S.C. lawmakers should tie the state’s gas tax to fuel prices or inflation and identify other sources of revenue to pay for road repairs, according to a report released Tuesday.
Compared to other states, South Carolina dedicates the least money to its roads, considering the size of its road system and the traffic carried, the report by the Legislative Audit Council said.
In addition, the structure of the state Transportation Department — governed by an eight-member commission, seven members appointed by legislators, and an agency head, appointed by the governor — “creates confusion” as to who is in charge, the report said.
In response, Transportation Department head Christy Hall again Tuesday urged lawmakers to pass changes to her agency’s structure this year.
“The (Legislative Audit Council) itself noted the confusion over the simple question of who is in charge,” Hall said. “Without that critical issue resolved, it will be nearly impossible to set clear priorities, instill effective accountability and correctly answer the question of where the buck stops for the organization.”
For two years, S.C. lawmakers have grappled with how to raise more money to repair the state’s crumbling roads.
Many Republican lawmakers argue the structure of the Transportation Department needs to be changed, putting the governor in charge, before more money is sent to the agency.
Lawmakers have made it clear the state’s gas tax — the third lowest in the nation — will not be increased this year, an election year, to help pay for road repairs.
The state’s reliance on the fuel tax to pay for repairs is problematic because that tax does not adjust to reflect inflation, according to the audit. In addition, more fuel-efficient cars have led to a drop in fuel consumption, threatening the state’s gas-tax revenue.
The gas tax also hurts low-income consumers most, the audit said.