging out of their intended lifespan. Currently, there are over 2,500 bridges that are 60 years old or older, and that number is expected to grow to 3,900 over the next decade.

SCFOR applauds the House for prioritizing infrastructure and we encourage the Senate to support this allocation.

Budget subcommittee meetings are underway in the Senate, as the Finance Committee begins work to craft their version of the FY24-25 budget. The budget will be debated in the Finance Committee the week of April 9.

 

The Senate Transportation Committee, chaired by Senator Larry Grooms (R-Berkeley), met on February 7 to vet the appointment of SCDOT’s Chief Operating Officer (COO), Justin Powell,to serve as the Secretary of Transportation.

You will recall that the SCDOT Commission unanimously appointed Powell to the position in January, effective upon the retirement of Secretary of Transportation Christy Hall on March 31.

Commissioners and SCDOT staff were present for the hearing, which served as an opportunity for Senators to question Powell and ultimately determine if he was qualified for the position so his nomination could move forward to the full Senate.

Powell was sworn in, and Chairman Grooms opened with interview type questions for someone appointed to lead a massive agency. Other senators offered everything from praise for Powell, Secretary Hall, and the SCDOT team – to inquiries about how specific issues/projects are handled in their areas.

Powell was able to answer all of the questions thrown his way – even the tough ones.

The Committee unanimously approved Powell’s nomination, which now moves to the full Senate for approval.

View Powell’s official bio here. 

Data provided at the SCDOT Commission meeting on January 18 shows that progress continues across the network to meet targeted goals outlined in the state’s 10-year plan.

There is $5.2 billion worth of active projects (funded by federal and state dollars) underway across the state. State revenues are the predominant revenue source for repairs and maintenance, especially for the pavement program which remains a priority. Significant work also continues on our interstates, which benefit from federal dollars.

Since the December Commission meeting, more bridges have advanced to construction and to date, over 200 bridges have been repaired.

However, bridges remain a top concern given many of the state’s bridges are rapidly reaching the age for repair or replacement. SCFOR supports any budget allocations that can be made this year to help address improvements to these critical structures.

Progress continues on the rural road safety program, and preliminary data shows that fatalities and serious crashes on these routes have decreased by 24%.

You will recall that passage of road funding legislation in 2017 provided additional funding for the state to tackle long overdue repairs.  These revenues are allocated to the Infrastructure Maintenance Trust Fund (IMTF), which is being used to fund repairs in ALL 46 counties.

Learn more about how these IMTF funds are being used here.

Commissioner Tony Cox (Dist. 7) ended his term as Chairman this month and passed the gavel to Commissioner Pam Christopher (Dist. 3), who was elected by acclamation at Thursday’s meeting.

“This is an exciting time for SCDOT, and we have tremendous opportunities ahead of us. I continue to be impressed by the incredible team at SCDOT and I look forward to working together with them to continue our progress,” said Christopher.

Chairman Christopher is the first woman to chair the SCDOT Commission. She joined the Commission in 2020 and served as Vice-Chair in 2023. She is the President and CEO of the Anderson Area Chamber of Commerce.

Commissioner Max Metcalf (Dist. 4) was nominated and elected to serve as Vice-Chairman by acclamation. Commissioner Metcalf joined the Commission in 2022. He is the Manager of Government and Community Relations at BMW Manufacturing.

“I am pleased to serve as the next Vice-Chairman for the SCDOT Commission. Along with my fellow commissioners, I remain committed to improving the transportation network in South Carolina, and I look forward to building on the momentum we have established.”

SCFOR thanks Commissioner Cox for his leadership as Chairman over the past year, and we look forward to continuing to work with him on the Commission.

We also congratulate Chairman Christopher and Vice-Chairman Metcalf and look forward to working with them in their new leadership roles on the SCDOT Commission.