Gov. Nikki Haley wants to start phasing in a 10 cent-a-gallon gas-tax increase and a huge cut to the state’s income tax.
Haley’s proposal for the state budget, unveiled Friday, outlines her priorities for the state’s fiscal year that starts July 1 — a year when the state will have more than $1 billion in added revenues. S.C. lawmakers will begin writing the state budget next month.
The Republican governor wants to spend $345 million more on roads, including $231 million in one-time money and $49 million from her proposed gas tax increase, to be phased in over three years.
Haley’s road-spending proposal is just shy of the $400 million a year in added spending that she says is needed to maintain S.C. roads and bridges. However, it is only about a quarter of the $1.5 billion a year in added spending that the state Transportation Department has estimated it needs to repair, maintain and expand the state’s roads, bridges and mass transit systems.
Haley’s budget proposal was met with skepticism by legislators.
Some said it did not do enough for roads. Others said her proposed income tax cut is wrongheaded.
“She can’t address a $40 billion shortfall (for roads) with $400 million,” said S.C. House Minority Leader Todd Rutherford, D-Richland, referring to the Transportation Department’s estimated shortfall through 2040. “It’s not even close. It’s not a drop in the bucket.”
