Charleston Business Journal > August 21, 2006 > News
Half-cent sales tax fuels CARTA’s service expansion

By Shelia Watson
Contributing Writer

After several fits and starts, the Charleston Area Regional Transportation Authority may be finally shifting into high gear thanks to the 2004 passage of the sales tax referendum and, more recently, assistance from Charleston County in paying its debt.

“We’re very appreciative of county council and its willingness to assist with the debt service reduction,” said Howard Chapman, CARTA’s executive director.

According to Chapman, the assistance from the council is not a matter of bailing out the organization but rather a means to allow CARTA to move forward. The authority has struggled with debt since the 2002 half-cent sales tax referendum was struck down in court.

“We had to borrow money to stay in business when the 2002 referendum was overturned,” said Chapman.

“The city of Charleston and the city of North Charleston lent us money, and we committed to them that we would repay that with the passage of the sales tax in 2004. It passed and we went to the bank and got a good interest loan. We were paying back on schedule, but now, with county council’s intention to pay the remaining payments, that will allow us to implement several plans, including a commuter service later this year.”

The commuter service will run throughout North Charleston, Mount Pleasant, James Island and the peninsula and is a necessary preliminary step to a commuter rail service between Summerville and Charleston that is currently under study. (See story page 38.)

Out of gas

CARTA was established in 1997, when it assumed responsibility for transit services formerly operated by South Carolina Electric and Gas. As part of the agreement, SCE&G provided funds sufficient to support operations for about seven years.

In November 2002, Charleston County voters narrowly approved a half-cent increase in the county sales tax, with proceeds designated for highway and bridge improvements, green space acquisition and CARTA operations.

However, the election results were challenged due to the wording on the ballot and the sales tax referendum was ruled invalid by the South Carolina Supreme Court in August 2003.

Without the sales tax proceeds, and with no alternative funding, CARTA has been forced to decrease services several times.

“By (borrowing money from the two municipalities) three years ago, that allowed the system to stay in operation,” said Chapman. “If we hadn’t, we would have had zero bus service, and it would have taken us probably a minimum of two years to get up and running again.”

Engine overhaul

With the sales tax money, CARTA developed the “New CARTA Plan,” with a variety of transit service enhancements designed to improve transit options throughout the area. The plan calls for redesigning the existing fixed-route system to be a network of interconnected neighborhoods, local and express routes.

Among the enhancements are park-and-ride lots that would allow commuters to connect with new express services to work. Other services in neighborhoods would use smaller buses as well as a demand-response service in certain areas.

“It’s important to note that we’re where we are because of the half-cent sales tax and the confidence of the voters,” said Chapman. “We’re implementing the New CARTA Plan that we told the voters we would do.”

Some portions of the new plan are already in operation, with other parts set to begin later this year.

Key components of the new plan include:

• Express routes between certain locations every 30 minutes from 7 a.m. to 9 a.m. and again from 4 p.m. to 6 p.m.

• Local routes, including the Downtown Area Shuttles, with all-day service.

• Neighborhood routes, some with smaller buses, that connect local routes and express routes at hubs.

• Demand-response service that requires reservations with service hours the same as neighborhood routes.

• Late-night demand-response service that operates until 1 a.m.

Apparently some of the population is beginning to take notice. Chapman said ridership in July reached more than 271,000 riders, an increase of 30,000 over the number riding in June. He attributes the increase to several factors.

“First, people are seeing our service out there every day, and they see it’s continuous,” he said. “We also have the ‘Free Ride Fridays’ campaign once a month that’s gaining popularity. And there’s the increase in the cost of gas, which has made riding the bus a little more attractive.”

CARTA also offers free bus service to MUSC students, faculty and staff in return for MUSC paying $221,000 per year to operate the MUSC shuttle. The College of Charleston has a similar arrangement with a DASH route offered free to students in exchange for $100,000 from the college annually.

The road map

With its prior debt taken care of, the organization can turn its attention to the future. In addition to the New CARTA Plan’s expanded service, Chapman said the agency would begin seeking bids to construct new bus shelters throughout the system.

Depending on the exact bids and with an expected cost of $8,000-$12,000 each, CARTA anticipates constructing 18 to 25 at various locations.

In addition, CARTA is moving into Phase I of its intermodal center in North Charleston, located near Montague Avenue and Dorchester Road, which will provide infrastructure for the commuter rail.

“We don’t have the money yet for building, but we’re working with Congress to get infrastructure funds,” Chapman said.

“We’ve been acquiring the land for the last five to six years. The sales tax money, the assistance from county council, the juggling of route schedules, it’s all part of the bigger plan for improving transit in this area, including bringing the commuter rail online.”


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"The city of Charleston and the city of North Charleston lent us money, and we committed to them that we would repay that with the passage of the sales tax in 2004."

Howard Chapman
Executive Director, CARTA


















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