PrintPrintWhat does South Carolina get for $8 billion? Depending on whom you ask it’s either a legacy of federal debt that will saddle generations to come or it’s part of the boost our economy needs to begin to crawl out of the financial hole others have dug for us. With the passing of a $787 billion stimulus bill last month, Congress directed about that amount to South Carolina.
By Ashley Fletcher Frampton
aframpton@scbiznews.com
Published March 2, 2009
What does South Carolina get for $8 billion?
Depending on whom you ask it’s either a legacy of federal debt that will saddle generations to come or it’s part of the boost our economy needs to begin to crawl out of the financial hole others have dug for us.
With the passing of a $787 billion stimulus bill last month, Congress directed about that amount to South Carolina.
The money is meant to create jobs, boost unemployment benefits, supplement funding for education and health care programs, promote renewable and efficient energy and more.
As Republicans and Democrats criticize the stimulus plan and, at the same time, hope it will rejuvenate the economy, state officials are left sorting through its 1,000-plus pages to understand what it will mean for South Carolina.
Much remains unclear, though already some have said the funds, especially infrastructure dollars, won’t go as far as many had hoped.
Road projects
Money to be sent to South Carolina for road infrastructure projects totals $463 million. Another $41 million will come to the state for transit.
Alec Brebner, planning director for the Berkeley-Charleston-Dorchester Council of Governments, put the money in perspective during a recent speech on the stimulus.
“That’s not enough money to pay for the new Cooper River bridge,” Brebner said. “That cost over $700 million.”
In the weeks leading up to Congress’s approval of the stimulus plan, local governments around the state rushed to put together lists of so-called shovel-ready projects. The lists included millions of dollars worth of projects that, if funded by stimulus money, could put people to work right away.
For all those projects, compiled by regional Councils of Governments and other planning organizations, the state has $150 million to spread around, said Pete Poore, spokesman for the S.C. Department of Transportation.
The stimulus bill specified that that amount, or 30% of the state’s total transportation funding, should go toward locally planned projects.
The S.C. Transportation Commission will decide which of the local projects proposed will get funding, and no decisions have been made so far.
The commission has another $315 million from the stimulus to be spent on projects statewide. In February, commissioners began making plans to spend $200 million of that money. They decided to divide the money into four main categories:
$100 million for highway resurfacing and rehabilitation.
$50 million for interstate maintenance.
$37.5 million for bridge replacements.
$12.5 million for safety improvements.
The Transportation Commission has committed to some projects within those categories. Charleston-area projects on the list are maintenance work for Interstate 26 between mile markers 209 and 219, replacement of a tidal creek bridge on Brickyard Road, and pavement remarking on Interstate 526.
Transportation Secretary H.B. “Buck” Limehouse said the department’s strategy for bridges is to fund several small bridge projects initially instead of one large project.
The stimulus package requires that the state spend 3% of highway money, or $14 million, on sidewalks and other enhancements. Projects that add sidewalks to highways and improve existing sidewalks will allow contractors that can’t handle major road projects to benefit from stimulus money, state officials said.
So far the Transportation Commission has approved spending about $16 million of the $41 million for transit:
$8 million for building and upgrading a total of 10 transit facilities.
$6.7 million for replacing small transit vehicles nearing the end of their lifespan.
$1.8 million for transit vehicle technology that will allow better scheduling of rides for the elderly, disabled and others.
In addition to transportation money sent to South Carolina, the stimulus package includes $1.5 billion for important national road projects. State governments can apply for that money, but details about what the money is meant for and when and how to apply are unclear, Poore said.
S.C. Transportation Commissioner Danny Isaac, who represents the 1st Congressional District, has said the Interstate 73 project that would connect Myrtle Beach to Michigan and Ohio might be a good candidate for the money.
Education and health care
State fiscal stabilization dollars headed to South Carolina through the stimulus plan allowed budget writers in the General Assembly to restore $1.7 billion in funding for education and health care in spending plans for the next two fiscal years.
The House Ways and Means Committee in late February budgeted about $219 million from the federal stimulus money to restore K-12 school funding in the state’s fiscal year 2010 budget. To receive the education stimulus funds, the state must maintain funding levels from the 2006 fiscal year and continue assessments required for No Child Left Behind.
The stimulus money would then be used to restore funding to 2007 levels. Money will be distributed to schools based on the Education Finance Act formulas.
Higher education would gain $119 million under the Ways and Means Committee budget for next fiscal year. Locally, the Medical University of South Carolina would see an additional $15.2 million, the College of Charleston would gain $5.6 million, S.C. State University would gain $3.89 million, and The Citadel would gain $2.58 million.
Federal stimulus funding for health care, such as Medicaid and mental health, is expected to bring in around $1 billion over the next two years. The money will go to the Department of Health and Human Services, the Department of Mental Health and the Department of Disabilities and Special Needs.
Details on how the health care money will be allocated are still unclear, officials said.
Energy money
The stimulus plan includes $50 million for the state energy program. State officials are not yet sure how that money will be spent, said Mike Sponhour, spokesman for the S.C. Budget and Control Board.
Sponhour said one possible use of the money is to give grants to schools and colleges to make their buildings more energy efficient. The office already has a program that offers low-interest loans for those improvements, but available funding does not meet the demand.
Also in the stimulus plan is $41.3 million for energy efficiency and conservation grants. Sponhour said 70% of that money will go directly to cities and counties from the federal government. The state must send a portion of the remaining money to small towns and small counties. No plans are in place yet for disbursing the money, he said.
Other categories
South Carolina’s $8 billion share of the $787 billion stimulus package contains money for dozens of other programs.
The state’s unemployed workers will get a boost in benefits. First-time home buyers can get an $8,000 tax credit. Housing agencies will receive new money, part of which will likely be targeted for buying and repairing foreclosed homes.
South Carolina ended up with its $8 billion based on funding formulas, said Hope Derrick, communications director for U.S. Rep. Jim Clyburn, D-S.C.
Congress used existing formulas for programs like Medicaid and education. For new monies, such as the state stabilization aid, Congress allocated money to states based on population, she said.
Staff writers Chelsea Hadaway, Mike Fitts and James Hammond contributed to this report. Reach Ashley Fletcher Frampton at 843-849-3129.
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