An Update on Critical Funding for SC’s Roads and Bridges

Who is SCFOR?

The South Carolina Alliance to Fix Our Roads

We are a non-partisan, non-profit group dedicated to advocating for critical highway funding.

Our goal is to maintain a safe and efficient transportation infrastructure in South Carolina in order to promote continued growth and social progress in South Carolina.

Who is SCFOR?

Member Breakdown

• • • 38 Independent Businesses 30 Local Chambers of Commerce 17 State-wide Trade Associations • Safety advocates • Petroleum providers • Highways industry associations • Agriculture associations • Trucking associations • Tourism associations

Where We Stand

South Carolina has: • • • • • The 4

th

largest highway system in the country The 3

rd

lowest motor fuel user fee in the country Below average road conditions Over 1,600 bridges in need of repair or replacement A growing economy with growing infrastructure demands

The Problem

• • • SC highways have been neglected for far too long We must keep up with new growth Current funding sources cannot keep pace in our changing society

The needs are increasing and the funding must be diversified.

Current Conditions

Pavement Conditions Across SC Roads

Poor 47% Good 15% Fair 39% The Department of Transportation needs over $1.4B each year in additional funding to bring South Carolina highways to a “good” level of service. Without that funding, they can only “manage

the continued decline of the system.”

2013-14 Comparison of SC Pavement Conditions 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Pavement Conditions

36% 33% 31% 47% 39% 15% Poor Fair Good Jan. 2013 Jan. 2014 Poor 36% Poor 47% Fair 33% Good 31%

2013 Pavement Conditions

Good 15%

2014 Pavement Conditions

Fair 39%

Without increased funding, the system will continue to rapidly decline

Current Conditions

The 2014 South Carolina Rural Roads Report by TRIP points out that South Carolina has the most dangerous rural roads of any state in the US, at a rate of “3.99 deaths for

every 100 million miles of

vehicle travel.”

Current Conditions

Of South Carolina’s 8,416 bridges: • • 19% (1,624) are “substandard” • 849 are structurally deficient – structurally in poor condition • 775 are functionally obsolete – cannot meet traffic demands Average age of 43 years

1 out of 3 bridges is rated below “good”

Costs of Construction

Our roads are our biggest asset and represent an investment of $320 billion dollars.

For the same $1 Million, we can either: • • • Preserve 50 Lane Miles Rehabilitate 8 Lane Miles Reconstruct 5 Lane Miles

As the system declines, the cost to improve it is rising.

Conditions Affecting Our Safety

Over 1,500 insurance claims against SCDOT since 2010

$18.7

million paid for these claims • SC had 764 fatal accidents in 2013 • Road conditions were a major factor in 1 of 3 • SC fatalities per miles traveled is 50% above the national rate • Crashes cost the state $3.3B/yr in • Medical, workplace, insurance, and legal costs • • Lost productivity Travel delays

Our Need for Capacity

• • • • SC tied for fastest growing economy on the east coast 43% increase in SC traffic since 1990 35,000 new drivers are added to SC roads each year Charleston is fastest growing of U.S. Top 10 Container Ports

Annual Capacity Needs

Secondary $188M Primary Interstate $392M $550M • • • 2,577 additional secondary road miles 471 additional primary road miles 445 additional Interstate miles

Costs of Capacity Limitations

Together, SC Drivers lose 18,661,827 hours every year sitting in traffic These hours equal: • 5.3 hours/yr per licensed driver • 2,130 years total SCDOT estimates a $397M loss in economic activity due to congestion in 2011 That could pay for: More than all SC bridge repair/replacement and highway resurfacing costs over a 10 year period

Funding is Falling Behind

49% of state highway funding across the Southeast comes from fuel user fees 90% of SCDOT’s state revenues come from the user fee on motor fuel • • • GA spends $150,000 per road mile NC spends $35,000 per road mile SC spends only $15,000 per road mile

Motor Fuel User Fee

The motor fuel user fee in SC has not been increased since 1987 and is not structured to adjust with inflation The SC motor fuel user fee is significantly lower than our sister states

37.8¢ in NC

28.5¢ in GA The motor fuel user fee is fair, easy to administer, and over 30% is paid by out-of-state drivers 16.8¢ in SC

We need to increase and diversify our revenue sources

State Action on Motor Fuel User Fee (May 2014)

* Increased fee within past 5 years 25+ yrs without increasing fee

Current User Fee Payments

National Average Monthly Household Expenditures

Road and Transit Improvements Television and Internet *$46.33

$67,02 $56,91

*SC Average is only $40.97

Electricity and Gas $159,34 Phone Services $0,00 Landlines Cable Electricity and gas $75,48 $50,00 $85,77 $100,00 $150,00 $200,00 Cell phones Internet Motor fuel taxes (state and federal)

Public Opinion: Winthrop Poll

Would you support or oppose an increase in the gas tax with the new gas tax money going to improve roads and bridges?

Support: 50.5%

Oppose: 47.6% Unsure/No Answer: 1.9% Would you support or oppose this new gas tax if it meant an extra $1 to $2 for a typical fill-up?

Support: 61.7%

Oppose: 37% Unsure/No Answer: 1.3%

Each driver already pays $255/yr for driving on poor roads We could invest at the pump and improve our safety, economy, and commute

Funding Options

• • • • • • Increase the existing motor fuel user fee Index the motor fuel user fee Transfer motor vehicle related fees Remove/reduce the sales tax exemption on motor fuel Dedicate General or Capital Reserve Fund money to highways Tax alternative fuel vehicles

Alternative Fuel Vehicles

If 3 cars drove across every state road in South Carolina… Hybrid would pay $141.12 in motor fuel user fees Sedan would pay $236.80 in motor fuel user fees Electric vehicle would pay $0.00 in motor fuel user fees The motor fuel user fee allows drivers to pay for upkeep as well as their use of signage, pavement, and safety measures – however,

drivers don’t pay equally to cover these costs

A Little Goes a Long Way

An investment in infrastructure is an investment in economic development and quality of life.

$1 billion invested in roads $3.4 billion in GDP Over 28,500 jobs $1 invested in transportation = $5.20 in driver savings These savings come from reduced • Vehicle, road, and bridge maintenance costs • Traffic delays • Fuel consumption and standing traffic emissions • Motor vehicle crashes

Road Map Plan/$6B Need

SCFOR worked with other organizations to create a “Road Map to the Future” for South Carolina This 10 year plan prioritizes funding needs as: Interstate Expansion Bridges Resurfacing

Total

$2.8 billion $2.0 billion $1.2 billion

$6.0 billion

If fully implemented, the Road Map to the Future would: • Create over 170,000 new jobs • Add $20.4 billion to the state GDP

Consequences of Inaction If we do nothing, in 25 years we will:

• • • • • Pay 3x the amount to fix what we could have maintained Spend even more hours in traffic Forfeit growth Miss billions in economic opportunities Continue to lose lives on poor roads

2013 Legislative Actions

$500 Million $41 Million $50 Million

Bonding for roads and bridges through $50 Million allocated per year in recurring revenues Recurring vehicle sales tax transferred to Non-Federal Aid Highway Fund General Assembly funding allocation for bridges

$591 Million for Highway Funding

Road Map Current Position

We are moving forward but have a long way to go to reach $6B.

Road Map to the Future Funding Progress

Remaining Need 2013 Legislation 100% 80% 60% 40% 20% 0% 10% was accomplished in 2013

Your Actions

2014 is an Election Year The greatest opportunity in 2014 is to elect officials who will take the lead on transportation/infrastructure issues

Take the time to: • Educate others about road funding needs • Contact your legislators at • •

www.scstatehouse.gov

Write an editorial in your local paper Share our video regarding transportation and infrastructure funding in SC

Uniting together is the only way to improve our roads

Speak Out and Tell Us!

Share your thoughts and pictures at www.fixscroads.com

Questions?

Sources

• • • • • • • The information in this outline is largely pulled from: • • “Transportation Infrastructure Task Force: Final Report” published by SCDOT, December 6, 2012 “South Carolina’s Road Map to the Future” published jointly by the SC Chamber of Commerce, SC Manufacturers Alliance, SC Forestry Association, Carolinas AGC, Palmetto Agribusiness Council, SC Alliance to Fix Our Roads, SC Trucking Association, SC Farm Bureau, Greater Lexington Chamber & Visitors Center, SC Asphalt Pavement Association “Getting to Good” published by SCDOT and presented by Robert St. Onge, March 2013 “SCDOT-paid claims range from car damage to lost lives” written by Tim Smith and published on February 12, 2013 in the Greenville News Graphic information cards published by NC Go!

“Bridges 101” published by SCDOT, October 2, 2013 “Are Good Roads & Transit Worth as Much as Cable and Telephone Service?” and public opinion poll published by the American Road & Transportation Builders Association, 2013 “Needing Money for Roads, States Mull Gas Tax Hike” graphics developed by Frank Pompa at the Institute on Taxation and Economic Policy and published by USA TODAY on March 11, 2014 “South Carolina Rural Roads Release” published by TRIP, July 10, 2014 For these or other related articles, please contact SCFOR at (803) 799-2518 or visit our website at www.scfor.org