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CRMCA SC LEGISLATIVE UPDATE

CRMCA SC LEGISLATIVE UPDATE. VICTORIES. $550 MILLION IN FUNDING FOR STATE ROAD AND BRIDGE CONSTRUCTION & MAINTANENCE (BONDED OVER 10 YEARS) STEADY FUNDING SOURCE FOR LOCAL ROADS

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CRMCA SC LEGISLATIVE UPDATE

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  1. CRMCA SC LEGISLATIVE UPDATE

  2. VICTORIES • $550 MILLION IN FUNDING FOR STATE ROAD AND BRIDGE CONSTRUCTION & MAINTANENCE (BONDED OVER 10 YEARS) • STEADY FUNDING SOURCE FOR LOCAL ROADS • CHANGES TO LEED CERTIFICATION BILL TO KEEP FORESTRY FROM GAINING COMPETATIVE ADVANTAGE (3592 LANGAUGE SHARED WITH NC)

  3. ROAD PROJECTS IN THE PIPELINE • 1. I-85/385 interchange updates—$ 240 million, $100 million of SIB funding, $140 million federal dollars • 2. I-20 widening in Lexington County—$154.7 million • 3. I-77 widening from I-20- $38.7 million • 4.  I-85 in Spartanburg and Cherokee Counties- phase I and phase 2--widening--3rd phase is delayed from lack of funding --$262 million total • Additional Projects: • All estimates are preliminary --corridor studies could help get projects started faster and could help with federal funding • 1. I-26 project in Spartanburg county--$11.1 million design estimate • 2. I-20 widening from GA state line--$87.3 million • 3. I-26 from SC202 to US176-- $281.8 million, design cost $14.1 million • 4. I-26 widening from US17A--25th on interstate priority list--$60 million, overall $174.9 million—would get $30 million from county contribution so it would equal out to be $145 million • 5. I-85/US76-- widening, $26 million in bridge replacements, $317.6 million total, design cost around $19 million • 6. I-95 widening from US 178 to I-26- include interchange at 26--$100 million for construction of interchange, $137 million total

  4. WORK TO DO • CDL Employment Protection Act: - S 773 • FULL TORT REFORM PACKAGE – INCREASE THE BUSINESS CLIMATE IN SC • INCREASE RELATIONSHIPS WITH SCDOT • QUARTERLY MEETINGS AND SPEAKERS • LIFE CYCLE COSTING DISCUSSIONS • INDUSTRY SPECIFIC AND BUSINESS LEGISLATION

  5. ELECTIONS • 124 HOUSE MEMBERS UP FOR RE-ELECTION • NINE CONSTITUIONAL OFFICERS • NINE U.S. RACES • FILING DATES • MARCH (LAST TWO WEEKS) • PRIMARIES (JUNE) • RUNOFFS (JUNE) • GENERAL (NOVEMBER)

  6. Actual Expenditure by Source

  7. Where is the Money Spent? FY 2013-14 Appropriations Source: Office of State Budget

  8. FY14 - General Fund Revenue July-September • General Fund Revenue increased $39.3 million or 2.3%. Total Collections were $1,718.0 million and exceeded the quarterly estimate of $1,691.5 million and the 98% threshold requirement of $1,657.7 million. • Retail Sales Tax increased $18.3 million or 4.4%. Adjusting for the expected transfer of $7.0 million to DOT, Sales Tax FYTD growth is 2.7%. • Individual Income Tax increased $37.6 million or 3.6%. • Corporate Income Tax declined $8.7 million or 10.6%. • Corporate License increased $7.4 million or 57.4%. • Insurance Tax declined $17.1 million or 26.9% due to biennial licensing cycle. • Source: SC Board of Economic Advisors, FAR 10/30/13

  9. FY 2000 FY 2013 Gross Sales Amount 94,435,505,424 164,440,863,934 4.4%/yr. Net Taxable Sales Amount 45,199,250,866 56,743,306,956 1.8%/yr. Percentage of Net Taxable Sales 47.9% 34.5% FY 2012 FY 2013 Gross Sales Amount 156,213,293,606 164,440,863,934 Net Taxable Sales Amount 54,309,990,195 56,743,306,956 Percentage of Net Taxable Sales 34.8% 34.5% Source: Department of Revenue, Annual Reports. Comparison of Gross and Net Taxable Sales FY 2000 – FY 2013 5.2% 4.5% The Base is Shrinking.

  10. Fiscal Year 2013-14 General Fund Appropriations Transportation Funding Sales Tax on Cars Transfer to DOT $41 Million (Recurring) SIB – Bridges / Interstates $50 Million (Recurring) Excess 12-13 Revenue to DOT $50 Million Subtotal $141 Million State Department of Education Education Finance Act $77 Million Instructional Materials $24 Million 4K Expansion $26 Million Subtotal $127 Million Health and Human Services (Medicaid) $110 Million Employee Health Insurance $54 Million Small Business Tax Relief $40 Million Local Government Fund $30 Million Department of Commerce Closing Fund $16 Million Homestead Exemption Shortfall $12 Million General Reserve Fund $11 Million ReadySC (Worker Training) $8 Million

  11. Funding “Good”SCDOT Total Annual Funding Needs • SCDOT needs an additional $1.467 B per year for 20 years (total of $29.3 B) to bring our roads to a level of “Good” Source: The State of SCDOT, January 16, 2013.

  12. Number of Driver Licenses & Registered Vehicles in South Carolina Source: SC Department of Motor Vehicles website.

  13. Fuel Economy standard for passenger vehicles from MY 1978-2025 Source: NHTSA Summary of Fuel Economy Performance, NHTSA MY2017-2025 Factsheet

  14. Motor Fuel User Fee Revenue ProjectionIndexing the Motor Fuel User Fee or Keeping Fee at 16 cents per gallon Source: SC Board of Economic Advisors and SFC Staff Calculations

  15. FY14-15 BEA Oct. 30th Estimate – A Placeholder (until Nov. 18th)? BEA “Official” FY14-15 estimate (10/30/13): Increase FY13-14 - 0.0% Increase FY14-15 - 3.3% Net Increase Non-Recurring - $0 Net Increase Recurring - $102 Million* An “Unofficial” look ahead at BEA revised estimate (11/18/13): Increase FY13-14 - 3.25% - 3.75%** Increase FY14-15 - 3.5% - 4.25%** Net Increase Non-Recurring - $125 Million - $159 Million*** Net Increase Recurring - $348 Million - $436 Million*** * SFC staff estimate based on official BEA gross general fund revenue estimate of $7.057 Billion. ** Ranges of “personal income growth” to be considered by BEA at their 11/18/13, prior to “elasticity” adjustment. For presentation purposes, SFC staff assumes an elasticity of “1”. *** SFC staff calculations based on BEA comments at their 10/30/13 meeting, and other assumptions. These estimates are not BEA estimates, and are therefore unofficial.

  16. A Crystal Ball?...Or Anybody’s Guess?An Early Look at FY14-15… Possible Revenue (“New Money”): General Fund (Recurring): $101 Million (BEA 10/30/13) General Fund (Non-Recurring): $68 Million Possible Expenditures: K-12 EFA MOE at $2,101: $34.9 Million K-12 EFA New Money FY15?: ??? Million ($537 Million to fully fund) Local Government Fund Statutory: $74.9 Million Annualize FY14: $30.0 Million Medicaid New Money FY15?: ??? (Tobacco MSA available) Employee Health FY14 Annualize: $23.3 Million Employee Pay Raise?: ??? ($15 Million @ 1%) General Reserve Fund at 5%: $26.6 Million Act 388 Shortfall: ??? Capital Reserve Fund: $10.6 Million Employee Health 2015 (Half Yr.): ??? Transportation/Roads?: ??? One Time Tax Rebates?: ??? Additional Tax Expenditures (Recur)?: ??? ($20 Million Small Biz/Total $60 Million) Higher Education?: ???

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