March 2 , 2009
Highlights of the sixth week (Feb. 15) and seventh week (Feb. 22) of the S.C. General Assembly session include legislative action and activities on Interstate 73 and the state budget. Also, an update on the federal economic stimulus bill is provided:
Economic Stimulus Bill
On Feb. 17, President Obama signed into law a $787 billion economic stimulus package of spending, tax cuts and tax credits, the largest government economic rescue plan in the nation's history. South Carolina could get $8 billion of that in tax breaks, unemployment, Medicaid and other cash for programs and projects.
The spending portion of the federal plan includes $48 billion for transportation projects, with $27.5 billion for highway and bridge construction and repair.
South Carolina will get $463 million for road projects, which includes $150 million for local governments and councils of governments to decide how to spend. Of the $313 million remaining, the state must commit at least half to projects within 120 days. Decisions on the rest can take a year.
The seven-member S.C. Transportation Commission has committed to spend $200 million that calls for:
- $150 million for road resurfacing projects in every county, including $100 million approved for immediate spending
- $74 million for interstate highway maintenance, with $50 million approved to use immediately
- $56 million for bridge replacement, $37.5 million immediately
- $19 million for safety projects, $12.5 million immediately
- $14 million to build or improve sidewalks near schools, public buildings and other public places with safety concerns
The commission has not yet provided details on which of the projects will get money first and left some of the final decisions to Department of Transportation engineers.
Interstate 73
State transportation commissioners will decide at a March meeting if the roadway will be on the list of projects for Economic Recovery Act funds. Up to this point, the commissioners are not convinced that the project could be readied within the 120-day construction window.
A state funding source must be identified for I-73 if the project is to receive federal dollars. Legislators have proposed a 3 percent fuel fee, which would be levied between April 1 and Sept. 30. If implemented, the fee would raise the cost of 10 gallons of gas about 50 cents in the Myrtle Beach area, based on current prices.
The decision to levy the fee could be made either through a voter referendum or approval of county councils in the four counties the interstate will cross (Horry, Dillon, Marion and Marlboro).
The money is needed to help pay South Carolina's $2.4 billion portion of the interstate. Tolls are also being considered to help pay for the roadway.
If funding is not approved for I-73, $81 million in federal funds is appropriated for the project, and DOT would have to apply for funds from a $1.5 billion federal grant.
According to DOT, about 100 staff members, surveyors and technicians are working on the I-73 project. The acquisition of rights-of-way is scheduled to begin by late summer. Workers are preparing permits for the S.C. Department of Health and Environmental Control and the U.S. Army Corps of Engineers, which can take between 12 and 18 months.
State Budget
Lawmakers are still struggling with balancing the state budget. Cuts are still needed to close a more than $300 million deficit from the $6.6 billion draft spending plan. The cuts would trigger tax increases, reduce such services as police protection and fire safety and provide less money for the arts. A House plan proposes balancing the budget with $122 million in cuts to local government funding, which is drawing criticism.
A number of legislators will propose other ideas-including a cigarette tax increase-when the bill is debated on the House floor beginning March 10. According to Rep. Gary Simrill, R-York, a 30-cents-a-pack increase, roughly equal to those of North Carolina and Georgia, combined with $30 million in additional cuts, would close the gap.
Sources: Information has been compiled from reports in The Sun News (Myrtle Beach) and The State (Columbia).
On the Net
MyrtleBeachAreaChamber.com
SCStateHouse.net
House.gov
Senate.gov
USA.gov
SCChamber.net
USChamber.com
I-73.com
