South Carolina Gov. Henry McMaster is asking lawmakers to approve an additional $1.1 billion for road and bridge work to offset rising construction costs, according to the South Carolina Daily Gazette.
The amount McMaster seeks is nearly equal to what legislators have spent on roads and bridges over the past four years combined, the Daily Gazette reported. His office said the surge in construction costs nationwide, along with South Carolina's fast growing population, is placing additional strain on its infrastructure.
Updated revenue estimates released in November provided lawmakers nearly $2.5 billion in additional funding for the fiscal year that begins July 1. That includes $1.7 billion in surplus money from unspent reserves and higher than expected tax collections, as well as $734 million in recurring revenue from continued economic growth, according to the state Board of Economic Advisors, as reported by the Daily Gazette.
McMaster's request would consume more than 60 percent of the state's one time surplus. He argued that dedicating a large share of that money to infrastructure is necessary as the state simultaneously works to reduce its income tax, which could limit future revenue.
"Our population is skyrocketing, and inflation is driving up construction costs, creating potential delays," he said in a statement quoted by the Daily Gazette.
Transportation Secretary Justin Powell warned in a December letter that transportation revenue is not keeping pace with inflation. He pointed to the 28 cent gas tax that fully phased in during 2022. When the Legislature approved the gradual 12 cent increase in 2017, one cent of that tax could pay to pave 114 mi. of two-lane highway. In 2025, the same penny will cover only 87 mi., Powell wrote, according to the Daily Gazette.
Of the $1.1 billion requested, $600 million would help pay for higher costs for ongoing interstate widening, $400 million would support repairs to aging bridges and $150 million would launch new projects, Powell wrote in the letter cited by the Daily Gazette. He warned that without the additional funding, projects already under way could face years of delay, and longer timelines would increase costs even more.
Two interstate widening efforts represent some of the largest cost increases. The project to widen I-26 between Columbia and Charleston has grown from slightly more than $2 billion in 2022 to $3 billion. The widening of I-95 from the Georgia border to U.S. 278 in Jasper County increased from $977 million to nearly $2.3 billion, the Daily Gazette reported. Columbia's Carolina Crossroads project, meant to fix the region's notorious interchange known as Malfunction Junction, rose from $2.1 billion in 2022 to $2.8 billion by the end of 2025.
The additional money could move two new projects forward. Powell wrote that $75 million would allow the Department of Transportation to begin preconstruction design work to widen I-85 between Anderson and Oconee counties and I-77 between Chester and Rock Hill. Beginning early design would help the state compete for federal grants and could move up the projects' earliest start date of 2035, according to the Daily Gazette. Another $75 million would fund a study of improvements to I-26, I-85, and I-77 near Charlotte, where North Carolina is already advancing its own upgrade program.
A significant portion of the money would go toward bridges. Of the state's 8,450 bridges, more than 2,800 are older than 60 years, which is when many require major repairs or full replacement, according to Powell's letter as reported by the Daily Gazette. Approximately 80 bridges were closed as of early December. Recent funding of $400 million for bridge work, combined with the agency's annual spending, allowed 278 bridges to be added to the list for imminent repairs. Still, the agency had asked lawmakers for $300 million for the third installment of bridge work rather than the $200 million it received.
The agency also wants $25 million to help transfer some state-owned roads to local governments. South Carolina has the nation's fourth largest state-maintained highway system despite ranking 23rd in population. Past "road buyback" proposals have failed because local governments have been unwilling to assume the financial responsibility, the Daily Gazette reported. The Department of Transportation is now asking lawmakers for authority to negotiate payments for such transfers, with the Legislature approving any final list.
