Chamber November Breakfast Presentation - Otis Rawl "Paving the Way to the Future"

Roads, Highways & Bridges Investing in

South Carolina’s

Future

November 2014

Key Infrastructure Facts

• Just 29 percent South Carolinians are riding on what is considered “good” pavement right now.

• 31 percent of our interstates experience recurring congestion.

• Almost half of our primary roads are rated in “poor” condition.

• There are 830 structurally deficient bridges that our citizens are riding on every day. Almost half of those are load restricted, meaning businesses have to reroute trucks just to do daily business.

SC Chamber Position

Critically Important:

• Widening projects on South Carolina’s interstates

• Fixing load restricted and deficient bridges and

• Resurfacing existing roadways

2014 Penny Sales Tax Referendums for Infrastructure

Note: 38 counties currently have a penny sales tax as either a local-option sales tax or for the school district, transportation projects, capital projects or education capital projects.

Passed:AndersonLancaster

Failed:LexingtonGreenvilleOconee

Sample: 800 S.C. Republican Voters

Research: Conducted March 31, 2014 -April 1, 2014

Other groups tested: SC Fix our Roads, SC Manufacturers Alliance, SC Trucking Assn, Palmetto Business Forum, Carolinas Association of General Contractors, Build a Better SC, South Carolinians for a Better Future

71.6 High Rating

85.2 High Rating

Would you rather road and bridge improvement revenue

be raised through gas taxes, user fees or both?

Percent

Gas Taxes 10.1 %

User Fees 9.9 %

Both 63.6 %

Unsure 11.5 %

Refused 4.9 %

ARGUMENTS THAT MADE VOTERS SAY THEY WERE MORE LIKELY TO SUPPORT TAX

• Our South Carolina’s roads, bridges and highways are in bad condition

• Our state has not raised its gas tax in 25 years, while all surrounding states have raised theirs within the past year.

• Repairing roads now is cheaper than having to replace them later; and

• A gas tax to improve infrastructure means one third of the revenue would come from out-of-state drivers

TOP METRICS ON MESSAGES ON A SCALE OF 1-5

How strongly do you agree with these statements as reasons to invest more in roads, bridges & highways…

• A priority for public safety and quality of life 73 (42)

• A priority for jobs & economic development 72 (40)

• SC has duty to make roads safe & reliable 86 (61)

INFORMED BALLOT QUESTION

Are you willing to pay a higher tax to improve roads, bridges & highways over the next 10 years?

  Informed Cold Ballot

YES 57 % 45% (+12%)

NO 38 47 (-9%)

UNSURE 5 7

Ad Hoc Committee On Transportation

• Established by acting House Speaker Jay Lucas• Chaired by Rep. Gary Simrill• Has heard testimony from business community,

SCDOT

Being Discussed (in addition to funding):• Return of roads to counties• SCDOT Restructuring (SCDOT already working

under a recently reformed system – Act 114)• Revenue options

Ad Hoc Committee On TransportationReturning Roads to Counties

• Who will have authority over roads?

• Restrictions by cities, counties permitted?

• Does infrastructure really gain (how will it be funded)?

• SC Chamber Priority – existing roads, not expansion

Ad Hoc Committee On TransportationSCDOT Restructuring

• SCDOT Commission – gubernatorial appt. with advice and consent from General Assembly – not based on congressional district

Revenue Options• Statewide referendum (sales tax)• Cap on automobiles• General Fund revenue• Substitute sales tax for gas tax• Gas tax

Statewide

Research

Infrastructure

November 2014