SCDOT Expresses Financial Concerns as State’s Population Booms

The South Carolina Department of Transportation (SCDOT) is voicing concerns over its ability to keep up with the state’s rapid growth, citing a significant funding gap for critical infrastructure projects. As South Carolina’s population and economy expand, the demand for road and bridge maintenance and construction is outpacing the agency’s current revenue.

The state’s population has seen a massive increase, particularly in coastal areas and the Upstate region, leading to heavier traffic and increased wear and tear on existing roads. SCDOT officials say the current funding model, which relies heavily on state and federal gas taxes, is no longer sufficient to address these growing needs. Gas tax revenue has stagnated due to more fuel-efficient vehicles and the rising popularity of electric cars.

SCDOT has been working to address a backlog of projects, but a growing number of new developments, businesses, and residential communities are putting even more pressure on the state’s transportation network. Without a more robust and sustainable funding source, officials warn that the state could see a decline in road quality and increased traffic congestion, potentially harming economic competitiveness.

The agency is urging state lawmakers to consider alternative funding solutions, such as raising vehicle registration fees, implementing a mileage-based user fee, or dedicating a portion of the state’s sales tax to infrastructure. The debate over how to fund future transportation needs is expected to be a major topic in the upcoming legislative session as the state grapples with the challenges of its rapid expansion.