SC business groups recommend 5-point plan for funding roads

COLUMBIA, S.C. (AP) — The South Carolina Chamber of Commerce and Manufacturers Alliance are urging legislators to pass a road-funding plan in the coming weeks. They’re recommending that a compromise do the following:

—Raise at least $600 million yearly for road and bridge work. The Department of Transportation has said it needs an additional $1.5 billion yearly over 20 years to bring roads to good condition. A bill up for debate in the House would generate about $400 million annually. A Senate bill would raise $800 million.

—Diversify the revenue stream for infrastructure. In South Carolina, roadwork is mostly reliant on state fuel taxes and the federal money they bring.

—Address the DOT’s governance structure. If the Legislature does nothing, the governor loses the ability to appoint the agency’s director, since a 2007 law that put it in the governor’s Cabinet expires July 1. Currently, the director reports to both Haley and a legislatively appointed commission. Haley wants the commission eliminated. The business groups just don’t want to revert to the old model. A House bill would let the governor appoint all commissioners.

—Work with local governments to make the state system smaller. South Carolina’s highway system of 41,400 miles is the nation’s fourth largest, partly because it includes a vast number of short, limited-traffic roads. “We’ve got to move to a smaller state system to more effectively manage it,” said the chamber’s CEO Ted Pitts. “There are some roads in the state system that will never get more than a patch during my lifetime.” The House bill encourages local governments to take control of secondary roads.

— Ensure the state’s tax structure is competitive. Since Haley has tied income taxes to road funding, a final deal will need some sort of tax compromise, said Pitts, Haley’s former chief of staff. The business groups broadly say keep the state competitive, without giving specifics. The House bill cuts personal income taxes by $51 million annually.